The Royal Bank or investment company Of Scotland

Royal Standard bank of Scotland is one of the most successful British banking institutions that has reached a tremendous success throughout its record. Royal Loan company of Scotland has changed from a local bank to 1 of the leading bank or investment company in international bank industry. Today, Royal Bank or investment company of Scotland faces substantial difficulties brought on by the recent monetary recession and ongoing turbulence in the international financial system. In this respect, Royal Loan company of Scotland must carry on implementing its successful marketing strategies and improve its position in international marketplaces but, on the other hand, the bank has to find new methods and strategies, which can make it to overcome unwanted effects of the recent economic recession, which has provoked a significant downturn in the business development of Royal Standard bank of Scotland. At exactly the same time, Royal Loan provider of Scotland should consider the impact of external factors, which have an effect on the position and development of the lender consistently, including politics and legalities, financial factors, socio-cultural, environmental and technological factors. So, Royal Loan provider of Scotland should realize its full probable and to reduce external risks that arise in the modern-day business environment to carry on its successful business development.

On analyzing the development of Royal Loan company of Scotland, it is important to place focus on the actual fact that the lender was always focused on the aggressive growth strategy (Lunt, 1996). What is meant this is actually the fact that the bank evolved from the tiny regional bank in the industry head in global terms. Specialists argue that Royal Bank of Scotlands extreme expansion strategy transformed the regional Scottish lender into a worldwide bank with a huge investment operation. But it backfired (Royal Lender of Scotland Group PLC, 2011). The release of the effective, intense marketing enlargement strategy was needed for the fast, accelerated progress of the lender because Royal Bank or investment company of Scotland run in the highly competitive business environment. In such a situation, the competitive growth strategy allowed Royal Bank or investment company of Scotland to make a discovery not only in the home market in the UK but also in international marketplaces.

At this aspect, it's important to place focus on the actual fact that the strategy of the aggressive market extension was specifically effective in the later 1990s " early on 2000s, when the procedure of globalization became overwhelming and required many companies to expand their market internationally to stay successful in their companies. In fact, the emergence of globalization activated the fast international market extension and Royal Standard bank of Scotland has succeeded in this regard because it has considerable experience in putting into action the aggressive growth strategy. In such a way, Royal Bank or investment company of Scotland ended up being in an useful position in comparison to its competitors, which stayed centered on their traditional market segments, instead of fast and ambitious international market extension.

Another factor that contributed to the business enterprise success of Royal Loan company of Scotland was the release of improvements, such as e-banking. The release of inventions accelerated the progress of Royal Standard bank of Scotland and drawn new customers because they could reap the benefits of using new, convenient services available to them in Royal Loan company of Scotland. The advantages of inventions facilitated the development of the lender and increased its market talk about consistently adding to the surge of the client loyalty. In addition, the lender used the strategy of communal partnership, which designated the move from sponsorship to relationship (Seitanidi, 2008), which included the close co-operation with local neighborhoods and conducting socially responsible insurance policies by Royal Bank or investment company of Scotland in regards to its employees and community people.

In the time of economic recession, Royal Standard bank of Scotland benefited from the federal government support, which allowed the bank to survived the economic recession. In Feb 2009, RBS became the first loan provider to sign up for Britain's advantage coverage plan after confirming the biggest twelve-monthly loss in British isles corporate background. RBS located 325 billion of leveraged lending options, commercial real real estate arrears and other illiquid possessions into another unit partly backed by the government (Royal Lender of Scotland Group PLC, 2011).

Today, Royal Bank or investment company of Scotland holds its marketing position (See Stand 1) but needs regular improvements to stay in leading positions in the bank industry. At this time, it is important to dwell upon the PESTLE analysis to understand major difficulties Royal Bank or investment company of Scotland happens to be facing.

First, Royal Bank or investment company of Scotland should consider political-legal factors. The British government supports the bank but the loan company faces large problems in foreign countries, for instance in america, where the municipality attempts to keep local banks. Because of this, Royal Bank of Scotland faces substantial problems to keep its subsidiaries in foreign countries and the bank matters for the ongoing support from the UKs federal (Chari, 2007). However, the last mentioned needs to execute its economic regulations responsible because Royal Loan company of Scotland receives money from taxpayers, whereas the federal government is responsible for using money of taxpayers. The inadequate use of state funds places under a menace the continuing future of the political part in vitality. Therefore, if the government support of Royal Lender of Scotland actually is ineffective, the federal government will cease the help and Royal Bank or investment company of Scotland must cope using its problems together.

In this regard, economic factors become particularly very important to the growth and additional development of Royal Standard bank of Scotland. In fact, the development of the lender was maintained credited to aggressive extension and getting into new markets. Today, Royal Loan company of Scotland has slowed down its extension because of financial problems and monetary recession. The bank industry is facing a profound turmoil. Therefore, Royal Lender of Scotland must save costs and enhance its performance to endure through the financial recession and also to renew its expansion in the nearest future. In that situation, the bank needs a reliable investor, who are able to help the lender to tackle its current financial problems.

At once, considering socio-cultural factors, it is important to place emphasis on the fact that the public considers Royal Bank or investment company of Scotland to be always a reliable loan provider, especially in the united kingdom. Moreover, the bank is nominally managed by the federal government. Therefore, the public has self-assurance in the bank and its trustworthiness which allows Royal Bank of Scotland to avoid stress among customers and keep on its development progressively, regardless of the economic tough economy.

On the other side, Royal Loan provider of Scotland cannot dismiss environmental factors, such as the growing competition in the bank industry, especially at the international level. In enough time of economic downturn, your competition in the bank industry grows and Royal Lender of Scotland should come ready to the strong competition. In this respect, the bank has to use its full probable, counting on its aggressive growth strategy, customer assurance and loyalty, administration support and its internal resources to maintain the steady development of its business.

In this value, technical factors may play a particularly important role. For example, the introduction of e-banking makes services of Royal Loan provider of Scotland open to a larger volume of customers compared to pre-e-banking age (Finley, 2007). Alternatively, the lender should deal with such threats as the identity robbery and unauthorized usage of the personal information of its customers.

Thus, taking into account all previously listed, it's important to place emphasis on the fact that the development of Royal Loan provider of Scotland depends upon multiple exterior factors. At the same time, the lender should use its interior strengths to speed up its development to recuperate following the recent economic recession. Today, the bank is facing numerous problems, such as the problems in the bank industry, slow marketing expansion, lack of money, need in the federal government support as well as others. In such a situation, the lender cannot depend on the government support only but it addittionally needs to develop innovations and carry on aggressive development strategy.

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