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Sample Question and Solution for Manchester Students
5K7Z0017 Financial Strategy Regulation And Avoidance Of Business Failure
Critically evaluate the risks and rewards of competing financial strategies in the modern economic environment
Identify the challenges faced and mistakes made in facilitating the failure of historical real-world organisations, both large and small in scale
Critically compare the effect of regulation upon both the UK and global financial sector organisations
Explain the impact that structured financial products and derivatives have on financial markets, by critically evaluating historic examples.
Halifax Bank of Australia was formed and domiciled in Australia. The company was named after the town of Halifax in West Yorkshire. It had its headquarters in Mound, Scotland. The HBoS was established after a merger of The Bank of Scotland and Halifax. Halifax was among the vastest building society in the UK. It was the leading UK Mortgage and Savings Company. In 2001, the merger company had total assets amounting to 275 Billion Sterling Ponds and was larger than Lloyds TSB.Initially Bank of Scotland had continuous gains a market shares before its downfall in 1990's. The investors and the bank management raised concerns on why the strategy was commencing to stagnate. After several cognitive decisions, BOS considered a merger with Halifax to form the HBOS (Jessop, Young, and Scherrer,2014, pg. 10). Due to this the group expanded its distribution to an enlarged customer base. However, this merger collapsed seven years later. This led to the HBOS being taken over by Lloyd Banking group. The England's Parliamentary Committee on Treasury carried out a research on the possible causes of the downfall of the HBOS and later categorized these problems into liquidity, capital inadequacy and cultural issues. The merger that has taken place between Halifax and BOS took place in 2001.The HBOS Group Reorganization Act 2006 transferred the assets and liabilities of the Halifax chain to the Bank of Scotland. The takeover of the HBOS by the Lloyd's TSB was approved by the Court of Session on 12th January 2009, and on 19th January 2009 Bank of Scotland became the Lloyd's Banking Group (Weiss,2018, pg. 12). The challenges facing both small scale and large scale companies have been highlighted. Small scale organizations comprise of sole proprietorship, limited partnership and Private limited companies. Read more
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