Should CIBC merge with Barclay? Situation Analysis The early decades of the nineteenth century saw the creation of banks in the Caribbean primarily as a convenience for local governments. For much of the nineteenth century, most Caribbean banks operated as oligopoly with limited government influence, which directly translated into increased profits. However, over time, the banking environment could best be described as complex and dynamic. Competition has increased, driving a greater need for improved customer service, product innovation and cost-cutting strategies. To achieve this goal, the banking sector was undergoing major structural reforms characterized by mergers and acquisitions. On 23 July 2001 Barclays and CIBC announced that they were in advanced discussions which were expected to lead to the combination of their retail, corporate and offshore banking operations in the Caribbean. Analysis of the internal and external environment: strengths, key success factors and weaknesses – the internal environment You can use SWOT analysis as an important tool to identify the factors that influence the competitiveness and profitability of each company before the merger occurs. The intent is to provide the information base to support a clear and targeted decision-making process. Exhibit 1 provides…half of the document…also, the merger can occur in smaller steps. For example, the first phase may include changing the physical appearance of your branches and signage to convey a consistent vision and experience for your customers. This phase may also include effective communication to employees to educate them about the merger, assure them of their positions, and encourage them to participate in the merger. Second, the company can fully combine the bank's technology and information systems, which will allow the merged company to operate as a single entity and become fully operational. Management should implement the merger carefully and prudently, aiming for minimal disruption to customers, and should communicate widely to ensure all stakeholders are fully informed as they make changes.