The Santander Group was founded in 1857 in the city of Santander, in Cantabria, Spain. In 2007, on its 150th anniversary Santander Group had become one of the largest bank in terms of market capitalization and net profit. Santander had achieved rapid growth due to its mergers an acquisition.
Santander Consumer Finance (SCF) which was founded in 1987 is a division of Santander Group that focuses on the consumer financial sector. It first started with a partnership and shared ownership of the Royal Bank of Scotland, through this partnership Santander consumer finance was further developed and gave its leaders the believed that this knew found knowledge and expertise could be used on the rest of Europe. SCF continue expanding through mergers …show more content…
Auto Financing is also SCF highest revenue in each of the countrys it operates compared to the other products that SCF offers. In 2007 Auto Financing accounted for 61% of the total revenue of €26.7bn. SCF strategy is focused more on auto financing and consumer lending through the use point of sale (POS) while U.S. commercial banks focuses more on credit cards and mortgages. In Europe mortgages tend to have a fixed rate which is one of the reasons SCF does not focus much on this sector due to the low revenue potential. Many of the European markets that SCF operates in don’t rely or believe on the use of credit cards this is unlike the U.S. were consumption patterns are higher and most Americans have double the amount of consumer debt than the average person living in Europe. U.S. commercial banks focus on mortgages because in the U.S. interest can vary and its tracked more depending on the consumer’s credit score and their history of …show more content…
When a company grows through accusations and partnership like SCF has it encounters the possibility of the company’s mission and vision being lost in the process. Decentralization is good because it allows the local branches to have more autonomy but it leaves an information gap between local management and headquarter. It is crucial to not only be able to operate internationally and serve the local market but to maintain a strong connection between the entire enterprise. I would recommend Magda Salarich reevaluates all the current entities and focuses more on providing a central department that will help local managers make more informed decision pertaining to what products will be offer in their home country. It is crucial that the company continues to give local management power to make decision but it’s important that all locations have a good communication with headquarters. The benefit of having a central department that works with a global mentality is being able to have a clear picture of the entire organization and be able to leverage the knowledge acquire in an market and use it in other
Santander Consumer Finance (SCF) which was founded in 1987 is a division of Santander Group that focuses on the consumer financial sector. It first started with a partnership and shared ownership of the Royal Bank of Scotland, through this partnership Santander consumer finance was further developed and gave its leaders the believed that this knew found knowledge and expertise could be used on the rest of Europe. SCF continue expanding through mergers …show more content…
Auto Financing is also SCF highest revenue in each of the countrys it operates compared to the other products that SCF offers. In 2007 Auto Financing accounted for 61% of the total revenue of €26.7bn. SCF strategy is focused more on auto financing and consumer lending through the use point of sale (POS) while U.S. commercial banks focuses more on credit cards and mortgages. In Europe mortgages tend to have a fixed rate which is one of the reasons SCF does not focus much on this sector due to the low revenue potential. Many of the European markets that SCF operates in don’t rely or believe on the use of credit cards this is unlike the U.S. were consumption patterns are higher and most Americans have double the amount of consumer debt than the average person living in Europe. U.S. commercial banks focus on mortgages because in the U.S. interest can vary and its tracked more depending on the consumer’s credit score and their history of …show more content…
When a company grows through accusations and partnership like SCF has it encounters the possibility of the company’s mission and vision being lost in the process. Decentralization is good because it allows the local branches to have more autonomy but it leaves an information gap between local management and headquarter. It is crucial to not only be able to operate internationally and serve the local market but to maintain a strong connection between the entire enterprise. I would recommend Magda Salarich reevaluates all the current entities and focuses more on providing a central department that will help local managers make more informed decision pertaining to what products will be offer in their home country. It is crucial that the company continues to give local management power to make decision but it’s important that all locations have a good communication with headquarters. The benefit of having a central department that works with a global mentality is being able to have a clear picture of the entire organization and be able to leverage the knowledge acquire in an market and use it in other