Detailed Analysis: Santander Bank's Business Environment (TASK 3 & 4)

This report provides a comprehensive analysis of Santander Bank's business environment, focusing on the impact of various macro-environmental factors such as political, economic, social, technological, legal, and environmental aspects. It examines how these factors influence the bank's operations, profitability, and overall performance. The report utilizes both PESTLE and SWOT analysis to evaluate the internal and external factors affecting Santander Bank, identifying its strengths, weaknesses, opportunities, and threats. Furthermore, it explores the interrelation between the company's internal strengths and weaknesses and the external macro factors, providing a detailed understanding of the challenges and opportunities the bank faces in the UK banking sector. The analysis also considers the positive and negative impacts of these factors, offering insights into the bank's strategic positioning and potential for future growth. The report concludes with a summary of the key findings and their implications for Santander Bank's business strategy.

Business and Business
Environment
(TASK3 & 4)

INTRODUCTION
Business environment of an organisation constitutes various
factors which creates a great impact on operational
activities. It includes changes in technologies, need of Eco-
friendly, ethical consideration and more which impacts
either in direct or indirect more.

Factors of Macro Environment

Positive and Negative impact of macro environment
Due to innovation and fast developing world, factors present in
environment impacts on every kind of business in both
positive and negative manner. Macro environment constitute
various external factors which are generally beyond out of
control from management of an enterprise.

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Political factors: Business of banking sector looks most
powerful but governmental laws acts as bigger giant in
increasing profitability.
Positive impact: New 8% government surcharge on banks
of UK generate high profitability.
Negative impact: New taxation policies, trade and tariff
controls, social and employment legislations etc. create a
great impact on business of banks.

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Economic factor: Economical conditions of a nation and
banking industry are economically tied with each other.
Positive impact: If economical condition of people is not
good then they used to borrow loans from banks.
Negative impact: Due to fluctuations in currency rates,
inflation period, stability and more, banks experiences
the backlash.

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Social factors: Purchasing behaviour of people and necessities
reveal the way they used banking services.
Positive impact: When society of a country develop more and
have high educated then they use much banking options which
create a positive impact on financial institutions.
Negative impact: Similarly, when education and level of
knowledge of people is low then they ignore to use services of
banks like depositing their money or taking loans and more.

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Technological factors: Innovative and updated technology aids banks
like Santander in providing much beneficial services to customers
like online banking, pay bills on smartphones, transfer funds etc.
Positive impact: Due to development of technology like ATM, scanning
cheques by smartphones and more help banks to get retention of
clients in a better manner.
Negative impact: It negatively impact on employment as adoption of
latest technology reduces requirement of human resource in banks
and other organisation which increases unemployment

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Legal factor: Legislation laws made by regulatory bodies of a nation are much
based on improving condition of people as well as save personal information
of them. It also helps in reducing corruption and other illegal activities occur
at enterprises by strictly imposing laws on them.
Positive impact: Laws and regulations help banks and other organisation in
carrying business operations in a legal and smooth manner.
Negative impact: By strictly following rules related to privacy, trade
structures and consumer laws etc. affect profitability of business.

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Environmental effect: Due to global factors and rise in globalisation,
organisations as well as government care less about environment. It leads to
rise to global warming therefore, to reduce it regulatory bodies of UK has
imposed various laws on enterprises which may put both positive and
negative impact in following manner:-
Positive impact: The greatest positive impact of environmental factors is that
using online banking and mobile app techniques help in reducing usage of
paper.
Negative impact: As online applications, usage of smartphones and more
reflects techno-friendly behaviour rather than Eco-friendly so it shows
negative impact.