Impact of Macro Environment Factors on Santander Bank: Tasks 3 & 4

This report provides an analysis of the macro environment's influence on Santander Bank, covering both positive and negative impacts of political, economic, social, technological, legal, and environmental factors. Task 3 examines the specific effects of each factor on the bank's operations, detailing aspects like the impact of Brexit, inflation, social trends, and technological advancements. Task 4 presents a SWOT analysis, evaluating Santander Bank's strengths, weaknesses, opportunities, and threats, and how these elements interrelate with the external macro environment. The report highlights the importance of understanding external factors for the bank's strategic planning and overall success in the business landscape.

BUSINESS AND BUSINESS
ENVIRONMENT
Task 3 and Task 4

TASK 3

Analyse both positive and negative influence/impact of
Macro environment on business operations
Political
Positive impact of political factors on Santander Bank are
 Strong democratic traditions.
 Split into national and local administration
 Proactive Government.
 The negative impact of UK government policies;
 The impact of Brexit on banking sector.
 Rise of SNP in Scotland.

Economical
 The positive effects of these factors on Santander bank are;
 The inflation rate is 0% which help company to flourish.
 Stable economy of United Kingdom help in maintains of strong position of
bank in parts of UK and Europe.
 Diverse economy that includes, both large corporations and small business
units.
 The negative influence of economic factors on Santander Bank;
 The slow recovery of loans due to economic recession.
 Slow growth of economy after Brexit.

Social
 The impact of social trends of UK on the Santander bank is as follows;
 Dense population of UK supports wide services of Santander Bank.
 High standard of living help in expanding business
 The negative influence of social factors is;
 High and increasing dependency ratio of big corporation is destroying the
image of bank.
 Decrease in trust of UK population on banking industry.
 Social unrest in the economy due to migrants. This further hamper
functioning of bank.

Technological
The positive influence of technology on Santander bank is;
 Quality innovation in skills help bank to provide better services to their
clients.
 Effective laws like GDPR ensures protection of data and information of
bank.
 The expertise in field of science and IT help bank to develop better quality
services to their clients.

The negative influence;
 There is a slower growth in the field of technology in compare to other
countries.
 This disrupts bank from providing efficient services to their clients.

Legal factors
 The positive influence can be stated in the following manner:
 Any leniency in legal structure can help in elevated generation of revenues
of the company.
 It can make the organization free from provisions that are not required by
the organization for its practices.

Negative influence of legal factors can be stated in the following manner:
 Rigidity in practicing laws can make it difficult for the organization to
survive in the industry.
 Changes in government policies can also reduce overall profits of the
business impacting survival and basic principle of going concern.

Environmental factors
 There are various benefits of environmental factors. Some of them are
mentioned below:
 It has helped in promoting paperless society where everything has now
been initiand online or through mobile application. It has assisted in
making transactions easier
 It has helped in reducing overall carbon footprints from the world so that it
can act as a contribution in Corporate Social Responsibility (CSR).

However, there are certain negative impacts that are attached to it as well.
Some of them are mentioned below:
 It can affect normal functionality of the organization, where it is required
for the bank to bring certain changes in its adoptions and functions.
 It can also affect profitability aspect of the organization due to changes
being brought concerning to environment.

TASK 4