SAMBA FINANCIAL GROUP 4
Inthe year 2011, theproblem faced by The andthe entire financial industry was uncertainty in the globalenvironment for banking and general commerce. According to the SambaFinancial Group Reports (2012), the global environment was bothchallenging and risky in the current state especially with hangingprojects in the European economic scenario. Due to the impact ofrecession in Europe, the growth of the global economy, reduced,thereby reducing the sales of the financial services offered by thesamba group and the whole financial industry.
Accordingto the Reports (2012) one of the short-termsolutions to this problem was to inject more capital resources on theresearch teams so as to get accurate data about the changes in theglobal financial market. This ensured the use of real time data onthe economic outlook for the year 2012. The extra information wasrequired by the company in decision making, especially in solving thechallenge of offering loans and mortgages to economically affectedindustries.
Thecompany could have also adopted the short-term discriminationstrategy when giving financial services. This strategy limits theamounts of funds lent or offered as mortgage to certain industries inthe economy. For instance, Samba group could only offer limited loansto the sectors in the countries that will experience decline in theeconomic growth. According to Reports (2012),the GCC countries will experience economic declines, except Bahrain.Therefore, the company can offer more loans and debt services toBahrain than t other countries. This is important for the company toavoid future bad debts caused by financially-deficient economies.
Thethird short-term solution is to adopt stringent due diligence whenoffering financial services. The company can use stringent customerscreening measures the company to be prudent in its decision makingprocess and its financial services sales. According to Mobleyet al (2012),the effective leadership of a company should understand the businessenvironment and adopt strategies that match up to the riskyenvironment. Therefore, due diligence was the main strategy thecompany adapted to navigate through the challenging global financialenvironment by avoiding bad debts.
Mobley,W. H., Wang, Y., & Ming, L. (2012). Advancesin Global Leadership.West Yorkshire: Emerald Group Publishing
SambaFinancial Group Reports (2011). TheGCC:Economic Outlook 2012.RetrievedFrom,<http://feafsnec.net/sites/default/files/GCC%20Economic%20Outlook%202012.pdf>July 14, 2014