Royal Bank of Scotland

Royal Bank of Scotland (RBS) Name: Presented for the award of M. A International Business Management I hereby declare that this dissertation is all my own work, except text: Signature: _____________________ Date : ____ / ____ / _____ Abstract These papers discuss about one of the world’s largest banks Royal Bank of Scotland (RBS) Group. The discussion highlights the main strategies of Royal Bank of Scotland (RBS) group all over the world and also the analysis of these strategies whether these were successful or not.

What was the effect of Royal Bank of Scotland’s strategies on their business and on upcoming years. This overall study also covers the Michael Porter Theory to make its business strategy analysis. Table of Contents Reasons of this study:5 1. Introduction:6 1. 1 History:6 1. 2 Strategies:6 2. Bank of China:7 2. 1 Acquisition:7 2. 2 General Analysis:8 2. 3 Porter’s Theory analysis:8 3. ABN AMRO:9 3. 1. Acquisition:9 3. 2. General Analysis:9 3. 3. Porter’s theory analysis:10 4. Minimizing the assets:10 4. 1. Insurance line:10 4. 2. General Analysis:10 4. 3.

Porter’s Theory Analysis:11 5. Investment in UAE:11 5. 1. Launch of Credit Cards:11 5. 2. General Analysis:11 5. 3. Porter’s Forces Analysis:11 6. Retail and Commercial Banking:12 6. 1. Investment:12 6. 2. General Analysis:12 6. 3. Porter’s Forces Analysis:12 7. International network and infrastructure:13 7. 1. Investment:13 7. 2. General Analysis:13 7. 3. Porter’s Theory Analysis:13 8. Merchant Acquiring:13 8. 1. Investment:13 8. 2. General Analysis:14 8. 3. Porter’s Forces Analysis:14 9. Raising Capital:14 9. 1. Rights Issue and ADR:14 9. 2. General Analysis:15 9. 3.

Porter’s Theory Analysis:15 10. Islamic Banking:15 10. 1. Innovation:15 10. 2. General Analysis:15 10. 3. Porter Theory Analysis:16 11. Group Size Reduction:16 11. 1. Selling Weaker Operations:16 11. 2. General Strategy:16 11. 3. Porter’s Theory Analysis:17 12. Toxic Assets:17 12. 1. Writing-off Assets:17 12. 2. General Analysis:17 12. 3. Porter’s Forces Analysis:17 13. Reduction in Work Force:18 13. 1. Firing 9000 Employees:18 13. 2. General Strategy:18 13. 3. Porter’s Forces Analysis:18 14. Incentives:18 14. 1. Performance Related Bonuses:18 14. 2. General Analysis:19 5. Conclusion:19 16. References:21 17. Diagram:26 Reasons of this study: The study is concerned about the strategic initiative analysis taken by Royal Bank of Scotland. The bank is under study due to following reasons • One of the largest bank of United Kingdom • Operating successfully in 22 countries with substantial profits and ROE (about 20%). • Acquisition of large groups of the world like ABN AMRO, Bank of China etc. • Upt0 15% participation in GDP of countries like China, U. S, Germany, France, Russia etc. • Strong distribution channel segregated region wise. Strong blend of different cultures due to work force from different ethnicities and cultures. 1. Introduction: 1. 1 History: Royal Bank of Scotland (RBS) is one of the leading banks in world known for their risk management and corporate development. Royal Bank of Scotland was founded in 1727 but first branch was opened in fast growing trading city of Glasgow in 1783, its first office was opened in London in 1874 and expanded into England in 19th century. Innovation is an important value creation tool of the company as it was the first bank ever to offer the overdraft facility in 1728.

In the twentieth century it spread out rapidly, getting hold of several English banks including Williams Deacon’s Bank, Mills & Co, Glyn and Drummonds Bank. In the year 2000, it acquired National Westminster Bank in the largest banking takeover ever in Britain and so inherited a rich heritage covering more than 200 banks that had made up NatWest. In year 2005 it formed a strategic partnership with Bank of China and after two years, in the biggest takeover in banking history, it led a unique conglomerate to acquire the Dutch bank ABN AMRO. Royal bank of Scotland group currently operates in more than 50 countries around the world.

Currently the bank has about 700 branches worldwide. The bank employees about 180,000 people from all over the world, involves different people from different ethnicities. 106000 employees are from United Kingdom (U. K) and others are from rest of countries. 1. 2 Strategies: Royal Bank of Scotland (RBS) is large group and operates in more than 50 countries. To operate in different countries, sell products to people with different cultural and ethnic backgrounds, it is required to have different strategic initiative in international markets.

The study focuses on finding the strategic steps taken by the Royal Bank of Scotland to develop market, sell products and maintain a balance between assets and liabilities of the bank. The study aims to analyze the strategies and initiatives taken by Royal Bank of Scotland in order to strengthen the customer base and increase the value of its assets. The company took following strategic step in international context which will be discussed in detail in study • $3. 1 billion investment in national bank of China so as to control the 10% of the Chinese market. • Acquisition of ABN AMRO Bank in 2007. Minimizing the Royal Bank of Scotland insurance line of business so as to compete with global financial crunch faced all over the world. • Launch of credit cards in UAE and record sales made ever in 2008. • Continued investment in development of retail and commercial banking franchise across the region • International network and infrastructure strengthening procedures including successful leverage of combined product strength and customer franchises to significant new business. • Focus on merchant acquiring so to reduce the number of competitors in global markets since 2007. Issue of largest right shares and ADR’s in 2008 so to attract global investors. • Innovation toward Islamic financial instruments since 2005. • A restructuring story with opportunities to shrink or sell weaker operations, to cut costs and to reposition, regaining stakeholder confidence and relative value • Royal Bank of Scotland reported a smaller-than-expected write-down of 334 million on toxic assets in 2008 • Management errors lose 9,000 Royal Bank of Scotland’s employees their jobs • Royal Bank of Scotland group planned to give bonuses to its directors and employees.

The detailed analysis of these strategies is given below. 2. Bank of China: 2. 1 Acquisition: Royal Bank of Scotland group is the second largest banking group in United Kingdom and Bank of China is one of the big four state-owned commercial banks of the People’s Republic of China. That was a big deal as it was done between two large banks of the world and was a great investment by Royal Bank of Scotland group as they made $3. 1 billion investment in Bank of China for at least three years, so as to control the 10% of the Chinese market. 2. 2 General Analysis:

The strategy made by Royal Bank of Scotland (RBS) group to invest in large groups all over the world could be very good and in favor of Royal Bank of Scotland (RBS) if the conditions support this strategy. It can be said that this strategy was not made according to the financial conditions of the world. As at the time when that strategy was made, all the world was going to involve in big financial crisis and the banking sector was badly affected with this crisis. So due to the financial crisis and big loss in banking sector has failed that strategy of Royal Bank of Scotland (RBS). 2. 3 Porter’s Theory analysis: Michael E.

Porter’s five forces analysis is a framework for industry analysis. According to him five forces determine the competitive intensity and therefore attractiveness of a market. Attractiveness in this context refers to the overall industry profitability and an unattractive industry is one where the combination of forces acts to drive down overall profitability which approach pure competition and same the case is in the banking sector, as there are a lot of competitors in banking sector and there is also a threat of substitute product and many other factor which are the cause of overall downfall for the banking sector.

In such situation to take advantage over its rival firms innovation is should be made and offer the products at low price in order to attract customers towards their business and increase its sales. This sometimes drives profit up to zero. As Royal Bank of Scotland (RBS) made a lot of customers such as by giving loans but due to these financial crisis customers of Royal Bank of Scotland (RBS) could not be successful in its strategy and have to write-off loans etc. And bear a loss because of this investment. 3.

ABN AMRO: 3. 1. Acquisition: ABN AMRO was one of the biggest largest banks in Europe and had operations in about 63 countries around the world. This was a biggest takeover in the history that a consortium comprising Royal Bank of Scotland group with other groups acquired ABN AMRO in 2007. 3. 2. General Analysis: Royal Bank of Scotland’s (RBS’s) consolidated financial statement of 2008 shows the big loss of its banking history. The loss suffered by Royal Bank of Scotland (RBS) contains 50% portion from the ABN AMRO.

The strategies of Royal Bank of Scotland were not going to be successful as that was a crucial time for the economy in all over the world and in that time they have to adopt the defensive strategy not the aggressive strategy. Due to this decision Royal Bank of Scotland (RBS) have to bear a big loss and then in October 2008 British Prime Minister announced a Government bailout of financial statement. The treasury introduced $64billion of capital into Royal Bank of Scotland (RBS) Group to stop the happening of financial sector collapse.

The affect of this capital investment was that the government got the ownership in Royal Bank of Scotland of 58%. The problem in banking sector was due to the overall business crisis and the companies which had obtain heavy loans, car leasing, credit policies etc were unable to repay it to bank because their businesses were collapse and they were not in the position of repaying to the banks. Due to these crucial results many other groups were interested in purchasing ABN AMRO from the Royal Bank of Scotland (RBS) group.

The chief executive of the group Sir Fred Goodwin offered his resignation because of the consequences of this rescue. ABM AMRO did a lot market in Master cards and this was also the case that they have to bear much loss. Royal Bank of Scotland (RBS) group is now selling its assets which are not much profitable to reduce its cost and to invest in the other markets and innovation. 3. 3. Porter’s theory analysis: According to the Michael Porter’s theory analysis the industry where a lot of rival firms exist, firms has to make the sales at lower price or making profit to zero in order to obtain benefits over its rival firms.

There are also barriers for the exit in the market as Royal Bank of Scotland (RBS) won’t be selling of its portion of ABN AMRO. It would not be an easy matter to detach the bank’s whole sale division with its renowned international network. Royal Bank of Scotland’s investment in ABN AMRO was bad investment at all. 4. Minimizing the assets: 4. 1. Insurance line: As Royal Bank of Scotland Minimized the Royal Bank of Scotland’s (RBS’s) insurance line of business so as to compete with global financial crisis faced all over the world.

Royal Bank of Scotland group announced $34. 4 billion net loss in the year ending 2008. 4. 2. General Analysis: As the bank is not in the position to provide much against the business insurance and Royal Bank of Scotland is itself insuring its assets and taking government assistance for surviving. This was good strategy of Royal Bank of Scotland group to minimizing the insurance as it is facing the very bad conditions of economy and in such a situation it is better to reduce the areas which are becoming the major cause of its loss o not profitable.

In such a situation the good strategy is defensive not aggressive as all the investments are going down. RBS’ insurance program runs a risk of being too short-sighted. The Royal Bank of Scotland group is going to sell its insurance business to the Berkshire in order to reduce its annual costs and Berkshire is also considering for buying the insurance business of Royal Bank of Scotland (RBS). This time Royal Bank of Scotland group is trying hard to reduce its size by selling its assets and to generate its own capital to support its business’s profit generating assets.

This is good strategy and will be beneficial in the future at all. 4. 3. Porter’s Theory Analysis: According to Porter’s theory analysis firms have to bear the loss in the industry where there are a lot of rival firms existing. For making customers and getting advantages over its rival firms, a firm has to reduce its price to the low level and also bear expenses for making innovations where firm is not making profit from that market. This led the firm to the overall loss.

In this situation it is good to raise capital by selling loss bearing assets and invest in the profitable assets to make more innovations. 5. Investment in UAE: 5. 1. Launch of Credit Cards: Royal Bank of Scotland introduced credit cards in UAE. This is exceptional opportunity for the Royal Bank of Scotland to introduce their targeted products and services to their card holders. Royal Bank of Scotland is committed to bringing innovative products to the UAE to satisfy the growing sophisticated needs of cardholders. 5. . General Analysis: According to this strategy in UAE Royal Bank of Scotland achieve record sales in the year 2008 and now they are expanding their business in this line in UAE and it will be very beneficial for the Royal Bank of Scotland group in the future as recently UAE declared that they are now out of financial crisis through which all the world is affected. This is favorable time and market for the Royal Bank of Scotland to recover some of the portion of its loss that affect badly to Royal Bank of Scotland.

Royal Bank of Scotland made many sales in UAE in the year 2008 and following this great success Royal Bank of Scotland is offering more opportunities and expanding its business in UAE as it has got positive response from UAE. This was very successful strategy by royal Bank of Scotland and will be successful in future. 5. 3. Porter’s Forces Analysis: According to the Michael Porters five forces industry analysis a company should take such a type of steps to take advantages over its rival firm as in the market where there is a lot of variety of such products is available there is a big threat of substitute products and according to the

Porter’s industry analysis a firm should provide its customers different products as compare its rival firms. It can be done by changing prices, improving the product quality and innovation to attract customers. In this way Royal Bank of Scotland provide a lot of benefits and facilities to its customers in UAE and take the innovative step and provide such services that were never been provided by it rival firms. This was the main cause behind the success of this strategy. 6.

Retail and Commercial Banking: 6. 1. Investment: Royal Bank of Scotland (United Kingdom) serves over 12-15 million personal customers all the way through the Royal Bank of Scotland’s (RBS’s) brands in the retail market. It Continued investment in development of retail and commercial banking franchise across the region and offer a full variety of banking products and associated financial services including mortgages, deposit accounts, and credit and charge cards. 6. 2. General Analysis:

The strategy was not bad overall as it acquires the big groups like ABN AMRO and many others, there was no support by the economic conditions and in such a way it can be said that this strategy should not be followed in these bad situation when every business was requiring capital amount for the survival. In such a situation where the entire world is suffering with great financial crisis, we can say that this strategy was not good because it was not made according to the market’s condition and hence Royal Bank of Scotland group was not successful in this strategy.

At that time they should adopt defensive strategy rather than Aggressive strategy. Due to this Royal Bank of Scotland Group made a record loss in British corporate history by writing-off mortgages, loans etc. 6. 3. Porter’s Forces Analysis: According to the Michael Porter’s five forces analysis where there buyer has power in the market and many suppliers are available to serve, in such a situation to get benefits over its rival firms company’s strategy should be to attract customers toward their business by improve in product or services, change in price and sometimes the competition between rival firms drives profit to zero.

In such market buyer has the power to get product at low price as he is in that position. Such factors moves firm’s profitability to zero. 7. International network and infrastructure: 7. 1. Investment: Royal Bank of Scotland did a lot in increasing its International network and infrastructure which increase its assets and its worth all over the world. Royal Bank of Scotland group did this by including successful leverage of combined product strength and customer franchises to significant new business.

They provide its customers easy loans and more opportunities to attract towards their banking. 7. 2. General Analysis: It was good strategy by the Royal Bank of Scotland group to make its customers and increase its international network but due to the financial crisis all over the world especially in the banking sector Royal Bank of Scotland (RBS) group has to face largest loss in the British corporate history in the year ending 2008. Major portion from the loss of Royal Bank of Scotland (RBS) was related to the international investment. 7. 3.

Porter’s Theory Analysis: According to the Porter’s theory there was also the threat of substitute products and in such a situation and to increase its customers all over the world the firm has to offer its products at the low price by reducing profit to zero or at an acceptable low level. In this way firm has to bear the loss in the market where a lot of rival firms exist. 8. Merchant Acquiring: 8. 1. Investment: Royal Bank of Scotland group focus on merchant acquiring so to reduce the number of competitors in global markets since 2007. 8. 2. General Analysis:

This was the good strategy by the Royal Bank of Scotland Group as by this they will maximize their profit and improve their profit level in the financial statement. In past this also create good affects on their profit. Innovation in the market is good step to reduce the numbers of competitors in the market. Royal Bank of Scotland made good strategy for investing in that to reduce its competitors in the market and to acquire the maximum share in the market. As with fewer competitors in the market, the firm can charge good price to its customers.

This was the good strategy for the Royal Bank of Scotland in the past and will be profitable in the future as well. 8. 3. Porter’s Forces Analysis: As by the porter’s forces analysis in the market where there is much competition the company should make such steps to take advantages on rival companies and this can only be done by making innovations, reducing its prices and investing in such assets which are profitable or will be profitable in future. It is possibility that the market where there is much competition between rival firms, competition there drives profit to zero or at minimum level.

As by Michael Porter’s theory in such a market the buyer has the power as it has a lot of share of the market. So in such conditions the strategy to reduce its competitor’s is very good for the business. 9. Raising Capital: 9. 1. Rights Issue and ADR: Bearing the big loss in the year 2008, on 22 April 2008 Royal Bank of Scotland group announced a right issue and ADR’s in the same year to attract the global investors. This was largest right issue in British corporate history.

Royal Bank of Scotland bears a big loss in the year 2008 and to cover the capital shortage they have to take such steps and to compete further their competitors in the market. 9. 2. General Analysis: This was good strategy for raising money and to support the group with as there were very crucial situation in economy and RBS need capital amount to support its business. They were success in this strategy in such a way that they underwrite their right issues because due to the bad conditions of Royal Bank of Scotland group the share holders were unwilling to purchase more shares of it as the share price was going down.

Through this additional capital amount Royal Bank of Scotland (RBS) will make investments in innovations and in profitable assets. 9. 3. Porter’s Theory Analysis: According to Michael Porter theory’s analysis this was important for Royal Bank of Scotland group to take such a step for supporting their group with additional capital and to enhance those areas that were profitable for them because in this way they were able to provide their customers good services to maintain its share in market and to satisfy its customers with new innovations in their business and more better products to satisfy customer needs. 0. Islamic Banking: 10. 1. Innovation: Royal Bank of Scotland group started Innovation towards Islamic financial instruments since 2005. As Royal Bank of Scotland sees big growth opportunities in Islamic investment banking expecting good asset growth rate. 10. 2. General Analysis: This was a good innovation and good strategy by the Royal Bank of Scotland group to make investment in Islamic banking.

Royal Bank of Scotland made its main focus in the areas such as debt capital markets, equity capital markets, corporate finance and risk management, and structured products and investment, which includes private equity. As there is great competition in the market and many competitors are working in the same products and investment so it is also a successful strategy to make innovations in Islamic banking sector. 10. 3. Porter Theory Analysis:

According to the Michael Porter’s five forces, it is better for a company if it wants to get benefits over it rival firms to provide its customers such products that are their need and in their range. Another important thing in his analysis is innovation to get success in the market and to take customers towards their business. Royal Bank of Scotland made good strategy and this will be successful for them as Islamic investment is not in much crisis as America and Europe are affected by this financial crisis.

This will be good innovation for Royal Bank of Scotland as it earned a good revenue from Dubai due to its innovations and services that no one provide them. 11. Group Size Reduction: 11. 1. Selling Weaker Operations: Royal Bank of Scotland group now have the opportunities to shrink or sell weaker operations, to cut costs and to reposition, regaining stakeholder confidence and relative value because due to the recent loss Royal Bank of Scotland group have to suffer a lot and they decide to sell its weaker portions such as insurance related portion etc. 11. 2. General Strategy:

This is the good strategy by the Royal Bank of Scotland as for the survival and good progress it need a capital amount and it is difficult for Royal Bank of Scotland to raise more shares because the stake holders are not willing for more investment in Royal Bank of Scotland as it is facing a big loss and due to these losses its share price is decreased in the market. So this is good and successful strategy by selling off its loss bearing assets and save the annual cost. This will positively affect the overall profitability of Royal Bank of Scotland (RBS) group. 11. 3.

Porter’s Theory Analysis: According to the Porter’s forces analysis Royal Bank of Scotland should make innovations in the banking sector to provide its customers more new products according to their needs and those products and services that no one in the market is providing in the market. This include in decreasing the prices and improving product differentiation. This type of goals can be achieved by investing more capital amount because according to Michael porter’s forces analysis competition between rival firms drives profit to zero but gives profit in the long run.

In this situation selling of asset that are not profitable for Royal Bank of Scotland is good and successful strategy as this will reduce the cost of loss bearing assets and will focus on profitable assets and innovations. 12. Toxic Assets: 12. 1. Writing-off Assets: Royal Bank of Scotland group writes off its 334 millions toxic assets in 2008. As Royal Bank of Scotland made a lot of investment in Dutch bank ABN AMRO, Bank of China etc and they made a lot of banking in mortgages and loans to make its customers in the market. 12. 2. General Analysis:

The strategy of investing more and more in the loans in order to make customers was not good according to the situation. As Royal Bank of Scotland (RBS) made investment in these assets in such time when the financial conditions were against every business especially the banking sector. This was not a successful strategy and Royal Bank of Scotland has to write-off its lot of mortgages and loans. 12. 3. Porter’s Forces Analysis: According to the Michael Porter’s forces analysis firm has to give such benefits to its customers by reducing its profit and gain benefits over its rival firms.

Due to the financial crisis these strategies give a big loss to Royal Bank of Scotland (RBS) group. 13. Reduction in Work Force: 13. 1. Firing 9000 Employees: According to the recent strategy of Royal Bank of Scotland group nearly 9000 of employees will lose their jobs. This due to the recent lose that Royal Bank of Scotland group has to bear in the year ending 2008. This was very bad year for Royal Bank of Scotland in all of its history. 13. 2. General Strategy: This is good strategy from the business prospect by cutting up 9000 jobs all over the world.

By this strategy Royal Bank of Scotland group will save its annual cost that they are wasting for nothing because after the business crisis Royal Bank of Scotland group sold many of its assets all over the world and so the associated employees cost should be reduced. By saving this cost Royal Bank of Scotland will invest this amount in other assets to improve its position. As Royal Bank of Scotland is largest bank of the world but due to the last year loss it’s goodwill is badly affected in the world. 13. 3. Porter’s Forces Analysis:

According to the Michael Porter’s forces analysis Royal Bank of Scotland have to compete it rival firms in the market to get its status back and in this way its profit can be drive to zero in order to satisfy its angry customers and share holders and to make innovations they need additional capital. To face these circumstances Royal Bank of Scotland Group decided to cut off 9000 employees from their jobs and save the annual cost and use it for new strategies. 14. Incentives: 14. 1. Performance Related Bonuses: In the year 2009 Royal Bank of Scotland group has the plan of bonuses to its directors and employees. 4. 2. General Analysis: This is good decision because after a big loss now they can do better for the Royal Bank of Scotland and in this their employees will be motivated as they are awarded with the bonuses. These were the bonuses for the successful employees in 2008 not for the others who were failed. Royal Bank of Scotland group also fired seven of its non-executive directors. This performance related bonuses increased the motivation of employees who were already working hard for the Royal Bank of Scotland Group.

In the future these employees will work hard for the success and removing the bad affects of losses faced by the Royal Bank of Scotland group in year 2008. 15. Conclusion: The overall strategies used by the Royal Bank of Scotland were average but the big investment in acquiring the Dutch bank ABN AMRO was really very bad and it was also called bad investment. Dutch bank ABN AMRO proved to be failure for Royal Bank of Scotland group because Royal Bank of Scotland group report record losses 2008 and largely attributed to the ABN AMRO.

As Royal Bank of Scotland group was selling its assets that were the cause of loss and increasing the annual cost of Royal Bank of Scotland but it would not be easy matter to sale ABN AMRO because according to the Michael Porter’s five forces analysis if there are barriers to entry for a company in a competitive market, there are also barriers to exit for the firms. This may be due to the specialized assets, high exit cost or interrelated business. Due to these losses Royal Bank of Scotland group has lost its lot of goodwill in the market and its customers and shareholders are very angry from their bank.

This was a wrong decision to make such a heavy investments in the time when there were financial crisis all over the world. RBS investment in BOC was also loss bearing investment. They write-off a lot of mortgages and loans. At that the strategy should be defensive not aggressive for the Royal Bank of Scotland group. Royal bank of Scotland group’s investment and strategy used for UAE was good one as at the time of crisis they made record sales from the UAE and innovations and investment in Islamic banking was another good investment made by Royal Bank of Scotland Group.

Innovations are also a critical success factor to get the advantages in a market where there are a lot of competitors and they are offering the same products. Royal Bank of Scotland (RBS) reduced its employees by 9000 all over the world as to reduce its annual cost. According to this analysis RBS is doing very well in innovation and providing better products and services to its customers. This approach is proving to be good and successful for RBS at present and will be more profitable in the long run. 16. References: The research is mostly qualitative and variables cannot be measured on a qualitative base.

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Impact of Culture on International Marketing. Available at SSRN: ? http://ssrn. com/abstract=1267863 • Chopra & Komal (2005). Cross Cultural Configuration in International Business Organization (February 22, 2005). Available at SSRN: ? http://ssrn. com/abstract=687625 • Settlements, Bank for International, The Banking System in Emerging Economies: How Much Progress Has Been Made? 2006. BIS Paper No. 28. Available at SSRN: ? http://ssrn. com/abstract=1188516 • Arteaga, J. , Arbelaez, H. , & Jeffus, W. M. (2006). ”Cross-Border Investment in the Latin American Banking Sector”.

International Finance Review. Vol 7. pp 419-438 • Buiter, Willem H. , Optimal Currency Areas Scottish Economic Society/Royal Bank of Scotland Annual Lecture, 1999. Scottish Journal of Political Economy, Vol. 47, Issue 3, August 2000. Available at SSRN: ? http://ssrn. com/abstract=237064 • Barker, Kate M. (2001) “The Policy Implications of Economic Imbalances: Scottish Economic Society Royal Bank of Scotland Annual Lecture”. Scottish Journal of Political Economy, Vol. 49, pp. 235-248, 2002. Available at SSRN: ? http://ssrn. com/abstract=318746 • Timmons, H. Giridharadas, L. (2007). ” “International Business; With ABN AMRO, Barclays Sees Asia Growth Atoning for Cuts Elsewhere” Contributed reporting from Mumbai and Julia Werdigier from London. • Success factors in international business during ABN AMRO World Weeks Available [Online at] ? http://www. group. abnamro. com/pressroom/pressreleasedetail. cfm? ReleaseID=277980 • “Exceptional international managers” Australasian Business Intelligence,  2003 Available [Online at] ? http://findarticles. com/p/articles/mi_hb4692/is_200302/ai_n17725141 • Official Report of RBS.

Available [Online at] ? http://files. shareholder. com/downloads/ABN/0x0x146029/65e5706f-c8bd-4400-b24f-e637b2c60074/aa_pres_ir_050207_part1_strategy. pdf 17. Diagram: RBS’s Strategies Successful Un-successful ———————– Investment in Bank of China Investment in ABN AMRO Reduction in Assets Investment in UAE Retail & Commercial Banking International Network & Infrastructure Merchant Acquiring Raising Capital Investment in Islamic Banking Group Size Reduction Toxic Assets Reduction in Workforce Incentives ———————– 4 RBS