Global challenges



The paper describes the impact of globalization on RBS (Royal Bank of Scotland). Following globalization, there was a merger between RBS and NatWest. Secondly, the merger with ABN AMRO turned out to be unsuccessful as it made RBS more vulnerable to market deterioration which resulted in the fall of its capital ratio (The Failure of the Royal Bank of Scotland, 2011, pp. 6,). According to RBS chief Stephan Hester, globalization has led to deterioration in the efficiency of the sector (THE FIRST CRISIS OF GLOBALISATION, 2010). Globalization has led RBS to go global and thus have access to global currencies which in turn can help to smoothen the liquidity crunch. The Royal Bank of Scotland has set business objectives like increasing the capital ratio, lowering the leverage ratio, increasing liquidity and reducing its short term borrowings from money market. Hence from the point of view of the CVF model, RBS can explore the rational economic view model as this model will help RBS to increase its output and attain individual and organizational goals. The analysis of RBS has shown that management concepts can be utilized for the betterment of an organization. It can help to foresee the opportunities for the firm as well as its potential threats and weaknesses. Management theories and the models developed by it have helped the present society to understand the importance of scientific and a systematic way of approaching a problem. It helps to save time and resources as well as to gain many insights too.