| Author(s): Conklin DW; Hunter T Description: Through acquisitions and innovative management, Moscow Joint Stock Commercial Bank "Vozrozhdeniye" (V.Bank), had grown to be one of the largest banks in Russia. In a market with many competitors of varying strength and reliability in an unstablebusiness environment, V.Bank was attempting to become a true commercial bank, fashioned after the operations of western banks. The Canadian Imperial Bank of Commerce had undertaken a World Bank contract to assist V.Bank in this process. However, inOctober 1998, as the Russian economy grew worse, management of V.Bank wondered if it would be able to survive the crisis, let alone continue towards its goal of transforming its operations into those that were competitive with the western banks. This case is appropriate for courses where the goal is to provide students with the ability to understand and forecast broad economic forces and incorporate this information into a decision-making process. The student is forced to make strategicdecisions in a situation of uncertainty and instability, and in crisis mode, in an emerging market. Issues that need to be resolved include privatization, economic and monetary policy, IMF and World Bank intervention, societal stability, andgovernment regulation. Ivey Number: 9A99M008 Publication Date: 3/24/1999 Revision Date: 6/15/2004 Geographic Setting: Russia Industry Setting: Banking Company Size: Large organization Event Year Start: 1998 Subjects: Restructuring; Corporate Strategy; Financial Institutions; Political Environment Level of Difficulty: MBA Functional Area: General Management
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