ipl-logo

PESTLE Model: Impact Of Globalization On The Banking Sector

1168 Words5 Pages

Q1. Critically analyze and discuss (using each factor of PESTLE model) the impact of globalization on banking sector in your country.
All the organizations need to consider carefully the macro-factors that have impacts in major business operations. Although there are some factors that are not directly controlled by the organization, yet they need to be analyzed for the better functioning and building the strategic plans. A very common tool/method used for such purpose is PESTLE, stands for Political, Economic, Sociocultural, Technological, Legal and Environmental factors.
Globalizing means integrating the processes while interchanging the products, services, ideas etc. internationally. Globalization of bank is making it possible to connect …show more content…

If a Saudi Arabian bank seeks to globalize, it must assess these factors. Opening a Saudi bank in foreign will provide a path to KSAto link to that country financially and will provide a path for its own country traders to start trading with other countries, thus enhancing the economic situation KSA. The total value of shares traded annually is some SR 60 billion [US $16 billion]. The Ministry of Finance supervises economic policies. Thus globalization of bank give ways to many businessmen to trade on international level by providing a platform to do transactions around a globe, that would otherwise not be possible.
The economic factor of host-country is equally important to consider. One must modify its strategy in order to fit the economic situation. The changing inflation, interest and exchange rates needs modified strategies that but be adopted in to cope economically. …show more content…

Globalization of banking sector in Saudi Arabia allows the foreign companies to trade with them, thus more cost and resource availability in the kingdom and more chance to grow the industries, giving chance to KSA banking sector to flourish much more resulting in mature country’s banking infrastructure.
Q2. Give suggestions for improvement in banking industry of your company.
Few suggestions for improving Saudi Arabia’s banking sector are as follows:
1. It must allow expatriates as well to work in the banking sector.
2. It must improve its loan services that customers find easy to issue.
3. It must develop better privacy policies.
4. It should provide mobile banking system that will allow their customers to carry our transactions by using their portable/mobile devices.
5. Their services must include clearing and settlement systems to facilitate trade, channeling financial resources, and various products to deal with risk and uncertainty.
6. Banks should specialize in assessing the credit worthiness of customers and providing a regular monitoring function to ensure their customers meet their

Show More
Related

  • Pest Analysis Of Nordstrom

    878 Words  | 4 Pages

    While micro environment factors, on the other hand, such as competition norms impact the competitive advantage of the firm. Nordstrom can use the country’s economic factor such as growth rate, inflation & industry’s economic indicators such as apparel stores industry growth rate, consumer spending etc. to monitor the growth of not only retail sector but also that of the organization. Economic factors that Nordstrom should consider while conducting PESTLE analysis

    Read More

  • Business Analysis And Pest Analysis Of Selfridge & Co.

    1045 Words  | 5 Pages

    2. Analysis of the Industry, market size, competition, etc. 2.1. PESTLE A market is the place or medium where specific activities are transacted between businesses and consumers. To study the macro-environment (i.e., external environment), PESTLE analysis is considered to be the most appropriate as suggested by Kotler and Armstrong (2010).

    Read More

  • PESTLE Analysis: The Pestle Analysis Of Alphabet Games

    1368 Words  | 6 Pages

    PESTLE analysis : Is a shortcut of six words which is political , Economic , Social , Technological , Legal and Environmental .Usually this concept used in marketing .Also it used as a tool by organization to track the environment they are operating in or are planning to new project or service .Moreover it used to assess the four external factors with regard to the situation of the organization's business ,and how it will effect in the business over long term. Political factors: This factor looks at how government regulations and legal issues affect a business's chance to be profitable and successful.

    Read More

  • Pest Analysis Of Argos

    2674 Words  | 11 Pages

    In this segment we will discuss about the external forces of the company that are not controllable (Keegan and Keegan, 1989). PESTLE analysis will be an effective tool here to analyze the factors. 2.1.1 PESTLE Analysis PESTLE is a very effective macro environmental tool containing six important factor. Political Factors In India political factor is very vulnerable.

    Read More

  • Unit 407: International Business Strategy Of ANZ Banking Corporation

    3578 Words  | 15 Pages

    It is not known if the FTZ will be a replacement for Hong Kong or Singapore? This will have to be assessed, especially as the current disagreement between UK and PRC regarding Hong Kong and its proposed governmental legislation, this may be seen as preparing the way ahead for this region and removing Hong Kong as a financial hub?   8.6 CHALLENGE 4 - SKILLS SHORTAGE There is a skills shortage within the PRC banking sector, a problem for is a lack of key talent at the local level, many are recruiting externally but this then causes the problem of increasing salaries, (PWC, 2012). As the financial sector in PRC grows, there will be a high demand for skilled personnel, this will place increased burden on salaries and benefits as local PRC banks seek to retain staff. At a managerial level there are perceived skills shortages in the areas

    Read More

  • Swot Analysis Of Eataly

    860 Words  | 4 Pages

    Pestle Analysis Political Factor Eataly operates in global environment with their operation spread all around the globe; the operation of the company is influenced strongly by political situation of the country where they are doing business. As Eataly have flexible policies to adjust in an unstable economy (Reijers & Mansar, 2005). Economic Factors The entire planet has witnessed the economic decline and hence the characteristic of purchasing products has been greatly affected all companies without exception Eataly. In addition, the income level of Europe is relatively uneven which makes some people fail to pay for products offered by the company (Chaffey, 2009).

    Read More

  • Pest Analysis Of Victoria Secret

    1466 Words  | 6 Pages

    We will now be doing a more detailed analysis on these six PESTEL factors. PESTEL refers to the Political, Economic, Social, Technological, Environmental and Legal forces,

    Read More

  • Pestle Analysis Essay

    1412 Words  | 6 Pages

    PESTLE ANALYSIS OF INDIA-BHP BILLITON (IRON ORE, COAL, COPPER AND URANIUM COMPANY) A PESTLE analysis is basically a framework that categorizes environmental influences as Political, fiscal, Social and Technological forces. The analysis examines the impact of each of these explanations (and their interplay with every different) on the business. Philip Kotler claims that PESTLE evaluation is a useful strategic tool for understanding market progress or decline, business position, advantage and path for operations. Political causes affecting trade specially revolve round taxes, import and export tariffs, environmental and labor legal guidelines, abilities subsidies, and the steadiness of a given operational area.

    Read More

  • Political And Environmental Factors That Affect The Airline Industry

    885 Words  | 4 Pages

    PESTEL analysis is a tool that is used to analyse an organisation’s macro-environment. Political Environment The incident of 9/11 has affected the airline industry adversely. The number of tourists to different countries has immensely decreased due to the fear of safety and security issues. On the other hand countries have put measures in place such as strict visa policies and border controls in an effort to combat terrorism attacks.

    Read More

  • Remittance Literature Review

    1425 Words  | 6 Pages

    In the period of 90s there was a study Bliss (1989) he found and prove that remittance can be used as a good tool to fill the gap of foreign currency shortage. He argues that some of the developing countries can’t achieve the economic growth because of shortage of foreign

    Read More

  • Pepsico Political Factors

    724 Words  | 3 Pages

    POLITICAL Political factors can often give a big impact on the business of a company. Often this factor is not in the hand of the organization. Several aspects of government policies can make a huge difference. However, all firls are required to follow the law. It is the responsibility of the organization to find how upcoming legislations can affect their activities.

    Read More

  • Pestle Analysis In Latin America

    2329 Words  | 10 Pages

    One of the most commonly used is the PESTLE Analysis which is based on the investigation of the political, economic, social, technological, legal, and ecological factors that surround the country. The analysis aim is to evaluate the aspects that could directly affect the company during its time in a foreign country since these are the factors that could come into play that some may not consider before. This is important because a better understanding of the country’s environment (including political, economic, and cultural aspects) the greater the probability of the product being a success and there is a less risk involved. Yet this among the other aspects previously mentioned form part of a much larger process that the company must

    Read More

  • Pestle Analysis Of Maybank Malaysia

    709 Words  | 3 Pages

    PESTLE analysis is include of political, economic, social, technological, legal and environmental factors. PESTLE is a business tool that used by companies to track and analyse the macro environment in which the company operate. This tool is very useful which help in overall growth and development of organization after learning from the past mistake and working for future. The first factor is political factor which include such as law of land, taxation policies, rules and regulation, trade restriction and so on.

    Read More

  • Reflection On Globalization

    731 Words  | 3 Pages

    The aim of this assessment is to reflect on what I have learned this semester regarding the module of Business in Global Context; from the lectures with the professor, the case studies done in class and the three previous patchworks that we worked on. We have learned that there are different internal and external components that affect the business environment, from corporate social responsibility to cultural and institutional framework; organizations must take into consideration all the factors related to the different parts of its environment. For the topic discussion, I will be discussing globalization and how it has affected the global business environment along with the key aspects and the different point of views regarding it.

    Read More

  • Importance Of International Economics

    1325 Words  | 6 Pages

    An economics field of study that applies both macroeconomic and microeconomic principles to international trade, which is the flow of trade among nations, and to international finance, which is the means of making payment for the exchange of goods among nations. International economics studies the economic interactions among the different nations that make up the global economy. Often this interaction is viewed in terms of the domestic economy and the foreign sector. The key economic principle underlying international economics is the law of comparative advantage. International economics is growing in importance as a field of study because of the rapid integration of international economic markets.

    Read More

More about PESTLE Model: Impact Of Globalization On The Banking Sector

Open Document