Internal Analysis: SWOT and PESTLE of Santander Bank's Business

This report presents a detailed analysis of Santander Bank, utilizing SWOT and PESTLE frameworks to evaluate its internal strengths and weaknesses, as well as external opportunities and threats. The SWOT analysis highlights Santander's strengths, such as its large branch network and online banking services, while also identifying weaknesses like poor customer service and branch redundancy. Opportunities include innovative schemes and improved customer service training, while threats encompass interest rate risk and competition from other major banks. The PESTLE analysis examines the political, economic, social, technological, environmental, and legal factors impacting Santander, including banking regulations, economic factors, social trends, technological advancements, environmental considerations, and legal challenges like Brexit. The report concludes by providing references to support the analysis.

Internal strengths and
weaknesses of specific
businesses

Table of Contents
TASK 4............................................................................................................................................3
REFERENCES................................................................................................................................6

TASK 4
SWOT analysis of Santander bank
Strengths
 Santander Bank is one of the leading bank in United Kingdom in terms of deposits and is
fourth largest in terms of branches (Volkan, 2018). It means they have huge number of
branches all over the world.
 The another strength of this is that it has an ability of serving online banking services that
basically includes mobile apps and also internet banking division which is known as
cahoot.
 This bank also provided customers with 123 product range which ranked them third best
in United Kingdom.
 They also have an ability of lining up with huge customer range that includes individuals,
businessmen and corporates. They also try in providing services including current
accounts, credit products, savings and investments.
Weakness
 The major weakness of this bank is that they have number of branches in single street in
various locations in United kingdom itself.
 The customer service provided by Santander bank is termed as worst and was ranked top
in terms of the worst customer service in Banking satisfaction study.
 Thus, due to financial weakness , the credit ratings of bank were downgraded and
declined.
Opportunities
 They have good opportunity of attracting high level of customers by introducing many
more innovative schemes as like 123 product range.
 Further, they must also try to improve their staff in terms of customer service by
providing them with appropriate training and development session. This will later help
them in retaining existing customers and also in terms of future growth.
 This bank also have reductant branches in which they have invested huge amount.
Therefore, Santander bank must reduce such branches and and try to divert those invested
resources towards opening new branch in new area or region and also in providing

existing employees with training and development session which will lead them for
future growth.
Threats
 The major threat of Santander bank is that it has been exposed to interest rate risk which
will lead them in facing assets and liability mismatch due to rate of interest as it may
move against it (Drndic, Venta and SHEMER, and University of Pennsylvania, 2018).
 They may also face with hardship or loss in terms of finance is they have weak economic
outlook.
 In addition to this, this bank may be affected highly due to volatility of exchange rate
which has been faced by them to a large extent.
In addition to this, the major competitors of Santarder bank are Barclays, RBS and Lloyds
Banking group. And these affects the working environment of this organisation to a large extent.
PESTLE ANALYSIS
Political Factors: Changes in regulations relating to trade, political stability, Banking
Reform Act 2013 etc. that highly impact on strengths of business. If these changes are negatively
effect on business, so that is weakness of bank. If these are positively influence, so that is
strength of business. For example, some changes in Bank Reform Act, so that it is negatively
impact of policies and procedure of Bank. Therefore, it is the largest weakness of bank.
Economic Factors: The strength of SANTANDER bank is to third largest ranked bank
in 123 product range. Therefore, it interlinked with economic factors of firm. If interest rate is
high relating to borrow of consumers, so that, it directly influences on strength of business. Over
25 Million consumers of SANTANDER bank. Therefore, this economic factor highly impacted
on strengths of business. For example, if changes in foreign investment rate, so that it also highly
influence strength that is large number of consumer in the bank.
Social Factors: There are 25000 employees working in the bank. So that, it is
interrelated with social factor such as increasing income source, employment rate and fulfilling
the needs of the workers. This can also increase the living of standard of human in society in
terms of growth of social economy. The culture of consumers is to have simple and easy to
access the bank account that highly influences on behaviour of customers towards the bank. The
education level of consumers are highly influences on number of consumers.

Technological: The technological strengths of Santander Bank in includes increased
spending of internet access and communication networks. It has made the organisation to see a
rapid increase in its overall efficiency in attracting more consumers towards the bank (Lemos
and et.al, 2018). Along with, the organisation acquires leadership in Research and Development
which provides it with a number of advantages that showcases an improvement in its overall
organisational efficiency. The 123 accounts of Santander have proved desired success as well.
The weaknesses of Santander bank includes the updation of technology and new arrival in
gadgets and overall technologies across the globe which changes its stakeholders needs and
demands.
Environmental: The ecological strengths of Santander banks include the environment of
United Kingdom (Damanpour, Sanchez‐Henriquez and Chiu, 2018). The organisation has
opened its branches at places where people find it easy to travel. Along with it, it is easy for them
to use the services of bank even in the worst climate as it tends to operate in those times as well.
The weakness includes the country's having bad reputation of terrorist attacks which makes its
hard for the organisation to keep continue its services in the time of situational crisis. This is
where the organisation needs to make improvements as well.
Legal: The legal strengths of Santandar bank include a good legal environment where the
organisation can flourish with its services. It makes the organization to easily operate within the
difficult environment where politics is not an issue anymore. Less taxation and loose government
policies make its easy for the organization to gain growth. The legal weaknesses of Santandar
includes the recent Brexit issues which has made it hard for the organization to think and grow as
per its needs and wants (Widya Yudha, Tjahjono and Kolios, 2018). It has made it difficult for
the organization to ensure its growth and development on the same pace.

REFERENCES
Damanpour, F., Sanchez‐Henriquez, F. and Chiu, H.H., 2018. Internal and external sources and
the adoption of innovations in organizations. British Journal of Management, 29(4),
pp.712-730.
Drndic, M., Venta, K.E. and SHEMER, G., University of Pennsylvania, 2018. Differentiation of
macromolecules and analysis of their internal content in solid-state nanopore devices.
U.S. Patent Application 10/017,813.
Lemos, C.A.A and et.al, 2018. Comparison of external and internal implant-abutment
connections for implant supported prostheses. A systematic review and meta-analysis.
Journal of dentistry, 70, pp.14-22.
Volkan, V.D., 2018. The intertwining of the internal and external wars. In Lost in Transmission
(pp. 75-97). Routledge.
Widya Yudha, S., Tjahjono, B. and Kolios, A., 2018. A PESTLE Policy Mapping and
Stakeholder Analysis of Indonesia’s Fossil Fuel Energy Industry. Energies, 11(5),
p.1272.