Business Strategy: Analysing Macro and Internal Environment of Halifax Bank

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Analysing the impact of macro environment over the organisation with the help of
PESTLE analysis....................................................................................................................1
PESTLE analysis....................................................................................................................1
Stakeholders analysis .............................................................................................................3
TASK 2............................................................................................................................................4
P2 Analysing internal environment and capabilities of the organisation...............................4
SWOT ANALYSIS................................................................................................................4
VRIO analysis .......................................................................................................................6
TASK 3............................................................................................................................................7
P3 Applying Porter's five forces model and evaluating competitive advantage of company 7
Porter's Five Forces................................................................................................................7
TASK 4............................................................................................................................................9
P4 Developing strategic plan with application of tactical knowledge and theories...............9
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
A business strategy is a process of competitive moves and action for a business which uses to
attract customers, accomplish the objectives, effective performance and achieving organization
goals. A market research required to pursue the effective business strategies. For this report
Halifax is considered which is a British banking venture which operates as a it commence the
trading division of Scotland,where it was founded at the year 1853 and it purchased by Lloyd
Banking Group, the headquarter of Halifax Company is situated in West Yorkshire in united
Kingdom (Nagy and et. al., 2018). It provides the guidance for investments and financial
services to the customers. In context of this company analysation of PESTLE, SWOT, VRIO
Porter's Five Forces, for internal and external environment as well as for the market research
assessment. At the end a strategic plan is developed for Halifax with use of Ansoff's matrix and
porter's generic model. Through this management techniques the identification of pros and cons
of particular company and also generates the growth in terms of market positioning, brand value,
performance etc.
TASK 1
P1 Analysing the impact of macro environment over the organisation with the help of PESTLE
analysis
Macro environment refers to the overall external conditions in which an organisation
operates and have influence over the company. Basically, macro factors are those who impacts
the whole industry and numerous businesses which are operating in it. In order to evaluate the
macro environment of Halifax bank PESTLE and Stakeholder analysis is performed in context of
the organisation.
PESTLE analysis
PESTLE analysis is a tool which analyse and evaluate the macro factors which are impacting the
business. It is effective when company is new or planning to expand into new marketplace or
even staying in the same marketplace but needs to explore new opportunities (Wunderlich and
Beck, 2018). Therefore, this framework is used for analysing the current market condition in
which Halifax bank is operating. This tool has six elements which are as follows:
 Political factor is affected by the governmental laws, rules and regulations which are
developed by the ruling party for each particular sector. The banking industry is a giant
1

susceptible sector for the government. The laws which are developed affects Halifax
bank, as government can intervene in its operations if they are accused of or suspected of
anything. The factors which affects the organisation are tariffs, banking laws which are
issued by the political party, trade restrictions and most importantly, political stability.
 Economical factor refers to the analysis of income flows, economic stability, purchasing
power of people, recession or boom and other related factors. The economy and banking
sector working hand in hand, if economy is suffering the banks are suffering too. The
current economy of UK is suffering from and extremely affected due to Britain exiting
form European union (BREXIT). This has impacted the economy of UK which implies
that banking sector is also suffering from it. Halifax bank is a part of UK economy and
serves its services in UK (Cubas‐Díaz and Martinez Sedano, 2018).
 Social factor refers to the whole population, their prefers, trends and buying behaviours.
This element refers to the culture of a particular economy or a country in which
organisation is operating. The people of UK are well aware with the benefits of banking
and all the services which are rendered by the banking industry. Therefore, the market of
UK is supportive of Halifax bank and its services which are provided for making the life
of people easy.
 Technological factor is speedily evolving and developing, as it reduces the extra man
has to do for completing its tasks and changing the worlds in techno-friendly
environment. Technology is changing and evolving the manner in which consumers or
local people handle their finances, money or funds. Halifax is also adopting new
technologies and high-tech machines for running their operations and rendering rapid and
effective services to the clients. For instance making use of mobile applications and
rendering online banking service which reduces the efforts of individual to visit their
banking branch.
 Legal factors are somewhat similar to political factors, the difference is the legal factor
refers to the internal rules and regulations which are established by the organisation for
working and keeping the business in order (Rondi, De Massis and Kotlar, 2018). The
banking sector companies are required to follows strict laws and regulations, also they
work with all the banking laws which are established by government and also with the
internal regulations .
2