...credit rationing, however, the recent financial crisis, known as 'Global Financial Crisis', the banks have faced trouble in financing themselves (Agur 2012). According to Hull (2009) global financial crisis was created by residential mortgages and its related products, for example, multiple level of securitizations. However, covered bonds which backed by residential and commercial mortgages or public sector loan could be the efficient tool to bank in financing themselves for credit crunch in turbulent times. This essay will identify the advantages and disadvantages of covered bonds and then it will critically analyse whether covered bond is efficient debt instrument to get fund in turbulent times or just one of the products of banks to get finance. According to Vonhoff and Prokopczuk (2012) covered bonds were established in eighteenth century in Europe but its potential development has started in late 1990s (Schwarcz 2011). Covered bond is one of the debt instruments and the investors of covered bonds are protected by high valuable collateral which are the 'cover pool' of mortgages and 'public sector loan' in case of default (Prokopczuk, Siewert & Vonhoff 2013). Even though, covered bond is already one of popular debt securities in European securities market, it is almost new debt security to the rest of the markets of other countries, such as the securities market of USA (Schwarcz 2013). However, the recent severe financial crisis is could be one of the main reasons to use...
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...Initiating a Forward-Looking Debate: Article Review 1. Main purpose of the paper This paper aims to initiate a forward-looking debate on generating ideas on how to move forward, in time of the global economic downturn rather than to provide definitive answers on the origin of the crisis. The global financial crisis has created a structural break in the global economy. Businesses thus need to reassess the strategies they have developed to operate in a highly integrated global economy. Initial reactions have often been defensive as companies downsize and call for government support. However, times of crisis are also times of opportunity. In the short-term, opportunities arise for instance in ‘value for money’ segments. Long term opportunities require managers to develop foresight to use the crisis to position themselves for the next upswing. Business leaders thus need to develop scenarios of the new economy, and envisage their role in it. The author felt that it is time to look forward to addressing the questionon how can businesses can survive the crisis, and position themselves for the recovery whenever it may come. 2. What is the Global Financial Crisis Trends The financial crisis originated from problems in the financial sector in the U.S.A. and the U.K. At the core appear to have been unsound lending practices by financial institutions, notably unsound lending practices in the private mortgage lending sector and unsatisfactory risk management practices (Haldane...
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...A SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis, long used by businesses large and small, is particularly relevant in periods of financial crisis and down economies. SWOT evaluations often provide a snapshot of the "state of a business," and the basis for a "road map" to help management plan future direction. The financial crisis (2007 to 2009) that gripped the world created a climate that made a SWOT analysis even more important. Strengths The financial crisis identified some surprising strengths in many businesses. Down economies reward companies that exhibit creativity, expense control, boldness, fearlessness, and confidence. Companies unafraid to introduce new products, manage (or raise) prices, upgrade customer service, and conserve capital often uncover strengths they didn't realize they possessed. Common strengths that are valuable during a financial crisis include fair prices, quality products, superior customer service, and a brand that consumers trust Weaknesses SWOT identifies both internal and external weaknesses. Unfortunately, during a financial crisis, internal weaknesses are not only exposed, they are often magnified. Among the most common shortcomings during down economies are marginal customer service, product quality deficiencies, and lack of superior financial controls. Lack of "staying power" has led to the demise of numerous entities during financial crises. Common weaknesses during a financial crisis involves having too much debt and...
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...community served. Leaving a legacy for the next generation and giving young people an opportunity to learn a new skill and concepts. · What concerns you about being an entrepreneur? The concerns revolve around not having the resources to continue running the business. The product or service rendered is no longer needed and not having the technology to advance. The business failing because of bad decisions that were made. 1. The global economic crisis has negatively impacted many entrepreneurs. Those who began their businesses during better times have found themselves in severe financial trouble. However, the downfall in the global economy has also presented a new opportunity like never before for individuals to become entrepreneurs. Although many businesses have failed as a result of the economic crisis, it has proven to be fertile ground for many. I believe the global economic crisis has forced many people to look at their own skills and talents as a viable means of supporting themselves and their families. The worsening economic crisis has arguably become the biggest motivator for those who have been contemplating entrepreneurship. The exciting attributes of being an entrepreneur is setting your own standards. Creating jobs for the community and putting resources back in the community served. Leaving a legacy for the next generation and giving young people an opportunity to learn a new skill and concepts. · What concerns you about being an entrepreneur...
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...CRISIS PLAN IMPLEMENTATION Once an organization has developed and approved the necessary crisis management and communication plans, we work with the client to properly brief and train all individuals responsible for implementing them. Besides, there is also a developing formal crisis management programs which helps managers and others prepare for unexpected high-impact events that threaten an organizations health and well -being. They also work to ensure that any infrastructure development, resource acquisition, or staff realignment that may be necessary takes place in a timely and effective manner. Below is their plan implementation advisory services include: The Implements of Crisis Management The Implements of Crisis Management * Training key executives plus communications, security, HR, operations, and other line managers and employees on how to implement the plan. * Providing ongoing advice and support on plan implementation, including facilitating inter-departmental or cross-functional integration of processes, and design and implementation of crisis operation centers, war rooms, and response procedures. * Monitoring issues, trends and events that may affect or trigger a crisis. * Reviewing, editing and providing editorial support for key document templates and live documents required under the plan. * Designing and facilitating war game exercises for the organization’s senior management, board, crisis team, and other staff. * Providing ongoing...
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...| Communication Crisis Paper | Chyvonne Daniels | | HCS 320 | 9/22/2014 | Polly Hanson | When it comes to a certain matter or even and crisis at the time an individual should have an essential communication method to keep things in order and under control with others by not trying to creating a panic attack at all. But there are so many different kinds of communications methods that can be used for a certain matter at the time with a difficult situation that is going on that very moment. Another thing also to is an communication method can be very effective without any type of creating a panic attack about things that are on the radio station and the social media along with the television stations that is dealing with the emergency management office that is getting information about a certain report in the town of the areas That might have life threatening matter at the time. The main purpose of my paper will be covering the contingency plans with many organization and the public as well also to without trying to creating a panic attack with the community also you find in my paper how all groups and individuals are communicating with one another outside of the organization crisis and the potential advantages along with the challenges inside of the public eye of the crisis matter or situations at the time in a certain place or town that can improve a lot more of better communication skills. In the healthcare field today that could be more incorporate when...
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...experiencing a crisis or challenging event. It can happen at any given time without warning which can devastate any organization not prepared. A new approach to crisis management is emerging which progresses beyond a purely reactive response and creates fresh opportunities for improved organizational development. There will be discussion on the traditional event approach to crisis management, which focuses on preparing for and responding to a major adverse occurrence, and discusses the new process approach, which reshapes crisis management within a broader range of management activity. Crisis prevention instead of just crisis response necessitates moving responsibility from the operational to the executive level, and the discussion will explore how crisis management activities can be clustered together and integrated to optimize organizational effectiveness. Virtually nothing can damage organizational reputation and financial performance more rapidly and more deeply than the impact of a major crisis. Yet many organizations continue to delegate responsibility for crisis management to operational middle managers, while reputation management increasingly secures a place at the executive table. However, a significant trend in crisis management is now emerging which has the potential to reshape the discipline with substantial implications for the development of organizational structure and design. This trend is the advance of proactive crisis prevention as opposed to reactive crisis response...
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...During the 2000s, there were few national investment opportunities in Europe because of low interest rates that caused government bonds to produce low returns. The solution for European investors was to turn to America where they could buy mortgage-backed securities, an investment that was considered safe and that yielded higher returns than government bonds (Fligstein and Habinek, 2011). When the American mortgage market broke down it quickly spread to other countries, and the global financial crisis was a fact. In this paper I will start off by explaining the background for the mortgage crisis in the US. Afterwards I will try to elaborate how this could spread across the world and make the crisis global. Finally I will discuss why this crisis has been so slow in resolving itself since many countries still struggle in the aftermath of the crisis. My thesis is that: The decline in investment opportunities in several countries in the European Union caused investors in some of the richest countries to buy mortgage backed securities from the US. When these mortgage backed securities defaulted, the crisis turned global. The American mortgage crisis: When the American banking sector gradually got deregulated during the 80s and 90s, the banks came up with new and creative ways to reach out to new costumers. Basically it is conventional economic wisdom to not lend out money to people with bad financial credibility, but an innovation in financial alchemy changed this. By the...
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...Research Assignment: “Asia’s performance during the global financial crisis has highlighted its flexibility. This flexibility, in part, arises from transformations undertaken in response to the Asian financial crisis a decade earlier.” Student Name: Eric Rodrigues Student Name: Mehmet Edib Unal Introduction The Asian Financial Crisis occurred during the year 1997-1998, and is explained well in brief by Galina Hale “East Asian countries experienced severe banking crises. Nonperforming loan ratios skyrocketed because of prior excessive risk taking and most banks had to be recapitalized by their governments.” (Hale 2011, p.3) After ten years, The Asian Financial Crisis was followed by The Global Financial Crisis in 2008. “The precise genesis of the global crisis remains subject to debate. (Lin 2012, Treichel 2012, p.3) “We will argue that global imbalances were the result of the large excess demand in the U.S. over an extended period—the financing of which was made possible by the reserve currency status of the US dollar. “This excess demand resulted from both the public debt” and “the overconsumption by households.” (Lin 2012, Treichel 2012, p.3) “As shock waves of the global financial crisis (GFC) reached East Asia in autumn 2008 immediately after the collapse of Lehman Brothers in September, the region faced the task of evaluating and reassessing the economic cooperation efforts of the previous ten years” (Katada 2011, p.274) Thus by evaluating and reassessing...
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...Understanding customer behavior in retail banking The impact of the credit crisis across Europe February 2010 Contents Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Executive summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Key findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 The impact on trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Loyalty: the end of an era? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Reasons customers look elsewhere Measuring satisfaction Conclusion 8 How Ernst & Young can help . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Contacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Introduction ...
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...escalations of global crises. With the monumental wars of the 20thcentury mankind, after putting in place institutional mechanisms, thought that the world would experience some measure of respite from crisis. This is not to be as the 21st century, even within its first quarter has witnessed horrendous increase in local, regional and global crises. From communal conflicts to internecine civil strife, to widespread terrorism; much of the capacity of man to confront these challenges has been overstretched. Non state actors have taken up the public space with such vehemence in inflicting harm and suffering that the prospects of combating them seem to multiple their numbers. Added to all these are natural disasters across the globe which farther the unintended consequences. No region of the world is exempted. As it is today, chances are if you watch any TV channel, listen to the radio, read newspapers or magazines, there is news about crises – fire outbreaks, flood disasters, terrorist attacks, kidnapping, explosions, car accidents, plane crash, cholera outbreak, invasions, arm smuggling, ship mishap, political, ethnic and religious violence including others too numerous to mention. The urgency to institutionalize a genuine crisis prevention mind-set instead of just focusing on crisis response is a total priority now! More so, the use of technology to bridge cultures, solve problems, and bring about crises resolution and prevention has been a well established fact. The internet’s...
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...Will Greece survive the debt crisis once again? Problem Description Greece was on the verge of bankruptcy in 2010 due to the understatement of their deficit figure for years. They managed to survive this financial crisis with international bailout of 240 billion euros. Although bailouts did manage to provide some time to Greece to improve their financial position, but it came at huge expense. In order to improve the economy, it became necessary for Greece to reduce government spending and increase taxes. Consequences The international bailouts managed to delay Greece economic problem for few years but could not get rid of it completely. Moreover, the unemployment rate in Greece rose to above 25 percent during that time period. The bailouts money that supposed to improve Greece financial position was actually used to pay off debt. As a result, Greece economic situation never recovered and government still have to pay huge amount of debt to its creditors. Greece failure to reach an agreement with Europe to arrange money to pay off its debt could result in huge financial crisis and political changes in Greece as they may have to leave Eurozone and seek help from other countries. Some people believe that if Greece go bankrupt it would not have major economic impact on the Europe as it is just a small part of the euro economy and it would be better off to cut it loose. While, other argue that financial problem in Greece would have a major impact on the world and Europe specifically...
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...Coca-Cola India Teaching Notes Introduction The Coca-Cola India case offers students a unique opportunity to look inside a crisis for one of the world’s most important brands as it occurs inside a developing nation. The case focuses specifically on issues related to brand, reputation, and Corporate Social Responsibility (CSR), and the intersection of all three. History reveals that companies with the strongest brands, most proactive policies of social responsibility, and deepest relationships with their consumers are the most attractive targets for NGO attacks. The very assets that define these leading companies provide the fodder NGOs are looking for to further their agendas. Global Exchange’s attacks on Starbucks over fair-trade coffee and against Nike over sweatshops in Asia, like the Center for Science and Environment’s (CSE) attack on Coca-Cola India, are all examples of NGOs using companies’ powerful reputations against them. Being an attractive target, however, need not imply vulnerability. Organizations and their leadership teams need to start thinking systematically, proactively, and strategically about their reputational risk from crises concerning CSR (corporate social responsibility) and take actions to mitigate these risks before they become reality. The CSE’s allegations of pesticide-contaminated Coke and Coca-Cola India’s response provide an important example of the world’s most important brand under attack and the steps taken in the aftermath...
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...Chinese companies are moving to Bangladesh to make clothes even though China is a worldwide leader in the manufacturing businesses. Absolute advantage involves the specialism of trade benefit among countries, well as according to the law Comparative advantage is that ‘when one Country has fewer efficiency then it has absolute disadvantage with detail to the further Countries production of both merchandises, there is still a source for commonly useful trade’ Simatele (2013). Heckscher- Ohlin (H-O) theory is founded on two theories, the H-O theorem and the factor price Equalisation theorem. The following essay will outline the trade established on Absolute advantage, H-O Theorem, the theory of Comparative advantage and the way the theory opportunity cost can be used to explain Comparative advantage then examples will be given to illustrate the movement of Chinese firms to Bangladesh to make clothes. Lastly a conclusion will be given to sum up the essay. Absolute advantage according to Adam Smith’s innovative account of the case for trade, enclosed in The Wealth of Nations (1776), was contained in positions of absolute cost variances among countries. That is, Smith supposed that both countries will have advantage from the...
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...Communication and Crisis Janelle Ovunda HCS/320 January 28, 2013 Kimberly Foster Introduction Being the director of a regional Emergency Management Office during a crisis I will have to have control. Without control the crisis will turn into a catastrophe. With an effective contingency plan in place this will help me to stay in control of the situation. I will also have alternate plans put in place just in case my key plans do not happen as expected. It will take everyone involved inside and outside of the Emergency Management Office working together to make sure the crisis is worked through and that the public remains calm. Individuals or Groups That Will Be Communicating Inside and Outside the Organization during the Crisis Anyone who communicates inside and outside the organization should be key to the crisis. There should be one person assigned to each role in my crisis communication team. In a large crisis there might be a need to go outside of my main office for support from volunteers or a nearby college [ (Services, 2006) ]. The people inside the communication team will consist of the public information officer, content and messages coordinator, media coordinator, direct public outreach coordinator, partner coordinator, and the rumor control coordinator. Each one on these will have a role to follow. The public information officer will activate the risk communication plan and direct the work related to the release of information [ (Services, 2006)...
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