...A STUDY OF FINANCIAL CRISIS AND ITS IMPACT ON STOCK MARKET A MANAGEMENT RESEARCH PROJECT SUBMITTED TO DHARMSINH DESAI UNIVERSITY FOR THE PARTIAL FULFILLMENT OF FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION (MBA) SUBMITTED BY CHARMI S. SHAH ROLL NO.: 42 UNDER THE GUIDANCE OF Dr. FALGUNI PANDYA ASSISTANT PROFESSOR (FINANCE) CENTRE FOR MANAGEMENT STUDIES DHARMSINH DESAI UNIVERSITY NADIAD 2014 DECLARATION I hereby declare that the project titled “FINANCIAL CRISIS AND ITS IMPACT ON THE STOCK MARKET” is my own work and I have not copied it from somewhere else. The project report is prepared just as a part of partial fulfillment of MBA programme and no other use of this project will be done. MANAGEMENT RESEARCH PROJECT is a part of syllabus in MBA programme of CMS – DDU , Nadiad, Gujarat. Name : Charmi S. Shah Signature : Date : 21st February, 2014 CENTRE FOR MANAGEMENT STUDIES DHARMSINH DESAI UNIVERSITY CERTIFICATE This is to certify that the Management Research Project has been Carried Out under the theme “FINANCIAL CRISIS AND ITS IMPACT ON STOCK MARKET”. This report is the bonafide work of Ms. Charmi Shah Roll Number 1542 of MBA Semester IV during the academic year 2012-14. Faculty Guide: Prof. Falguni Pandya Date: 21/02/2014 Head of Department: Dr. Naresh Patel Date:21/02/2014 Preface Practical knowledge by way of research is a step to bride up the gap between the theoretical studies of finance and its practicality in the world. Hence D...
Words: 16467 - Pages: 66
...With the right decision making, some companies improve during a crisis To paraphrase the bumper sticker: Stuff happens. Fortunately, so does good leadership--but those folks looking for pat solutions to unpredictable situations will be disappointed. First-rate management of a crisis rarely looks the same twice. A case in point from America's military: Gen. George S. Patton, perhaps the most celebrated of America's modern military men, was first and foremost a student, devouring books on history and war strategy throughout his life. He also was a brilliant tactician who believed in preparation. When Germans snapped Allied lines and poured deep into Belgium during the Battle of the Bulge, Patton had a plan. He stunned Supreme Allied Commander Dwight Eisenhower by claiming he could break off a chunk of the Third Army from its march west through France and redirect it straight north 100 miles into Belgium within 48 hours. Patton succeeded, and his army helped end the Axis powers' last great push. "The things people do before a crisis occurs have a huge impact on what occurs during that crisis," says Gene Klann, author of the book Crisis Leadership and an associate professor at U.S. Army Command and General Staff College at Fort Leavenworth, Kan. "Patton had prepared himself for that situation." But preparation isn't always the hallmark of triumph in a crisis. Experts say it's a mixed bouquet that often contains preparation but also includes blooms of improvisation, good communication...
Words: 1505 - Pages: 7
...Abstract In this paper, I will define the product harm crisis and identify the factors that contribute to a product harm crisis. I will compare and contrast the findings of the various studies on the product harm crisis. I conclude by synthesizing my analysis of the research to develop and support a recommendation for an organization handling a product harm crisis. Product-Harm Defined Product-harm crisis can be defined as an occasion when a product or brand is faulty, substandard, contaminated or dangerous to the general public. The crisis could have an effect on the whole product category or a subset of the group. In most instances, this crisis prompts a product recall on a voluntary basis by the organization or forced by external regulators. In today's market, product-harm crises are often global events. The short-term consequences of a product harm crises are lost revenues and the expenses associated with product recalls. The long-term effect of these crises is damaged reputation to the affected brand and organization. The key challenge for organizations confronted with a product harm crisis is to restore consumer confidence. Examples of Product-Harm An example of this product harm crisis involved Kraft Foods Australia‘s peanut butter division. Kraft was notified of a possible link between its peanut butter and salmonella poison outbreak. This brand of peanut butter was recalled and removed from stores. Business Reviews Weekly in...
Words: 1383 - Pages: 6
...Barbie was named after their daughter Barbara’s nickname. In the 1960, Mattel became publicly owned and in 1965, their sales top $100 million the company now qualified as a Fortune 500 company. Mattel is engaged in designing, manufacturing, and marketing of toys and family products across the world. The company's key global brands include Barbie, Hot Wheels, American Girl, and Fisher-Price. The company operates in the Americas, Asia Pacific, and Europe. It is headquartered in El Segundo, California and employs 27,000 people. (xplosivestocks.com) The start or recovery from damage done to the well-known brand due to recalls. After paying $40 million dollars in recalls for more than 19 million toys in China, Mattel was in a crisis. Their stock was dropping, lawsuits, media attacks, lost sales, and increased expense of litigation cost. Mattel was now suffering from a tarnished brand name and customer loyalty. Mattel’s challenges included convincing parents that child safety and product safety is more important that revenue, form an alliance with Chinese suppliers and the government to create honorable quality control solutions, improve international communication, and manage investor, customer, and government relationships. There had to be an effective plan put in place that represents the company taking full responsibility for their role in this neglect to have a valid audit system. Pet food, toothpaste, Mattel toys, and Thomas the Tank were all part of the products...
Words: 862 - Pages: 4
...Integrative Case Lynekka Clark Jack Welch Management Institute Dr. Verona Kennedy JWMI:505 December 14, 2014 Executive Summary This paper will evaluate the communication strategy of the fictional new CEO of XYZ global financial services firm, which has been negatively impacted by a national investment crisis and plans to release to its target audience and stakeholders, utilizing tools such as Mary Munter’s Audience Strategy. The stakeholders have been identified as the firm’s employees, customers, shareholders, and the financial regulators. The shared common concerns of this group are the financial health of XYZ global financial services firm balance sheet, and the plans to meet regulatory obligations and compliance, and the lessons learned from the national investment crisis and plans for risk management. In addition, it will discuss the recommendation of three areas that as the new CEO of XYZ global financial services firm needs to focus and apply to influence the values of the firm and prevent a future crises by creating a culture of candor, trust, and learning. Introduction Values are beliefs that people have about what is important or worthwhile to them. Values influence behavior because people seek more of what they value. Values therefore can be seen as the guideposts for behavior. An individual’s values are in large part, derived from the social environment in which he or she lives. For example, in Western democracies, life, liberty and...
Words: 2073 - Pages: 9
...TECNOLÓGICO DE MONTERREY | THUNDERBIRD Production Operation Management TOYOTA: THE ACCELERATOR CRISIS Study Case Report | | 1. What were the drivers of Toyota´s accelerators crisis? Why was Toyota facing a recall crisis? The drivers of Toyota crisis were Strategic, structural and cultural issues. At the strategic level, the cost reduction strategy added with the increasing of the output volume strategy caused a decrease in quality. Furthermore, the structure of Toyota (HQs in Japan and not in the U.S) impacted Toyota’s response to customer’s claims, taking a long time to address Toyota consumer’s concerns, and in fact was one of the most criticized issues during the crisis. In other words, the company took a considerable time before recalling units that meant life losses and significant economic impacts. At the cultural managerial level, there were difficulties driven by how Japanese address the situation vs. how Americans deal with the problems. The company lost its original philosophy due to different cultural orientations between Japanese headquarters and North American subsidiaries. The fact that Toyota was recovering from its last unit’s recall (due to motors leaking oil) plus the beginning of the global financial crisis, ended up yielding a deviation of the original long term plan to look after the U.S subsidiary´s financial performance, triggering a swap in the three main pillars of Toyota (Safety, Quality and Volume). 2. Michael...
Words: 1047 - Pages: 5
...Discussion questions 1. Pick a recent news article that focuses on some international or global problem, and give examples of how and where states, markets, and societies interact and at times conflict with one another. How hard is it to determine the analytical boundaries between the state, market, and society in this case? ONU se reúne tras supuesto uso de armas químicas Los estados interactúan ya que son los encargados de mantener la seguridad de cada país, por eso acuden a las organizaciones que se ocupan de este tipo de asuntos. Los mercados pueden verse afectados por las consecuencias de este tipo de ataques y estos dos se implica la sociedad ya que es la afectada de lo que resulte esta situación. Es fácil distinguir los límites de cada parte en este tema ya que el que tiene la mayor responsabilidad es el estado. 2. Review the basic elements and features of the IPE approach: the three main theoretical perspectives, the four structures, the levels of analysis, and the types of power. Which ones do you feel you understand well and which ones need more work? Los niveles Individual y el de los estados son los más fáciles de comprender ya que se pueden estudiar sin tanto conflicto, pero el sistema internacional: el conflicto internacional a veces es causado por la naturaleza conflictiva del hombre. 3. Define and outline the major features of globalization. Explain the connection between economic liberal ideas and globalization. Which of the three IPE...
Words: 451 - Pages: 2
...| CW1 Section 2 | Source Evaluating | | Write by: Matthew Yao | Tutor: Sandy Sommer | 2 November, 2012 | * Authorship / Authority At the end of paper, the detailed information about the author is given. Referring to it, N. V. Varghese is a professor whose publication covered from scheme of education, financing and quality. He was also in charge of the Educational Planning Unit at NUEPA (New Delhi) and now is Head of Governance and Management in Education at IIEP. Recently, he focuses on the fields of institutional reorganizing of higher education and private higher education. These main areas are closely related to the topic of text. Based on these information, it can be stated that the paper is authoritative. * Reliability / Validity The paper contains five tables to illustrate comparison clearly. These data comes from three different sources: a. UIS (UNESCO Institute for Statistics) which is an office collecting cross-national statistics on education, culture, science and technology of UNESCO (an educational department of UN). b. USDC (United States Department of Commerce) which is the Cabinet department mainly focusing on promoting economic growth of the United States government. c. The Earth Times is a website providing latest environmental news, journals and blogs written by voluntary expert writers on the internet. UIS and USDC are reliable international and national data sources, however it is claimed that visitors also could contribute their own...
Words: 612 - Pages: 3
...Natural Disasters & the Decisions That Follow Case Study: Natural Disasters & the Decisions that follow Step 01: Problem Definition Natural disaster is a major adverse event resulting from natural processes. An example includes hurricanes, floods, severe weather, volcanic eruptions, earthquakes, and other geologic processes. Step 02: Justification of the problem: A natural disaster can cause loss of life or property damage, and typically leaves some economic damage. And when we face a disaster during business running, we have to find a way to solve the dilemma between the organizations and the customers. Step 03: List of Alternatives: A- Aware people about the risk reducing measures. B- Planning and prevention. C- Organizations business ethics. Step 04: Evaluating Alternatives: A- With good data, the public understands the need for preparation and risk reducing measures. Governments, the private sector and the media build awareness of risks and risk-mitigation principles at national, regional, and community levels. Education in the community is required to ensure that awareness building continues in adult life. B- The coordination between the government and the private sector can presents accurate data to predict the risk before disaster strikes, which require to study all the information and the details provided to analyze the cost and benefits of natural disaster response. It is important to consider the relative cost effectiveness of...
Words: 300 - Pages: 2
...Block 5 Crisis Management Week 5 Overview Lesson 1 | Homework | Lesson 2 | Homework | * Doc 5.1 Crisis Management Lesson 1 – Vocabulary/ Listening/Speaking * ML Vocabulary P. 105 | Doc. 5.2 Vocabulary HW Crisis Management Business BriefDoc. 5.3 Listening HW Managing Crises | * Doc 5.4 Crisis Management Lesson 1 – Reading/Speaking * ML Reading P. 107 * ML P. 108 Language Review – Conditionals * Doc 5.5 Cases for Discussion/ Doc 5.6 Crisis Management Scenarios for Discussion | Crisis Management Extra ReadingsICE forum follow up task: Language Review C Discussion | Week 6 Overview Lesson 1 | Homework | Lesson 2 | Homework | * Introduction to Coursework 3 and Portfolio – hand out Student Guidelines for CW3 * Doc.6.1 Evaluation: Introduction to Evaluation – Criteria – Evaluation of SourcesNote: Ss to prepare a seminar for Lesson 2 in Week 8 where they have to introduce their topic, title and sources, and explain why they were chosen (how many, different types, etc.) | 1) Ss do web search on crises, choose topic and write a title for assignment2) Download from ICE & read doc on ‘Research Sources’3) Preview Doc 6.2-A - vocabulary for Titan case study | * Doc 6.2-S Titan Case Study (based on old ML)OR * Doc 6.2-S - Speed Reading Comprehension Questions – ‘Keeping your client relationship afloat’ (based on old ML – see ppt in relevant folder). | Students choose sources and begin note-taking doc for their sourcesSelf –Study:1) Download &...
Words: 461 - Pages: 2
...1. In a narrative format, summarize the key facts and issues of the case. The key facts of this case include Imus’ performance and history as a 28-year veteran shock-jock, his employment by CBS and MSNBC, his controversial and off-color comments against a girl’s basketball team, and CBS’ response to the matter. The issues include the remarks made by Imus’, was the response by CBS timely and appropriate and what could have been improved upon in preparation and execution of their crisis management approach. Also, was CBS strategic in their execution of their damage control? Should Imus have continually remained in the media empathetically apologizing then saying he had apologized enough? 2. Update the information in the case by researching it on the Internet. Focus your response on the specific issues in the case. The case study provided by the text provides limited information in the summary. Although it includes the incident, a little history of Imus and CBS’ response, it is vague as to how the matter became so public and why CBS would severe a $40 million contract with one of the nation’s most revenue-producing jock (Press, 2007). Further research reveals the history of Imus’ profession as a highly sought after shock jock, the efforts behind his firing, CBS’ reaction, responses and their inadvertent handling of the matter. The employment contract was extended to Imus by CBS in 2006 because he was a shock-jock of the nation and because his controversy and...
Words: 1033 - Pages: 5
...and off during their job. Why to Read the Book This book evolved from thousand of questions asked to Welch when speaking to audiences around the world. This book does not contain the same old stuff of what management should do. It is based on the true practical view which is faced by the company a nd every people related thereto. It offers original thinking, and nuts-and-bolt advice that can change the way the people think about work. Chapters This book basically deals with four parts which are: 1. Underneath it all-which includes Mission and values Candor Differentiation Voice and Dignity 2. Your company-which includes Leadership Hiring Managing people Parting ways Change Crisis management 3. Your competition-which includes Strategy Budgeting Organic growth Six sigma 4. Your career-which includes The right job Getting promotions Hard spots Balancing between work and life Summary and general perspective Welch starts out by explaining what a mission statement is. Welch believes an effective mission statement should answer one question, "How do we intend to win in this business?" Once the mission is formed , a company should define its values. The corporate values are behaviors, how the mission is to be carried out to win. Jack has talked about candor. Candor is the state or quality of...
Words: 771 - Pages: 4
...Question 3: What can global firms do to reduce vulnerability to financial crisis? By definition, financial crisis is applied broadly to a variety of situations in which some financial assets suddenly lose a large part of their nominal value. (Wikipedia) It would become extremely harmful to global organizations. Some international firms suffer a great amount of loss or even go bankrupt during financial recession. Therefore, whenever there is a financial crisis, global companies have to execute certain initiatives in order to reduce vulnerability to financial crisis. During financial recession, there are mainly two kinds of crisis management: short-term and long-term orientations. The main purpose of short-term initiatives is to maximize year-to-year profit (or minimize loss), whereas long-term initiatives focus on the benefits of future gains and ignore short-term loss. (Kotabe, 2010) Therefore, short-term oriented solutions tend to satisfy stockholders’ immediate needs, while long-term orientation is more beneficial toward customers. (Vinay Couto, 2009) Among short-term initiatives, pull-out of the market, across-the-board cuts, layoffs, aggressive working capital management, and discretionary spend reductions are very common responses for financial crisis. In general, global companies could create significant outcomes within very short period with those short-term orientations. Therefore, most of global companies choose short-term responses to reduce vulnerability to...
Words: 342 - Pages: 2
...keep up with environmental changes. You need to know your companies strengths and weaknesses. Corporate strategy is widely used and brings a lot of benefits that also involve several risks. When you take over another company you eliminate potential threats. With an environmental jolt it makes it easy to take over another company. The article was very interesting. They discussed several interesting topics and terms that I haven’t heard before. I feel like this is something that we can relate to now because of all the economic crisis’s that we are going though now. We have witnessed many corporate mergers and acquisitions of other corporations because they can’t survive these hard times. Works Cited Wan, William, Yiu, Daphne. "FROM CRISIS TO OPPORTUNITY: ENVIRONMENTAL." Strategic Management Journal 3006 Nov 2008 791-801. Web.20 May...
Words: 298 - Pages: 2
...Summary Today’s society consists of a crises where there is a need for crisis management, however critics argue there is not enough being done to assist all nations from this organization. There is little attention from the International Monetary Fund (IMF) for developing countries trying to work on their financial situation. The IMF is focusing their attention on developed countries with the expensive plans and rescue operations. There is speculation that short term crisis management has too many negatives including it is too costly, responses are not quick enough decisions that are made are often incorrect, and more. There will be much discussion on the debt crisis and the exchange rate. IMF The International Monetary Fund The is an association of 187 countries, employed to foster global monetary collaboration, secure financial stability, facilitate global trade, encourage high percentages of employment, reach for economic growth between many different nations, and reduce poverty around the world, without discriminating against different countries. Many critics believe this establishment to be positive for the many responsibilities they take care of. For example the International Monetary Fund will provide assistance in areas including giving training and technology to developing countries to help with their own economic structure so they can work on their own eventually. IMF works closely with many different nations and the members included and are involved in the media...
Words: 864 - Pages: 4
