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Establishment of Santander Bank in France association with Foreign Direct Investment

   

Added on  2020-10-05

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TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................1Overview of Santander Bank......................................................................................................1Establishment of Santander Bank in France association with Foreign Direct Investment (FDI).....................................................................................................................................................1PESTLE ANALYSIS .................................................................................................................6PORTER'S FIVE FORCES.........................................................................................................8CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10

INTRODUCTIONForeign Direction investment has crucial role for the economic growth of economy. It is away of investors to invest at all level of domestic savings. The benefits of foreign directinvestment are to attract the capital, knowledge and increase in the balance of payment. Thispresent essentially provides an analysis of a specific organisation which is going to expand itsbusiness activities in relation to the particular country (Shahbaz, Nasir and Roubaud, 2018). Inaddition to this, company chosen in this assignment is Santander Bank and country where theyare looking to expand is France. Thus, this report will provide the complete analysis of businessenvironment of France in which establishment of bank in France related to FDI. Further, thepestle analysis and porter's five forces will be done which help in analysis of external andinternal factors on the business environment.MAIN BODYOverview of Santander BankSantander Bank is formerly Sovereign Bank, is wholly owned subsidiary of SpanishSantander Group. It was founded in 1902 and its headquarters is located in Boston,Massachusetts, United States. Band has $57.5 billion in deposits. Operated about 650 retailbanking offices and over 2000 ATMs and employees approximately 9800 people. SantanderBank offers array of services related to finance and products including retail banking, corporatebanking, mortgages, capital markets, credit cards, insurance, trust and wealth management.Santander Bank is looking to expand the business in France (Overview of Santander Bank,2017). Establishment of Santander Bank in France association with Foreign Direct Investment (FDI)Establishment of company is setting up an organisation, registration of firm, formation ofcompany is a process aimed to open a company as well as run business under a legal entity.Santander Bank is looking to expand the business in France as they want to establish the businessin another country. There are many reason why Santarder Bank has chosen France for itsestablishment (Faria, 2016). The foreign direct investment attracts many organisations to investwithin the country as Franc is one of the top ten world economic powers as well as it has manyasserts to attract foreign direct investment. Sandardar Bank provides all types of services andproducts in France like finance and products including retail banking, corporate banking,mortgages, capital markets, credit cards, insurance, trust and wealth management. 1

Here is the tabular presentation that shows the inflow of Foreign Direct Investment byvarious nations: Investing Countries in FranceContribution in % (2017)United Kingdom34 %United States13.5Finland6.4Italy1.8Ireland1.7Japan1.2Netherlands14.0Spain6.4Switzerland 3.2Hong Kong 1.7Table 1: FDI inflow from different counties in France The above tabular and graph presentation depicts that there are 10 main countries whichare investing in the France economy (Foreign Direct Investment in France, 2017). Therecontribution is also remarkable. With this, table it is clear that Santander Bank could also expandthere business in France as the 13.5 percent of contribution is made by United States which is 3rdlargest contribution. 2UnitedKingdomUnitedStatesFinlandItalyIrelandJapanNetherlandsSpainSwitzerlandHongKong0246810121416Contribution in % (2017)

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