Macroeconomics. US markets Essay Example | Topics and Well Written Essays - 1250 words

Macroeconomics. US markets - Essay Example Given all of these statistics and the facts that the USA is the land of opportunity, how is it possible to witness in our lifetime, an economic period rarely ever seen before, both in the US and the world All of this has led the big companies of America and of around the world to counter these crises by increasing the shareholder's value and increasing the investor's drive. This will enable these companies to stop the spiral where no investment and severity of the crises are going to lead the world to bigger problems. By providing incentives to shareholders in terms of shareholder's value and increasing the investor's drive, some money is going to be pumped into the economy that will have the convalescing effect on the injured economy of the world. (Allbusiness, 2010). Shareholder's value is a broad term depicting more than what is being shown in the financial statements of a business. In the earlier years, many people used financial results of a company as a measure of Shareholder's value. However, this approach had plenty of loopholes and due the fact that there was no widely acknowledged definition of shareholder's value. Many people changed the way they used to measure the shareholder's value. ... This crisis continued till 2008, matured and gnawed the world economy. Many arguments were given about how this financial crunch started. Many people argued that it was started by the booming oil prices, whereas other people stated that this crisis is a result of poor economic policies of IMF and World Bank which overheated the global economy and resulted in the financial crunch. Whatever the reason of this crisis, one can almost be sure that this crisis has affected subprime mortgages, declining house prices and caused investor bankruptcy. Although global financial crisis result in more problem than those stated above. How is this related to shareholder's value and investor's drive First of all investors usually invest in a company where they see they can earn reasonable return on their investments. However, due to reckless lending by banks and other financial institutions (DFIs), many potential investors in the banking sector became worried about their returns. They predicted that these lending by the banks are risky and hence they could lose a big deal of money if they invest in the banking sector. Hence, they decided not to invest in this sector. Many organizational psychologists predicted that this is a result of value delivery system which was very low in the banking system at that time. In other words, potentials investors could see more harm if they invest than if they do not. The reasons behind this behavior of the investor's were that they see little or no drive to invest. As a result, there was a shortage of investments in the banking sectors. The banking firms who had lent the money found themselves in the liquidity crises and many of these institutions filed bankruptcy.

The confidence of Saudi Consumers in the credibility of seasonal sales Literature review - 1

The confidence of Saudi Consumers in the credibility of seasonal sales of international brands - Literature review Example Current paper focuses on the examination of the perceptions of Saudi consumers on international brands. Particular emphasis is given on the confidence of Saudi Consumers in the credibility of seasonal sales of international clothing brands. The literature published in regard to this subject is critically analyzed aiming to identify the views of Saudi consumers on the seasonal sales developed by the international brands. The performance of international brands in the Saudi market is examined; due to the lack of adequate material on the views of Saudi consumers on seasonal sales, an effort has been made to cover the relevant gap by analyzing the criteria on which the choice of consumers on international brands is based. The strategies used by marketers for increasing the trust of consumers to various products/ services are also analyzed. Furthermore, the international brands of firms operating in the clothing industry in Saudi Arabia are presented. It is proved that the marketing strat egies used in Saudi Arabia for the promotion of these brands have certain characteristics; moreover, it is made clear that the marketing policies used in Saudi Arabia for the promotion of these brands are quite effective. Significant prospects exist for further growth of the firms operating in the particular sector of the Saudi market. 2. ... On the other hand, Fink (2000) notes that in each market, the level of retail sales can be a credible indicator regarding the consumer confidence in the particular market (Fink 2000). It is not explained though whether there are specific marketing strategies that can increase the consumer confidence, which in turn will lead to the increase of retail sales. Referring specifically to the fashion sector, Hirschbichler (2011) notes that the sector’s managers are likely to use two strategies in order to improve the performance of their stores, i.e. increase the numbers of their customers: a) the Quick Response Strategy, a strategy focusing in the establishment of an effective supply chain; it is explained that the above method is particularly valuable in practice, as proved through the case of Zara; by adopting the above strategy the specific firm managed to reduce the time required for responding to the orders of its customers, and its performance has been significantly increased. The above strategy would be also used by retailers in Saudi Arabia, as a tool for increasing the confidence of their customers in the product/ services involved; b) ‘Collaborative planning, forecasting and replenishment’ (Hirschbichler 2011, p.6), meaning the cooperation with other members of the team for increasing the effectiveness of the strategies including in a particular marketing plan (Hirschbichler 2011, p.6). Between the two strategies proposed above, the study of Hirschbichler the second one is considered as more effective, covering an important area of the market. Another aspect of consumer confidence is presented in the study of Jacobson et al (2001); in the above study, it is made clear that the most effective way for increasing