Critical thinking R - Coursework Example

CRITIQUE ON ARTICLE THE STANDARD CHARTERED CEO SPEECH The banking industry is facing crisis since 2007 - 2008 after the Lehman brothers filed bankruptcy. The market has now become very dynamic in nature and banking industry is changing day by day with the variations in the market along with consumer preferences. Standard Chartered Bank declares that the same strategy will be followed as the last decade to compete successfully in the fast growing or developing markets of Asia and Middle East. The focused markets of Standard Chartered for the last decade are the emerging markets of Asia, Middle East and Africa.

In the light of discussion by the CEO of Standard Chartered the discussion raises that if the strategies of the bank have been successful in the markets of Asia and Middle East then why the same strategies have not been applied to the Western and more developed markets at the time of crisis. The prevailing market condition develops a perception that developed and under developing markets have a considerable difference in the driving forces of market. The driving forces that derive the dynamics of banking industry are political, economical, socio-cultural, technological, legal and environmental forces.

One more important thought that has been identified is regarding the main factors that differentiate the markets of developed and under developing countries in the era of Globalization. The prevailing circumstances highlight that the banks need to focus on the local markets as well along with the focus on highly framed global markets. The high competitive environment and dynamic consumer behavior have made all the banks accountable for all of its local and global strategies to enhance or modify the strategies with the passage of time to successfully compete in all the markets.

CRITIQUE ON ARTICLE 2: REAL STATE In the light of the discussion by the Chairman of EMAAR properties, the real estate market of UAE is not changing it self with the recognized needs of the market. Youth of Asia is shifting to UAE with the purpose of employment and therefore with increasing number of immigrants, the real estate industry has become an important for the economy. Immigrants coming to UAE are mainly focusing on saving and are not spending too much. These immigrants are increasing in UAE with a fast rate and are searching for low cost accommodation to save their money.

But unfortunately, the focus of most of the real estate developers in UAE is on a niche segment of luxury housing buyers. UAE has become a strong financial hub and the investment by multinationals in UAE is increasing as well so it is also driving the demand of employment in the economy. The EMAAR Chairman has analyzed that real estate developers should try to minimize the cost of construction and make the supply chain more efficient to get the lowest possible cost. This would also allow them to sell at affordable prices to the raising youth that have limited budget.

This idea presented by the chairman could give a new perception to the UAE real estate developers. Luxury homes are mostly purchased by the investors and high class societies. The perception of real estate is still a question mark this is the reason why UAE real estate investors have focused on luxury buyers instead of large market of middle class buyers. This perception interprets that the developers just wanted to attain higher profits by selling luxury or in other words developers did not want to facilitate the larger middle class sector and this perception can be defined as the major cause of the UAE real state development downfall.