EMTH6013 Autumn 2018: Emerging Themes in Business Management Report

This report critically evaluates emerging themes in business management, specifically focusing on the impact of mortgage lending and credit card lending on organizations. The analysis examines the implications of household debt, exploring its positive and negative impacts on the business sector, particularly within the United Kingdom. The report highlights how these themes affect the banking sectors and the overall economy, emphasizing the need for proactive management and regular review of banking policies to mitigate risks. Furthermore, the report discusses the likely effects of these themes over the next five years, outlining their implications for the formulation of business strategy. The report suggests that management should give periods of recession the highest importance to counter the negative impacts of the emerging themes on the strategy planning. The report also looks at the potential customer losses due to household debts and their impact on the fiscal structure of banks. The study concludes by emphasizing the importance of adaptable strategies and proactive measures to navigate the challenges posed by these emerging trends.

Running head: EMERGING THEMES IN BUSINESS MANAGEMENT
Emerging themes in business management
Name of the Student
Name of the University
Author Note

1EMERGING THEMES IN BUSINESS MANAGEMENT
Business management is one of the major aspects that are ruling the domain of
financial and commercial market. If seen with a wider aspect, it would be seen that the field
of business management is being supported with a lot of emerging themes and trends related
to business. One of such trending emerging themes that have a close relation to the field of
business management is the mortgage lending in the approval of loans and credit card
lending. The failure of the repayment of the loans often leads to the household debts. The
household debts are turning out to be a major reason of concern keeping in mind the flow of
economy in various parts of the world (Cloyne and Surico 2016).
Loans are something that mainly provided by the banks or by the institutions that are
related to the field of finance. One of the prime example of the household debt is the
mortgage. Some of the other forms of household debts include the personal loans, home
loans, car loans, student loans, balance that is there in the credit cards and dues in the bank
accounts. The article talks about the statistics and the impacts of the household debts on the
economy of the nation of United Kingdom (Harari 2018). The various implications of the
household debts have also been mentioned in the article that reflects the past, present and
future impacts of the household debts on the economy.
Critical evaluation of the key emerging themes within the article, outlining the current
impact that they are having on organisations within your business sector.
The article portrays the statistics and information about the household debts in the
country of United Kingdom. Studies and analysis of the article shows that there are two of the
emerging themes that is required to be highlighted in discussing the impacts of the household
debts on the economy. The two of the emerging themes that has been highlighted in this
article includes the mortgage lending in the approval of the loans and the credit card lending
that acts a prime example in the genre of the unsecured debts (Bogers et al. 2017). These two

2EMERGING THEMES IN BUSINESS MANAGEMENT
emerging themes has positive and negative impacts on the business management sectors one
way or the other.
The mortgage lending is one of the lending that can lead to a secured debt while credit
card lending is one of the lending that can lead to an unsecured debt (Dagher and Kazimov
2015). A secured debt is a debt in which the creditor is able to get hold of the asset of the
defaulter. Studies show that the people of UK are mostly subjected with the mortgages as the
secured household debts. The unsecured debts are those debts, which are not based on the
accession of an asset by the creditor in case the defaulter fails to repay the debt.
There are several positive and negative impacts of the mentioned emerging themes
that are proving to affect the various areas of business management and the banking sectors.
The mortgage lending is one of the example of the lending that leads to secured debts. This
type of debt mainly occurs when the borrower of the loan fails to repay the loan within the
stipulated period of time and the creditor is able to acquire the assets of the borrower as per
the terms and conditions during the approval of the mortgage (Scharfstein and Sunderam
2014). The sectors of the business management are less impacted by this type of a debt
because the assets of the borrower automatically gets transferred to the custody of the lender.
Although the negative impacts of this type of loan is minimal, the sectors of the business
management such as the banking services may often suffer due to the lack of money at that
very point of time.
The credit card lending may lead to a condition of the credit card debt, which is one
type of the unsecured debt. It is termed so because in this type of debt the money is not
secured on asset of the borrower. As the money is entirely dependent upon the revolving
credits, the borrower of the money is not affected with the debts. (Telyukova 2013) Instead,

3EMERGING THEMES IN BUSINESS MANAGEMENT
the sectors of the business management are affected, as the interest rates are much lower in
the credit cards than normal approval of loans.
Critical discussion on how the identified themes are likely to affect the sector over the
next five years and the outline of their implications for the formulation of business
strategy.
The mortgage and the credit card lending not only impacts the banking sectors and the
business management sectors but also affects the customers of the banks and the economy as
a whole. The customers of the banking sectors may suffer a huge loss of a valuable asset in
form of a household debt if they fail to make the repayments of the mortgages and the credit
card balances (Kuchler 2013). On the other hand, the fiscal structure of the banks may be
disrupted if there is too much of the household debts in a particular region. This may in turn
may lead to a condition of recession like that of the banking sectors of UK faced during the
years of 2000 to 2008. The recessive condition deeply impacts the core of the economy and
the sectors of the business management may face a tough condition in getting over with
unpleasant situations for a long period of time.
To counter the negative impacts of the emerging themes on the strategy planning, the
management of the financial and the banking sectors are required to play an important role by
being proactive. They are required to look into the matter with serious attention so that the
loopholes in the services can be easily identified (Zinman 2015). The banking policies are
also required to be checked regularly and they should be revised at an interval of a year at
least. While providing bulk loans the creditors are needed to make assumptions of the
person’s futuristic financial state and the liabilities are needed to be framed accordingly.
Periods of recession should be given the highest importance.

4EMERGING THEMES IN BUSINESS MANAGEMENT

5EMERGING THEMES IN BUSINESS MANAGEMENT
References
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Frederiksen, L., Gawer, A., Gruber, M., Haefliger, S. and Hagedoorn, J., 2017. The open
innovation research landscape: Established perspectives and emerging themes across
different levels of analysis. Industry and Innovation, 24(1), pp.8-40.
Cloyne, J.S. and Surico, P., 2016. Household debt and the dynamic effects of income tax
changes. The Review of Economic Studies, 84(1), pp.45-81.
Dagher, J. and Kazimov, K., 2015. Banks׳ liability structure and mortgage lending during the
financial crisis. Journal of Financial Economics, 116(3), pp.565-582.
Harari, D., 2018. Household debt: statistics and impact on economy. The House of Commons
Library briefing paper, 7584, pp.1-26.
Kuchler, T., 2013. Sticking to your plan: Hyperbolic discounting and credit card debt
paydown. Unpublished manuscript, Stanford University.
Scharfstein, D. and Sunderam, A., 2014. Market power in mortgage lending and the
transmission of monetary policy. Unpublished working paper. Harvard University.
Telyukova, I.A., 2013. Household need for liquidity and the credit card debt puzzle. Review
of Economic Studies, 80(3), pp.1148-1177.
Zinman, J., 2015. Household debt: Facts, puzzles, theories, and policies. economics, 7(1),
pp.251-276.