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Identify The Resources, Capabilities And Distinctive Competencies Of Starbucks

1437 words - 6 pages

Mohamed Kaba 15/01/2013
THE IMPACT OF CRISIS IN EUROPE ON BUSINESS ORGANISATIONS

A crisis could be defined as anything that knows a decline during a long or short period. In here we are meaning a decrease in the economic and financial activity of a country. An economic crisis could be first caused by subprime banking. For example, in authors view, the financial crisis (2008) was primarily driven by two factors. First, investor‘s and financial ...view middle of the document...

Since the French and the Dutch voted against the document last spring the United Kingdom, other states, including Luxembourg, have ratified the treaty .Whereas the US have quite depended on Europe since 1950’s for better supporting themselves, the ratification process continues, which is bound to produce a deadlock for the US so to some extent Europe.
One other fact upstream from crisis is intra euro imbalances. Intra-Euro imbalances are mainly repercuted on prices, wages, productivity and exchange rate manifested by vast divergence in Euro area, in non-price competitiveness such as sectorial and geographical specialization of the export sector, production and technology structure and quality of products. Also seen in non-tradable sectors (i.e. services) such as logistics, IT, construction, personnel and financial services, these imbalances have for example led to the current crisis in Europe (as Zemanek et al affirmed it in 2009).
We can then believe from that, the crisis in Europe could have been downstream from Subprime banking, Political reasons (Maastricht treaty), and intra euro imbalances. But we should analyze how the crisis has impact on the labor market so on business organizations(defined when the business is formed with the name and contact information of those who own and run the company with their roles defined, but a sole proprietorship does not have organization as one person owns and controls the business).
The European Union (EU) is expected to14 lose some 8.5 million jobs over 2009-10, with unemployment potentially reaching around11% by 2010 (Labor market statistics, 2009). Labor market issues such as unemployment rates so, productivity, are at the heart of the European crisis impact on business organizations. The crisis in global financial markets (such as the subprime in the US) has led to the most severe recession since the Second World War, affecting the wider economy and increasingly impacting on labor markets in the EU which is manifested in hitting business so jobs. Initially concentrated in Spain and the United Kingdom (UK), the bulk of the negative impact on labor (unemployment) has recently begun to rise across all Member States (Kritikides , 2009). It appears that some groups of workers more deeply than others are affected by the crisis(The European Union Labor Force Survey (EU LFS).For example, although men still have higher employment rates than women, former have been more affected by the downturn than the latter, reflecting that many of the sectors hit hardest by the crisis are predominantly male oriented in terms of employment (Spidla,2009).We could suggest here not just because the secondary sector(industry) is more affected by the unemployment, which mostly use male employees rather than female, than the tertiary sector (services) where female employees are mostly fund but also because these former are more looking for part time jobs than man(Which is easier to get specifically crisis times). There...

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