Analyzing NATWEST's Business Environment: A SWOT and PESTLE Study

This report provides a comprehensive analysis of NATWEST's business environment using the SWOT (Strengths, Weaknesses, Opportunities, Threats) and PESTLE (Political, Economic, Social, Technological, Legal, Environmental) frameworks. The analysis identifies the positive and negative impacts of the macro environment on NATWEST, examining factors such as political influences, economic conditions, social changes, technological advancements, legal regulations, and environmental considerations. The internal analysis highlights NATWEST's diversified products and client-focused approach as strengths, while internal audit conflicts and limited global penetration are noted as weaknesses. Opportunities include the increasing Forex market, and threats encompass market competition and fluctuating financial markets. The report also explores the interrelation of these internal and external factors, emphasizing the importance of adapting strategies to changing consumer preferences and technological advancements. The document concludes by stressing the need for NATWEST to adhere to legal and environmental regulations to maintain a positive brand image.

BUSINESS
ENVIRONMENT
[SWOT and PESTLE Analysis of
NATWEST]

Content Covered
Introduction
Positive and negative impacts of macro environment
on NATWEST
Internal and external analysis of NATWEST
 Interrelation of strengths and weaknesses with external
macro factors
References

Introduction
Business environment is made of two terms where one is
“business” which is operated by human beings for
earning huge amount of profit while another word is
“environment” that means surroundings which directly or
indirectly affect the business activities.

Positive and negative impacts of macro
environment on NATWEST
There are two types of environment where
one is micro which involves controllable
elements like organisation structure,
culture, etc. and other one is macro that
consists of uncontrollable components
like political, social and technological.

Cont....
 Political- It is the most influential element that affects working of
NATWEST company. In United Kingdom, there are various political
interferences by which bank has to face risk.
 Economical factor- This element also affects business activities
positively or negatively. It includes various elements like GDP, inflation
or deflation rate, employment level.

Cont....
 Social- In today’s changing environment, needs or wants of consumers
change continuously which affect business activities.
 Technological- Up-gradation of technology is the most influential factor
which affect banking and financial industry's activities

Cont....
 Legal- There are various legal rules and regulations that government
banking activities like Bank of England Act etc.
 Environmental- While providing services, NATWEST should provide
eco-friendly services to clients like less use of paper etc. which will help
in increasing reputation and brand image in the market.

Internal and external analysis of
NATWEST
Strengths-
 It has diversified products or services
which helps in satisfying the customers'
needs or wants.
 Its all functions mainly focus on clients'
satisfaction.

Cont....
Weaknesses-
 There occurs various types of conflicts related to internal audit which
affect brand image of company in negative manner.
 Global penetration is very less.
Opportunities-
 Continuously increasing in Forex market.

Cont....
Threats-
 There are more competition in the market.
 Government has made various rules and regulations as well as
fluctuating of financial market.

Interrelation of strengths and
weaknesses with external macro factors
 Political factor- For controlling the situation of country,
government makes various rules and regulations so that
citizens can live their life smoothly.
 Economical- Today environment is changing continuously
so it will be advisable to NATWEST to design their strategy
after considering it otherwise it will be failed

Cont...
 Social- If there is any change in consumers' taste and
preferences then firm should analyse them and then
should make their products or services otherwise it
cannot reach to its decided destination.
 Technological- It will be beneficial for the company if
it will use latest technology or equipment

Cont...
 Legal- Government has made various rules and
regulations that have to be followed by every
enterprises.
 Environmental- While carry out business activities, it is
the prime responsibility of company to take care of
environment so that people can live their happily.

References
Klapper, L., Lewin, A. and Delgado, J. M. Q., 2011. The impact of the
business environment on the business creation process. In
Entrepreneurship and Economic Development (pp. 108-123). Palgrave
Macmillan UK.
Krishnan, A., 2013. Culture As a Successor of Quality Initiatives: A Review.
International Journal of Social Science. 2(1). p.53.
Love, V. J., 2011. Private company accounting: A concept whose time has
come. The CPA Journal. 81(2). p.16.