The Spanish company has to decide whether they should enter the European market is fragmented consumer credit and have to make important organizational solutions strategy in the midst of the global economic downturn that followed the 2007 U.S. credit crisis. Since 2002, the consumer finance subsidiary of the Spanish bank Grupo Santander, Santander Consumer Finance (SCF) has grown into one of Europe's largest consumer finance companies seized the recent growth in Europe, the consumer credit market. With growing concern about the sustainability of household debt levels in Europe and the United States, in 2008, a new CEO, Magda Salarich Fernandez de Valderrama, had to decide whether it was the right time to expand or if instead it should be directed on consolidation. It also faces major organizational solutions strategy. What functions should be left to national affiliates to decide, and which should be centralized at the headquarters? What processes need to be standardized, and that left local initiatives?
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by Gunnar Trumbull, Elena Corsi, Andrew Barron Source: Harvard Business School 28 pages. Publication Date: September 17, 2010. Prod. #: 711015-PDF-ENG
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