Pestel Analysis Essay

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PESTEL Analysis
PESTEL analysis enables HSBC Bank Malaysia Berhad to know the factors that affect its future direction as well as allow it to understand and determine its business position in banking industry in Malaysia. The factors which are included in the PESTEL framework are political, economic, social, technological, legal and environmental factors. In this part, PESTEL analysis will be used to analyse what macro-environmental factors HSBC Bank Malaysia Berhad faces in Malaysia’s banking industry currently and how will they influence its decision making. The six factors in PESTEL framework mentioned above are listed and explained as below:
Political
In order to run its business operation effectively in Malaysia, HSBC Bank Malaysia Berhad
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In Malaysia, higher level of education are becoming more popular and important as compared to last few decades, it indicates that future customers will be having more and better knowledge about banking industry as well as its related activities. Therefore, HSBC Bank Malaysia Berhad should emphasize on these future customers. Corporate Social Responsibility (CSR) is also one of the social factors. CSR can be defined as the voluntary activities ran by a company for the welfare of both environment and society. For example, HSBC Bank Malaysia Berhad provides scholarships to the youngsters who are potential with leadership skills and it also contributes in solving environmental issues by holding “HSBC Water Programme”, “Southeast Asia Rainforest Research Project” and others. By having CSR programmes, it would lead HSBC to have a good image and this encourages investors to invest in it. Since investors think that their fund invested would also be contributed for welfare activities, it would increase the willingness of investors to invest in HSBC. This would then directly help HSBC to earn profit and indirectly improve its relationship with

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