Royal Bank of Scotland Report: Governance, PESTEL Framework

This report provides an analysis of the Royal Bank of Scotland (RBS), examining its structure, governance, and the application of the PESTEL framework. The introduction highlights the importance of PESTEL analysis in identifying external factors affecting an organization's growth, particularly within the banking sector. The report details the RBS's structure, including its board of directors and executive leadership, and emphasizes the bank's role as a subsidiary of NatWest. The core of the report focuses on the PESTEL framework, exploring the political, economic, social, technological, environmental, and legal factors influencing the bank's operations. The report also applies Maslow's hierarchy of needs to demonstrate how RBS addresses customer needs. The report concludes by summarizing the impact of each PESTEL factor on RBS's performance and strategic planning.

ROYAL BANK OF
SCOTLAND REPORT

Table of Contents
INTRODUCTION...........................................................................................................................3
STRUCTURE AND GOVERNANCE............................................................................................3
Organisation overview.................................................................................................................3
Structure of company...................................................................................................................3
Board of directors........................................................................................................................3
The executive and non-executive directors.................................................................................4
IMPORTANCE OF PESTEL ANALYSIS.....................................................................................4
PESTEL FRAMEWORK OF ORGANISATION...........................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
The macro-environment of an organisation deals with a set of different practices in order to
identify the external factors that are affecting the organisations growth. A strategic management
is said to be one of the most essential components of every organisation whether it be any
industry it is operating in. The PESTEL analysis is said to be the tool that will deal with the
political economic social and technological aspects of the organisation (Pan and et.al, 2019). The
report deals with the importance of PESTEL analysis as well as a personal framework with
regards to the company Royal Bank of Scotland. The Royal Bank of Scotland is the most
relevant branch that deals with the retailing banking as well as the commercial banking industry.
It is said to be operating in almost 700 branches around Scotland. The Royal Bank of Scotland is
said to be one of the subsidiaries of NatWest and ulster Bank. The report highlights the structure
of the Royal Bank of Scotland along with the PESTEL framework.
STRUCTURE AND GOVERNANCE
Organisation overview
There are different retail and commercial banks in Scotland one of which is the Royal Bank. The
Royal Bank of Scotland is the most relevant brand of being the best retailing Bank in Scotland
(Islam, 2017). It has emerged as one of the subsidiary of NatWest group along with their bank.
The bank is said to be one of the most prominent one in delivering the services according to the
norms of people around. With its wide range of banking services that has been able to expand in
700 branches and mainly the one and Scotland. It has attained a name of becoming the best
branch out of which there are almost many other banks in and around Scotland. The name and
fame of Royal Bank of Scotland is said to be unique and is operating separately upon all the
circumstances (David, 2019). It has been 32 years since its establishment and never fail to
provide the best services till date.
Structure of company
The structure of Royal Bank of Scotland is said to be one of those tall structures with consists of
command chairman that are present in the hierarchy. These are said to be the entry level
employees governed by different boards and community.
Board of directors
The Royal Bank of Scotland contains 11 board of directors along with Chairman and executive
directors. There seems to be a collectively big board of directors in the organisation (Matovic,

2020). The role of these is to incorporate the strategies in the management to assess the risk that
are present in the operations of the banking sector. The different objectives that are present and
are stipulated to a particular time period are said to be targeted in the way and they make
employees to work for the upliftment of the sector.
The executive and non-executive directors
There is a challenging executive and non-executive director board in the organisation who are
responsible to look after the dealings independently in the reference of judgement. The executive
and the non-executive board in the organisation is said to with-hold the circumstances that are to
be dealt with the clients. There seems to be an effective leadership in the organisation which
helps to provide a clear activity regarding all the business proforma in the organisation. The
chairman of the Royal Bank of Scotland is Howard Davies appointed in 2015. The chief
executive officer of this organisation is Alison Rose who was appointed on 1st November 2019.
Altogether the executive and the non- executive board of directors are 11 members which
contribute towards the effective working in the organisation.
IMPORTANCE OF PESTEL ANALYSIS
PESTEL analysis is defined to be one of those major tools in the organisation in order to analyse
the external factors that are impacting the organisation. For the banking sector the PESTEL
analysis is said to be one of the major boon in which the management can use this tool in all
kinds of departments mainly that of marketing department. The PESTEL analysis will help to
monitor around the company and the factors that are affecting its growth as well as those that are
to be corrected at regular times possible. There are different micro environmental circumstances
that will fall as barriers for the organisation’s performance. Every organisation trust depends
upon the PESTEL analysis upon identifying those factors that are necessary to be dealt with. The
Royal Bank of Scotland is said to be one of those major banks around which they seem to be
different circumstances that happen. Competition is said to be a major threat to the bank upon
which it has to carefully analyse the situations of providing a better framework to its clients.
PESTEL framework of the company served to be one of the references for the swot analysis in
the company where SWOT analysis deals with the strengths weaknesses opportunities and
threats which are evaluated by the usage of pestle analysis on a regular basis. PESTEL
Framework is used to derive the indirect capability of the organisation upon all the existing
environment of Banking. Although there are different macro environmental factors out of which

pestle analysis is the most suitable and is most preferred aspect by every organisation and
industry since it will highlight every small point that is to be taken care of. Mostly the PESTEL
analysis will serve the retailing sector in the best way possible since there are issues pertaining to
growth of the company. The Royal Bank of Scotland in order to identify the particular strategies
of banking industry process PESTEL analysis as one of its sword in order to go in depth of
research. Through this Framework the bank will attain sustainability standards that are
guaranteed in the current banking climate.
The theory that is best suitable to explain PESTEL analysis of an organisation is Moslow's
hierarchy theory. Moslow's hierarchy theory explains the PESTEL analysis along with SWOT
analysis on determining the needs and the respective satisfaction of the clients. The theory is of a
pyramid which contains different needs and its contribution towards PESTEL framework of the
organisation. The different stages and the needs that are depicted in the pyramid are as follows:
Physiological needs:
The physiological needs are said to be the regular nature that are associated with a human being.
The banking services rendered different physical needs that are required for the contribution of
currency towards the shelter as well as the well-being of clients. These physiological needs are
said to be met in the right way possible in order to attain the attraction of the customer. The
banking sector will satisfy all the needs that are in regards to the money matters of the client.
Therefore, in Moslow's hierarchy theory the first set of physiological needs is said to be applied
to Royal Bank of Scotland in meeting the physical needs of its clients.
Safety needs:
Safety needs are said to be one of those crucial factors that are dealt by banking industry. The
Royal Bank of Scotland makes the safety needs of its customers which include job security
financial and health securities and the funds that are associated with them. The government
policies that are related to these aspects are dealt in the way and method to customer satisfaction.
Social needs:
The societal aspects that are in regards to the currency that are dealt by a bank are said to be
social need. The social needs are said to be met for example the Housing Finance or any other
financial that are related to the societal implementations are in regards to these social needs
(Maklan and et.al, 2017). Esteem needs: Esteem needs are those set of needs that are related to
the personal well-being of a person that visits service in order to fulfil the existence. The Royal

Bank of Scotland in this regard deals with the insurance that is related to a particular client.
Therefore, the Esteem needs are also satisfied.
Self-actualization:
The PESTEL analysis in this regard deals with the self-actualization needs which refers to the set
of different needs that vary and different people. Person's ability is said to be determined in this
aspect which differentiates upon various circumstances. The PESTEL analysis will deal with the
societal changes with regards to self-actualization policies that are adopted by people around.
PESTEL FRAMEWORK OF ORGANISATION
Political factors:
Political factors affected by the norms that are upon the sector in order to maintain the standards
according to government policies. The political factors that fall upon the organisation Royal
Bank of Scotland will aim for the profitability. The profitability standards are said to be
determined by the different environmental risk. The government invasion upon different banking
sector is said to be immense. There are a different risk factors that are associated with the
finances. Political stability is one of the factors that is to be carefully analysed and the Royal
Bank of Scotland does that in all the possible country's economic factors. There is a risk of
military invasion at the bank never ceases to maintain its strategies upon overcoming them.
Corruption is defined to be one of the most prominent risks in the banking sector. Therefore, the
risk of corruption and its level will have to be dealt in the way it has to be. They seem to be
different regulations in the financial sector and the regulations are enhance and the way that are
favourite.
Economic factors:
The economic factors in relation to the Royal Bank of Scotland are growth rate inflation and
industries economic indicators (Yusop, 2018). These are said to be the most common factor that
almost all the banking sectors usually face at these imposed a strong impact over the bank by the
trade that happens in the country. The banking sector is said to be related with a probable growth
rate and that with regards to the Royal Bank of Scotland is set to be maintained in a good place.
The growth trajectory of the bank is associated with evaluation of the type of economic system
the bank is dealing with and then giving scope for the government intervention into its market.
There seems to be an efficiency that is included in the financial markets and that with regards to
Royal Bank of Scotland is to be raised according to its capital in the market.

Social factors:
Social factors will deal with tremendous implementation of the society alarms full stop society
cultural determine the probability of taking and posting the changes in the banking sector. The
royal bank of Scotland is more towards its customers ideology and will always be in an urge to
understand they perception. With this free customer will that has offered to its plans that seems
to be masses support from the customers and towards the bank. Therefore, the royal bank of
Scotland will only have to maintain its accuracy in dealing with the situations that are related to
the demo graphics of the countries it is operating as well as the class and structure of population
that it is dealing with.
Technological factors:
Technological factors are said to be evolving and a reaching a greater paste in this current
scenario. Since Technology has reached greater heights that same to be more of the sector that
are innovating different ideas based on the technological aspects. The banking industry is more
developed because of the Technologies that are adopted upon financing as well as dealing with
the clients. The customer approach is also dealt online and the recent technological developments
are said to be impacting the Royal Bank of Scotland in a very competitive manner. The
technology that is imbibed by the bank is said to be a product offering one and this impact has
led the bank into dealing with foreign money centres. The bank will always take care of the rate
of technological diffusion and that is the only aspect which is said to be one of the most
prominent issues.
Environmental factors:
Environmental factors will determine the profitability and the growth trajectory of the banking
sector. The market is said to be in a kind of liable manner where the banking is most prominent
one. There seem to be different countries that are dealing with different aspects. With regards to
Scotland there is a similarity with many countries upon which the taxation policies are said to be
one of the major boon. It is mostly considered to be a renewable sector where painting markets is
a challenging aspect (Demircioglu and Norheim, 2019). Analysing the aspects of the market
scenario and the profitable aspects the bank moves ahead of abiding by the rules of government.
Legal factors:
Legal factors are said to be the components that will enhance the productivity of banking sector.
There is a set of intellectual property rights that are dealt by the legal factors of any form and

those with regards to the Royal Bank of Scotland is said to be in the hands of its leadership that
is dealing the organisation. The board of directors as well as the executive and non executive
members in it will focus upon the antitrust law that mostly deals with the foreign money centres.
There seems to be discrimination of laws that are dealt by the board of directors along with the
discrimination law point of view. The legal factors also follow up on the workforce of the
organisation where there are certain rights that are to be taken care about. The bank implement
strategies in order to deal with its legal factors for the protection of its data.
CONCLUSION
The report concludes upon explaining the importance of fractal analysis as one of the strongest
micro environmental tool to analyse the aspects of the organisation Royal Bank of Scotland. The
PESTEL analysis serves to be one of the greatest factors in order to analyse the productivity and
the growth trajectory of the company is what the report deals with. The different factors with
regards to the political economic social technological environment till and legal are discussed in
the report which will bring for the different strategies that are adopted by the bank in order to
withstand the external factors.

REFERENCES
Books and journals
Pan and et.al, 2019. PESTEL analysis of construction productivity enhancement strategies: A
case study of three economies. Journal of Management in Engineering. 35(1). p.05018013.
Islam, 2017. SWOT Mix and PESTEL Analysis: Effective Tools of Risk Management of
Leasing Companies. The Millennium University Journal. 2(1). pp.1-18.
David, 2019. PESTEL analysis of the UK. Retrieved October. 30. p.2019.
Matovic, 2020. PESTEL Analysis of External Environment as a Success Factor of Startup
Business. ConScienS, p.96.
Yusop, 2018. PESTEL analysis. COMRAP 2018, p.34.
Maklan and et.al, 2017. A better way to manage customer experience: Lessons from the Royal
Bank of Scotland. California Management Review. 59(2). pp.92-115.
Demircioglu and Norheim, 2019. Organizational façades and hypocrisy within sustainability
reports: A qualitative content analysis of Royal Bank of Scotland’s sustainability reports
between 2008-2013.
Online
Royal bank of Scotland: [Online]. Available through: <
https://en.wikipedia.org/wiki/Royal_Bank_of_Scotland >
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