Essay: Article on AIG
The article highlights that the old management at AIG including Edwards Liddy would have somewhat restricted the initiatives that need to be taken to allow the company to become efficient even in the recessionary market. The author mentions “with a major shake-up among its decision makers, new management will have the opportunity to continue with Liddy’s plan to further reshape the company, or put their own stamp on how to create a leaner, more efficient AIG.” (Bernard, 2009)
Therefore the new management at the AIG group will have to work towards making the company leaner and efficient through a combination of control; and flexibility. This is one of the effects of good planning as it improves the performance of the management that is ultimately reflected in the performance indicators of the company.
The article also provides that strategic as well as short term plans and decisions are required that can pave way for the future of the company. The strategic plans are those which may need considerable time to plan upon and decide as they are future oriented and have along term effect on the operation of the business. The tactical or short term plans however are for immediate effect and are used to implement the strategic plans and initiatives.
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