Analysis of Banco Santander's Business Environment: A Report

This report offers a comprehensive analysis of Banco Santander's business environment, focusing on its operations as a global financial institution. The introduction provides background information on Banco Santander, highlighting its multinational presence and key operational areas in Europe, the United States, and Latin America. The main body delves into a PESTLE analysis, evaluating political, economic, socio-cultural, technological, legal, and environmental factors impacting the bank's performance. The report also presents a SWOT analysis, identifying the bank's strengths, weaknesses, opportunities, and threats. Furthermore, the analysis of the business environment discusses the bank's market position, its strategic advantages, and its ability to navigate global financial challenges. The report concludes with a summary of key findings and references supporting the analysis.

Business Organisations and
Environments in a Global
Context

Table of Contents
INTRODUCTION................................................................................................................................3
Introduction to background business environment..........................................................................3
Pestle analysis and Swot analysis....................................................................................................4
Analysis of Business Environment: ................................................................................................7
Conclusion ...........................................................................................................................................8
Reference............................................................................................................................................10

INTRODUCTION
Global organisation is an international organisation which operate their business activities in
many countries. Barclays Bankis a multinational bank. This bank is runs by a group named
Santander group and it majors deals in banking and financial institutions, Headquarter of Barclays
Bankis in Santander, Spain. Barclays Bank mostly operate in Europe, United States of America and
Latin America. Repost will highlight. This report will highlight all the positive and negative factors
that affect their business activities and the strength and weakness of business and. The report will
also analysis the business scenario of Banco Santander.
MAIN BODY
Introduction to background business environment.
The Santander group is leading banking group of Spain. In these group there many banking
sectors has been affiliated (Crane, Matten and Spence, 2019). One of them, the best nationalized
Spanish bank is Banco. It is popular in country for proving prompt services over there. It is so
prominent in terms of capitalization and promotions bank is located in santander in spain which is
the multinational commercial bank. It is also provided services in financial sectors. Headquarters of
this company is situated in Boadilla del Monte, Spain. The CEO of this company is Jose Antonio
Alvarez. Forbes revealed the ranking of company the Banco stands 23rd position in 2012. But
unfortunately after four years it drops down to 37th position in the financial sector in the world. In
the year of 2017 santander is become 5th largest bank in Europe with US$1.4 trillion. It is globalized
financial sector spreading in the world at fine rate of growth, it is placed also in North of US,
Germany, Brazil, Portugal, Poland, UK. As per revenue point of view the Barclays Bankplaced in
9th biggest financial service in the world, the revenue of Banco is now become ($108.8B) which is
far more than the other finance and commercial banking company. This company sustain their
position in the financial and commercial centres even after globalization of company. It is exposed
to the new market of north and South America and now become more popular in continental Asia
(Zellers and et.al 2018).
The Santander is served as financial business with very diversified because of millions of
customers, approximately 17500 employees are serving with assets of $144.8 billion. Santander is
in UK which is provided best servicing in sector of finance and commercialization. There
subsidiaries have Abbey National treasury services. It operates the services of online banking,
Mobile applications. The Banco is the national bank which is works in the supervision of Spanish
banking system within the framework of SSM single supervisory mechanism. The Santander is not
only working with financial field it also set their footprint in various department just like it works

for educational institutions, colleges, universities , research centre etc. in all around the world. Its
works for community improvement also and it is very responsible bank about the protecting the
environment (Zhu and et.al., 2019). There is more than 2000 ATM is being processed across the
north-east. Some useful economic data found of Santander Banco such as total equity is about
107.361 billion, total equity is about 107.361 billion, total operating income is about 25.645 billion
and number of employees 202,713, 3.26million shareholder and 102 million costumers’ in the year
of 2018. Santander bank is the biggest retail banking company whose subsidiaries in USA that
headquarters in Boston, Massachusetts and US. Santander also promote the sponsorships even it is
not related to commercial or financial unit. Formula one Ferrari SF70H has been sponsored by
Santander. It is also sponsored La Liga top flight Spanish football league. In the retail banking, the
Santander focus on the operation of which generates 74% of the profit.ysis of Banco Santander
Pestle analysis and Swot analysis
Political Factors
In Political factor a firm need to consider all the political factors such as tax policy, import
policy employment policy etc. Political factors play important role to determine the factors that can
create impact on Banco Santander's long term profitability. There is stability of government in
Spain and also Spain in among the top 40 least corrupted countries in the world and Spain is a
peacefully country there are less chance of millinery invasion but the taxation rate in Spain higher
compare to other countries. Since the political factors in favourable for Banco Santander, its easy
for the bank to increase the profits
Economic factors
The economic factor includes the exchange rate, economic condition of the country, gross
domestic product and the standard of living of people. Barclays Bankhad many problems in past
due to instability in the economy of the Spain. From 2008 to 2014 Spain was suffering from the
economic crisis but after 2014 there is a stability in economy. Now Spain is the fifth largest
economic in Europe. Moreover, Spain is ranked 14 in world leading countries in GDP (gross
domestic product). The country also has 2.20 growth rate in economic, the growing economy of
Spain is a positive factor for Banco Santander.
Socio-cultural Factor
Socio-cultural factor has a major impact on the growth and profitability on a firm. Socio-
cultural factor include lifestyle, consumer taste, education level cultural and gender roles. The
literacy rate of Spain has increase in recent years. In a recent study of UNESCO the literacy rate of

an adult in Spain is 98.25%. Spain has of total population of 46.6 million in which around 89.7
percentage of population belong from Spain ethnicity and 10.3 percentage belong from foreign
ethnicity. Since the literacy rate of Spain Is good and the population of immigrate are only around
the 10.3 it is easy for the Barclays Bankto attract the countrymen (Deng, Birdal and Ilic, 2018).
Technological factor
Technological factor plays a significant role in determining the growth and profitability of a
firm. Technological factor consider all technology related factors just like technology of the firm,
technology of rival firms and technology around worldwide. Technology helps to increase the
quality of services and cost cutting. Since Barclays Bankis one of the leading company in banking
sector, Barclays Bankalways keep their service updated. highly advance technology in their services
of Barclays Bankhelped them to maintain the market share in Spain (van Zyl and van der
Westhuizen, 2018).
Legal factor
The laws and regulation in Spain are very strict. The laws and regulation regarding copyright and
data protection law are very strict. Spain has strict law of data protection and copyrights in place for
digital era and also the crime rate of Spain is very low. Barclays Bankis among the leading
company in the banking sector, since the laws and regulation of the country is very strict and the
crime rate is also low the company face very little problems regarding fraud, theft, copy of
intellectual property rights.
Environment Factors
The environment face has come to the sport light in recent days. This factor became important due
to drastic decrease of raw material and rapid increase in pollution. All this factor includes
environment and ecological aspects such as climate, weather environmental offsets. The
environmental factor in Spain is not favourable because of lots of pollution. Around 70 percentage
of Spain energy is from fossil fuels however Spain is adopting the use of renewable energy. The
Barclays Bankis planning to adopt renewable energy, Barclays Bankis also following the concept of
reuse reduce and recycle. They are also contributing in clean Spain scheme (Cafiero Viviani. and
Nord, 2018).
SWOT analysis of Banco Santander
Strengths

 Barclays Bankcontributes in lot of social and cultural events in the country which increase
the brand value and give lot of publicity in the market
 According to a report published by global finance world's 50 most secure banks, Barclays
Bankstands on 14th position which show the reliability and security of bank.
 Barclays Bankis ranked among the top 5 companies in banking sector
 The key reason of Barclays Bankbanks success are commitment to provide the best service
to its customers and their healthy dealing with their consumers.
 The company is a multi-nation company and deals in more 10 countries that keeps the bank
far away from its financial crises
Weaknesses
 Since the financial crisis of Spain in 2008 the company is slowly falling down in financial
addition.
 The major operational activities are in countries of Europe, United States of America and in
Latin America. The bank doesn't have any future plans of their business doesn't cover any
market of Asia
 One of the major weakness of Barclays Bankis the high payment percentage. If the
consumer are not able to fulfil this, then bonus in not secured
Opportunities
 Since the European economy is struggle, this will give Barclays Bankmany chances to open
new branches, banking procedure, choose properties at a very decent and affordable price on
sale (Crockett and et.al., 2019).
 Barclays Bankis having a growing market in Latin America and Brazil, if the company takes
out its share in the market it will be the biggest advantage for Banco Santander
 If the System of European banking implement some new laws and regulation that can easily
help the banks to control the operating flexibility of the banks (Phillips and Moutinho, 2018.
).
 To increase the growth of Barclays Bankthe company should start introduce some small
banking projects in those areas where the bank is not reachable
 micro financing is one the opportunity that Barclays Bankcan avail in their company

Threats
 In countries like Greece, Spain Ireland, Italy and Portugal the major problems and issues are
being observed in there headquarter Spain and this could seriously damage all the positive
impacts of the company and cause emergency in euro currency
 Increase in strictness in monetary plans and policy all around the world that can cause a
serious downfall in the market of Banco Santander.
 The revenue of company is generated mostly from Latin America and Europe. Operational
activities in Asia are very less. It will be difficult to increase there market share in Asia
Analysis of Business Environment:
Santander Banco is the brand of multinational commercial and financial services in the Spain.
The business scenario of the Banco is looking vast in the world. As per given strength of this
commercial sector there is generating opportunities to extend this business in south and North
America and also in sub continental areas. In context of global finance report, the Barclays Bankgot
14th rank out of the world’s 50 secured bank. This report shows that percentage of the risk of money
investment get minimize. The main factor to become successful of this company is the healthy
dealing with costumers and provide best services (Esser and Jernigan, 2018).
It stands leadership position in the core commercial market. Its having strongest factor of
globalization that tends to collaboration across the world result in higher revenue and significant
saving of cost. Subsidiaries model, geographic and diversified business makes more resilient even
under the adverse condition. Since last 20 years the earning have increased fourth time with low
volatility.
Santander is efficient ,predictable and profitable bank which able to get more profit in a
repeated way. The balance geographical diversification is a key to success. It requires to very much
interest in wealth management system Europe and America. There is option for develop new digital
capabilities, building new franchises these leads to integrate the loyal customers. In consumer
finance acquisition 51% stake which is the largest department of store group.
This company able to grow in the field of economic. Because it is pure commercial and
financial sector in which living standard of the people of the Spain is quite well and also exchange
rate ,rate of gross domestic product. Spain is fifth country of Europe possess largest economy. The
Barclays Bankneeds that country which financially stable so here is no doubt about the Spain which

is leading country in GDP having 2.20 growth rate in economy.
The world best technology in the commercialization is essential for determining the
profitability and growth of a firm. The net interest grew by 10.2% and EPS grew about 0.9% and its
total assets almost grew about 7.9% to 1444,305 million euros. This bank earned more credibility
and beliefs that connect more investors and costumers. It support to spread and diversification of
company to create more capital (Obradović and et.al.,2018). The segment of this company is
business and personal banking and targeting large enterprises. Its establishment is negligible in the
Asian countries, if it widely promotes in the continental areas then the opportunities become twice
in the small enterprise banking and micro finance. Every business consist of risk factor as well as
competitor is also emerge in each section of business, competition is key factor of business without
competition the success rate become low there some competitors which compete the Banco
Santander, some of them is here
1.Standard chartered bank
2. Barclays bank
3.RBS
Financial Performance:
In 2018 profitability of Barclays Bank continues to be at 11.7% which continues to earn
more profit as before. Revenue in 2018 was7.81bn as compared to data of 2017 the revenue was
6.62bn which means that the company has increased its net income 17.99% in financial year 2017
and 2018. The company had set goal to earn income at least 15.32%. The company cash flow
statement does not show any progress it was 3.42bn and the margin which was set for operating
cash flow was 4.42%. In financial report the capital structure of shows very little amount of debt
taken or no debts the amount is small.
From 2014 to 2018 the company is showing growth in its financial report as the dividend
and earning per share are increasing around 9% and 13.55%. And the income which was available
to distribute was increased from 7279 to 7965.The overall performance of Barclays Bank shows
that bank is performance is good in European market. The bank shows liquidity and the cash flow
structure was not up to the margin which was given, investor will be happy to invest in Barclays
Bankas it shows profit stability in its financial statement.
Conclusion
From the above report it has been summarised that many factors have affected the business
of Banco Santander. One of major factor the affected Banco Santander, was the financial crisis of

Spain, which slow down the financial addition. The bank has never shown any interest in Asia
market, this affected a lot in growth of Banco Santander. Barclays Bankhas a very high payment
percentage which had a negative impact on the growth of Banco Santander. The company had dealt
all the problems of most European countries from Spain itself this affected Banco Santander.

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