Banco Santander: International Business Operations and Analysis Report

This report provides an in-depth analysis of Banco Santander's international business operations. It begins with an introduction to the bank, followed by an examination of its competitive advantages, including its ability to adapt to external environments and bargain effectively with suppliers. The report then explores Santander's approach to international business, highlighting its three-stage internationalization process and adherence to the Uppsala model. The analysis covers the bank's business model, emphasizing its local scale, global scope, customer-centric approach, and diversification strategies. Finally, the report discusses Santander's future plans, particularly its focus on technology, talent, and size to drive growth and maintain profitability in the digital age, referencing its sustainability efforts.

International Business

Contents
INTRODUCTION.......................................................................................................................................3
TASK..........................................................................................................................................................3
What is Banco Santander?.......................................................................................................................3
What differentiates it from its competitors?.............................................................................................4
How does Santander approach international business/ banking?.............................................................5
What’s next for them? what is it doing to remain profitable?..................................................................7
Santander bank and the relationship with stakeholders............................................................................8
How does Santander bank implement its core value?..............................................................................8
CONCLUSION...........................................................................................................................................8
REFERENCES............................................................................................................................................9

INTRODUCTION
International business refers to operating the business out of the national or geographic
boundaries of country. When any organization performs its work or activities in many countries
along with its own country of origin it is called international business. To conduct the business
internationally a business has to consider all the environmental factors then after only a business
forms its objectives and goals. Analyzing the international rules and policies is very much
essential for any business. This report discuss about the functions which is followed by Banco
Santander which has lead it in becoming the successful provider of financial services worldwide.
The report also includes its competitive advantage which sets it totally different from different
competitors, the operations which the company follows and their future goals which the
company has sets for itself.
TASK
What is Banco Santander?
Banco Santander, S.A., joined on January 14, 1875, is a retail and business bank. The
Banks sections incorporate in Continental Europe, United Kingdom, Latin America and United
States. The Continental Europe fragment covers all organizations in the Continental Europe. The
United Kingdom section incorporates the organizations created by different units and branches in
the nation. The Latin America section grasps all its budgetary exercises directed through its
banks and auxiliaries in the locale. The United States fragment incorporates the Intermediate
Holding Company (IHC) and its auxiliaries Santander Bank, Banco Santander Puerto Rico,
Santander Consumer USA, Banco Santander International, Santander Investment Securities, and
the Santander branch in New York.
In 1999 it merged with Banco Central Hispano, which had thus been framed through the 1991
merger of Banco Central and Banco Hispanoamericano. The consolidated bank, known as Banco
Santander Central Hispano, or BSCH was intended to be a "merger of equivalents", in which the
top leaders of the two previous firms would share control of the combined substance exchanging.
In 2007 the bank formally changed the official name back to Banco Santander S.A.
The retail banking covers all client banking organizations, including purchaser fund, with the
exception of those of corporate banking, which are overseen through Global Customer
Relationship Model (Cunha, 2018). The Santander Global Corporate Banking business mirrors
the incomes from worldwide corporate banking, speculation banking and markets over the world,
including all treasuries oversaw universally (consistently after the fitting conveyance with Retail
Banking clients), just as values business.
Santander Consumer Finance (SCF) is a buyer account and has practical experience in vehicle
fund and in advances for the acquisition of solid merchandise, individual money and charge
cards. It has a loacted in Germany, Austria, Belgium, Denmark, Spain, Finland, France,

Netherlands, Italy, Norway, Poland, Portugal, the United Kingdom, Sweden and Switzerland. It
works in around 10 nations, giving account and administrations through more than 130,000
related retail locations (automobile vendors and shops). It likewise has various fund
concurrences with producers of vehicles and motorbikes and with retail dispersion gatherings
(Giraud and Petit, 2017). It additionally gives portable, internet banking and cards. Santander
Bank offers a scope of items, for example, customer advances, home loans and advances for
people, little and medium-sized ventures (SMEs) and multinationals. Santander Consumer USA
is an automobile money organization in the United States that makes credits to a range of clients
in the United States.
What differentiates it from its competitors?
Banco Santander operations and activities are totally different from its competitors. They
are very up to date with the external environment and deals with the issues and problems very
nicely. The company or say the bank make itself different from other by gaining the competitive
advantage, and they gain competitive advantage by:
Tacking its threats:
 By improving new items and administrations. New items carries new clients to the
overlap as well as give old client motivation to purchase Banco Santander, S.A. 's items.
 By building economies of scale with the goal that it can bring down the fixed expense per
unit.
 Building limits and burning through cash on innovative work. New contestants are less
inclined to enter a unique industry where the built up players, for example, Banco Santander,
S.A. continue characterizing the norms routinely. It altogether lessens the window of remarkable
benefits for the new firms in this manner debilitate new players in the business.
By exercising the good bargaining power:
All most all the organizations in the Foreign Money Center Banks industry purchase their crude
material from various providers. Providers in predominant position can diminish the edges
Banco Santander, S.A. can procure in the market (Guillén and Tschoegl, 2014). Amazing
providers in Financial area utilize their arranging influence to separate more significant expenses
from the organizations in Foreign Money Center Banks field. The general effect of higher
provider bartering influence is that it brings down the general gainfulness of Foreign Money
Center Banks. And the banco bank bargins,
 By building effective gracefully chain with various providers.

 By exploring different avenues regarding item structures utilizing various materials so
that in the event that the costs go up of one crude material, at that point organization can move to
another.
 Creating committed providers whose business relies on the firm. One of the exercises
Banco Santander, S.A. can gain from Wal-Mart and Nike is the means by which these
organizations grew outsider producers whose business exclusively relies upon them therefore
making a situation where these outsider makers have fundamentally less dealing power contrast
with Wal-Mart and Nike.
Substitute for similar products and services
In the banking services there are higher chances that all the companies provides the same service
with the exact same features which is provided by the Banco Santander. In this case gaining the
competitive advantage is very much necessary, which the bank secures through:
 By being administration situated as opposed to simply item arranged.
 By understanding the center need of the client instead of what the client is purchasing.
 By expanding the exchanging cost for the clients.
Handling the rivalry properly
On the off chance that the contention among the current players in an industry is extraordinary,
at that point it will drive down costs and reduction the general gainfulness of the business. Banco
Santander, S.A. works in an extremely serious Foreign Money Center Banks industry (Gutiérrez
Bayo, 2016). This opposition takes cost for the general long haul productivity of the association.
And the bank maintains its rivalry by:
 By building a reasonable separation
 By building scale with the goal that it can contend better
 Teaming up with contenders to expand the market size as opposed to simply vying for
little market.
How does Santander approach international business/ banking?
Initially the Banco Santander was a bank of medium sized which got turned into world’s
bank for financial services. This internationalization has been recognized by its speed and scale,
yet in addition by its benefit and formation of investor esteem: an unmistakable difference to the
baffling results of trans-outskirt adventures at numerous different banks. We recognize an
efficient example in Banco Santander's worldwide development that we conceptualize as a three
stage process: first, building capacities in the home market; second, making development
alternatives in remote markets through little scope acquisitions or key coalitions; third, enormous
scope outside market section and fast joining. We distinguish three highlights of Banco

Santander's universal technique which can offer valuable direction to other monetary assistance
firms. Initially, the significance of putting together universal extension with respect to
predominant locally situated authoritative capacities; second, the benefits of an exploratory way
to deal with find out about new markets and evaluate potential obtaining targets; third, the
benefit of moving command post abilities through cross-outskirt reconciliation of new
acquisitions into the current global system (Lado Gonzalez and Calvo Dopico, 2017). While the
example of its internationalization varies from those of assembling firms, Santander's procedure
is reliable with two key highlights of the Uppsala model: expanding pledge to remote markets
gradually, and entering outside business sectors consecutively, beginning with those with close
social as well as financial closeness to the nation of origin. The bank adopted the acquaintance
strategy for taking its business at international level. The strategy for acquisitions was very
incremental, it was such beneficial that each sequential acquisition helps the bank in growing
stronger and grow and then for the again future acquisitions. The funded were arranged
internally as general and the company does not have substantial debt at the time for financial
crisis. The Uppasala model is a theory which describes the process for internationalization of a
firm. According to the theory, the firm first chose to make an entry to its nearby markets with a
lower commitment. It is not so much mandatory for all the firms to follow because they are many
firms which have not follow this theory but still succeed into their business. This Banco
Santander follows this same theory into their operations for expansion. The bank was a medium
scale firm but later they expanded but expanding them first to the nearby markets and later they
target for the whole markets.
The business model for the company resists upon three pillars, which are:
Local Scale and Global Scope: The neighborhood scale depends on three geographic areas,
where we keep up a place of initiative in our ten center markets. The worldwide extension is
upheld by our worldwide organizations, which take into account more prominent cooperation
inside the Group to produce higher pay and efficiencies (Lang, 2015).
Customer Centric Approach: the client driven spotlight depends on interesting individual
connections that fortify client dependability. Santander has 145 million clients in business
sectors with an absolute populace of more than one billion. There in excess of 100,000 workers
manage our clients regularly at our about 12,000 branches and client care focuses.
Diversification: The reasonable broadening is vital to producing steady, unsurprising
development, as it makes us stronger to antagonistic conditions.
At Santander they are topographically broadened, working in three areas, with a decent harmony
among created and developing markets, and among client portions (people, SMEs and enormous
organizations). Our worldwide organizations represented 26% of the Group's hidden benefit in
2019 and fortified our neighborhood establishments (Paz-Aparicio and Ricart, 2013). Moreover,
Santander Global Platform, which offers the best worldwide installments techniques and

advanced financial arrangements in its group to SMEs and people, underpins the computerized
change for the whole Group to turn into the best money related administrations open stage.
What’s next for them? what is it doing to remain profitable?
The bank has come up with new plans for its organization and that is by transmitting
themselves at a digital platform. The business new strategies includes 3 new plans which are:
Technology, Talent and Size.
Innovation (technology), ability and size are the three foundations on which Banco Santander
will execute its key arrangement in the medium term so as to build development and drive
benefit. The beginning stage for accomplishing these goals is a phenomenal execution of its vital
arrangement, which has set Banco Santander as one of the most gainful and productive banks
among its friends. During this new stage, innovation will be a key factor with which the bank
hopes to create more noteworthy incentive for its investors: "Innovation is changing banking as
we probably am aware it, so we are preparing Banco Santander to benefit as much as possible
from the tremendous qualities we have inside the Group, for example, innovation, ability and
size (White and Yorulmazer, 2014). This will assist us with capitalizing on the open doors
brought to us by advanced development and become computerized pioneers in the money related
area throughout the following decade," says Santander's Group official executive, Ana Botin.
A manageable occasion : Banco Santander has been granted the AENOR occasion
manageability the executives framework testament to authorize the maintainability of its Investor
Day, which occurred in London yesterday. Banco Santander turned into the main organization to
get this AENOR accreditation, which depends on the UNE-ISO 20121 norm, for a gathering with
speculators, investigators and rating offices.
Installments are the foundation of advanced core interest : The foundations of the Group's
responsibility to digitalisation will be installments, with expected income development of about
9%. To accomplish this, the bank has reported the formation of Santander Global Payment
Services, another worldwide element that will be controlled by Javier San Félix and will
incorporate Global Trade Services and Global Merchant Services. Santander is likewise
changing its innovative framework to have it on the cloud and have the option to work with
worldwide stages, which will help quicken change (Puell and et. al., 2013). AI, mechanical
autonomy and procedure re-designing likewise highlight in various Banco Santander activities
and administrations planned for improving client experience and being progressively proficient.
Here is the plan for the company as a strategy, the company major focus is on digital
technology so that they gain more advancements into their operations. They know that the digital
platform would make their work and activities more effective and efficient which also can helps
them in gaining competitive advantage.

Santander bank and the relationship with stakeholders
The banco Santander has met all of its targets with relation to its financial positions. The
company exercise transparency with respect to compensation and it respects all the shareholders
by adopting principle of equality where every shareholder have the right to vote, equal share, no
anti- takeover measures and etc. The bank gives encouragement for informal participation of
stakeholders in their general meetings; this gives value to these stakeholders and investor
confidence, commitment and security. The bank also provides a special law to protect the interest
of its shareholders. The banco Santander offers various services to its shareholders channels
which enable to search for the relevant information into the meeting of general shareholders.
Apart from this the bank has introduced many financial products and services for their
shareholders only.
How does Santander bank implement its core value?
The bank stands upon the simple core values which is be simple, personal and fair. The
bank exercises or stands upon these values by being fair with their customers. They offer the
variety of products or services which is according to the needs and wants of the customers. They
also provide the customized services to their customers so that the bank can satisfy the customer
needs properly. Also the bank clear all the doubts of the customers so that they can have a clear
mind about the company, all the rules and laws of the company are transparent as they exercise
on unfair activity. For them it is in their values to play fair with their customers as they are the
people who need to get served properly. Apart from this, this bank is the good place for
employees to work for as there everybody helps each other into the accomplishment of their
goals and objectives.
CONCLUSION
From the report discuss above, the introduction of a bank called Banco Santander has
been mentioned. It is a financial service bank which started its business with a medium sized but
through the right use of strategies it grows up the same to worldwide bank. It serves many
countries which include UK, US and Mexico and etc. The company has set its strategy or
operations in such a way that it has helped them in gaining the competitive advantage. Along
with this the report also includes the future strategies of company include, technology, size and
talent. The bank has made up their plans by keeping these 3 factors into mind.

REFERENCES
Books and Journals
Avasilencei, C. and Cuniberti, G., 2019. Financial markets: Banco Santander v. Transport
Companies. In Global Private International Law. Edward Elgar Publishing.
Cunha, A. C. R. D., 2018. The development of a performance measurement methodology: the
case of Banco Santander Totta (Doctoral dissertation).
Giraud, A. and Petit, S., 2017. Bury Them Deep: The Court of Justice Annuls the Autogrill and
Banco Santander Judgments of the General Court. Eur. St. Aid LQ, p.310.
Guillén, M. F. and Tschoegl, A., 2014. Santander, el banco. LID Editorial.
Gutiérrez Bayo, J., 2016. International Case Studies of Smart Cities: Santander, Spain. Inter-
American Development Bank.
Lado Gonzalez, E. M. and Calvo Dopico, D., 2017. The importance of intangible assets in the
strategic management of the firm: an empirical application for Banco Santander.
Lang, J. T., 2015. Autogrill España and Banco Santander: the Concept of" General" Tax
Measures Clarified for State Aid.European law review. (5). pp.763-768.
Paz-Aparicio, C. and Ricart, J. E., 2013. Offshoring activities impact a company’s business
model: the case of BBVA and Banco Santander. In The Offshoring Challenge (pp. 21-
35). Springer, London.
Puell, M.C.,and et. al., 2013. Normal values for the size of a halo produced by a glare
source. Journal of Refractive Surgery. 29(9). pp.618-622.
White, P. and Yorulmazer, T., 2014. Bank resolution concepts, tradeoffs, and changes in
practices. Economic Policy Review, Forthcoming.