Importance of PESTEL Analysis for an Organization

This document discusses the importance of conducting a PESTEL analysis for an organization. It explains how the analysis helps in understanding the external environment and evaluates the political, economic, social, technological, environmental, and legal factors. The case study of Royal Bank of Scotland PLC is used to illustrate the application of the PESTEL framework.

Business
Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Company is governed and structured..........................................................................................3
TASK 2............................................................................................................................................5
Evaluate the importance of carrying out PESTEL analysis for an organisation.........................5
TASK 3............................................................................................................................................7
PESTEL framework to analyse the external environment of your chosen company.................7
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment is the manner to collect the data of all individual to maintain the
quora in the business. The factor and the entities to maintain the segmentations of an
organisation as on the basis of the performance and task perception, profitability, growth and
survival to manage the term and policies in the management of business(Achim, 2017). The
surrounding of business is the depends on the suppliers, competitors, media, government,
consumers, economic conditions, investors and various sort of structure that depends on the
nature, size and operations of business. It depends on the criteria that defines the scale of the
business. The management consider in this business is Royal Bank of Scotland PLC. It
concentrates on the small scale and medium scale of environment that manage the factors to used
the scale and operations in the industry. It encompasses 600 branches in UK. As many large
towns and cities in the resources that are based on the valuation of sense of knowledge.
TASK 1
Company is governed and structured
Business environment deals with the manner that facilitate the variations in the business
factors of business that will be mentioned as the surrounding of business. It also get affect to the
organisational activities to operates the surrounding of the business. As there are many terms in
which the orientation of business get deal with the operation of individuals and management that
can be viewed as the growth and productivity of the business. As it also involves the most
facilitate surrounding that mention its sources to the division of demographic, socio culture,
legal, political, technological and global surrounding.
Organisation overview :
The Royal bank of Scotland PLC is also known for its extended section of account to
maintain the quora of business that deals the various theoretical manner. It was founded in
Edinburgh in 1727 with the approx 11000 individuals and got served to millions of consumers
and visitors. The company has been motivating their candidates and visitors to maintain their
relations to raise the company and its turnover value and its manner of goodwill. The merge
resulted the segment of resulted in the ownership organisation(Beynon-Davies, 2020).
The national and commercial finance unit are founded in 1968 with the integration form to
practice in 1969. The holding company was renamed The Royal Bank of Scotland Group on 4

July 1979. As they have the various sectors of unit to note the various orientation in the business
to hold the financial service sector.
Royal Bank of Scotland PLC manner of control :
The Royal bank of Scotland PLC enhance the immense manner of banking and insurance
service to deal with the personal services, business supplier and commercial consumers in
business of management. It has controlled and operated sort of various divisions to utilising their
segments in rural and urban field of area. The Royal bank of Scotland PLC approved by the
Prudential standard of control. It participates the term in the mode of faster payments services to
initialise the growth of payments services in the business of management.
The Royal bank of Scotland PLC is the immediate periphery of the organisation that has
been provide an opportunities to manage the business(Agwu, 2018). The operation and function
of every management of business deals with the other factors of the surrounding of business. The
operations of business deals with the situations and operations that intended the source of fund
that deals with the companies to be include in another sector of company. As it significantly
manage the issues and problems in the divisions of field of area. The manner is declared to
mention the holding in the respective manner of segmentation of Royal bank of Scotland PLC to
manage the frequent orientation in the business. The source of verifying the nature to maintain
the frequent approach to plan the merge in the insurance of the management of business.
Royal Bank of Scotland PLC manner of structured :
The Royal bank of Scotland PLC has separated into four basic criteria to get follow by
their consumers with each sector of business. It also support and manage the various sort of
functions in the bank to relates the issues in business.
 Support function : The group of Royal bank of Scotland PLC has been motivates the
various sort of functions and service sectors of department. Royal bank of Scotland PLC
involves the quora of procurement, techniques and methods to control the segment of
managerial activities(Boone, Kurtz, Berston, 2019). It provides the area of growth that
supports the managerial functions in the bank. It also maintain the terms of human
resource, corporates, governance, internal audit, legal issue and orientated problems.
 Retail Banking : The manner of retail banking division follows the issue of business of
the bank. Royal bank of Scotland PLC deals with the various factors of business that

possess the orientation in business. As it manage its work with an adequate manner of
schedule that phrase the orientation that control the sustainability in the business.
 Commercial Banking : The manner of commercial banking deals with the commercial
visitors of bank from the small size and medium size of enterprise to the multinational
business sector(Castillo, 2017). As it involves the Royal bank of Scotland PLC as
largest manner to follow the finance services, risk management services of visitor of
bank in the business management. It will also manage the terms of risk in manner of
consumers, visitors and other.
 Private Banking : It involves the manner to serve the high key factors of subsidiaries
and brands in the Royal bank of Scotland PLC to accommodate the service of groups.
TASK 2
Evaluate the importance of carrying out PESTEL analysis for an organisation
A PESTEL analysis is a framework or the tool that is used by the authority of
management to measure and supervise the external surrounding of business that have an impact
on organisation. The group of Royal bank of Scotland PLC used to determine the threat and
weaknesses to enhance the SWOT analysis. It is important to conduct the PESTEL analysis for
starting a new orientation of market to ensure the strong indication on the manner of business
that depends on the managerial activities. It might need the political standards to maintain the
goodwill in the business. As the business depends on the organisational structure to start the
business with the political segment to get mentioned. As such the PESTEL analysis is significant
for business that are as follows :
 Political factor : It determine the manner of business as per to the government policy,
political instability or disorder in foreign market place. The segmentation of the market
that covers the foreign trade policy, tax policy, labour law, environmental law, trade
limitation and many more(Charter, 2017). Royal bank of Scotland PLC have a positive
impact on the business to follow the recent quora of business for further legislation to
manage the orientated terms and policy as per the situation.
 Economic factor : It ensure the manner of business that allows the theoretical concept of
profitability. Royal bank of Scotland PLC involves the economical growth and
development, interest rates, exchange rates, price rising, available financial gain for

visitor and business. The factors are divided into macro economical and micro
economical factors. It deals with the various sort of perception to maintain the income
and expenditure level. It has a large impact on B2C organisation in particular phrase of
manner.
 Social factor : It determine the business that includes the position of the aggregation in
business. It involves the population development and growth, age distribution, health
consciousness, career behaviours, social media movement, social techniques
advancement and innovation(Downs, Stea, 2017). The factors that facilitate the Royal
bank of Scotland PLC to specialise interest the to maintain the social control of structure.
 Technological factor : It enhance the business by digital media approach as how the
techniques and methods are get utilise in the bank. The policies of product and services
that are having the issue related to the way of handling the commodity and the way of
good in the business. Royal bank of Scotland PLC determine the manner to facilitate the
orientation of various sort of issues in the management. As the more and more visitors
demands for the values and services by updated terms. The bank have the new ways of
manner to produce, distribute and communicate the goods and services and target the
conditions of the market.
 Environmental factor : The management of bank have an important segmentation to
enhance and maximize the scarcity of raw materials, pollution targets and the ethical and
sustainability and the government. Royal bank of Scotland PLC includes the variations of
issues in the market to deal with the visitor demand of the services.
 Legal factor : The legal factor involves the health and safety and equal opportunities with
advertising standards, consumer rights and laws of product labelling as the product safety
and security. Royal bank of Scotland PLC also enhance the market research to clear the
legal factor and the manner of trade(Dźwigoł,2020). It become more effective and
efficient to be include the various sort of rules and regulation that combined the
variations of management as per the positive manner.

TASK 3
PESTEL framework to analyse the external environment of your chosen company
PESTEL analysis is the tool of management that varies at several categories of macro
environment of management. group of Royal bank of Scotland PLC have the legal frameworks
that measure and supervise the market orientation in the management that consist the following
factors. It deals with the situation and orientation of business that related to internal and external
factor(Farrukh, 2020). As the market is changing every day it will enhance the way of
development and growth. The business of group of Royal bank of Scotland PLC is get
influenced the section of surrounding of market of management it will be more influential for the
orientated management to deal with the other external factors of the market.
As the business is also influenced the surrounding that relates to the factors to determine
the market condition. The banking sector is one of the most common phrase of the forces of
world economical and authorised level of section. The banks are not capable to manage their key
process as independently and provide the issues and services as per to their particular rules and
regulations of group of Royal bank of Scotland PLC that follows the services that are based on
the manner of growth and development. The framework to analyse the external environment of
Royal bank of Scotland PLC are as to be follows :
 Political factor : The banking sector industry have the jurisprudence that affects the state
of mind of the functional activities of management. It includes the corruption in the
political parties or particular set of laws that regards the trade restriction, tariffs and
political stability in management. The management of group of Royal bank of Scotland
PLC has also pursue the orientation of standard to examine the financial structure of
management. The bank includes the local and federal structure of government that has the
manner to involves the activities of bank. The terms and values can decrease the risk and
issues in the areas of management in the banking sector industry.
 Economic factor : The healthy and wealthy economy enhance the financial sector of
investment it might be local or foreign sector that is also creates many opportunities of
job in the basic criteria of bank(Gorla, Chiravuri, Chinta, 2017). The group of Royal
bank of Scotland PLC depends on the smooth running surrounding of the banking sector
industry. As the bank can not operates their functions if the economy will not get working
in the positive manner. The economical surrounding of business will enhance the major

segmentation to pursue the managerial activities. As the development sector creates the
opportunities and various sort of possibilities to develop the orientation to also support
the small businesses.
 Social factor : As the manner of changing the orientation of techniques and methods that
have a great impact on the financial sector of industry. The preference of changing the
section that determine the economical faculty of bank. The group of Royal bank of
Scotland PLC manner of skill and behaviour of individual in the manner of demographic
changes that inherit the presentation of transactions of business as per to the given quora
of managerial activities(Hair, Page, Brunsveld,2019). The banks offers the various sort
of specialise packages that will influenced them and make them more trustworthy for
them. The management of Royal bank of Scotland PLC successfully adapt the manner of
business in the banking sector.
 Technological factor : The techniques and methods that ensures the segmentation to
involves the financial transactions to create the online banking approaches. The
technologies of online banking are diversify as in versatile manner to plan the faculty of
orientation that focus their target to consumer security and safety. As group of Royal
bank of Scotland PLC because the techniques are growing as fast and the issues in
business are rapidly changing the surrounding of the data to become more breakable. It
also enhance the feature to decrease the risk in an organisation that will enhance the
orientation in banking industry.
 Environmental factor : The environmental factor deals with the ecological and
sustainability that have become now the manner to signify the industry and the
management. As in the bank that are also financing the segmentations to include the
assets and capital in developments of renewable source of energy. As per to the manner
of group of Royal bank of Scotland PLC that follows by most of the banks to enhance
this pattern that will manage the authority in the banking sector industry. As the purpose
of banks to implement the steps towards the transactions to control the environmental
activities(Niemimaa, 2019). As it will creates the positive image that will reduce the cost
in the manner of operational field of areas.
 Legal factor : The banking sector industry follow the quora of legal laws that involves
the privacy, consumer laws and trade as the structural can also form. The structure of

group of Royal bank of Scotland PLC that requires the manner of presentation to targets
the financial output that control the regulation and rules of banking sector(Tseng, Yi,
Yeh, 2019). The government has present the section of many laws for the safety and
protection of consumers and visitors in the bank.
CONCLUSION
As per the above report it has been concluded that, the business environment has been
emphasize the demand for all management to acknowledge and influence the term of values to
deal with the orientation of business. The executives and leaders in the management are aware
with the trend and market change in the surrounding of market that focus the presentation of
business of potential of profit. As there are various sort of groups that relates to supervise the
market and its surrounding to get increase the chances of their organisation for being get
successful in the presentation of market to get more productivity and profitability in the market.

REFERENCES
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(Niemimaa, 2019)(Tseng, Yi, Yeh, 2019)