Report on Management of Royal Bank of Scotland

Management Report

TABLE OF CONTENTS
INTRODUCTION..............................................................................................................3
P1 Examining macro and micro environment influences on Royal Bank of Scotland.. .3
P2 Examining the capabilities of Royal Bank of Scotland.............................................5
P3 Evaluating Royal Bank of Scotland through Porter's Five Forces model..................5
P4 Evaluating the strengths and weaknesses of Royal Bank of Scotland.......................7
P5 Evaluating the opportunities and threats of Royal Bank of Scotland........................7
CONCLUSIONS................................................................................................................8
REFERENCES..................................................................................................................8

INTRODUCTION
The present report is based on Royal Bank of Scotland which is one of the retail
bank of Scotland with around 700+ branches in the country and also in England and
Wales. Royal Bank of Scotland provide a wide range of banking ad insurance service in
Scotland to all whether personal, corporate and commercial customers. This include both
the traditional and modern branches which are operating on vans and having 19 mobile
branches across the country. This is one of the best banks with offering all the services in
the country and operating in all the field of bank including banking and insurance both.
As in the country it is having no direct substitute so there is very less chance of
competition to it. The report will further study the strengths, weaknesses, opportunities
and threats of the bank in the industry and conducting the PESTLE analysis of the bank.
Will also be evaluating the tough competition of the bank in the country.
P1 Examining macro and micro environment influences on Royal Bank of Scotland.
The environment generally consist of micro and macro factors' where the major
impact will be on the operations of Royal Bank of Scotland. The bank in UK is one of the
strongest financial system in the country at present and the micro environment is always
favourable for the organisation. But the financial crises of 2008 of USA has created a
major problem for Royal Bank of Scotland and there was a liquidity problem. There has
been a rapid expansion of Royal Bank of Scotland in the global market after in the
country itself (Dwyer, Čorak and Tomljenović, 2017). The government of Scotland is
owing about 70% of the total property and the business of the bank. Both the micro and
the macro factors have a large effect on Royal Bank of Scotland over the past few years
globally. The development of Royal Bank of Scotland has been mostly depended upon
the aggressive expansion strategy of bank over the past few years. Both the micro and the
macro factors always effect the growth and development of Royal Bank of Scotland.
Micro factors include: employees, management, policy, products and service provided by
the Royal Bank of Scotland. Whereas, macro factors include: customers, government,
economy, technology and the society.

PESTLE analysis:
 Political- the Brexit uncertainty is one of the political factor which will influence
the growth of Royal Bank of Scotland (Shen Zhang and Zhang, 2017) applied on
the profits.
 Economical- because of Brexit the Bank of England forced Royal Bank of
Scotland to lower its interest rates by 0.5% which effect the profitability.
 Social- as major part of the UK's population is above 60 who majorly prefer
saving then investment which will hamper the bank's wealth management.
 Technological- the use of biometrics, technological advancements and robotic
automation is rising Royal Bank of Scotland.
 Legal- in 2008 there was mis-selling of the mortgage bonds which cause financial
crisis cost to Royal Bank of Scotland which was about $4.5 billion. And in the
year 2016 it further paid $1.1 billion to US National Credit Union Administration
Board.
 Environmental- the use of low carbon and resource efficient in the future is very
important in the banking reformation.
P2 Examining the capabilities of Royal Bank of Scotland.
 The Royal Bank of Scotland is having the capabilities to grow in the market as it is
expanding the operations to other countries as well.
 The use of technology is very well seen in the bank (Larivière and De Keyser,
2017). E banking and mobile banking is growing in the banking sector and this is
also used by Royal Bank of Scotland.
 The revenue earned by Royal Bank of Scotland in the year 2016 was about
£12.590 billion which is also one of the major capabilities.