Factors Affecting The Operations Of The Banking Industry

ENVIRONMENTAL ANALYSIS The environmental analysis is an evaluation or assessment of different factors affecting the operations of the banking industry or NatWest as a business. The environmental analysis is essentially important for every business as it helps in the understanding of the business environment and trends, it also aids in decision making when planning in an organization (Johnson et al., 2011). External Analysis The external analysis is essentially useful as it highlights the opportunities that can be explored by an organization and the threats that can hinder a business operation (Johnson, Whittington, Scholes Pyle, 2011). The external analysis is divided into two different aspects, the macro environment and micro environment. Macro Environment: this is also known as the far environment and it is part of a business environment which has factors that influence an industry and market. But the industry has little or no influence over the macro environment (Johnson et al., 2011). The PESTLE analysis or framework would be used to categorize information into different areas in the macro environment. PESTLE Analysis This ensures that the performance of the Bank is positively aligned with the major external forces of change that affect any business, i.e. Political, Economic, Social, Technological, Legal and Environmental forces; it also highlights their impact on the Bank (Johnson et al., 2011). Political Factors: The government has an influence on theShow MoreRelatedThe Threat Of New Entrants1115 Words   |  5 Pagescan easily enter a particular industry, the intensity of competitiveness among firm increases. New Entrants are companies that are not currently competing in an industry but have the capability to do so if they choose. The banking industry in our country is still in its growth stage. So, the threat of potential New Entrants is quite high. 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