Strategic Leadership Assignment 2022

Running Head: Strategic Leadership
Strategic Leadership
Name of the Student
Name of the University
Author’s Note

STRATEGIC LEADERSHIP1
Botin’s strategy was to acquire large foreign banks which have some sort of financial
straits, some of these banks are located in developing countries in South America. Will this
risk spreading create value for shareholders? Under what circumstances could these
acquisitions create benefits for shareholders?
Botin’s strategy was to create value for the foreign banks with inclusion of financial
straits. The banks present in the South America follows four fundamental ways that help to
generate greater shareholder value. The points that are cover the risk and create value for the
shareholder focus on facing continuous pressure from the regulator and on the other side the
former’s expectation. The risk spreading factor will not halt the bondholders from generating
worth because the equilibrium within the shareholders is on an advanced level of funding and
then lately the investment is generated in the form of returns. The senior executives and the
board of directors of Santander is a bold risk taker who has grown extremely clever with the
merging, but at the same time he also generated sustainable profit machine (Sane & Halan,
2017).
The motives for profit under the statuses that will accommodate to the shareholders is
when he reached out to the prominent foreign banks that have a minimum of 10% market share.
The Botín's strategy had made him earn a billion dollar decision. A merger is the agreement that
was made between two existing companies in US to be as one company. The acquisition was a
smooth functioning of the growing organization that planned to expand as he bought the bank at
a bargain-basement price which was an independent subsidiary. The functioning of the bank was
kept very simple as the rival firm was growing. The bank offered loans to high quality risk
(Marsidi, Annuar & Abdul Rahman, 2016).

STRATEGIC LEADERSHIP2
Should Banco Santander increase its presence in the U.S. market? Why or why not?
Banco Santander is the 16th largest bank in the world with the accumulation of total asset
of $1,763.23. The Banco Santander United States of America should increase its presence in the
U.S. market as it comes headfirst to aid thousands of customers who drive home novel and who
uses the vehicle on a daily basis with financing through licensed dealers countrywide and even
on the basis of online with the assistance of Road Loans direct-lending program. The bank is
recognized for its ordinary surroundings, silent and peace, for its famous superiority of life,
national establishment and complete communal, in local services and communication structure
(Paz-Aparicio & Ricart, 2013).
Santander is increasing as the days are passing and its aim and focus is on attending the
ultra- wealthy as this global bank is putting more of resources on the private wealth in its arms. It
has a strong aim in adding tens of billions under the assets which is grouped under the
management within the period of next three years. The lenders of the Latin America will have a
strong presence to target the higher class of society in the countries like Brazil and Mexico. The
other part of the banks such as in UK and US where the Santander’s private bank is feebler.
These banks can be set as a target and the retail banking out lets can be harmed and its chain in
Miami. The shareholders of the bank are observing for an individual or a company that owns one
stock from the enterprise’s standard. As a subject of equity owners the shareholders are subjected
to capital gains or in case of fatalities and the dividend payments as the residual claimants of a
firm (Sapir & Wolff, 2013).