Access over 20 million homework & study documents

Why is it important to view strategic management as a processSol

Content type
User Generated
Rating
Showing Page:
1/3
Why is it important to view strategic management as a
process
Solution
The importance of strategic management in the financial
crisis
At the other end completely of the scale, we would argue
that there was a major failure in strategic planning by
almost all the major global financial institutions, as well as
in the governance of these organisations as there was
clearly not enough knowledge or information in key places
which would have signalled - via the direct, or more often
indirect connection to it - the risk that the sub-prime
lending market was running. An almost blinkered attitude
persisted that said \"We don\'t do sub-prime\", when due to
the globalised nature of the financial system this risk
affected them anyway, whether or not they had direct
relationships with players or (re-)insurers in the sub-prime
space. So we place a major part of the blame on those
financial institutions, not just the sub-prime lenders
themselves and the lending policy and bonus culture that

Sign up to view the full document!

lock_open Sign Up
Showing Page:
2/3
actually provoked the credit crunch.
As we argue elsewhere on this site, had there been proper,
regular and direct dialogue between the various
stakeholders and especially trading partners of these
institutions, and detailed analysis of the strategic
positioning in relation to the sub-prime market, the greater
part of the credit crunch could have been avoided. The
resulting recession could therefore have been much less
severe. We find it inconceivable that using our approach
and independent market research (which would have
picked up on affordability issues, for example), such risks
would not have been picked up and acted upon. For us,
therefore, what happened was a failure both of corporate
governance and of strategic management.
In the current economic climate, whatever the size of your
business or organisation, the importance of strategic
management is particularly great. To avoid drifting into an
iceberg flow, or if already there, to plan a way out and
minimise the risk of actually hitting one, you need the
visibility good strategic planning gives you. You may will
suffer the same fate as the Titanic, but you stand a much
better chance with it. And that you owe to ALL your
stakeholders, so consider strategic management as vitally
important to good corporate governance too.

Sign up to view the full document!

lock_open Sign Up
Showing Page:
3/3

Sign up to view the full document!

lock_open Sign Up
Unformatted Attachment Preview
Why is it important to view strategic management as a process Solution The importance of strategic management in the financial crisis At the other end completely of the scale, we would argue that there was a major failure in strategic planning by almost all the major global financial institutions, as well as in the governance of these organisations as there was clearly not enough knowledge or information in key places which would have signalled - via the direct, or more often indirect connection to it - the risk that the sub-prime lending market was running. An almost blinkered attitude persisted that said \"We don\'t do sub-prime\", when due to the globalised nature of the financial system this risk affected them anyway, whether or not they had direct relationships with players or (re-)insurers in the sub-prime space. So we place a major part of the blame on those financial institutio ...
Purchase document to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Anonymous
Really great stuff, couldn't ask for more.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4