Answer Happy

Dr. Mahalee Goes to London: Global Client Management Christopher H. Lovelock A senior account officer at an international bank is about to meet a wealthy Asian businessman who seeks funding for a buyout of his company. The prospective client has already visited a competing bank. place, you'll have significant cash to invest. This would be a good time to review your estate plans as well. Referring Dr. Mahalee to two competing firms, The Trust Company and Global Private Bank, Lee added: It was a Friday in mid-February and Dr. Kadir Mahalee, wealthy businessman from the Southeast Asian nation of Tailesia, was visiting London on a trip that combined business and pleasure. Dr. Mahalee held a doctorate from the London School of Economics and had earlier been a professor of international trade and government trade negotiator. He was the founder of Eximsa, a major export company in Tailesia. Business brought him to London every two to three months. These trips provided him with the opportunity to visit his daughter, Leona, the eldest of his four children, who lived in London. Several of his. 10 grandchildren were attending college in Britain. He was especially proud of his grandson, Anson, who was a student at the Royal Academy of Music. In fact, he had scheduled this trip to coincide with a violin recital by Ansón at 2.00 p.m. on this particular Friday. I've met an account officer from Global who called on me several times. Here's his business card; his name is Michael Johnston. I've never done any business with him, but he did seem quite competent. Unfortunately, I don't know anyone at the Trust Company, but here's their address in London. After checking into the Savoy Hotel in London the following Wednesday, Dr. Mahalee called up Johnston's office. Since Johnston was out, Dr. Mahalee spoke to the account officer's secretary, introduced himself briefly, and arranged to stop by Global's Lombard Street office around mid-morning on Friday. The primary purpose of Dr. Mahalee's visit was to resolve a delicate matter regarding his company. He had decided to retire and wished to make arrangements for the company's future. His son Victor was involved in the business and ran Eximsa's trading office in Europe. However, Victor was in poor health and was unable to take over the firm. Dr. Mahalee believed that a group of loyal employees would be interested in buying his company, if the necessary credit could be arranged. On Thursday, Dr. Mahalee visited The Trust Company. The two people he met were extremely pleasant and had spent some time in Tailesia. They seemed very knowledgeable about managing estates, and gave him some good recommendations about handling his complex family affairs. However, they were clearly less experienced in handling business credit, his most urgent Before leaving Tailesia, Dr. Mahalee discussed the possibility of a buyout with his trusted financial adviser, Pascal Huet, who recommended he talk to several banks in London due to the potential complexity of the business deal: need. The London banks are experienced in buyouts. Also, you need a bank that can handle the credit for the interested buyers in New York and London, as well as Asia. Once the buyout takes The next morning, Dr. Mahalee had breakfast with Leona. As they parted, she said, "I'll meet you at 1.30 p.m. in the lobby of the Savoy, and we'll go to the recital together. We mustn't be late if we want to get front-row seats." On his way to Global Private Bank, Dr. Mahalee stopped at Mappin & Webb's jewelry store to buy his wife a present for their anniversary. His shopping was pleasant and © 2012 Christopher H. Lovelock; updated 2016 by Jochen Wirtz. CASE 14
leisurely. He purchased a beautiful emerald necklace that he knew his wife would like. When he emerged from the jewelry store, he was caught in an unexpected snow flurry. He had difficulty finding a taxi and his arthritis started acting up, which meant that walking to the nearest Tube station was out of the question. At last, he caught a taxi and arrived at the Lombard Street location of Global Bancorp around noon. After going into the street-level branch of Global Retail Bank, he was redirected by a security guard to the Private Bank offices on the second floor. knowledgeable about offshore investment management and fiduciary services. Michael Johnston had looked into her office at 11.45 a.m. and asked her if she would cover for him in case a prospective client, a Dr. Mahalce, whom he had expected to see earlier, should happen to arrive. He told Costa that Dr. Mahalee was a successful Tailesian businessman planning for his retirement, but that he had never met the prospect personally, and then rushed off to lunch. The phone rang in Costa's office, and she reached across the desk to pick it up. It was Johnston's secretary. "Dr. Mahalee is in reception, Ms. Costa." He arrived at the Private Bank's nicely appointed reception area at 12.15 p.m. The receptionist greeted him and contacted Johnston's secretary, who came out promptly to see Dr. Mahalee, and declared: Mr. Johnston was disappointed that he couldn't be here to welcome you, Dr. Mahalee, as he had a lunch appointment with one of his clients that was scheduled over a month ago. He expects to return at about 1.30 p.m. In the meantime, he has asked another senior account officer, Sophia Costa, to assist you. Sophia Costa, 41, was a vice president of the bank and had worked for Global Bancorp for 14 years (two years longer than Michael Johnston). She had visited Tailesia once, but had not met Dr. Mahalee's financial adviser nor any member of the Dr. Mahalee family. An experienced relationship manager, Costa was Exhibit 1 Receiving a client on short notice would require a bank's vice president to rely on all her expertise and experience to clinch the deal. Study Questions 1. Prepare a flowchart of Dr. Mahalee's service encounters. 2. Putting yourself in Dr. Mahalee's shoes, how do you feel (both physically and mentally) after speaking with the receptionist at Global? What are your priorities right now? 3. As Sophia Costa, what action would you take in your first five minutes with Dr. Mahalee? 4. What would be a good outcome of the meeting for both the client and the bank? How should Costa try to bring about such an outcome? VOORW