COMPANY STRATEGIC ANALYSIS 2
Company Strategic Analysis
The Deutsche Bank (DB) became the banking concern of the decade when its stock value
dropped significantly in the year 2015. It has deep global connections in the world’s financial
market, especially in the European region, which may lead to a banking crisis upon its collapse.
The banking crisis in Europe was accelerated by the $14 billion fine imposed by the U.S. Justice
Department on the Deutsche Bank. The U.S. regulators imposed a hefty fine capable of
threatening the investment viability of the banks in the European region by increasing their debt
crisis.
The Deutsche Bank is one of the companies that are struggling in Europe as a result of
universal banking, which facilitates the combination of functions of a bank in such a way that
they are interlinked within the banking industry. A universal bank is, therefore, able to perform
commercial banking, investment banking, insurance banking, and development banking among
other financial activities. The debt crisis in the Deutsche Bank was, thereby, connected with the
rest of the European banking activities under the concept of universal banking.
The drop in stock value of the Deutsche Bank particularly dragged down the investment
banking function, which was mostly affected due to the avoidance by global investors to trade in
the European financial market. The Deutsche Bank set out a five-year financial restructuring
program that worsened the banking crisis in Europe. According to the financial restructuring
plan, a major lay off of a large number of its workforce would be required as well as a
withdrawal of dividends for the next two years.
The withdrawal of investor dividends for the next two years was aimed at raising
adequate funds for the Deutsche Bank to pay off its debts quickly. The International Monetary
Fund also released reports on the global risks facing European banks as a result of the
