Analysis of Key Macro Issues in Banking Business Environment Report

This report provides an analysis of the business environment, focusing specifically on the banking sector. It begins with an introduction defining the business environment and the banking industry, highlighting their interconnectedness. The report then delves into key macro issues affecting the banking sector, using the PESTLE model to examine political, economic, social, technological, legal, and environmental factors. It provides examples of how these factors impact banks, such as regulatory changes, economic crises, and technological advancements. The report then explores potential micro-level issues arising from these macro factors, using Barclays as a case study to illustrate the impacts of political and legal environments. Finally, it discusses the challenges faced during the report's creation, including data collection and time constraints, concluding with a summary of the key findings and references.

Business
environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.Identify and describe key macro issues in business environment that are significant for the
banking sectors.......................................................................................................................1
2.Potential issue at micro level due to to issues with example of banking sector..................3
3. describing two challenges which is faced while making the task......................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business environment is determine as the combination of various factors (including
internal and external) which affect organization's operating situations. Analysis of business
environment help organisations in make realistic plan and ensure their effective implementation.
This help companies in determine the opportunities and threat. Banking is define as an activity of
accepting money which is owned by other individual and entities. This activity is leading out
the money in order to earn a profit. The banking industry is considered as the network of all
financial institution which is licensed by state to supply banking services. Present report contain
information about various macro issues exist in business environment which affect the operations
of banking industry. Further, (Hamilton and Webster, 2018)this contain information about the
impact of those issues on business activities at micro level.
TASK 1
1.Identify and describe key macro issues in business environment that are significant for the
banking sectors.
Business environment is total of the internal and external factors which affect business
operations. This is known as the analysis of business which help in identify strength, weakness,
opportunities and threat of the organization. Banking sector is holding the financial assets for
others and invest those assess to create more wealth. This is considered as the network of all
financial institution and manage all their activities. Banking sector face many issues in the
business environment. These issues can be better understood with PESTLE model which is
describe below: Political: This factor play important and effective role in banking sector. Governments
laws and corruptions affect the banking sector in several ways. In this many challenges
are face by the banking sector. In 2016 new regulatory capital rules made by the UK
government and as well government interplanted new 8% surcharges on bank profile in
2016. This regulatory by the government affect various banks especially to the ones who
operate at global level. For example, This surcharge affected Barclays foreign subsidiary
in Africa in term of contribution in selling down its share holders. Economic environment: These factors are effective in analysing the current situation of
the market place. Level of income of a individual affect the banking sector. In 2008 in
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UK face the financial crises and liquidity problem this create problem for the banking
industries. This changes affect various banks in UK. Many financial institutions are still
in the financial crises. For example, The problem of liquidity is failure for the others
like Northern rocks(Botha, Kourie and Snyman, 2014). Social factors : This factor are able to determine money related issues and attitude of the
market. This is work effectively in understand and determine the attitude of various
market product and foreign services. This include growth , population , changes in socio
cultural changes. In this many issues of climate changing and criminal money laundering
are face by various banking sector and still they are dealing with this issues. Many banks
contribute to maintain and control this issue of criminal. For example, HSBC support
the move to a low carbon economy as a result its providing climate financing, including
environmental markets and equity investment. Technological factors: This play the important role in the industry of banking sector.
When it is about technological environment banking sectors are more focus on
digitalisation and every factor of banking now can be done online. Banking sector with
technological there are increasingly attack on banks. This attack from the opportunistic
hackers , organized criminal and government funded. In this bank faces losses in there
company . For example Barclays continues improve an differentiate fraud prevention,
cyber risk and IT security for the management of the data. This is for reducing the risk of
hackers and attack(Savrul, Incekara and Sener, 2014) Legal environment: this is define as the law which is made in context of safety of
client .banking industries affected by the several laws s. Customer is concern as the social
responsibility have also made the government introduce several laws. Increasing in the
government regulation require high capital . For example, HSBC has to deal with legal
compliance that is costly and time consuming.
 Environmental factors: This is define as the final step of the PESTLE this factor is allow
to deal with environmental platform. For analysing this factors considered many factors
like various location and there impact on banking sectors. This environment factors
includes natural disasters, environment factors and climate weather changes.
Government made a plan of reduces the carbon foot print by reducing energy
consumption. For example Barclays recognize the current trend in governments
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demanding business to reduce their carbon foot print through sustainable development
funding.
2.Potential issue at micro level due to to issues with example of banking sector.
In the their are various issues which affect the banking sector. Two Issues which are
affected the banking sector is political and legal environment which explain below:
Political factors : In this there are many factors which affect the banking sector. This
factors include the specific laws such as labour laws , political stability(Georgescu and Popescul,
2015). All the rules , restriction , limitation and boundaries are taken by the banking system. This
factors help in support the new investment which is anticipated by the government. Their is
various factors which include factor which affect the banking systems such as government
stability and its tyoe , laws , corruptions and regulates and de regulated trend and the tax
policies.
In Barclays political environment is define as new regulatory capital rules from the UK
government . In this government of UK set its new rules and regulation which affect every bank
in UK. Rule which is made by the government is of new 8 percent surcharges on bank profile.
This surcharges is more taxing if bank is globally subsidiary that is the reason that Barclays
subsidiaries are in Africa contribution to the major decision to sell down its share holder.This
bank Barclays affected by new 8% government surcharges on UK bank profile and regulatory
pressure including new capital requirement(Deasy and et. al., 2015)
Strengths define a during the year of 2016 Barclays sought to mitigate where possible
impact of macro challenges which is explained. In this Barclays have its strong brand image or
reputation . This diversified as geographic presence of Barclays core strength.
Weakness of this bank sector is return from Barclays core companies is the corporate
and investment banking system in US. Signifiant uplift in market value in 2016 due to
restructuring , the group are still trading ar 40%. Barclays has the opportunity of started
processing transaction based on block chain technological. This bank ahead of various legacy
banks in term of benefiting from the growth of digital marketing. This bank face the regulatory
pressure including new capital requirement.
Legal factors: Different rules regulation , securities are define as the legal frame
work. This is the best way to make sure about structures facilities the commercial tools and are
the reliable in the international market(Cairncross, 2014). In banking sector for safety and
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securities side banking sector should follow safety and healthy law, discrimination laws,
employment legislation and consumer law. This factors can be issue and challenges for the
banking sector. For example in June 2017 Barclays and four senior securities are charged with
fraud by the serious fraud office . The investigation concern the events surrounding Barclays
emergency fundraising and cash injection from the an quarter wealth fund. This investigation is
done in august 2012 and finally led to criminal charges, the first levied against a high street UK
bank and senior management during the financial crisis. After this Barclays reputation which is
already massive hit since the time of financial crises. The financial conduct authority raised
fu8nd against Barclays as well as whistle blowing calm. The legal proceedings by the serious
fraud offices underway over the bank dealing with Qatar at the height of financial crisis.
In Brexit is not good for various bank including Barclays . Management is already come
up with contingency plan to established and enhance inside the EU(Menychtas and et. al., 2014)..
This bank has the opportunity of started processing transaction based on block chain technology.
The strategic divestiture of its shareholding in Barclays Africa group limited exiting more then
30 countries as the largest restructuring initiatives in history will improve core return. African
divestiture is providing to be time consuming and costly with Barclays agreeing to pay its Africa
subsidiary. Barclays Africa group is the part of its depuration agreement. Material legacy
conduct problems of holding technology and operating infrastructure which needs to be
modernised and be cyber resilient(Belás and et. al., 2015)
3. describing two challenges which is faced while making the task.
Various problem are faced while making this report. Before starting the report it is very
important that first read it properly that what they explained after that started doing the report.
Read all the question which is mentioned in the report. Research in n effective way with the
relevant data. Various problem are faced by me while making the task of a and b. issues which is
faced are explain below:
Collection of the data : while doing the task the problem which is faced is of collecting
the data . This task is based on banking sector so its tough to find out the relevant data tom
write . While writing the task this require so much research from which I get the relevant data. It
is not easy to understand the question answer should be right for the question. This report
required lots of research for finding out the right answer.
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Consume lots of time : while doing the task its consume lots of time to research and find
out the right answer, after reading the lots of staff I can find the relevant data which help in
proceed to the further step. This task is based on the banking sector so it is not easy to write the
answer, that task asked about issues which is faced by the banking sector. Banking sector face
lots of problem so analysis any particular sector which face both the issues of political and legal.
In this it is not easy to find out the relevant data of banking sector. In this after so much
of research its is ready to find out the right answer.
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CONCLUSION
from the above mention report is as been concluded the business environment is the the
combination of the internal and external environment. Banking sector are collective form of
banking institution which help in save and safe the money of individual. Banking services are the
sector which provide loan, way of investment and various ways. In this with the help PESTLE
model it is easy to understand the key issues which is faced by the banking sector. Banking
sector face many factor of political in different rule which is made by government affect the
banking sector. Potential impacts at micro level due to the issues of political and technological.
In this banking sector face the problem with the rules and regulation of the government. Various
policy applies which affect the working procedure of the banking sector. Legal factor all the
rules and regulation which is made by the government affect the banking selector in various
ways. In this while making this report so many problem are faced which is explained.
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REFERENCES
Books and Journals
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Botha, A., Kourie, D. and Snyman, R., 2014. Coping with continuous change in the business
environment: Knowledge management and knowledge management technology.
Elsevier.
Savrul, M., Incekara, A. and Sener, S., 2014. The potential of e-commerce for SMEs in a
globalizing business environment. Procedia-Social and Behavioral Sciences. 150.
pp.35-45.
Deasy, S. and et. al., 2015. User interface for controlling use of a business environment on a
mobile device. U.S. Patent 8,954,050.
Belás, J. and et. al., 2015. The business environment of small and medium-sized enterprises in
selected regions of the Czech Republic and Slovakia. E+ M Ekonomie a Management.
Cai, S. and Yang, Z., 2014. On the relationship between business environment and competitive
priorities: The role of performance frontiers. International Journal of Production
Economics. 151. pp.131-145.
Menychtas, A. and et. al., 2014. 4CaaSt marketplace: An advanced business environment for
trading cloud services. Future Generation Computer Systems. 41. pp.104-120.
Cairncross, F., 2014. Green Inc.: guide to business and the environment. Routledge.
Georgescu, M. and Popescul, D., 2015. Social Media–the new paradigm of collaboration and
communication for business environment. Procedia Economics and Finance. 20.
pp.277-282.
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