...SUNY Brockport | CIBC Mellon | Case Study | | Nicolas Iannucci | 9/21/2013 | This case study will include a brief summary of CIBC Mellon’s history, mission, and structure; A SWOT analysis; Finally an “Analysis of Competing Hypotheses” with a prediction for CIBC Mellon’s future. | Part I. Introduction, Structure, Mission & Vision 1. Introduction: Founded in 1996, CIBC Mellon is 50-50 jointly owned by Canadian Imperial Bank of Commerce (CIBC) and The Bank of New York Mellon Corporation (BNY Mellon), the world’s largest custodian. CIBC Mellon provides asset servicing solutions, including custody, multicurrency accounting, fund administration, unit holder recordkeeping, pension services and securities lending services, for institutions and corporations. They have over 1,000 people supporting more than 1,200 clients. As of June 30, 2013, CIBC Mellon held more than CAD$1.2 trillion of assets under administration. CIBC Mellon is headquartered in Toronto, with offices across Canada. 2. Corporate structure: CIBC Mellon seems to have an SBU form of the multidivisional structure for implementing a related linked strategy. 3. Vision: ...
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...Strategic Profile History According to CIBC Mellon, the company is built on the strengths and traditions of their two parent companies, CIBC and BNY Mellon. With these two companies combined expertise, they were able to provide a unique advantage of delivering intelligent solutions that are global in scale, and provide superior value. CIBC Mellon states that they have a shared history and timeline ranging from 1867 to the present. This timeline begins in 1867 when the Canadian Bank of Commerce was established in Canada by the Honorable William McMaster, a prominent Toronto businessman and philanthropist. According to CIBC Mellon in 1869, Mellon Bank was established by Thomas Mellon, a well-known Pittsburgh lawyer and jurist. Over the years, Mellon established itself as one of the world’s top providers of financial services. In 1875, the Imperial Bank of Canada was established by Henry Stark Howland who was previously the vice-president of The Canadian Bank of Commerce. In 1961, The Canadian Bank of Commerce and the Imperial Bank of Canada merged to form the Canadian Imperial Bank of Commerce (CIBC). The transaction remains the largest merger of two chartered banks in Canadian history. In 1991, The R-M Trust Company was formed by Mellon and others in Canada and which provided transfer agency, corporate trust, and other trust services to corporate clients. In 1996, CIBC joined forces with Mellon to form a fifty-fifty jointly-owned company named CIBC Mellon Global Securities Services...
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...Jun-10 Nov-10 Sep-11 Feb-12 Apr-11 Jul-12 Dec-12 IN FOCUS February 21, 2013 Economics Why Gold’s Lustre Will Fade by Avery Shenfeld and Emanuella Enenajor Avery Shenfeld It’s been a glorious run. The gold price climbed by nearly 500% from 2002 to Chart 1 Global Inflation Fears Overrated (416) 594-7356 avery.shenfeld@cibc.ca present, making it one of the best performing asset classes. But already, many of the forces 8% Inflation Rate* Benjamin Tal (416) 956-3698 benjamin.tal@cibc.ca Peter Buchanan (416) 594-7354 peter.buchanan@cibc.ca Warren Lovely that made the yellow metal so attractive look to be turning over, and expectations for other supportive factors are overdone. Gold will have its day in the sun at other points down the road, but the clouds on the horizon could portend still lower gold prices over the next couple of years. 6% 4% 2% 0% BRIC G7 + Eurozone (416) 594-8041 warren.lovely@cibc.ca Emanuella Enenajor (416) 956-6527 emanuella.enenajor@cibc.ca Andrew Grantham (416) 956-3219 andrew.grantham@cibc.ca “text text text” The Money Myth Gold’s allure has typically rested on two concerns about the alternative asset: money. Either inflation alone, or in concert with a steep currency depreciation, is seen as a reason for holding gold rather than the most prominent alternative, the US dollar. In terms of current inflation, it’s hard to see what anyone would be worried about...
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...1. Provide a synopsis of the Jones and Shephard case. The company added extra obligations and responsibilities to be managed with the addition of the ISD department, which made the work load that already existed to become more of a deficit than a benefit to the company. The main focus was to resolve internal projects to a satisfying level and incorporate the needs of the external customers with sufficient supported outcomes of both. 2. Highlight three enterprise management causes/considerations and three project management causes/considerations for the situation. Include what seemed to be missing. From the business objective, the implementation of the ISD department was added too rapidly, and the addition of about 50 new employees created a budget increase where this could have been minimized or alleviated. The business did not have a well thought out plan when they added the ISD division, with no project supervisor that could have focused on this new implementation. The business did not allow the Division Director to focus on strategic planning and policy formulation as a main focus to help enhance the company. The projects X and Y were not guided by individual project managers, which caused the Director to be solely responsible for the daily performance of them. There was no head person or supervisor in place to deal with customer inquiries and needs. The Idea of the matrix would seem to be a proven effective internal structure for the department to follow that way...
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...Branchless banking is a distribution channel strategy used for delivering financial services without relying on bank branches. While the strategy may complement an existing bank branch network for giving customers a broader range of channels through which they can access financial services, branchless banking can also be used as a separate channel strategy that entirely forgoes bank branches. According to a 2011 survey, 62% of respondents said the Internet is their preferred banking method. Only 20% selected branch banking - a sharp decline compared with 2007 when 40% of respondents preferred to bank at a branch.[1]) Examples of branchless banking technologies are the Internet, automated teller machines (ATMs), POS devices, EFTPOS devices and mobile phones. Each of these technologies serve to deliver a set of banking services and are part of distribution channels that may be used either separately or in conjunction to form the overall distribution channel strategy. For example, Cooperative Bank of Kenya uses the Internet, ATMs, POS devices, EFTPOS devices, and mobile phones as technologies to deliver its banking services through a combination of distribution channels including stationary bank branches, mobile bank branches, ATMs, bank agents, Online banking, and mobile banking. All of these are distribution channels, yet only the last four are branchless distribution channels and form part of Equity Banks's branchless banking strategy (Equity Bank refers to its branchless banking...
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...CASE #18 CIBC – Barclays: Should their Caribbean Operations be merged? Recommendation: CIBC and Barclays should proceed with a merger of their retail, corporate and offshore banking operations in the Caribbean because of : 1. The need for economies of scale and scope. 2. The need to be more competitive in the light-globalization in the overall industry. Rationale: If CIBC and Barclays decide to merge their operations the new merged entity would be able to serve a more diverse region in the Caribbean. For example some areas currently served by CIBC are not served by Barclays, and vice versa. The merger would give both the companies an opportunity to increase their scope and access to more countries, since currently CIBC only serves 8 Caribbean countries where as Barclay’s serves 14 countries but together they could cover most of the Caribbean. CIBC has the newest technology in the region but the full efficiencies cannot be realized at the current market size. The existing ICBS system could be fully used with lower marginal cost through the merger. On the other hand Barclay’ BRAINS system which is currently outdated could be replaced with CIBC’s modern banking system at much lower costs. Although some would argue that merger has some disadvantages such as potential reduced employee morale due to layoffs/restructuring, and reduced customer satisfaction as a result of the reduction in employee moral or that the merger is costly to integrate the operations, including...
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...Background CIBC and RPM teams have been discussing the Bank’s mandate for enterprise investment distribution and servicing capabilities, and ways in which RPM’s solution can enable CIBC to introduce a consolidated client management suite of capabilities across enterprise groups such as Retail and Imperial Services. CIBC Mandates CIBC shared that its current retail wealth environment is not conducive to the customer, advisor and segment goals for Retail and Imperial Services lines of business. In particular, CIBC seeks an environment that will: • Simplify the Advisor experience – by reducing the number of screen personalities, front- and back-end solutions required to service customers to enhance servicing capabilities and efficiency levels...
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...Introduction On July 2nd 2014, CIBC, in partnership with Tim Hortons, launched the new “Double Double Visa Card”, which includes physical buttons built into the plastic. Cardholders can press one of two options on the face of the card – a button that accesses their Visa account or another that lets users redeem loyalty points for products at the company’s restaurants. In effect, the CIBC and Tim Hortons card allows users to earn points on purchases they charge to their no annual fee Visa card, collecting a cent on every dollar in “Tims Cash” rewards. While quite a bit of information has been written about the opportunities that this credit card will present CIBC in terms of growing their market share by securing this loyalty program, little has been written about the vast opportunities in market research that this card will offer Tim Hortons. As this paper will discuss, while Banks can grow their business and secure a large customer base by targeting popular retailers, the power that these retailers gain, by being given a reservoir of information about customer purchasing habits and behaviors, must not be overlooked. Moreover, as I will argue, this venture can change the entire marketing playing field as it gives a whole new meaning to data mining. Description of the Issue: The “Double Double Visa Card” is CIBC’s first step in an attempt to grow its business and credit card portfolio after loosing their...
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...CIBC Financial Service Representative Outbound Calls Submitted to: Aaron Dresner Submitted by: Amina Ali Alishba Chaudhary 5986222 Khanh Hoai Nguyen 9691839 Yolane Sima 6454046 Monday May 27, 2013 Phase I: Job Analysis MANA 362 Table of Contents CIBC 3 Job Description .............................................................................................................................4 Task ................................................................................................................................................4 Importance Rating.........................................................................................................................6 Dimensions......................................................................................................................................7 KSAs ............................................................................................................................................ 10 References....................................................................................................................................... Appendix CIBC The Canadian Imperial Bank of Commerce commonly known as CIBC is one of Canada’s leading financial institution. Through their three main businesses, retail and business banking, wealth management and wholesale banking, they offer a wide variety of financial products and services to over 11 million individual, small businesses...
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...1. Executive summary This paper will study a contract, common in business law; but more specifically, this report will analyze a credit card agreement from CIBC Visa. In studying this contract, it will show what a contract is and the legal framework that it implies. In studying the clauses of this contract, one will familiarize oneself with the legal terms and jargon that all contracts consist of. In explaining these clauses, one might be able to divide them into twelve main principles that a contracting agreement should consist of. This paper will then analyze the clauses and any potential flaws or problems, and later suggest changes that should be applied. These can be considerable change, for instance, adding or removing clauses or can be simply a small change, such as changing a few words in a clause or fixing a spelling error. This report will then move on to challenge the legal reasoning of the contract and finally explain the legal corrective measures that are identified at the end of this paper. All of these things will be tied into the general foundation of business law and how they all connect. 3 2. Introduction This paper is designed to explain a typical credit card agreement; first, it will explain all clauses and the true meaning behind the legal verbiage. Secondly, this paper will define and apply various legal principles as they apply to the contemporary legal environment. By exposing this information and relaying it in a means that is more comprehensible...
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...regulations are exercised to avoid conflict. There is a great deal of regulations associated with the finance and banking industry. c. Global Segments: It is very important that the Canadian market performs well because Mellon has a joint venture with CIBC who operates out of Canada. 2) The most important of the five industry forces are; a. Threat of substitute products: Mellon and CIBC offer a very unique service by combining both firms specialization, they are able to offer a one of a kind service for large firms. Therefore it is very hard for companies to find other superior service compared to Mellon’s. b. Rivalry among competing firms – Mellon and CIBC has a huge market share in this line of financial service. Mellon and CIBC offer the best services in its field while also offering the best customer service. The exceptional service combined with their long portfolio allows them to have the competitive advantage eliminating any rivalries. c. The industry is not attractive to new entrants 3) The two major competitors are UBS AG and Bank of Montreal. UBS AG is another financial services company that operates worldwide. I predict that this company will allocate more of their services to the U.S and Canada to compete with CIBC Mellon. Bank of Montreal offers banking services, they have a huge presence in Canada and also has locations in the U.S. I predict that they will create a joint venture with a financial service company such as UBS AG to compete with...
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...sustainability in the coming two years. Students are provided with forecasts made by financial analysts at CIBC. They are then asked to identify and evaluate the assumptions underlying these earnings forecasts. Since the CIBC report does not provide a forecasted balance sheet for KKD, the case can be used to let students learn how to build a forecasted balance sheet. Finally, the case can be used to discuss potential conflicts of interest between analysts and investors that might lead analysts to over-sell a growth firm such as KKD. Questions: 1. Analysts are predicting that Krispy Kreme will be able to perform highly effectively and continue to grow rapidly in the coming two years. Do you agree with their analysis? If so, why? If not, why not? 2. What factors did the CIBC analysts examine to forecast sales growth for KKD in the years ended January 2003 and 2004? What assumptions did they implicitly make about number of new stores and weekly sales per store (for both company and franchise stores)? What are their implicit assumptions about revenue growth from franchise operations and KKM&D? Do you agree with these forecasts? 3. What are the NOPAT margins that the CIBC analysts have forecasted for KKD for the years ended January 2003 and 2004? What assumptions were made about specific expense items (e.g. margins, G&A, D&A, taxes)? Do you agree with these forecasts? 4. The CIBC analysts do not forecast KKD’s balance sheet for the following year (ended January 2003). Make your...
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...First Caribbean came to be one of the most Growing banks in the Caribbean. First Caribbean was form by The Canadian Imperial Bank of Commerce (CIBC). CIBC Caribbean assets total up to 4.6 billion dollars and Barclays Place totaled 5.2 billion dollars. The merger of the banks is a major dilemma that Francis Joseph will have to contend with and make the best decision on which operating system will work best. First of all the main strategic goals of first Caribbean are to converge to one overall operating system as smoothly as possible. The chain of banks doesn’t want to alarm customers and scare them into withdrawing their funds from the bank. In order for First Caribbean to gain from the regional resources of the two powerful banking entities responsible for it genesis, First Caribbean had to develop a standard operating environment (SOE) and platform that would integrate its information and operations. Also, the new bank had to manage the operations and information systems in such a way that customer service would not be affected and mandatory financial reporting requirements could be achieved. CIBC made a well investment it it’s information systems in the Caribbean in 1999 though 2001.CIBC based there survey on Reliability and use in the industry, CIBC decided to use A-System on a global basis. CIBC see-Through analysis of these goals we find that the A-system would be the best fit. Although the system would likely...
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...Great steps to insure customer satisfaction from the use of their proprietary flour recipe totheir automated doughnut making machines. Question 2: What factors did the CIBC analysts examine to forecast sales growth for KKD in the yearsended January 2003 and 2004? What assumptions did they implicitly make about number of new storesand weekly sales per store (for both company and franchise stores)? What are their implicitassumptions about revenue growth from franchise operations and KKM&D? Do you agree with theseforecasts? Revenue Forecasts The CIBC analysts’ forecasts were constructed using per store information. • Company plans to add 62 new stores in 2003, mostly through area developers. • Revenues per new store: Initial boom, followed by leveling off. Also, not all new stores areopen for full year. • Revenue growth per new store has been impressive. Franchise store revenue growth is stillhigh, as the number of area developers increase, with store revenue patterns comparable tocompany stores. This is likely to persist for several years until revenues per store are similar for company and franchise stores. • Royalty revenues have been increasing over time since area developers pay higher royaltyrates than old associates (5.5% versus 3%). Question 3: What are the NOPAT margins that the CIBC analysts have forecasted for KKD for theyears ended January 2003 and 2004?...
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...understanding of building forecasted financial statements, by examining a company’s business model and strategy to estimate future performance. The case provides forecasts made by financial analysts at CIBC, which will be used to identify and evaluate the assumptions underlying these earnings forecasts. 1. Analysts are predicting that Krispy Kreme will be able to perform highly effectively and continue to grow rapidly in the coming two years. Do you agree with their analysis? If so, why? If not, why not? 2. What factors did the CIBC analysts examine to forecast sales growth for KKD in the years ended January 2003 and 2004? What assumptions did they implicitly make about the number of new stores and weekly sales per store (for both company and franchise stores)? What are their implicit assumptions about revenue growth from franchise operations and KK manufacturing and distribution? Do you agree with these forecasts? If so, why? If not, why not? 3. What are the NOPAT margins that the CIBC analysts have forecasted for KKD for the years ended January 2003 and 2004? What assumptions were made about specific expense items (e.g., margins, general and administrative, depreciation and amortization, taxes)? Do you agree with these forecasts? If so, why? If not, why not? 4. The CIBC analysts do not forecast KKD’s balance sheet for the following year (ended January 2003). Make you own balance sheet forecasts*. 5. In general, do you expect analysts’ forecasts for a company...
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