The King of Prussia approved Deutsche bank articles of corporation on 10 March 1870, it was first time located in Französische Strasse 21 in Berlin and in same year it was listed under Berlin stock exchange. Two people founded deutsche bank Ludwig Bamberger, a politician as well as currency expert and Adelbert Delbruck was a private banker. It was named as Deutsche bank to indicate Germany's foreign trade because initially its function was in British and French banks. It established first domestic branch in Bremen in 1871, followed by Hamburg in 1872 and the other branches which was opened outside Germany were in shanghai and Yokohama in 1872 ,further London in 1873. After First World War Germany was hit by inflation, bankers stood on verge of ruin. Since 1970's deutsche bank began to take a global shape, it went under major acquisitions with banks in Italy, Spain, UK and United States. (The Deutsche Bank, 2008)
Current operation
Since nineties, bank went under more acquisitions and establishment of subsidiaries in abroad, because of political transformation in Eastern Europe and fundamental's reforms in the bank's organizational structure. For example it integrated with Morgan Grenfell and New York bank bankers' trust, which opened American market for deutsche bank. After millennium it further expanded into emerging markets like India, China and Russia. It is an internationally renowned bank and it has major offices in financial centers operating in London, Moscow, Toronto, New York, Sao Paulo, Singapore, Sydney, Hong Kong and Tokyo. There are three group divisions of Deutsche Bank: Corporate and Investment Bank (CIB), Private Clients and asset Management (PCAM) and Corporate Investments (CI). The bank provides various financial product and augmented services to different clients catering to corporate, institutional, private and business. The global banking includes corporate finances and global transaction banking. Corporate finance consist of M&A advisory, commercial real estate, corporate lending services and leveraged debt capital markets on the other hand global transaction banking includes business units which consist of cash management ,trust and securities services and trade finance. It also delivers services for corporate clients and financial institution with commercial banking products. (The Deutsche Bank, 2009)
Home market
Josef Ackermann, who is a CEO and chairman of the group executive committee, since 2002, have helped this bank to nurture and penetrate in global arena. This bank is listed in both the Frankfurt (FWB) and New York stock exchange (NYSE). It has headquarters in Frankfurt Germany, currently deutsche bank is leading global investment bank and leader in Germany (home country) and Europe. The German stock corporation act and German corporate governance code, which was last revised in June 2008, provides with essential framework for bank so as to continuously revise its development in domestic and international standards ,corporate governance code of new events and statutory requirement thus to make adjustment accordingly.(Annual Review , 2008).
Global presence
It is very well positioned with a global presence in over 76 countries, which employee 81000 people, it has created a strong base in emerging countries therefore it has good opportunities for business growth in fast growing economies like Asia pacific region, central and eastern Europe and Latin America. From past ten years the organization has moved from German-Centric organization, that is retail and commercial bank to global investment bank, therefore it is less reliant on its traditional markets. The bank has globally recognized as for its success and development and is awarded as IFR bank of the year in 2003 and 2005 and ranked first in Global Custodian 2009 for Three Consecutive Years. The biggest global markets competency of Deutsche bank is in bond markets, foreign exchange, over the counter derivatives, money market instruments and commodities. (The Annual Report, 2008)
Market Share of Bank
Deustche Bank's market share has increased to 22 %, which is a high ratio of percentage achieved by any available bank functioning globally .It has significantly diversified regionally and has a strong revenue collection from major economic regions which has enhanced its functioning all around financial prospects. Their foreign exchange business has significantly turned in an year and has been voted as the number one foreign exchange provider by the annual poll of Euro money magazine (Global Markets, 2008).This bank is ranked by revenues and profits as one of the banks which has made huge amount of investment in the world (Ackermann, 2009). The management report of Deustche Bank with consolidated financial statement revealed that its net sales in the year 2005 was 755 Euro million, followed by 781 Euro million in 2006 and 831 Euro million in 2007.The total net revenue of the bank in the year 2008 was 13,490 £ million. The net profit of these three consecutive years were 167 £ million, 152 £ Euro million and 19 £ million. As declared, from 31st December Bank's total assets were 2,202,423 £ million (Annual report, 2008).It has passed loans worth 269,281 £ million by the end of the year 2008.Its total liabilities are of 2,170,509 £ million and deposits of 395,553 £ million (Euro monitor International, 2009).
Range of products
This bank caters its product and services into Global markets, corporate finance, Forex Trading, Exchange Traded funds, Global transaction banking, Trade Finance, cash management, Systematic Funds, trust and securities etc.This bank mainly operates in personal Credit cards. Their credit card is positioned under bank's brands named as BankAmericard and Prestitempo.
Range of Credit Cards
Deutsche bank's range of cards offered in the global market is stratified under Bank Americard's personal cards. Its range includes Classic (Visa), Day card revolving (Visa), Platinum (Visa), Premier (Visa) and Black Master Card. Bank Americard also includes a range of co-branded cards which are categorized as Benetton card, Benetton Gold ,WWF Master Card ,Targa MasterCard etc.Americard emphasizes on electronic payments and also revolving credit cards. It is proactive and develops specialized products. (Deutsche Bank, 2008).
Credit Cards
Premium Credit Cards are prominent in the new developing areas for Example India, but the popularity of these cards is uniform across globally. They are also adopted in more affluent population centres, where economic growth is also tied to booming BPO and IT segments. For example in Asia-Pacific region, country like India has a substantial increase in number of credit cards circulation from 10 million in 2003 to 37 million in 2008.According to the Visa internal statistics there are more than one billion visa and credit cardholders worldwide. For instance more than 450 million of cards are used solely by the United States. (Woolsey &Schulz, 2009).Deutsche bank in just 3 years catered to six lakhs customers (Finance Asia, 2008).
Competitive Analysis
As deutsche Bank was the first bank to introduce credit cards in Italy, this gave mileage and a competitive advantage to outstand its competitors in Credit cards and Asset management. Its major competitors globally are Credit Suisse, Goldman Sachs, JPMorgan Chase, Dresdner Bank AG, Commerzbank AG, Citigroup and Merrill Lynch (Deutsche Bank, 2009).
Global Logics
The concept of global logic is basically an analytical global marketing skill which helps in developing global mindset of nationalised organisations. This concept was initially used by the globalised organisations i.e. MNC's as an imperative in market that necessitates an organisation to adopt global strategy. Possession of stronger global logics gives an authorization to pursue marketing operations globally and helps in bringing the global attention or else it suffers from negative competition in market.
The global logic is divided into seven multiple sources: 'global competitive logic', where a firm consistently runs into the same competitors in different countries; 'global industry logic', where it is beneficial for a company to leverage its operations into other geographic areas; 'global information logic 'and 'global purchasing logic', where customers have moved from local to regional and global information sources and purchasing, respectively; Global Customer Logic where customers would penalize a firm if it did not pursue a global strategy; 'global size logic', when investment requirements are not based on the number of countries entered; and 'global regulatory logic', where a relatively homogenous regulatory environment exists across multiple countries (Jeannet & Henessey, 2004).
Companies must determine which global logic source(s) is the strongest, and develop appropriate global strategies to accommodate it. Since no single business can face the same type of global logic pattern, therefore companies need to be ready to develop many different global strategies. Analysing Deutsche bank with different global logics: The competitive logic in deutsche bank admires same competitive environment and competitors in different countries but the market share differs (Appendix-2) the appendix show the world market share, whereby in global industry logic of Deutsche bank concerns to be beneficial due to the effective strategies of business operations in the desired industry like Co-branded products are expected to continue playing a fundamental role in the Deutsche Bank's strategy, The global information and global purchasing logic also applies in Deutsche bank it can be said because the increase in sales of the company compared to previous year (Appendix-3).
Hence, it shows the developed communication network of the company and the strong economy of the particular country in sense of global purchasing logic. The customer logic of any company entring in global market depends on the industry and company policies likely in Deutsche bank. The size logic depends on the company financials, strategies and market enviornment of the country like deutsche bank has major investments in europe and asia and least in arab countries. The regulatory logic is an crucial logic i.e. a company may skip any global logics or doesnt imply but a company have to admire the regulatory logic of different nations accordingly (Euromonitor International, 2009).
Current Affairs
Deutsche Bank is one of the leading global investment banks and also offers various value added services to its shareholders and customers. The bank is also on chart with the current issues and also plays a vital role in achieving its goals. Change in climate is one of the major issues and has a severe impact on the economy, society and human well being. Deutsche bank also plans to reduce the carbon emissions while creating a sustainable developed environment. The bank is using renewable sources of energy in countries like Germany, Italy, UK, US and Switzerland. It also targets that; they will use 67% of the total electricity from renewable sources in the year 2009. During this year, the bank also announced a 4-year commitment for delivering ecological efficient IT by 2012. The bank believes in eco - friendly techniques and aims in making all the business ventures free from CO2 emissions. (Frankfurt, 2009)
Deutsche bank has also been awarded as the best foreign exchange provider in the annual Global Finance Meet. It was awarded as the best FX provider because it has huge volumes of business transactions, market share, competitive pricing techniques, and use of innovative ideas. (Deutsche Bank, 2009)
Deutsche Bank plans to work for the welfare and empowerment of the society. It caters to all the sections of the society and aims at providing education to understand the different cultures. The bank also commits to help the children and AIDS orphans in different emerging and developing countries. Deutsche bank supported the NOAH program in empowering the African education, providing the people with adequate medical care and education. It has helps in combating poverty and helps in the eliminating it. (Ackermann, 2008)
Conclusion
Deutsche bank is a global organization which adhere relevant norms of corporate social responsibility. It focuses on emancipation in the social context with profit maximization. It is a bank which provides tangible and intangible assets to its customers with augmented services globally. They create opportunities through investments which are in favor of society. It also fosters creativity through art. A credit card issued by this bank has a potential to upgrade and capture majority of the bank and investment sector in the global arena in the upcoming years.
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