Pestle Analysis of Merrill Lynch

Business Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO3..................................................................................................................................................1
Pestle Analysis ............................................................................................................................1
LO 4.................................................................................................................................................4
SWOT Analysis:..........................................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Business Environment refers to internal and external factors which influences company's
performance this include factors such as clients, suppliers, co-owners, rival’s improvement in
technology social environmental factors etc. which affects the performance of the organization.
Every organization needs to focus on needs and wants of the clients as well as of the workers to
achieve the goal and objectives stated to us. It impacts on the organization in a positive as well as
negative sides which affect the work environment of the company. Merrill Lynch an American
financial service bank was established on January 6, 1914.with a prime objective of brokerage
and broker-dealer activity. It has around 15,100 employees. Its headquarter is in New York. This
study includes various factors which affect the company directly or indirectly. SWOT and
PESTLE analysis gives a brief of various factors which can affect the healthy environment of the
organization.
LO3
Pestle Analysis
Political:
The voting process to leave European Union by the UK to make trade and working
practices free from the union is defined as Brexit. It was to be held on 29 march 2019, but still
not implemented as the members of parliament disagrees. As if the UK exits the Brexit it will
affect the trade practice in European union which will bottleneck the trade practices across
European borders. To leave Brexit UK needs to pay £39 billion, which the government needs to
pay to European union. Brexit affected various organization and brought about change in the UK
as many of the firms are independently working which has left the European Union. Now the UK
can have a free trade practice by introducing their own laws. This opened a safe business
environment for the UK worker union. Brexit deal can affect the trade practice with the other
countries. Which can affect the performance of the trade. (Charter. 2017).
Positive impact: Merrill Lynch can be beneficial as the taxation policy improves as less of tax
imposed on the bank more of revenue generation. Changes in acts can provide a healthy working
environment.

Negative impact: Merrill Lynch will be at loss, if the tax imposed by government will be high
which leads to loss of customers. Loss of assets can disturb the working conditions of the bank.
Political crisis degrades the assets.
Economical:
Currency fluctuation changes the working condition of the bank. As of government
policies bank needs to generate employment opportunities for young enthusiasts. Economic
factors such as supply and demand scheme if not met it an affect the performance of Merrill
Lynch. If the performance is not met as per demands of the customer’s there will be an economic
loss to the firm. GDP can also affect the performance of the firm. As the revenue generated
much be more than per the working conditions to earn more of profit stability of the firm. Fair
employment must be provided as per the requirements of the organization. The impact of Brexit
was so worse that UK lost its GDP by 4.5%. It has the marginal positive impact on the wages of
low skill service sector. Brexit an issue faced by Government of UK in quitting the European
council will affect the working of the firm. It was analyzed in year 2018 that information related
to UK government Brexit was leaked. It showed that economic growth was stunted by 2-15%.
On the basis of Treasury figures, in 2014 the United Kingdom's gross national contribution
(ignoring the rebate) was £18.8 billion, about 1% of GDP, or £350 million a week. Because the
UK receives (per capita) less EU spending than other member states, a rebate was negotiated; net
of this rebate, the contribution was £14.4 billion, approximately 0.8% of GDP, or £275 million a
week.
(Ji-fan Ren and et.al. 2017).
Social:
Change in HR policies of the bank changes the working culture of the bank. Impact of
social technologies like online payment applications affects the performance of the bank.
Positive impact: Change in social atmosphere affects work culture of the banks, working
strategy of the bank changes which results in performance of the bank. As the social culture
change the bank gets profit as the mindset of workers develop with the social change. Working
strategy changes which increases the growth of the firm (Ruël and Wolters. 2016).
Negative impact: As the social changes occur in a short span of time company is not able to
adapt the frequent changes which affects the performance of the firm.