Banking & Finance
Case Study Cross Banking – Group Assignment
Teckwah Industrial Corporation LTD.: The Internationalization of a Family Business
Before you start working on this case assignment, please carefully read the case study “Teckwah Industrial Corporation LTD.: The Internationalization of a Family Business” as a preparation for your group work.
Initial Situation
Assume that you are working as a senior private banker at a major universal bank in Singapore. Besides, a large private banking business unit, your bank also maintains a strong investment banking and commercial banking business across Asia. In addition, your bank has offices around the world.
Furthermore, assume that one of your biggest clients is the family office/ family trust of the Chua family, which owns Teckwah. Besides your own skills, the Chua family was attracted by the excellent research your bank offers with regard to listed equities and has trusted you to manage a diversified stock portfolio of approx. $40mn.
This is part of the personal wealth of the family and not linked to the family business. You are of course aware that the family owns a large stake in Teckwah, but you haven’t been able to learn more about their business activities, nor have you been able to explore any hidden cross banking potential for your employer.
Your boss has frequently mentioned the topic of cross banking offerings to the whole team. In addition, she also asked you to generate additional business exposure for your employer. In a recent meeting, she made it clear to you that she expects that you come up with some ideas on how to generate cross banking opportunities with the Chua family and their business activities, which – as she calls it – should be easy as “there are some low hanging fruits waiting for your” given their range of different businesses.
Assignments:
Against this background, please discuss within your groups the following assignments:
1) Give an overview of the Teckwah Industrial Corporation and its associated businesses and ownership structure!
2) What kind of cross banking business opportunities are you able to detect for your employer with regard to your current client (Chua family office) and Teckwah Industrial Corporation. You are expected to come up with at least three different proposals. You may consider developing a systematic framework in order to detect potential cross banking business opportunities within Teckwah and the family office/ family trust of the Chua family.
3) Describe each of your proposals in detail and also highlight the advantages and disadvantages of these proposals from the perspective of your client as well as of your employer.
4) Finally, rank your proposals and decide which one you want to prioritize and pursue first. What kind of next steps need to be taken in order to proceed with your ambitious project to generate significant cross banking opportunities for your employer?
