Millars bank case study

Millars Bank
Case Study
LOÏC MAILLARD
KEVIN LEBLOND

Table of Contents
I. Overview
II. Current Situation
III. Statement of Problems
IV. Options
V. Discussion

I. Overview
 Takes place in 1994
 Saudi Arabia, Middle East - UAE
 Millars Bank
 British Bank in Saudi Arabia
 Millars Bank’s branch in Saudi Arabia is
seeking a new Corporate Loan Officer

I. Overview
Women in Abu Dhabi
 Very traditional, Muslim based Culture
 Women account for 1-2% of the UAE’s high executive positions, 20% hold
administration positions, 35% are in the national workforce, and 80% are
classified as household workers.
 However, progress is being made:
 The percentage of female employees quadrupled between 1980 and 1990, with
the total number of national females working in all fields reaching 100,000 by 2010
 The right of UAE women to take part in the development of all areas of their society
is laid out in the UAE Constitution, adopted when the federation was founded in 1971
 Social justice should apply to all and that, before the law, women are equal to men.

I. Overview
Characters
Mr. Duncan
Vice President
Mr. Smothers
Bank Manager
Ms. Marsh
New Loan Officer
Head Office – London, UK
Millars Bank – Abu Dhabi, UAE

I. Overview
Exhibits
 Dialogue between Mr. Smothers and Ms. Marsh
 Series of faxes exchanged between Mr. Smothers and Mr. Duncan
 Janet Marsh’s CV
 Letter from Ms. March to Mr. Smothers

I. Overview : Exhibit n°1
Mr. Smothers and Ms. Marsh are meeting in Mr. Smothers's office in Abu Dhabi.
Smothers: Miss Marsh, I frankly don't know what to say. I would have thought, with your obvious knowledge of the Middle East, that you
would have disqualified yourself from this position.
Marsh: Mr. Smothers, I understand what you're trying to tell me, but I really don't see that we have a problem. Believe it or not, when I
was first transferred to Cairo five years ago, John, John Phillips, the manager there, had very much the same reservations you
have today.
Smothers: I know John. Know him very well.
Marsh: Well, it worked out beautifully…
Smothers: But, Egypt is not Abu Dhabi. Egypt is progressive, very liber-al, women are acknowledged as professionals. But in the Emirates .
Marsh: You don't want me to stay.
Smothers: It's not me. Please understand that I would be delighted to have you stay. But, but, I can't imagine, Miss Marsh, how you could
do your job. Our clients are conservative, traditional. They expect their principal loan officer to be a man. They won't do business
with us. They won't take us seriously.
Marsh: Why not?
Smothers: They just won't. It's simply not done. Unheard of, even.
Marsh: With all due respect, I think you're vastly mistaken.
Smothers: What?
Marsh: That's right. Mistaken. Our clients come to our bank to borrow pounds in order to finance projects that must be paid in pounds.
Nothing more, nothing less. What they are looking for is a loan officer who can place their loan at a competitive interest rate and
in short order. Isn't that correct?

Smothers: Yes. And no.
Marsh: Why no?
Smothers: Miss Marsh, you've been in corporate banking long enough to realize that personal relations between a client and a lending
institution are vitally important. I, I can't see how our clients could, would relate to you. And we're not the only bank in town either.
Why, just in Abu Dhabi alone there are at least two dozen foreign banks with whom we are in direct competition, not to mention the
other two dozen Emirate-owned banks plus all the other foreign banks with represen-tatives on restricted licenses who also can
occasionally take business away from us.
Marsh: Mr. Smothers, I am well aware of competition and the role of the loan officer. I am so well aware, in fact, that I feel that I can be as
effective, or more effective, than I was in Beirut and Cairo. I understand the Middle East. I've lived here for many years. I speak,
read, and write Arabic. I know the customs, the religion, the history, and, most importantly, the business of business. How many
other loan officers are fluent in Arabic?
Smothers: Not many. I'm not even myself. But that has not been a disadvantage.
Marsh: Has it been an advantage?
Smothers: No, I can't say that either.
Marsh: Besides, Mr. Smothers, let me remind you that this is a British bank, not an Arab bank and . . .
Smothers: But a British bank in an Arab country.

DATE: 18 July 1994
TO: P. SMOTHERS
FM: W. DUNCAN
RE: REPLACEMENT OFFICER
J. L. MARSH, REPLACEMENT FOR MATHERS, ARRIVING 1 AUG FOR ASSIGNMENT 15 AUG. MARSH FORMERLY CORPORATE
LOAN OFFICER, BEIRUT AND CAIRO. FLUENT ARABIC. HIGHLY SUCCESSFUL IN FORMER POSITIONS. CREDITED WITH
EXPANDING CAIRO LOAN OPERATIONS BY 30%. SHOULD BE ABLE TO ASSUME EXTENSIVE DUTIES IN MINIMUM TIME. PLEASE
REPLY UPON MARSH ARRIVAL.
CORDIALLY,
DUNCAN

Fax from Smothers to Duncan:
JANET MARSH ARRIVED YESTERDAY. HAVE SERIOUS DOUBTS AS TO HER ABILITY TO PERFORM DUTIES ADEQUATELY
GIVEN STRONG TRADITIONAL ARAB CULTURE HERE. PLEASE ADVISE ASAP.
Fax from Duncan to Smothers:
PLS CLARIFY MESSAGE RE MARSH.
Fax from Smothers to Duncan:
CLARIFICATION REGARDING JANET MARSH: FEEL ARABS WILL NOT DEAL WITH WOMAN LOAN OFFICER. EMIRATES
VERY TRADITIONAL, NOT ACCUSTOMED TO FEMALES IN BUSINESS. COULD SERIOUSLY JEOPARDIZE OPERATIONS.
PLEASE ADVISE.

I. Overview
Exhibit n°3
 Janet Marsh’s CV

Dear Mr. Smothers:
In relation to our conversation of yesterday, I feel some further clarification of my position is desirable.
Let me assure you, first, that I did not apply for this position in order to create a “test” case regarding the
employment of women in executive positions in the Arab world. It is simply that the qualifications posted for the
position were ideally suited to my talents.
Let me also assure you that I gave considerable thought to the possible complications involved, but I felt, and still
feel, that my own administrative skills are sufficient to overcome objections that arise initially from our
predominantly Arab clientele. My positions in both Beirut and Cairo have taught me much about how to proceed in
the Middle East, and I trust I can draw on those lessons to ensure a smooth and speedy transition from Cairo to Abu
Dhabi.
In Cairo I worked with a number of Saudi clients and, in general, had friendly and excellent relationships with them.
Although they were certainly traditional in their social views, I found them to be extremely progressive in their
business outlook. This progressive viewpoint extended to our client/banker relationship, where I was seen as “a
banker”. Their attitude was quite clearly one of financial pragmatism, i.e., if Millars employed me in such a position, I
must be qualified.

Additional anecdotes abound; however, in most of them “financial pragmatism” was more important
than “cultural tradition”. Had I been an Arab woman, things might have been different, but as an
Englishwoman working for an English bank, I have been allowed to stand outside the “cultural
tradition”.
In conclusion, Mr. Smothers, I simply urge you to grant me the opportunity to serve Millars Bank in
Abu Dhabi. If my performance is not satisfactory, I promise to step down from the position within
ninety days.
I thank you in advance for your consideration.
Very truly yours,
J. L. Marsh
2 August 1994

 Millars Bank is an International British Bank with branches around the
world
 The Abu Dhabi Branch needed a new Loan Officer
 Millars’s Head Office in London recommends a certain « J. L. Marsh »
 Mr. Smothers, Bank Manager of Millars Abu Dhabi thought it was a
man
 Very traditional culture in the Middle East :
 The Bank Manager is worried as to how women are perceived
Known facts

Intercultural differences
Strengths Weaknesses
• Mr. Smothers
− Local Employee
− Knowledge of local Culture
• Ms. Marsh
− English woman
− Speaks Arabic fluently
− Has already worked in Arab
Countries
− Already had Saudi Clients
• Mr. Smothers
− Does not speak Arabic
• Ms. Marsh
− Is a woman – Conflict with local
culture

Management
• Mr. Smothers
− Has worked in the branch for several
years
• Ms. Marsh
− Many experiences
− Highly qualified for position
− Has worked for over 12 years at Millars
Bank
− Worked alongside a good friend of Mr.
Smothers, John Phillips in Cairo
− Head Office recommends/approves her
− Motivated & determined
• Mr. Smothers
− Stubborn
− Not willing to take the risk
− Did not notice/Know beforehand
that the replacement officer was a
woman
• Millars Bank
− Sent a replacement officer without
taking into account local culture
− Decisions come from the top, local
manager did not have a say

Communication
• Millars Bank
− Apparent lack of communication between
Head Office and local branch
− Local branch Manager did not have a say in
the Head Office’s decision
− Usage of Faxes inefficient (But we’re in 1994)

III. Statement of Problems
 Ms. Marsh is very qualified for the position of Loan Officer,
but Mr. Smothers is worried faced to the local culture.
 Apparent flaws in internal communication, as Mr. Smothers
did not know the candidate was a women.
 Head Office did not take into account local culture

IV. Options
1st solution
 Status Quo – No changes, Ms. Marsh integrates Millars Bank Abu Dhabi
Advantages Disadvantages
• Compliance with initial decision
• No additional time lost for
recruitment
• Arab speaking Loan Officer
• May create tension/conflicts
with M. Smothers
• Possible client loss

IV. Options
2nd solution
 Accept Ms. Marsh’s proposal: Start with a trial period, and will step down if non
conclusive
• Ms. Marsh integrates Millars Bank
• Additional challenge for Ms.
Marsh, that will increase her
effectiveness
• Complies with Head Office
decision
• She will step down on her own if
not successful
• Possible Client loss
• If this doesn’t work, they will
have to recruit someone else

IV. Options
3rd solution
 Pair Ms. Mash with a Arab speaking/local man
• Keep Ms. Marsh experience &
Knowledge
• No cultural conflict – The man
will be in charge of clientele
• Additional cost ( Recruitment
and salary)
• Must find a compatible partner

IV. Options
4th solution
 Keep Ms. Marsh in the organization but transfer her to another branch
• Ms. Marsh will still work for Millars
Bank
• No Loan Officer in the Abu
Dhabi branch
• Need to find someone else
(Additional costs)
• Does not comply with initial
decision

IV. Options
5th solution
 Comply with local culture – Fire Ms. Marsh
• No cultural conflict • Loss of a good asset
• Time & money consuming –
Need to find a replacement
• Conflict with Head Office

IV. Options
Our recommendation
 2nd solution
 Accept Ms. Marsh’s proposal: Start with a trial period, and will step down
if non conclusive
• Ms. Marsh integrates Millars Bank
• Additional challenge for Ms.
Marsh, that will increase her
effectiveness
• Complies with Head Office
decision
• She will step down on her own if
not successful
• Possible Client loss
• If this doesn’t work, they will
have to recruit someone else

V. Discussion
 What do you think of Mr. Smothers' reaction when he realized that
Ms. Marsh was a women ?
 Do you think she can succeed in her job despite the traditional
Arab culture ?
 Do you think that gender is important in certain businesses / Jobs ?

Millars bank case study

Recommended

Recommended

More Related Content

Recently uploaded

Recently uploaded (20)

Featured

Featured (20)

Millars bank case study