Kaupthing Bank HF and JP Nordika AB Acquisition (A‪)‬

Kaupthing Bank hf is a large financial institution that began as an investment bank and after five years, expanded operations into other Nordic countries. Kaupthing acquired JP Nordiska, a Swedish securities trader that is four times larger than Kaupthing Bank hf and is currently unprofitable. The immediate issue is to determine the processes to return JP Nordiska AB to profitability, however, the substantive issue concerns the degree of decentralization and the planning processes employed in a rapidly growing enterprise. The supplement Kaupthing Bank hf and JP Nordiska AB (B), product 9B04B002 outlines what happened.