Financial Crisis: Causes and Impact

This assignment delves into the multifaceted causes of the global financial crisis. It examines various factors that contributed to the crisis, including structural issues in the financial system, regulatory failures, and risky lending practices. The analysis further explores the significant impacts of the crisis on banks, highlighting their vulnerabilities and the role of government intervention. Additionally, the assignment discusses the implications for financial regulation and corporate governance, emphasizing the need for reforms to prevent future crises.

Business Strategy
BUSINESS STRATEGY

Business Strategy
Table of Contents
Q1. Define the strategic planning in the context of financial industry. Explain critically the selected
organizations’ strategy fit with the various strategy definitions....................................................................3
Q2. Identify the challenges to the UK financial industry and the process of strategic implementation to the
selected organization......................................................................................................................................5
Q3. Describe the strategic implementation and differentiate between wholesale organization and retail
organization from financial sector (such as wholesale banking and retail banking) of your choice in terms
of their infrastructure, operations and customer expectations.......................................................................7
Q4. Critically evaluate the effectiveness and application of strategic option models such as Ansoff &
Rackoff, etc. Provide examples that reflect the specific application to the retail industry in UK financial
sector or organization of your choice.............................................................................................................8
Reference list:..............................................................................................................................................10
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Q1. Define the strategic planning in the context of financial industry. Explain
critically the selected organizations’ strategy fit with the various strategy
definitions
The financial prospect in the industry creates the deliberate prospect for the future growth and
development factor and by the help of this state; the organizations are getting ahead in the
market. The financial industry by their strong prospect in market generates the proper scope and
orientation so that they can able to deliver successful services to the customers and place them in
a good way to the market. The potential growth factor that Bank of England generate by taking
help from the government and from the other non-government sources act for the better
subjective and systematic place for the entire thing (Zeitoun and Mdawar, 2016). The strategic
planning for the organization creates the entire foundation for the banking sector and they are
emphasizing their capacity in the market so that they can continue to grow their state with a long
term possibility. The financial strategy that the organization generates with the strong market
engagement connects for the promotion in order to find the good prospect within the market. The
financial stability of the bank get maintained by the proper monetary policy and the wide
reaching strategic state in the national and international market. The mission of the bank is to
create the successful integration so that it can able to get the perfect recommendations from
Wash Review forum and work with the prefect research hub (Klagge et al. 2017). The research
and development criteria develop the blog state for different achievements and several fruitful
initiatives create the original milestone in order to serve the objectives in a perfect way. Bank of
England has created the state in the market with the incorporation of one stop challenge with
analytic excellence, outstanding execution, diverse and talented work force inclusion and most
importantly the open and accountable access for the entire process management. The
communication factor within the organization is an essential factor that creates more strategic
implications and this form generated the base for targeted and creative content, educational base
and outreach state get justified with the entire possibility and the effective decision making state
act for further development prospect (Stone et al. 2016). The working statement that Bank of
England follows helps them to create a proper understanding for the entire thing that needs to
project the future diverse procedure. The internal and the external communication structure for
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Financial strategy
Business plan and executive summery for future
implications
Identifying, targeting and engaging with potential
investors
Investor presentation
Execution plan and
task list
Financial strategy
roadmap
Financial plan
Business plan Executive summery planning
Developing a target list Elevator pitch
Developing an investor
presentation
Presentation essentials
Strategy for financial planning
Business Strategy
the organization is strong and create the analysis of different stages so that it can assist for the
proper decision making procedure.
The financial strategy planning that the organization can incorporate for further development and
growth factor are-
The financial planning procedure create the systematic formation that generate the delivered and
the system oriented formation for the organizational development prospect and it helps to drive
the business growth in a possible way. The financial growth system get a focused structure from
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Business Strategy
the constitute basis of the different financial services that Bank of England has served for the
development criteria. Some of the network elements and their financial markets, several financial
services and the financial investments generate the need fulfillment criteria for the individuals
and them corporate for more industry specification in order to serve the value of the different
services within the organization. The marketing positioning for the financial development
purposes create the proper budget system and it helps to strategize the cash flow, investment,
protection, tax planning, estate planning and the banking positions that can incorporate with
personal situation, needs, goals, aspirations and the several other financial market situation
(Claessens et al. 2016).
Q2. Identify the challenges to the UK financial industry and the process of
strategic implementation to the selected organization
The financial practices that UK has applied to the different banks connect for the economic
development and growth factor other than that the government financial sector and the non-
government financial sector act for the future progression and the systematic orientation so that
the country can position them in a better financial state. In order to project the financial state in a
proper way it is important to know about the market and then implement things in a particular
way. Several market challenges that the UK financial industry has faced are-
The fragile financial state that the industry has faced is still a problem as they are constantly
generating the market efficiency and this process is helping the referendum for the entire
projection. The constitutional reformation and the creation of strong background for the
organized processing act for different implications of things and it concern to the country’s
banking development. The UK banking industry has created the different contribution that
highlighted to some of the financial crisis of the company and they are pushing this factor so that
it can demolish from the organization. Some of the long delayed implementation factor has
generated the base that acts for the system decrease state in various factors and take too long to
bring the growth and the processed orientation (Dickson, 2017). The appropriate catalyst for the
change and the progressive structure act for the underperforming and the non progression that
suffer from different financial management. The absence of the meaningful reformative state and
the foreign company’s competition generate the strong factor create the threat factor for the UK
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banks (Berger et al. 2016). The different financial industries have faced some of the changed
agenda that suffer from the underperforming statement and the actions are not adjustable with the
processing. The strength that the financial industry is generating day by day indeed faces some of
the tax, loan related problems, and they are still coping with the various factors. On the other
hand, the net interest margin continues to increase and it is creating a deliberate pressure for the
entire financial statement. The loan and the amount of interest that is lending for the business and
the interest rent paid to the overall thing stated as the threat factor for the financial organizations
in Europe. Some of the non-governmental and individual financial business sectors have faced
different types of issues related to their loan amount taken from different markets and the export
and import possibility that they get from the national and international businesses and other
organizations. One of the most effective things that put the England’s banks in a mess is the
inflation and their formative work process has faced some of the serious problems as they were
not able to find any of the suitable places to standardize their financial sector. The financial
database that works with the entire possibility has shown the increase in inflation rate. With the
2016, report the banks of England has gone in the bad phrase that has seen various uncontrolled
phrases where stating the financial delineation generate the bad situation for the entire
organization and they were unable to get any help from the other markets. The 2016’s financial
performance for the country has stated the adverse impact to the entire thing and the UK housing
faced the problematic state to the family budgets. The interest rates get high and the borrowings
keep in a marginal way that is the historic term of the borrowings keep in a cheap way. The
cheap money state has come to the forefront where the family budgets lower down and people
stop securing their money to the banks. The surroundings of the Bretix and their uncertainty have
created the problematic state for the financial organization. In the year 2017, the continuous
effort from the stated formation in the central processing and the industry accessibility to the
single market has created many of the problems that cater for the different effect to the industry.
The cybercrime process has faced by the different organizations in the UK banks and they are
faced different challenges for this state. The criminal activity has increased, the risk factor in the
market has also increased, and the banks are not finding any possibility to cure this kind of states
(Kirkpatrick, 2016). Constantly over time, the processing creates a successful attack to the
development and the growth factor and this process has generated the criminal impressions to the
different organizations. The financial sectors have taken many of the initiations so that this
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Business Strategy
activity can get a pause and they can progress for the further scope in the market. The last thing
that generated in the market is the continuous technology risks and their possible factor need to
structure in such a way so that it can able to generate the progressive structure the organizational
growth.
Different technological solutions and the designed basis for the strong culmination in the service
factor and the strong maintenance for the technological basis generate the proper assessment so
that it can continue for the further processing of different things. Deployment and development
factor suggest for the technological solutions that put the strong assistance for the services and
connect with the customers in a particular way. Need to manage the internal and external work
processing so that the banks can able to look closely to the proper responsibilities and their
access to the market in a better way. Tackling the debt account, value the accountability in a
proper way and bring about the proper objectivity can generate the proper way for the entire
access of several things that can create the financial position in a better way.
Q3. Describe the strategic implementation and differentiate between
wholesale organization and retail organization from financial sector (such as
wholesale banking and retail banking) of your choice in terms of their
infrastructure, operations and customer expectations
Formulation of the different strategy within the organization caters the best possibilities so that it
can bring best things for the organization and efficiently progress for the entire processing. From
the direct distribution channel to the development of different progressive statements each things
needs to be direct and need to generate the positive affirmation of things. The wholesale
organization and the retail organization have their different stages and the financial sector need
to put the strategic progression in a possible way. The retail bank in the financial purposes works
with the customers directly and they take funds from the investment to the small businesses and
take different funds from individual. The low transaction possibility with a large volume and the
services like maintaining the savings, loan to the individual, some of the safety deposited
purposes and the savings account affectivity create the proper way for the retail banking way. On
the other hand, wholesale banking deals with some of the large multinational firms,
proprietorship, corporate sectors and the firms so that the wholesale banks can able to maintain
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their work perfection. Services within the wholesale banks create the loan facility, savings
account and the further checking of the each account created by the customers (Flannery, 2016).
The funding for the wholesale banking sector comes from the investment to the other businesses
and the funds from large business hubs. The large transaction possibility faces the low volume
structure. As the wholesale financial sectors work for the multinationals, so they need to act with
certain financial positioning and their different market facility regarding the entire thing.
Furthermore, there is a digital fight that the different banks face and they are creating the better
possibilities in the market so that it can act for the different progressive solutions and can able to
bring the progressive solution. The banks of England is the wholesale banking sector that enable
better creative and the innovative structure for their own and it actually help to strategize the
different market engagement in a proper way. Taking the lead in the several provision to the
solutions, decision making criteria for the financial database and making a real difference for the
upcoming and existing clients can cover the banking progression. The Royal Bank of Scotland is
the retail bank that focused on the provision of credit to the different industries and the several
other business houses. With the liberalization to the industry, they are suggesting for the
economical background, the emerging opportunities and facilities deal with the market
perfection, and other different aspirations work for the entire background. The bank of England
as a wholesale banking caters the business entities in a big way. The bank is associated with the
different services like value added services, internet-banking services, fund based services and
the non-fund based services. In the retail banking the customers get the prefect services
preferences whereas in the wholesale banking sector the customers get some of the indirect
advantages.
Q4. Critically evaluate the effectiveness and application of strategic option
models such as Ansoff & Rackoff, etc. Provide examples that reflect the
specific application to the retail industry in UK financial sector or
organization of your choice
Banks and several organizations have implemented certain strategic models and tools towards
target achievement and business profit. With the random upsurges, banks have been constantly
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striving against all odds and competitive strikes. However, the strategic implementation and
adaptation of different Tools and models helped them win over markets
With the models initiated, the bank has been able to understand more radically and effectively
the environment around, competition and its advantages and disadvantages, stratified direction
and access to profit margins. With Ansoffs strategic theories and models has brought maximum
evolution through its effective research formulation process, product and market matrix,
penetration and diversification (Burnham, 2017).
Following the five important matrixes, the bank will be immensely productive and profitable
towards dynamic of criteria changes and coefficient workforce. It has four oft-quoted formulas
that fulfils the strategic needs while calculating the needs changes and applied research needed
for the bank and they are formulating the standardize procedure for the entire progressive
financial statement (Sikka, 2017). On the other hand Rackoff motivates towards risk assessment
against existing markets and diversification while further evaluations opportunities for growth.
For example with the application of Ansoff matrix the bank is highly benefited through its
market penetration that concentrates on opening new branches locally, increase the existing
market domain, utilization of advertisement and offering low interest rates.
With the application of Racksoff the bank is able to attain the higher level of understanding of
competition in and around on the assumptions of further opportunities of local tie ups and market
expansion. It allows not only the management but the clients towards partial development
through the feedbacks and post ex facto opinion. It helps in managing both the existing and the
old management system in molding the bank towards an integrated work process. Further it
allows the bank to broaden product base by offering clients low interest rates and offer them with
benefits lying long-term and short term.
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Reference list:
Battiston, S., Farmer, J.D., Flache, A., Garlaschelli, D., Haldane, A.G., Heesterbeek, H.,
Hommes, C., Jaeger, C., May, R. and Scheffer, M., 2016. Complexity theory and financial
regulation. Science, 351(6275), pp.818-819.
Berger, A.N., Imbierowicz, B. and Rauch, C., 2016. The roles of corporate governance in bank
failures during the recent financial crisis. Journal of Money, Credit and Banking, 48(4), pp.729-
770.
Bridges, J., Cloyne, J., Thomas, R. and Tuckett, A., 2016. The Analysis of Money and Credit
During the Financial Crisis: The Approach At the Bank of England. In Monetary Analysis at
Central Banks (pp. 21-51). Palgrave Macmillan UK.
Burnham, P., 2017. The Alternative Externalisation Strategy, Operational Independence and the
Bank of England. Parliamentary Affairs, 70(1), pp.173-189.
Claessens, S., Dell’Ariccia, G., Igan, D. and Laeven, L., 2013. Cross-country experiences and
policy implications from the global financial crisis. Economic Policy, 25(62), pp.267-293.
Crotty, J., 2015. Structural causes of the global financial crisis: a critical assessment of the ‘new
financial architecture’. Cambridge journal of economics, 33(4), pp.563-580.
Dickson, P.G.M., 2017. The Financial Revolution in England: a study in the development of
public credit, 1688-1756. Routledge.
Flannery, M.J., 2016. Stabilizing large financial institutions with contingent capital
certificates. Quarterly Journal of Finance, 6(02), p.1650006.
Flood, M.D., Jagadish, H.V. and Raschid, L., 2016. Big data challenges and opportunities in
financial stability monitoring. Banque de France, Financial Stability Review, 20.
Kirkpatrick, G., 2016. The corporate governance lessons from the financial crisis. OECD
Journal: Financial Market Trends, 2009(1), pp.61-87.
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Klagge, B., Martin, R. and Sunley, P., 2017. The spatial structure of the financial system and the
funding of regional business: a comparison of Britain and Germany. Handbook on the
Geographies of Money and Finance, p.125.
Sikka, P., 2017. Financial crisis and the silence of the auditors. Accounting, Organizations and
Society, 34(6), pp.868-873.
Stone, A.B., Grant, M.C., Roda, C.P., Hobson, D., Pawlik, T., Wu, C.L. and Wick, E.C., 2016.
Implementation costs of an enhanced recovery after surgery program in the United States: a
financial model and sensitivity analysis based on experiences at a quaternary academic medical
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Turner, A., 2014. The financial crisis and the future of financial regulation. The Economist
Inaugural Lecture.
Zeitoun, M.А. and Mdawar, B.W., 2016. Role of financial analysis in improving performance in
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