Provide a clear detail of the recent problem/opportunity that a real organization is facing.

1. Provide a clear detail of the recent problem/opportunity that a real organization is facing.

The trading of stock in public companies in the New York Stock Exchange (NYSE) is an essential part of the US economy. The trade allows organizations to raise capital to expand operations, launch new products, or pay off debt. For investors, trading presents them with an opportunity to make a profit from dividend payments and gains in stock value. On 11 Mar 2020, the World Health Organization declared the new coronavirus disease 2019 (COVID-19) a global pandemic. The COVID19 triggered panic across the globe, which shook the confidence of investors. In a few weeks, the US Stock exchange felt a significant impact of the outbreak by dropping up to 10.percent (Bird 2020). The crash of the US Stock market began in February 2020 when multiple indexes such as NASDAQ-100, Dow Jones Industrial Average, and S&P 500 Index. The pandemic has reduced business investment and consumer spending, which led to the fall of value and confidence in the US stock market.

2. Detail why this problem/opportunity is important and why the organization should take it in consideration.

The history of other pandemics such as SARS, details the intended impact of the COVID19 to the US stock market. According to Ip and DeBarros, the outbreak continues to cause immense disruption to business activity, travel, and everyday life (2020). Moreover, COVID19 poses substantial risks to stock prices of firms that rely on the Chinese economy. Companies listed in the NYSE should take the opportunity of this problem to avoid significant failures in the future. China is the world’s largest economy and has built its growth on low-cost exports of equipment and machinery (). Notably, the Chinese government spends more money on state-owned organizations to fuel exports. According to Lukin, China is the second-largest holder of US treasuries and does so to support the value of its currency, Yuan (23). The pandemic offers the US an opportunity to rethink the economic model that heavily relies on China..

3. Identify the stakeholders of the selected problem/opportunity.

The NYSE is the heart of a free market system in the US. The stock exchange brings together organizations that need capital to operate and investors looking for profitable opportunities. One key stakeholder in the NYSE is the issuers who supply security to raise funds. These entities include small businesses, multinationals, and the US government. Organizations issue stock that represents ownership interest to investors while governments supply bonds to raise money for public operations such as social services, infrastructure, and development. Another group of stakeholders includes investors who purchase securities either directly or indirectly through mutual funds. In addition, the US Securities and Exchange Commission acts as a regulator by proving structure to the NYSE.

4. Provide detail information about what the organization should do to resolve the identified problem or should do to take advantage of the identified opportunity.

The US stock market affects the US economy in three primary ways; allowing small investors to trade, beating inflation, and funding business growth. Figure 1 below shows the downward trend of the Dow Jones Industrial average amidst the COVID19 pandemic. According to the New York Times, the Federal Reserve seeks to solve this problem by offering emergency loans to market mutual funds (2020). The objective of this approach is to keep the US stock market functioning and propel the American economy during the pandemic. Moreover, the US government intends to inject $1 trillion into the economy to prevent further crash of the NYSE. The funds hope to maintain investors’ confidence and improve the performance of companies.

Figure 1: The Dow Jones Industrial Average

5. Discuss how the information that you learned in MGMT 201 can help you understand and deal with the selected problem/opportunity.

MGMT 201 provides an introduction to the core theories and concepts of management. Moreover, the course emphasizes the development of a theoretical foundation to enable effective management and understand its implications. One of the approaches is explaining an organization’s external environment impacts the management. The information includes leadership skills, team management, structure, and roles of managers. MGMT 201 offers insight into resolving the adverse impact of the COVID19 pandemic in the US stock market. The course guides in the decision making procedure of all the stakeholders, including investors, businesses, and the government.

6. Identify and discuss what other topics/elements could be learned in MGMT 201 to help you understand and deal with the selected problem/opportunity.

The strategic planning process entails the steps an organization undergoes in determining the mission, vision, and overall goals of the business. This topic could be learned in MGMT 201 as it provides students with the opportunity to discover the approaches taken by entities to overcome unpredicted risks. Strategic planning would help US stock market stakeholders in maximizing their resources and avoiding wasting money on unimportant activities. The element guides an organization’s leadership to understand the direction and objectives of the business.

7. How other course at AUD could help you understand and tackle the selected problem/opportunity.

The COVID19 pandemic has had a far-reaching impact on all stock markets across the world economies. According to Ip and DeBarros, the previous global crisis, such as the Great Depression and Global Financial Crisis, took years to influence the stock markets (2020). However, the COVID19 pandemic achieved this outcome within three weeks. One course that can help in understanding and explaining the problem in depth is Economics. Learners explore the full spectrum of issues that impact the stock exchange, such as production, consumption, inflation, fiscal policy, and unemployment.

Works Cited

“Fed Announces More Loans as Investor Alarm Persists.” The New York Times, The New York Times, 18 Mar. 2020, www.nytimes.com/2020/03/18/business/stock-market-today.html.

Bird, Mike. “Stock Markets After the Coronavirus.” The Wall Street Journal, Dow Jones & Company, 16 Mar. 2020, www.wsj.com/articles/stock-markets-after-the-coronavirus-11584352919.

Ip, Greg, and Anthony DeBarros. “Lessons for the Coronavirus Crisis From Six Other Disasters.” The Wall Street Journal, Dow Jones & Company, 20 Mar. 2020, www.wsj.com/articles/lessons-for-the-coronavirus-crisis-from-six-other-disasters-11584719497.

Lukin, Alexander. “The US–China Trade War and China’s Strategic Future.” Survival 61.1 (2019): 23-50.