Analyzing Analyzes Santander Consumer Finance

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Abstract This article analyzes Santander Consumer Finance (SCF) written by Gunner Trumbull, Elena Corsi and Andrew Barron, Harvard Business School (2010). A Spanish company has to make a decision to expand into the European Consumer finance market, and also to make an important organizational strategy decisions in the middle of the world economic slump that followed the U.S. credit crisis from 2007. Since 2002, the consumer finance branch of Grupo Santander a Spanish bank, Santander Consumer Finance (SCF), had grown into one of the largest European consumer finance companies capturing the recent growth in Europe of the consumer finance market. Against a background of growing concerns about the sustainability of household debt…show more content…
HISTORY OF SANTANDER CONSUMER FINANCE Santander Consumer Finance (SCF) had entered the consumer finance business in the 1970’s creating Bansafina (1972) and Hispamer (1978) to begin their roots. They went on to expand internationally in 1987 when they acquired CC Bank in Germany. CC Bank had been in operation since the 1950’s specializing in car financing and had 51 branches under them. Over the years SCF would continue to enter different markets, while growing their business. Under the leadership of Mr. Inciarte, the company focused on growth going from a small business to major markets in Europe. By June 2008, SCF was operating in twenty countries accounting for 5% of the Groups workforce, which generated about 8% bank profits. As the company continued to grow new personnel was brought in to give the company a fresh outlook. SCF would continue to break into numerous markets throughout making it a global strength. Santander Consumer Finance (SCF) faces different challenges and risks when looking to enter into another country. When a company is looking to enter in these different countries the challenges it faces depends on the countries rules and regulations that their financial and banking systems imposes. There are those uncontrollable factors that Santander Consumer has to face, which can affect them as well in doing business. Cultural and

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