BUSINESS STRATEGY DEVELOPMENT FOR MAXIMIZING CROSS-SELLING SYNERGY POTENTIAL BETWEEN CORPORATE BANKING DEPARTMENT AND RETAIL BANKING DEPARTMENT (CASE STUDY : BANK POWER)

• Main Author: Novendy Putra, Chrissena
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/53364
• Institution: Institut Teknologi Bandung

In a M&A situation, Cross-selling—delivering products and services traditionally sold to one set of customers to another set of customers—is a powerful way to realize revenue synergies. Challenges in realizing the total potential of cross-selling in M&A situations often involve the nature of synergies that involve multiple functional groups or divisions. As a bank that has just underwent a major consolidation process from a merger, cross-selling synergy between Corporate Banking Department and Retail Banking Department is of critical strategic initiative to capture low-hanging fruit business potential within Bank Power. However, in the attempt of maximizing the synergy potential between collaborating units in Bank Power, internal and external challenges arise. There are six core dimensions or critical elements that Bank Power should pay attention to in order to maximize the synergies potential in cross-selling initiative between Corporate Banking Department and Retail Banking Department in Bank Power. The six dimensions comprise Complementarity, Connection, Capacity, Capability, Compensation, and Commitment. The major issues in cross-selling synergy between Corporate Banking Department and Retail Banking Department in Bank Power revolve around three areas, the first one is related to the lack of integration and low attractiveness of product and service offering, the second one is the lack of internal alignment and collaboration, and the third one is the ability to cope up with the market dynamics, both from the macroenvironment and microenvironment. Hence, Bank Power need to focus on building cross-selling synergy in the three areas (1) product and service-related strategies (2) strategies related to ways of working focusing on alignment and breaking silos (3) strategies focusing on customer centricity and overcoming uncertainty.