Business Case Study Example | Topics and Well Written Essays - 500 words

Business - Case Study Example This is a point of concern because AIG was in the past, ranked among the world’s best performing insurance companies. Its closure in 2008, before the government bailed it out, happened in a period when the United States and other world regions were experiencing financial heat, because of the financial crisis that had rocked the world. However, the company had itself it blame for its downfall, since the management did not practise caution in running the company, neither did they develop effective business strategies that would see the company withstand any financial storm (Ferrell, Fraedrich &Ferrell, 2013). This case study therefore, raises different issues concerning AIG, its business practices, and its downfall. From its history, AIG was considered a competitive company, having a market value of approximately $200 billion in 2007. However, this changed in 2009 when the market value of this company sharply declined to only $3.5 billion. The government in 2008 came in to rescu e the company from facing total bankruptcy. This was an important move by the government, as it saved other companies, which depended on AIG, from facing equal bankruptcy. The AIG was a big player in the financial market; therefore, total bankruptcy would have worsened the 2008-2009 economic turmoil (Ferrell, Fraedrich &Ferrell, 2013). The factors that led to the decline of the AIG are analysed, and these mostly include internal factors in the company.