Business Environment Analysis: Macro Factors, SWOT, and Interrelation

This report analyzes the business environment, focusing on macro factors like political, economic, social, technological, environmental, and legal aspects, utilizing the PESTLE framework for Santander Bank. It examines both the positive and negative impacts of these factors on business operations, providing examples of how Santander Bank is affected. The report also includes a SWOT analysis of Santander Bank, identifying its strengths, weaknesses, opportunities, and threats, and explores the interrelation between these internal and external factors. The analysis further delves into how political, economic, social, and technological factors influence the bank's performance. The conclusion summarizes the key findings, emphasizing the importance of understanding the business environment for strategic decision-making.

Business and Business
Environment
(TASK 3 & 4)

Cover Content
• Introduction
• Positive and Negative impact of macro environment
• Internal and External Analysis
• Strength and weakness interrelation with macro factors
• Conclusion
• References

Introduction
Business and business environment is concept which includes different
organisation and factors which plays important role in business. Internal and
external components which directly or indirectly affect operations are
acknowledged by administration to design system and executes appropriate
activities.

Positive and Negative Impacts of Macro
environment
Administration responsibility is to have accurate
and complete information about market
conditions which help them to design system
and use appropriate technologies. Government,
economic, social, technological, environmental
and legal are various components which
directly impacts on business. PESTLE analysis
uses by management of SANTANDER Bank.

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Political factor: This component define that government frame laws and act
to direct and regulate business organisation. This factor have benefit and
demerit on business which are stated beneath:
• Positive impact: UK government legislation are considered by employer of
SANTANDER Bank while framing strategies, so activities are conducted
properly.
• Negative impact: SANTANDER Bank have branches in different nation,
so administration require to assess taxation policies and tariff rates which
keeps on changing with time.

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Economic factor: This is another aspect which includes interest rate, inflation,
employment, exchange rate and various other components which are set by
authorities in according to state of country.
• Positive impact: SANTANDER Bank set interest rate in according to
availability of funds and number of borrowers.
• Negative impact: Main issue which are faced by SANTANDER Bank is
recession period when people have lower amount of money and this
impacts on services of bank.

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Social factor: This tactic define that taste and preferences of people determine
sales volume of companies. Commercial and investment banking, market
personal financial services and many other products are provided to clients.
• Positive impact: SANTANDER Bank is leading bank which provides loan,
mortgage and other business services to clients.
• Negative impact: Kensingto College of Business is area which has students
which don't take loan from SANTANDER Bank.

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Technological factor: This aspect defines that SANTANDER Bank require to
use appropriate tools and techniques, so that quality and quick services and
things are provided to clients.
• Positive impact: With technological advancements, SANTANDER Bank
and members are able to provide adequate facilities to customers.
• Negative impact: SANTANDER Bank require skilled and competent
members which are able to conduct activities properly.

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Environmental factor: This aspect define that with globalisation rise which
increases government responsibility to make appropriate laws and act to take
care of business organisations.
• Positive impact: SANTANDER Bank uses latest technologies which help
management from use of paper which impacts on functioning of firm.
• Negative impact: Techno-friendly activities is conducted with use of
smartphones and online applications. It doesn't gives support Eco-friendly
functioning of SANTANDER Bank.

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Legal factor: This tactic specifies equality act, discrimination, minimum
wages and hours laws which are formulated by government to protect and
safeguard rights of employees.
Positive impact: Employer of SANTANDER Bank provide duties and
compensation to members in according to their performance and
outcomes. This help retain qualified people for longer time.
Negative impact: SANTANDER Bank reputation decline, if employer don't
give appropriate facilities and work to members.

Internal and external analysis
SWOT Analysis of SANTANDER Bank:
It is the study of company to find its internal area based on strengths,
weakness as well as external area which influences its opportunities and
threats.

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Strengths  Weakness
Its one of the leading bank among the financial
institution in United Kingdom on the basis of
deposits and mortgages.
This bank adapts strong marketing strategies by
sponsoring or providing funds in events which
builds its market image.
This bank has few footprints in Asia. Due to
negligible presence in this continent, it avoids
huge ratio of population.
SANTANDER bank has most of its footprints in
Europe. Changes in European government policies
affects the bank. European dependency has
bounded bank in terms of their own policies.
Opportunities Threats
Bank can go for acquisition to expand its business in
remaining countries. Acquisition with the already
existing company of that country will help to build
image & grab maximum customers.
It can also opt micro financing for the small
business from where customer can go for loan
with less documentation.
Continuous increase in no. of bank have raise
competition for the SANTANDER bank.
As new banks are becoming major threat. Fresh
banks are providing loan & other banking services
at nominal interest rate with less documentation
procedure.