Understanding the Business Environment: PESTLE Analysis and Porter's Five Forces Model

UNDERSTANDING THE
BUSINESS ENVIRONMENT

Table of contents
TASK 3...........................................................................................................................................3
PESTLE ANLYSIS.....................................................................................................................3
Portals five force model...............................................................................................................5
TASK 4............................................................................................................................................5
REFERENCES................................................................................................................................9
Books and Journals......................................................................................................................9

TASK 3
PESTLE ANLYSIS
Pestel analysis one of the effective frameworks which is utilized to determine the factor or the
element which affect the origination in positive as well as negative manner (Amoako, and
Boateng, 2022). Due to the determination of impact on the origination the business unit can form
plans of action in an appropriate manner. The analysis is consist of 6 major factors which are
mentioned as follow:
Political factor: it refers to the taxation policy, rules and regulation which is imposed by the
government on the various origination. Every country has different government and various rules
and regulation decided by the governing body. In context to that it is important for th e HSBC to
determine the political stability of different countries for the survival of the banks. The political
stability of the nation encourages the buyers and investor for showing the interest in the
association. Frequent changes in the policy of the nation affect the performance of the company.
In context to that the organization should form the decision as per the political environment of a
country. The government have good relationship with the other boundaries doer to that the
organization can obtain certain benefits from various marketplace and enjoying the facilities of
economic. Due to transparent governance structure the HSBC bank is facing various issues as
the corruptions is increasing in the domestic as well as international marketplace.
Economic factor: it is the most affecting factor to the organization due to that the company ca n
accomplish short term as well as long term growth in a specific sector. Due to the high
efficiency of domestic as well as international marketplace the company is developing better
professional relationship with the financial economic growth. With the assistance of this factor
the association is continuously defeating the competitors and offering competitive Advantages
in the marketplace ( Matović, 2020). The UK is having better economic condition so the tax rate
for operating the business is lower. Furthermore it is considered as the financial support as the
company is increasing the scale of revenue growth. Apart from the pros the negative aspect is the
inflation rate which is affecting the position or performance of the company. The increasing