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Global Financial Crisis 2008 - Report

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Added on  2019-10-16

Global Financial Crisis 2008 - Report

   Added on 2019-10-16

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GLOBAL FINANCIALCRISISGlobal Finance Corporation
Global Financial Crisis 2008 - Report_1
IntroductionGulf Finance Corporation is also known as a Gulf Finance House. It is an Islamic investmentbank whose headquarter is situated in Bahrain. It was established in 1999. The organization isproviding services like working capital and asset finance, Vehicle and Equipment Finance,Invoice Finance, Marine finance and small business loans (Peters, 2012) . The organization isespecially lending fund to healthcare, logistics, manufacturing, healthcare and constructionsector. It is a growing provider of funding solutions to medium and small sized enterprises in theUAE. During 2008, the organization faced a financial crisis which influenced the financialposition of the organization to a larger extent. This arose due to irresponsible policy and lack ofregulations in the financial market. Due to this crisis, the organization has to stop hiring, andmany employees are laying off. During 2007, the organization listed its GDRs on the LondonStock Exchange (Shiller, 2012). The organization is also the owner of a 30% stake in theFootball League Championship club Leeds United. The organization is performing its financeactivities as per the principles and guidelines formulated by the Islamic Sharia. These principlesare specially related to the negotiable financial instrument, financial services investmenttransactions, infrastructure and real estate, structured finance, and liquidity and securitiesmanagement. During 2004, it was transferred to a Public Shareholding company with its sharesbeing listed on the Kuwait Stock Exchange, Bahrain Stock Exchange and Dubai Financialmarket (Al-Malkawi, 2013). The economy of Bahrain completely depends on Islamic banking,insurance sectors, and production or aluminum export. Due to the financial crisis, all institutionswere not performed in an efficient manner. 1
Global Financial Crisis 2008 - Report_2
Analysis of LeadershipLeadership style utilizes in an organization play an important role in the success of it. Leadershipis known as the ability to influence people to freely work towards obtaining predetermined goals(Dominguez, 2012). The leadership power of the organization is considered very poor due towhich it is not able to tackle the financial crisis efficiently. The members of the organization donot aware about their goals and motives which provide them guidelines (Reddy, 2014). Due tothis the leaders of the organization seemed confusing and are not able to provide effectiveguidelines to their subordinates. The major reason behind the failure of this organization is poorleadership. It can be possible that global financial market cannot be supervised and regulated bynational institutions only, the challenges facing financial systems of the organization is that ofleadership crisis (De Haas, 2012). The following leadership problems faced by the organization:Lack of a good leader who has relevant experience, and the right set of skills of theindustry concerned. Due to this, they were not able to take right decisions at the righttime.Lack of appropriate leadership style which can help the organization in taking correctivedecisions as well as the large level of motivation to existing employees (Daft, 2014).The management of the organization does not follow appropriate leadership strategies for tacklethe situation of financial crisis. This will cause a huge financial loss to the organization and alsolost it reputation in the existing market (Booth, 2015). Due to the faulty decisions themanagement of organization faces lot of problem to survive in the market.2
Global Financial Crisis 2008 - Report_3

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