Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
Peregrine's Strategy
What were the external and internal factors that led to the collapse?
There are many factors that could explain the rapid failure of Peregrine's failure that seemed to appear in such a short time frame. It seems fairly obvious that management bears the burden of responsibility on many levels, however, there are other explanations that could also be introduced, although the causes are debatable. However, the mainstream press seemed to focus purely on the management capabilities of the company.
"The collapse of Peregrine Investments Holdings Ltd., the biggest business failure in Hong Kong during the Asian economic crisis, was caused by bad management and not the crisis itself, according to a government inspector's report (Manuel, 2001)."
In fact, it was recommended that the courts restrict the top-level management team from operating for fifteen years based on the management team's incompetence in running the investment bank.
Although such a judgment may seem reasonable, the investigators for the case were not able to actually find any means of fraud which would suggest that the failure could be the product of bad judgment. The corporation began as a domestic player that specialized in fixed-income business investments that could compete well in the Asian markets...
The success of the firm depended on its internal ability to match investors and borrowers in a range of different financial instruments.
As the Asian market's sole domestic provider, the organization had a significant edge on many of the international players that were competing in the market. However, their initial success undoubtedly led to a level of hubris that ultimately led to the company's demise. The company attempted to expand faster than it could have in a more sustainable growth model, and then in 1997, the Asian crisis left the firm vulnerable to external events that ultimately led to the demise of the company. It was most likely the management's attempt to leverage the company's previous successes on an ambitious growth path that led to the company's vulnerable position during the crisis.
2. Evaluate Peregrine's strategy and its implementation. What did it do right, and what did it do wrong? Was Peregrine's collapse a failure of strategy? A failure of implementation? Or just plain bad luck?
It would be hard to explain Peregrine's demise with only bad luck. The company obviously engaged in many speculative behaviors that put the organizations at risk. While the fall of the Steady State obviously contributed to the company's weakened…
Works Cited
Gargan, E. (N.d.). Hong Kong's Peregrine Soared Like a Falcon, Sank Like a Reckless Bank. Retrieved from NY Times: https://partners.nytimes.com/library/financial/011398asia-hongkong-peregrine.html
Manuel, G. (2001, March 27). Poor Management Triggered Collapse Of Peregrine Investments, Report Says. Retrieved from The Wall Street Journal: http://www.wsj.com/articles/SB985626919629217466
Ideally, rather than a hostile action, the activity should be motivated in a spirit of mutual cooperation, in a manner which would be advantageous to both entities -- both BEA and the purchasing entity. In the case of ICBC's venture with the bank, "The transaction would mark the first purchase of a majority stake in a U.S. depository institution by a Chinese bank. If completed, it may give financial firms
local central African banks: Burundi, Rwanda & DRC can learn from the way European banks operate T a b l e o f c o n t e n t s Short description of the issue: Description of how local central African banks operate: In Africa Description of how European banks operate How and what can central African banks learn from European banks? This dissertation (Thesis) is a description, how and what local central African
Steps were also taken to organize a stock market in Lahore (Burki, 1999, pp.127-128). Also organized during this period were the Pakistan Industrial and Credit Investment Corporation (PICIC) and the Industrial Development Bank of Pakistan (IDBP), both of which were important to industrial development, obtaining "large amounts of capital from the World Bank, the former for investment in large industries, the latter in relatively smaller enterprises" (Burki, 1999, p. 128). This
Liquidity and Loan Quality: the Impact it is having on Bank Health Since the 1980's, there has been an emphasis on deregulation within the banking industry. Part of the reason for this, is because of shifts in the economy (thanks in part to globalization) as the markets and products have changed. This has forced many different governments around the world to reduce regulations to include: liquidity and loan quality standards.
292). The Depression of 1893 Following hard on the heels of the depression that had taken place just two decades previously, the precise causes for this economic downturn remain unclear. In this regard, Steeples and Whitten (1998) advise, "There is no adequate account of the causes of the depression of 1893 -- 1897 or, by implication, of the crisis itself" (p. 6). These authors, though, cite fundamental shifts in demographics in
This also implies inadequacies in fiscal sustainability, which influences investments in private sectors. The second channel happens through the level, composition and quality involved within the public investment, which shows the level at which the public investment replaces the private investments (Schmidt- Hebbel, Serven, & Solimano, 1996). The final channel regards the level of taxation on the corporate earnings and the rules applicable in depreciations. There have been arguments that fiscal policy