Question: ### Can you summarize this answer briefly to put it in powerpoint? . . ANSWER: PEST analysis consists of four areas that need to be
### Can you summarize this answer briefly to put it in powerpoint? . . ANSWER: PEST analysis consists of four areas that need to be considered: 1 ) Political factors: it refers to the stability of political conditions in the economy. To have more stable political factors will have uniform policies, and unstable factors will have uncertainties in policies. Barclays Bank will need to consider political factors to be stable to have a smooth running of the banking system. 2) Economic factors: These refer to factors in economic variables. This includes GDR unemployment and the inflation rate. This decides monetary policies framed by the government, and the functioning of the banking system depends on this. 3) Social factors: This consists of social-cultural factors and demographics of consumers and attitudes towards financial services. The banking system is impacted by social trends and people's preferences. . 4) Technological factors: This refers to IT technology adopted by the banking system that makes banking functioning smooth. Cyber system with secure softwares ensures high security of the banking system which reduces the risk of fraud and ensure the smooth running of the banking system. . A SWOT analysis consists of four elements: 1) Strengths: These consist of all the characteristics that make Berkley bank different from other banks. It also includes functions that the bank performs well. Intellectual rights, technologies used, skilled staff, etc. . 2) Weakness: These are the things that can make a business organization weak. Barkley bank should aim in reducing and eliminate its weakness. E.g.: functions in which the company lacks and those functions performed better by rivals. The company should aim at improving and overcome its weakness. . 3) Opportunities: There is a need to identify opportunities in the market before other finds. The organization first identify opportunities rules the market and set the market trends. It includes unsaved products in the market and few competitors in the specific area. . 4) Threats: Organizations should aim at identifying the threats so that plans can be made to tackle threats and for eliminating before it arises. Threats can arise due to a dynamic environment, changing customers' preferences and changing policies, etc.
Five forces analysis includes five factors that can impact the organization: 1) Rivalry among existing competitors: This means rivals that have the potential to enter the market and give competition to existing competitors that depend upon the number of competitors in the market, the difference in quality, customer loyalty, and the cost of leaving the market. 2) The threat of new entrants: This can arise if the cost of entry is low or there are fewer economies of scale or lack of specialized knowledge. The organization should ensure should have high confidential so that no one can enter the market. Barriers of entry should be framed in such a way that fewer firms can enter the market. 3) Bargaining power of supplier: it means the ability of entrant for a bargain with suppliers that depends upon the number and size of suppliers in the market, uniqueness of service rendered, and cost of changing. These factors will decide the bargaining power of the supplier. 4) The threat of substitution: This threat can be eliminated if an organization can make its products unique and have different techniques that no one has it. The cost of change should be high so that threat of substitution could be eliminated. 5) Bargaining power of buyers: Bargain power of buyers depends upon the number of buyers in the market, the substitution of products, and the price elasticity of products. Organizations should ensure the Bargaining power of buyers should low to avoid competition in the market. Finally, hence all that above three analyses are equally important for the analysis of Berkley bank as all factors should be considered, and used this combination of the above analysis effectively for Berkley bank.
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