Royal Bank of Scotland PLC

Royal Bank of
Scotland PLC

Executive Summery
This report states the factors which influence any business, either it can be externally or
internally, commonly known as Business Environment. It is necessary for every business
organisation to analyse these factors for giving directions for growth, continuous learning, image
building,meeting competition etc. Royal Bank of Scotland which is a huge commercial and retail
bank of UK. PESTEL is a tool used by various organisations to make understandable external
factors of business. It is a cost effective tool which provide deeper understanding, develop
alertness and exploit opportunities. PESTEL analysis of Royal Bank of Scotland shows that they
have a good opportunity by political factors to grow their business globally. Through economic
factors, it is found that globalisation is very risky for them because of different economic
condition of countries. Also they had made a positive or good impacts towards society as they
donated approx 7 billion pounds to the society. PESTEL of RBS shows that Political, Social and
legal business factors implies a positive impact on the business while Economic, technological
and environmental factors implies negative impact.

Table of Contents
Executive Summery.........................................................................................................................2
INTRODUCTION ..........................................................................................................................4
TASK 1............................................................................................................................................4
Examine how your chosen company is governed and structured...........................................4
TASK 2 ...........................................................................................................................................7
Evaluate the importance of carrying out PESTEL analysis for an organisation....................7
TASK 3............................................................................................................................................8
Use the PESTEL framework to analyse the external environment of your chosen company8
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business Environment is the collection of those factors which implies some effect on the
business. It include both external and internal factors. It is mandatory for all business to do their
operations according to the business environment. Doing work by taking in mind about the
business environmental factors can provide a lots of opportunities to the organisation otherwise it
will result in huge losses. All the business have various factors as the business environmental
factors are totally depend on the nature of business, size of business etc. It is found that the
business environment is divided into two categories. First one is Internal Business Environment
and second one is External Business Environment. This report will include the overview, history,
chairperson, directors of Royal Bank of Scotland PLC. It also include the PESTEL Analysis of
Royal Bank of Scotland PLC which explain about the external factors i.e. Political, economical,
social, technological, environmental and legal factors influencing the Bank in various methods.
TASK 1
Examine how your chosen company is governed and structured.
The Royal Bank of Scotland is an international retail company of banking and financial
industry which was established in 1724. It's headquarters are in Edinburgh, Scotland, UK. It is
examined that around 700 branches of RBS are doing operations, mainly in Scotland, also there
are sop many branches in many towns and cities throughout England and Wales and almost
71200 employees are currently working with this bank. According to a survey, it is found that
this bank is serving almost 30 million customers United Kingdom, Europe, The Middle East, The
Americas and Asia.
In 1727, in Edinburgh, The Royal Bank of Scotland was founded as a corporation by
royal Charter. They opened their first branch in Glasgow in 1783. Later on, it becomes more
profitable branch as compared to the head office which was in Edinburgh(Beynon-Davies 2020).
In 1836, they opened 6 more branches. After that they acquire many more branches of Western
Bank of Scotland and Dundee Banking Co. Suddenly the growth of banking business take place
at the time of first World War. By seeing the environmental factors, Royal Bank acquired many
banks i.e. Messrs Drummond, Holt & Co, Glyn, Mills & Co etc.