Whats Complicating Bernankes Balancing Act Essay

Whats Complicating Bernankes Balancing Act - Essay Example products, but more about the market forces that are determined by overseas. The interdependency can be observed from the increasing trade volume between U.S. and Asia, which has doubled in 10 years. The complication increases the chances that the Fed could make a policy mistake by pushing rates too high or leaving them too low. It could cost the economy deadly if an error is to be corrected later on. (Cooper, 2006) Large countries, like the U.S., used to alter their monetary policies according to the situation of themselves. For example, in the past, the U.S. could keep her inflation rate under control easily and effectively through adjusting the interest rate to a right level. However, in the world of globalization, as the world economies are becoming more interdependent, as supported by the increasing trading volume in the passage, the level of interest rate would also affect the trade deficit issues between the U.S. and other countries as foreign capital is in need to finance the trade deficit.

Prescriptive and Emergent Strategic Planning Essay

Prescriptive and Emergent Strategic Planning - Essay Example The paper throws light on strategic planning process as part of strategic management that has been applied by business managers over the years. The process involves a formal analysis of the market forces and developing an operational plan to be adopted by the organization in terms of resource allocation and the control mechanism. Strategic management will involve formulating the mission, vision, values, roles, responsibilities, goals, and objectives of the organization and developing policies to be implemented to achieve these objectives. Strategic planning is one of the management tools. It involves making principles, decisions, and steps to define what an organization will do and how it will be done in relation to the expected future trends in a given market. Planners often use economic theories to formulate the operational strategies to be adopted by the organizations. Nonetheless, the future may not fit these economic models and the intended patterns according to these strategies may not be realized finally by the organization. The traditional approach to strategic planning did not consider the dynamics in the business operations. In theory, the operations of an organization can be fully planned whereas in practice it is not possible. Essentially a strategic planning process should involve developing a mechanism to respond to the circumstances that will be encountered in a business environment regardless of whether or not the conditions were known to the planners during the planning process. (Management FAQs, n.d). Since the contemporary market is dynamic and the strategic models that are developed based on economic theories may not apply, alternative approaches to strategic planning are often used by organizations. Business organizations operating in the dynamic business environment may often encounter situations that require quick responses that cannot be made through the formal strategic planning processes (The Open University, 2012). An emergent strateg y is a situation where the realized pattern is different from the pattern that was expressly intended by the planners (Mintzberg, 1994). The essence of the emergent strategic planning approaches is to manage the dynamics that is observed. The emergent strategic planning does not originate fully from the minds of the planner. Much of it is determined by the factors that are prevailing at a given time that may not favor the realization of the intended objectives and goals. This paper provides an evaluation of the effectiveness of the traditional prescriptive strategic planning in relation to the current economic climate. Another category of alternative strategic planning approaches are also considered with an emphasis on the emergent strategic planning. Prescriptive strategic planning Strategic planning is one of the tough managerial tasks in business operations since it is at times complex and very challenging. It has been pointed out that planning is ‘a formalized procedure to produce an articulated result in the form of an integrated system of decisions’ (Mintzberg, 1994, p.12). The organizations are faced by a series of decisions to make. The organizations have several needs to be accomplished, and which may not be accomplished at the same time owing to the limited resources that these organizations have. The strategic planning will involve making decisions and actions that are more significant towards helping the organization achieve some if not all of the objectives (Management FAQs, n.d). Planning involves bringing mediation and some kind of compromise/agreement between the business and the environment. It involves forecasting into the future and meditating what should be done long before the situation is realized. The prescriptive thoughts to strategic pla