The 2008 Financial Crisis, A List of Strategies

The 2008 Financial Crisis, A List of Strategies

Length: 551 words (1.6 double-spaced pages)

Rating: Excellent

Open Document

Essay Preview

More ↓
• 2008 crash caused international trade and FDI to drop significantly.
• To successfully negotiate the uncertain paths that a lot of firms are facing, managers must change their strategic approach in several dimensions.
• There might have to be a shift in strategy from looking at the integration of various countries to an increased focus on adapting to local conditions.
• A recent survey of HBR readers showed that before the crisis; 88% of managers felt that a global strategy was imperative, rather than a set of options that must be carefully evaluated.
• Some companies, due to the resource constraints have responded by offshoring, outsourcing and forging strategic alliances.
• Multinationals face three main changes when it comes to customers and product choices.
• Perspectives on skills and process innovations are changing.
• The rise of protectionism and the increasing worry about the environment is undermining the traditional global trade between the United States and China.
• The focus on integrating constituents’ parts of an enterprise and increasing the bound on these parts is becoming challenged by economic volatility resulting in the need to reduce their exploitation of cross-border differences.
• Language barriers are causing difficulty in comprehensibility between managers and employees causing the need for increased focus in modern communications.
• Increasing roles that governments are now playing post-crisis is becoming an important component of strategy setting.

The changing economic landscape has meant that companies must rethink their strategies and one way to do this is to split up the different components of strategy setting and align them with the best possible solution to cope with the change.
Strategy and Competition
The main adjustment that companies should consider is Strategy and Competition. The article describes the main requirement regarding this component as being an increased focus on shifting from the cross border differences and concentrating more on local differences. There is a strong belief that global strategies are long-term asset accumulation plays with relatively little risk. This is backed up by the fact that in a recent survey done by HBR; 88% of managers felt that concentration on global strategy was imperative. Since the bubble burst in 2008, many firms are being reminded that a significant portion of their global operations subtract, rather than add economic value.
The article also pointed out the need for companies from the developed world to widen their competitive focus. One way they could do this is to focus on the local competitors in areas which they feel they can generate the most growth.
Markets and Products

How to Cite this Page

MLA Citation:
"The 2008 Financial Crisis, A List of Strategies." 15 Jul 2019

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Competitive Strategies For The Foreclosure Crisis Essay

- Perhaps the biggest dream for many individuals is a place to call their own home. When a bank lends money in the form of a mortgage, consumers are able to purchase a home, which they can call their own. Mortgages and other consumer loans make up 71 percent of the industries total transactions, and this is the business most banks strive to obtain (Business Source Complete, 2015). However, since the 2008 recession and the sub-prime mortgage crisis, it has become hard for consumers to obtain mortgage loans and other lines of credit, even though the demand is still there....   [tags: Cheque, Bank, Banking, Credit card]

Research Papers
715 words (2 pages)

Essay on The Financial Crisis in Iceland

- ... When the bank expanded their operations in United Kingdom, Nordic countries and Luxembourg, loans were not backed by either deposits or reserve currency. Inability of the central bank: The central bank believed that the expansion of the monetary base didn’t have any impact on the real economic growth. Fiscal policy makers believed that by expanding government spending would boost aggregate demand and further economic growth. High leverage, lending: Given high leverage, lending operations were drive by debt....   [tags: bad banking, bad policies, investment]

Free Essays
619 words (1.8 pages)

The Global Financial Crisis Essay

- 1. Introduction 1.1. Background The Financial crisis was triggered in 2006 when US housing market began to crumble as the housing price reached their highest point after years of speculative price increase; many house owners defaulted on their loans, particularly subprime mortgagers (Archarya et al., 2009). Starting in mid-2007, the outburst of US housing bubble in the subprime mortgage leads to the global financial crisis that has been often so called ‘Great Recession’ (Verick and Islam, 2010)....   [tags: subprime mortgages, Great Recession]

Research Papers
3570 words (10.2 pages)

The Effect of Recent Financial Crisis and Regulatory Implications in Asia

- others because they have lesser buffers and even if they have, they are inadequate. It is after all the poor that engage in informal sectors and are usually the unskilled labors. It is also the poor that are experiencing unemployment more than the others due to lack of education. Now on the larger scale is the impact on the institutional level of the global financial crisis. The financial crisis began in United States in 2007 and spread to other countries. The crisis was triggered by a liquidity shortfall in United States banking system and resulted to the collapse of financial institutions....   [tags: Economics ]

Research Papers
1529 words (4.4 pages)

The Impact of the Global Financial Crisis on Chinese Economy Essay

- The impact of the global financial crisis on Chinese economy In the past two decades, China has enjoyed the one of the world’s fastest growing speeds. And for right now, China has been the most major contributor to the world economic growth. But in the recent years, the global financial crisis already did a huge damage to the Chinese growing economy. Especially in the aspect of exporting sector, China has been hit hardly by this crisis. The dramatic fall of external demand led to dramatic slowdown of the economy, and tens of millions of worker in the factor was laid-off during the crisis....   [tags: government, export, reserves, correlation]

Research Papers
2810 words (8 pages)

Essay about The Irish Banking Crisis

- Introduction Towards the end of the 1990’s, the Irish economy was booming, unemployment rate fell to around 4% and productivity was continuingly to grow. However, from 2002 onwards, the nature of the boom started to alternate. Labour output was no longer increasing, inflation was excessive and progression in gross domestic product (GDP) increasingly became related to the housing market. By 2006, although the public finances still seemed strong, this was misleading; the Irish economy was heavily dependent on the housing boom....   [tags: island nations, financial systems]

Research Papers
2040 words (5.8 pages)

Essay on The 2008 Presidental Election: Change vs. Experience

- November 4, 2008 marked a monumental moment in United States history. American presidential elections were revolutionized because of the 2008 presidential election between democratic candidate Barack Obama and republican candidate John McCain. After eight years, President George W. Bush., Americans were waiting for, what would be the key word of this election - change. The U.S. had the opportunity to witness history with either the first African-American president or first female vice president....   [tags: U.S. Politics ]

Research Papers
2565 words (7.3 pages)

Financial Analysis : Financial Management Essay

- In the context of financial innovations, I have witnessed so many ups and downs in China’s financial community. Tianhong Asset Management which is affiliated with Alibaba has become the largest fund company in China within one year while Ezubao, an A2P platform for financing, leasing and equity transfer, was accused of illegal fund-raising. This makes me constantly reflect on the defects of China’s financial market. Through years of financial education in the UK, I have gradually realized compared with developed countries, China’s financial market is extremely vulnerable to unsound financial regulations....   [tags: Corporate finance, Finance, Risk]

Research Papers
934 words (2.7 pages)

The Economy of the Netherlands Essay

- The economy of the Netherlands is a wealthy, but small trading nation. The Netherlands has a population of 16.8 million and it accounts for 0.24% of the world’s population, 3.6% of the world’s exported goods and 0.9% of the world’s GDP. While the Netherlands hold the 18th spot of the largest economy, it is the world’s eighth largest exporter of goods. The economy of the Netherlands was badly affected by the Global Financial Crisis due to its open economy. As a member of the European Union, and therefore subject to the EU's debt, the Netherlands are limited in how it can tackle its economic problems and has chosen to implement austerity measures which are clearly not working....   [tags: population, financial crisis, ]

Research Papers
602 words (1.7 pages)

Renewal Strategies Essay

- The idea that renewal strategies, like redundancy and restructuring, are necessary to achieve organisational goals comes from a supply and demand analysis of the job market. However Today’s working environment is seen to be excessively using these strategies in order to accomplish short term goals, resulting in businesses not looking towards their long term futures. This essay will address this issue by looking at the significance and implications redundancy and restructuring raise, that of reduced morale, satisfaction, motivation, and retention of the future workforce....   [tags: Redundancy , Restructuring, Goals]

Research Papers
1913 words (5.5 pages)

When it comes to customers and product; this article outlined three likely changes which might occur. The first was that multinationals would have to rethink their customer targeting. Going forward, companies will have to penetrate more geographical areas, channels and income levels. The second likely change that companies may have to make is to control or monitor the pressure that may come onto pricing. This will require companies to do some repositioning. The final thing that companies will have to change is the diversity expansion of their product range. In India, 1,000 plus R&D employees for Nokia took cultural differences into account when designing a new phone for the people of India. The results include a basic mobile phone that doubles as a flashlight for use during power outages and a phone designed to be shared by multiple people.

Operations & Innovation
With regards to operations of a firm; the rise of protectionism and increasing worry about the environment is undermining the traditional global trade between The United States and China. This may result in The United States having to import fewer goods from China.

Return to