ASSIGNMENTS:

1. Describe what "operational due diligence" implies in the mergers and acquisitions of financial services. How does it compare in importance with other forms of due diligence (e.g., financial due diligence)?
   
   
2. Describe financial products and processes in 1980, 2000, and 2010. (Make a distinction between consumer products and processes and commercial products and processes.)
   
   
3. How does the evolution of technology affect the product-process matrix?
   
   
4. a. Give a formal (possibly mathematical) definition of the operational synergy between two financial products.
   b. Develop a so-called ``operational synergy'' matrix of financial products. An entry in this two-dimensional matrix represents the amount of synergy obtained with marketing the two products simultaneously. Develop a matrix for consumer products as well as for commercial products.
   
   
5. Choose three financial consumer products (e.g., checking account).
   a. Describe all the possible customer activities associated with each product.
   b. Describe all distribution channels a customer may use with each product. Can you map the activities to distribution channels? Which distribution channels overlap?
   
   
6. How does customer loyalty depend on the type of product and on the type of distribution channel?
   
   
7. Explain the reasons for the acquisitions in financial services in the nineties.
   a. How can they be explained from the operational strategy point of view?
   b. Were the operational synergies being realized?
   
   
8. Explain the reasons behind the divestitures in the financial services industries. What are the operational causes and effects of these divestitures?
   
   
9. Consider the diagram that indicates the distribution channels as a function of the WEALTH and of the AVERSION TO TECHNOLOGY. Explain all the lines separating the disctribution channels (in your discussion of the lines discuss also the slopes of the lines).
   
   
10. Choose a type of financial institution. List all its products and all its distribution channels.
    a. Draw a graph that links each product to its distribution channel(s).
    b. Discuss of each link in the graph whether it is suitable for selling the product (e.g., opening the account) or suitable only to service the product.
    c. Discuss of each link its cost (or profit potential).