Business in practice

INTRODUCTION
NatWest bank is a retail and commercial bank
in UK. It was established in 1968 by the merger of
National Provincial and Westminster Bank.
Internal factors affecting Nat West Bank
Strength - Strong distribution network, strong brand portfolio, highly skilled workforce on capital
expenditure, successful track record of product innovation.
Weaknesses – Financial planning is weak, not good at forecasting demand, need more
investment in new technologies, damages brand image because of controversies related to
internal audits (Gürel. and Tat, 2017).
Opportunities – lower inflation rate enable credit at lower rate to customers, decrease cost of
transportation because of lower shipping cost.
Threats – As it is operating in several countries therefore risk of currency fluctuation, intense
competition, new technologies developed by competitors.
External factors affecting Nat West Bank
Political – In case of corruption repercussion leads to resignation of high level
employees, Trade barrier by other countries or the host countries, high level of tax.
Economical – Interest rates of the country, unemployment in country which means Nat
West Bank can employee people at lower wage rates, rate of GDP growth.
Social – Age, gender of the population, educational background.
Technological – Recent technology adopted by the competitor, diffusion of technology
in other firms.
Impact of Nat West Bank on external factors
Political – As the bank has adopted online transaction therefore
government also have to make laws regarding the same.
Economical- NatWest bank has given employment to at least 62,900
people.
Social – Educational background between the bank and the population or
customer, equal pay and policies for both men and women (Shtal. and
et.al., 2018).
Technological – Has adopted the digital technology, net banking etc for the
convenience of their customers.
CONCLUSION
Internal factors like the strength and weakness affect the bank and also the external factors
like political, economic, social and technological. The bank also impacts external factors.
REFERENCES
Gürel, E. and Tat, M., 2017. SWOT analysis: a theoretical review. Journal of International Social
Research.10(51).
Shtal, T. and et.al., 2018. Methods of analysis of the external environment of business activities.s