STRATEGIC PLANNING AMONG MIDDLE-EAST FINANCIAL INSTITUTIONS IN FACING AND OVERCOMING THE IMPACT OF GLOBAL FINANCIAL CRISIS.by,Group Name: MAHESH BHUPATHI Powerpoint Templates Page 1
OUTLINE Objective Introduction Literature Review Discuss of the findings Conclusion
This paper intends to study about the strategic planning among Middle-East financial institutions is facing and overcoming the impact of globalfinancial crisis. The first section of the study will analyze the impact of the globalfinancial crisis towards Middle East financial institutions. The second section of the study will present about the strategicplanning used among the Middle East financial institutions.
INTRODUCTION The impact of global financial crisis are: Reduces of oil prices and global liquidity shortages. Pressures on bank funding and liquidity led to tight credit conditions. Changes in the fund investment strategies Repercussions for stock markets and the Arab financial system.
Cont…. The lessons did Middle East countries learns from the global financial crisis: Lack of regulation is as bad as over- regulation. Insanity is defined as doing the same thing and expecting different results. Country pay a big price not only for their wrong economic policies, but also for wrong foreign policies.
Define strategic planning Organizations process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy. The linkage between global financial crisis and Middle East institutions that used strategic planning to make critical decisions were better able to pursue growth opportunities during the crisis. Middle east financial used long-term growth strategic planning on the recovery of the financial crisis.
I. GCC oil exporters A negative terms-of-trade shock associated with the drop in oil prices; A financial shock, which destabilized overextended domestic banks and led to the bursting of a real estate bubble GCC states are dealing with the consequences of the crisis in a number of strategic plans: Implement expansionary fiscal policy (Winckler, 2010): Steadily Increase Oil Production Capacity(Winckler, 2010):.
II. Developing Oil Exporting Countries Developing oil exporting countries in the region are Algeria, Iran, Syria, and Yemen (Global Economic Prospects, June 2011). Hence, due to the limited integration of their banking sectors into global financial markets, developing oil exporters felt the impact of the crisis mostly through the negative oil price shock(WORLD BANK MENA REGION – A REGIONAL ECONOMIC UPDATE, APRIL 2010)..Strategic plans:- Steadily Increase Oil Production (Winckler, 2010):
III. Oil Importing Countries The oil-importing MENA countries were hurt mostly by the secondary effects of the crisis on trade, remittances, and foreign direct investment (FDI)-Reinikka (2010). Key non-oil sectors such as services and tourism remained relatively resilient, while the decline in oil and other commodity prices limited the deterioration of their external balances. Stimulus packages in the Arab Republic of Egypt, Jordan, Morocco, and Tunisia also helped soften the deceleration in growth. Strategic plans Diversification of policies
Implementation of expansionary fiscal policy Strategy was successful and effectiveI.) The portions of gross domestic productrevenue is increased the growth of GDP willincrease.II.)Create new job opportunities for the nationalworkforce. In GCC countries they reduce the oil productionat first and then gradually increase the productionlater when the crisis muted.
Cont.... Oil-importing countries Apply diversification policies Working together recovery.
Different Middle East countries were impacteddifferently by the crisis.GCC countries intervened early to support theirbanking systems and stock markets.The World Bank doing help to the global financialcrisis impacted countries.Generally, if this global financial crisis occurs infuture, we have to know what kind of the precautionsteps should be taken to avoid this crisis.