Pestel analysis of citi bank
For example SMS functions through simple text messages sent from your mobile Technology advancement has changed the face of traditional banking systems. In the financial world specifically, its importance has grown.
The laws that the country enforces, especially with regards to business, such as contract law, as they dictate what Citigroup is and is not allowed to do. Apart from cost effectiveness and a great reputation, it helps at ensuring a great future for the planet.
Economic shift. Social Factors- the primary social factor that have a huge impact in the analysis of the macro-environment of the business is the demography, in the demographics there are two areas in the demography in which most businesses are concerned, the working population on which it identifies the number of possible employees of the company and the population, the number of people residing in a community or a country which will have a great influence in the demand of products and services of the company.
A low minimum wage would mean higher profits and, thus, higher chances of survival for Citigroup Economic Factors that Impact Citigroup Economic factors are all those that pertain to the economy of the country that Citigroup, such as changes in the inflation rate, the foreign exchange rate, the interest rate, the gross domestic product, and the current stage of the economic cycle. There are multiple instances of innovative products completely redesigning the norm for an entire industry: Uber and Lyft dominate the taxi cab industry; smartphones have left other phones an unviable option for most et cetera. Firms will be directly affected by the actions of government and other political events. This scenario assumes that the future regulatory environment would be virtually unchanged from that of recent years because proposed mandates would be rolled back or watered down; that the shift in economic power and opportunity from developed to high- growth emerging countries would be modest; that there would not be significant competition from new sources such as nonbank firms; and that there would not be a strong turn toward protectionism. Such analysis helps stakeholders to understand how a business generates The force per unit area groups are concerned the negative external effects of the concern such as air and H2O pollution. Be quick to recognize and act on change. Environmental: Sustainability has also emerged as a key trend in the world of business. The importance of the internal and external environment and their effect on the development and implementation of marketing planning is crucial and should be highly considered by any organisation wishing to be profitable in the increasingly competitive international marketing arena. Emerging markets will account for a far larger share of global economic activity, presenting both challenges and opportunities for cross-border banks traditionally based in developed countries. The Delta Model - a New Framework of strategy. PESTEL analysis can be highlighted as the most appropriate strategic analytical tool for specifying and categorizing external factors impacting businesses. These are just a few of the moving targets on the regulatory landscape that banks are watching.
Several things happen at the socio cultural level. The industries this applies to find often their costs elevated. It has 40 improved price transparency, and provided easy dissemination of reviews and critiques of products and services by experts and other customers. Central banks have stepped in to shore up the financial system in several recent crises, most recently the credit crisis that began with the mortgage market and home-price collapse in the United States and the debt crisis in Europe.
Citi continues to face significant regulatory changes, uncertainties and costs in the U. The regulatory environment can be different from country to country and that can make it difficult for Financial Institutions like Citibank to see fast growth. The class distribution among the population is of paramount importance: Citigroup would be unable to promote a premium product to the general public if the majority of the population was a lower class; rather, they would have to rely on very niche marketing.
In terms of capital adequacy, both the quality and quantity of the regulatory capital base will be raised and the risk coverage of the capital framework will be enhanced.
There are two types of laws that businesses are very particular and these are criminal law and civil law.
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