RBS PLC Business Environment: Governance, Structure, and PESTEL

This report examines the business environment of Royal Bank of Scotland PLC (RBS PLC), focusing on its governance, organizational structure, and the application of PESTEL analysis. The introduction highlights the significance of both internal and external factors in shaping a company's growth, with an emphasis on how external forces can be strategically managed through tools like PESTEL analysis. The report then delves into the governance and structure of RBS PLC, outlining the roles of the board of directors, committees, and executive management in overseeing operations and ensuring long-term goals are met. The importance of PESTEL analysis for RBS PLC is discussed, detailing how it helps the bank manage external factors such as political, economic, social, technological, environmental, and legal forces. The report further provides a detailed PESTEL analysis of RBS PLC, examining how each of these factors impacts the bank's performance and strategic planning. The conclusion summarizes the key findings, emphasizing the importance of adapting to external forces for sustained success. References are provided to support the analysis.

Business Environment

Table of Contents
INTRODUCTION ..........................................................................................................................4
TASK 1............................................................................................................................................4
Examine how Royal Bank of Scotland PLC is governed and structured...................................4
The structure of Royal Bank of Scotland PLC............................................................................5
Task 2...............................................................................................................................................6
Importance of PESTEL analysis for carrying out business activities in Royal Bank of
Scotland PLC..............................................................................................................................6
TASK 3 ...........................................................................................................................................8
PESTEL analysis of Royal Bank of Scotland PLC....................................................................8
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

Executive Summary
This report will examine that business environment consist of two factors like internal
and external drivers that influence the overall growth of the company. For reducing the effect of
internal and external change they need to keep on evaluating these forces. External forces can be
manage by Pestel analysis to improve overall growth.

INTRODUCTION
Business environment combines of internal and external factors. Internal forces can be
controlled but external forces can not be controlled by business organisation. This influence
operations and functioning of business entity. Internal forces are comes within the enterprise
where as external affect the company from outside. Company mainly analyse SWOT to evaluate
internal forces and for external they examine PESTEL analyses. The chosen enterprise of this
report is Royal Bank of Scotland PLC. This is one of the leading retail and commercial bank in
Scotland which was founded in 1727. This report aims at providing governance and structure of
the company. It evaluate importance of PESTEL analysis along with how these external forces
affect business environment of company.
TASK 1
Examine how Royal Bank of Scotland PLC is governed and structured.
The Royal Bank of Scotland PLC is highly committed towards the appropriate standards
and integrates set of activities in respect of corporate governance and professionalism. This
organisation is framed and governed by their own boards of directors and committees members.
It is governed by board of RBSI holdings, they have responsibility for devolving controlling the
operations of company. The board sanction various strategy plans and supervise performance of
organisation. They established proper structure of board discussion to provide detail inspection
of organisation's affairs on annual basis. This will enhance performance and productivity of
entity. This bank was established in 1727, they acquire two bank in 2000 that is Royal bank and
Westminster bank. These are two recognised retail brand that deliver personal banking and
corporate services (Abuselidze, and Gogitidze 2020). The bank also owns others financial
corporation and offers auto mobile insurance through telephones or internet.
The Royal Bank of Scotland made an effort to enhance economic position using scheme
of Darien during 17th century. But they get unsuccessful and again established this bank in 31
may 1727. company has been faced lots of competition during early stage of 19 century. The
bank already secure its position in terms of charter but under companies act, the national and
commercial bank secure and befalling them. After that in early stage of 20 century they turn into
face of acquisitive. They started expanding its market in England by capturing Drummond Bank.

They continuously acquires other bank that is Glyn , Mills co. They are popularly knowns as
three group of banks and operates, regulates own name in their subsidiaries altogether. By
expanding and growing business they utilise optimum advantage in technology. The Royal bank
amalgamate with big banks of England to strengthen its position. They try to diversified business
operations and work upon major takeovers. They include core elements of Nat West Group plc
that was one of the leading group of bank (Burke and Cowling 2020). Now Royal Bank has
expanded its several branches across the world. Branches are mainly in big town across the
England. This bank is totally separated from the benchmark of Edinburgh bank. They holds
subsidiaries of Nat west in 2019 that deals in domestic business. They want to serve community,
families and business, they deliver values to enhance value of the company.
The structure of Royal Bank of Scotland PLC.
RBS International holding-
 The board- They are accountable for the success of entity in contributing long term goal.
They provide value to their shareholder in very sustainable manner. They supervise
leadership and maintain effective control to set a benchmark for risk assessment.
 Audit committee- It provide guidance in performing several activities such as policy of
accounting, internal audit control, financial assessment report, risk analyses. They resolve
affairs of finance, internal accounting reporting and audit control.
 Risk Committee- They provide guidance for current and future risk to the Holding of
RBSI Board. This will aids in examine risk assessment of company.
Executive management team- They encourage its chief executive managers in the
business performance. This team evaluate particular items before the implementation of any
business idea by their board and committees. They enhance value and culture of organisation and
brings positive work environment. They formulate strategy and examine performance of each
department in the company. They identify source of investment and costumer issue to improves
company position in the market.
RBS International Depository Board- This committee collect international services of
depositary for long term productivity of company. This will also control risk management in
depositary services (Daniluk, 2019). They practice appropriate structure and framework while
delivering its leadership style in the management. Roles and responsibility is diversified on
hierarchical basis at various level of company.

NatWest Trustee and Depositary Services Limited(NWTDS) Board- This
Department includes The Board, Audit and risk Committee. These collectively synchronised
their efforts and enable proper execution of operations among organisation. They deliver
function and operations in effective efficient style for overall growth of the company. The have
to supervise management at various stages in company.
Task 2
Importance of PESTEL analysis for carrying out business activities in Royal Bank of
Scotland PLC.
PESTEL analysis is a tool that aids organisation in managing external forces that
influence business decision in the enterprise. The company cannot influence external forces by
their own as well as these forces can not influence productivity of entity. Company can enhance
opportunity and decrease threat through deep analysis of external forces. By inspecting external
forces through strategic analysis company can achieve its long term goal.
The Royal Bank of Scotland PLC used this tool as their strategy to inspect macro
environment in company. By this model they can easily examine influencing factor in respect of
political, economic, social, technology, environment and legal factor. These factors influence
macro environment of this organisation. Actually these forces not only affect this Royal Bank
but also affect several bodies such as Foreign banks (Dunn and Jensen, 2018). With the help of
this model bank can evaluate its strategy as per market sentiments and gain competitive
advantage. With the help of competitive advantage company can achieve level of profitability
and finance. PESTEL analysis deliver in depth knowledge of operating challenges. This will aid
in preventing external drivers as well as competitive forces. Example- company may be achieve
profitable position but if the company face unstable environment of political factors then they
can not maintain its profitability situation in the market. That is why company practice analysis
of this model so that they can achieve longer position in the market (Pouloseand Sudarsan,
2018). This will leads towards longer survival of company in long run.
Here are some importance of PESTLE Analysis that Royal Bank of Scotland PLC gain
benefit to improves its performance. By using this model company decreases its business threats
by evaluating political, economical, social, technological legal and environment drivers. They
can restructure its business plan, product development, product launching to increase growth of

the company. Company can improves its cost effectiveness through deeper understanding. Using
these analysis aids in exploiting opportunities and deliver alert in other market segment.
 It simplified appropriate structure in the operations of their business activity that helps
in delivering proper flow of actions.
 It provides in depth knowledge and greater knowledge about business environment
sentiments. These knowledge aids in decision making of company and increase future
potential of company.
 These analysis increase the ability management strategic planning by the external
drivers development. As per the changing market sentiments company can grab the
opportunity and take benefit from it.
 This facilitate the Royal Bank of Scotland to handle future threats of business, if
company examine any threat from outside it can easily make amendments in their
planing to reduce the impact of its threats.
 Company can push its limit and utilise full efforts of its employee in grabbing future
potential and exploit them in favour of company.
 It is a futuristic straight forward document it improves cost of company and
collectively brings effectiveness in their business actions. These analysis brings better
results for company betterment.
 Sometimes these forces influence eventually the organisation but with the aid of these
using in depth knowledge company can mange the influences while usefully
implementation of operations (Gesell, Glas and Essig 2018). Deep understanding aids
in strategic formulation.
 These analysis pop up alertness if there is a need of improvised product. Company can
make changes in existing product or develop new product as per the alert occurs in the
PESTLE analysis.
 Opportunity may generates from the outside world, using these model company can
examine external opportunities and convert this into its strength. Changes in external
sentiments leads towards new idea for business due to new opportunities. Company
can exploit new business opportunity in favour of company.
 This will facilitate the company in understanding target costumer and deliver its goods
or services in more effective way to enhance consumer satisfaction.

 It increase managers ability to evaluate all the changes to reduce and enhance all the
profits without any damage. They can prepare themselves in advance by unexpected
threat.
 It improves planning in strategic business, this act as a helpful documents while
processing strategic business (Pînzaru Zbuchea, and Vitelar 2018). It deliver
contextual facts to the senior to lower management.
 This provide appropriate direction in achieving brand positioning, pre determine
targets, or several changes that improve productivity level.
 Organisation may influence from their workforce planning and affect its productivity
level in large context but these model help company by providing facts about external
sentiments and company can easily improves efficiency in their workforce by
developing effective communication system.
 This brings knowledge of what happening outside, company can easily utilise its
strength by examine future benefit in introducing new product.
TASK 3
PESTEL analysis of Royal Bank of Scotland PLC.
PESTEL analysis model combines of political, economical, social, technological, legal
and environmental forces. By analysis of these factors company can upgrade its performance and
efficiency.
Political forces that affect or influence Royal Bank of Scotland PLC.
These forces act important role in evaluating forces which influence long term
productivity of Royal Bank of Scotland PLC. in the market industry. They are dealing its
business process in foreign market. They have to face several political environment and the risk
of political system. To achieve success in dynamic environment they need to manage risk of
systematic environment of politics (Halbertand Ingulli, 2020). Company need to closely
examine several forces before investing in such political environment.
 Stability in political culture and essence of foreign banks in the economy.
 Risk in movement of military activities.
 Corruption in governing financial segment.
 Hindrance of government in foreign banks.

 Social control of legal structure.
 Covering rational property.
 Enforcement in trade and tariffs in regards of finance.
 Trading workers, members or partners.
 Anti-trust regulations in foreign banks.
 laws related to pricing mechanism in finance system.
 legislation in wages, minimum or overtime.
 Workers benefits plan.
 safety measures of industry in finance segment.
 Labelling of goods or various needs in foreign bank.
Economic forces that affect or influence Royal Bank of Scotland PLC.
The macro forces such as inflation, saving, interest, foreign exchange rate, and cycle of
economic facilitate aggregate demand and investment in economy. Where as micro forces like
competition influence competitive advantage in industry. The company utilise growth rate,
inflation and economic indicators of foreign banks (Kotíková, 2018). The Royal Bank of
Scotland PLC need to consider following elements while examine PESTLE analysis.
 Company need to evaluate economic system of the country and its stability.
 Hindrance of government in free market.
 Stability in rate of exchange and currency.
 Their effectiveness in the market of finEconomic forces that affect or influence Royal
Bank of Scotland PLC.ance such as is there any need to raise fund in local market.
 Facility of superior infrastructure in foreign banking industry.
 Advantage of comparative analysis in financial market.
 Examine skill or education level in the economy of foreign market.
 Labour costing expense and level of productivity in economy.
 Stages in business cycle like recession, recovery and prosperity.
 Growth rate economic, rate of unemployment, rate of inflation, rate of interest in foreign
baking market.
Social forces that affect or influence Royal Bank of Scotland PLC.
The culture of society influence the company environment. Society affect the cfompany
be the way of executing their social believes. The attitude and believers of society palys

essential role in changing market sentiments. Royal Bank of Scotland try to understand their
target audience of particular market (Liu, and Yang 2019). They design their marketing
campaign for foreign industry market. So the managers of Royal Bank of Scotland evaluate
following elements in this model.
 Forces of demographics and level of society.
 Examine power, hierarchy and class structure in the population.
 Level of education and standard in the industry of Royal Bank of Scotland.
 Gender and social culture of society.
 Attitude of society towards health and environment conscious.
Technological forces that affect or influence Royal Bank of Scotland PLC.
Technology changes vastly emergence across the world. The entity not only evaluate
technology analysis but also continuously updated its technology on regular basis. With the use
of upgraded technology company an improve the level of probability. This will increase scope of
development in Royal Bank of Scotland. However technology analysis combine in depth
understanding the following elements such as technology activity rate, influence of technology in
the structure of value chain, product offering in technology influence.
Environmental forces that affect or influence Royal Bank of Scotland PLC.
Several market have various standard in the environment of countries that affect
profitability of market. While entering into new market Royal Bank of Scotland have to
examine environment standard of particular market (Moşteanu, Faccia, and Cavaliere, 2020). It
consider elements such as weather, climate change, waste management, air pollution, recycling
etc.
Legal forces that affect or influence Royal Bank of Scotland PLC.
Each county has different set of laws that organisation need to practice. Royal Bank of
Scotland has to practice data protection, safety and health law, consumer protection law, anti
trust law, copyrights, patents etc. before entering into new market. Company has to regulate all
the laws of company in which its operating its business.

CONCLUSION
From the above discussion we conclude this topic business environment. Business
environment is related to the marketing terms, in which there is the collection of external and
internal environment that includes the employees, customer needs as well as the supply and
demand of the environment and the customers. These are the main factor that influence the factor
of the company and also helps to analyse how the company works directly and indirectly. The
combination of this factor also influences the company as well as the business organisation
environment and their condition. Internal and external forces affect operations and profitability
of company. By evaluating these forces company can enhance productivity and efficiency of
enterprise.

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