Organizational Culture - Asset One Bank

Organizational Culture Supplemental Case:

ASSET-ONE BANK

Asset-One Bank is one of Asia's largest financial

institutions, but it had difficulty entering the personal

investment business where several other companies

dominate the market. To gain entry to this market, AssetOne decided to acquire Taurus Bank, a much smaller

financial institution that had aggressively developed

investment funds (unit trusts) and online banking in the

region. Taurus was owned by a European conglomerate

that wanted to exit the financial sector, so the company

was quietly put up for sale. The opportunity to acquire

Taurus seemed like a perfect fit to Asset-One's

executives, who saw the purchase as an opportunity to

finally gain a competitive position in the personal

investment market. In particular, the acquisition would

give Asset-One valuable talent in online banking and

investment fund businesses.

Negotiations between Asset-One and Taurus Bank

occurred secretly, except for communication with

government regulatory agencies, and took several months

as Asset One's executive team deliberated over the

purchase. When Asset-One finally decided in favour of

the acquisition, employees of both companies were

notified only a few minutes before the merger was

announced publicly. During the public statement, AssetOne's CEO boldly announced that Taurus Bank would

become a "seamless extension of Asset One." He

explained that, like Asset One, Taurus employees would

learn the value of detailed analysis and cautious decision

making.

six months later, Asset-One's executive team still had not

decided whether to proceed with these partnerships.

The biggest concerns occurred in the investment fund

business where 20 of Taurus Bank's 60 fund managers

were lured away by competitors within the first year.

Some left for better opportunities. Six fund managers left

with the Taurus executive in charge of the investment

fund business, who joined an investment firm that...