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Introduction.
In the business world strategic positioning has become an unavoidable endeavor
as businesses look for every means of improving their competitive advantage. In such a
business environment, a much reliable reprieve can be found in the adaptation of analysis
models by organizations. Several analysis models have been utilized by organizations all
over the world since the 1960s. Among the widely used analysis models are: porters
model, SWOT analysis, Ansoff analysis, Porters generic models as well as the 7Ps
matrix. In this paper Pestle, and Swot models are going to be applied to the analysis of
the marketing environment of woolwich bank UK. The goal of the analysis is to analyse
the macro and micro should explain the larger societal forces that affect the whole
microenvironment. Micro analysis will endeavor to explain the forces close to the
organisation that affects its ability to serve its customers. The company, market channel
firms, customer markets, competitors and public.
Pestle Analysis of the woolwich bank UK.
1.1 POLITICAL INFLUENCES
Politics in the real world is felt globally and it changes from one leadership to
another. Some businesses are politically oriented for example setting up a bank operation
in UK may be politically driven. A firm may wish to establish its network operations but
some political issues may hinder the operations from being carried out. Some politicians
will push for the establishment of a certain organizations while other politicians may
oppose this. Change in political regimes may affect organizations for example the present
regime, which is in power today, may seize to be in power tomorrow. This may affect
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the mobile phone industry either negatively or positively. This will affect the
organizations running and therefore its profitability.
1.2 ECONOMIC
Economic situation is the backbone of the prosperity of any organization. This is to
mean that if the economy is fairing quite well, then you find that the mobile phone
industry for example is running well and the vice versa is true (Ehrenberg, Andrew ,
Mark, Uncles, and Gerald G. Goodhardt, 2004p.356). The economy in most cases is
determined by the resources available nationwide. For Woolwich, the economic
situations seem to favor it although many ongoing changes have to be initiated in order to
keep the company afloat.
1.3 SOCIOLOGICAL
In a social arena where the society is friendly, then to carry out a business is easier and
convenient. The firm should take into consideration that, without cooperative and ready
customers where it operates from, it cant progress well. The analysis should take into
account that if the society is friendly then to carry out a business is very easy. These
people are the immediate customers and so higher sales will be attained leading to higher
profits.
1.4 TECHNOLOGICAL
The analysis should involve a wider aspect of business environment globally and to
be alert on daily changes (Garbarino, & Johnson, 1999p.). It is so essential that the
analysis carried out cater for all technological loopholes, which may lead to other rival
industries competing quite well.
1.5 LEGAL
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Every industry operates under certain rules and regulations, which are set up by the
government. For a business to be set up, the government must legally accept it. Taxation
is another legal aspect. Thus tax has an implication in that; cost of the industry will be
increased thus reducing profits. Hence the analysis should take into account all these
aspects before setting up the industry. Otherwise the aftermath may have adverse effects
to the industry.
1.6 ENVIRONMENTAL
Environment being the key aspect of every industry should be taken care of. The
environment may include the following:
- Size and structure of the industry
- Competitors
- Intermediaries
- Stakeholders in the industry
For a firm to run efficiently it should carry on business in a sizeable and well-
structured site. This necessitates smooth running of the organization (Kalafatis, & Miller,
1997p.145-146). The intermediaries and stakeholders assist for example in service
distribution and the running of the industry (Kalafatis, & Miller, 1997). Consider how to
treat each of them so that there is no inconvenience
SWOT ANALYSIS
SWOT simply stands for Strengths, Weaknesses, Opportunities and Threats. Its
an analysis conducted on different alternatives to generate strategies especially in
business and market plans (Chaudhuri, & Holbrook, 2001). The strengths and
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weaknesses are classified into internal factors while the opportunities and threats are
classified into external and internal factors.
INTERNAL FACTORS
1.1 Strengths
Operating capacity
The fact that Woolwich will is a household name recognized all world over
increases its production capacity. This is due to increased production expertise and
manpower
Operational efficiency
A higher efficiency is attained from
Brand awareness
It employs both research and manpower to establish strategies of entering the
market. The fact that there already exist quite a number of consumers in the market, it
has to use that opportunity to challenge its competitors since now that they are combined,
and they have a better market leadership.
Resources
By utilizing these resources, there is a possibility of achieving reasonable profits.
1.2 Weaknesses
For a firm to be effectively productive, it has to face some challenges. These are
simply referred to as weaknesses, which the firm has to encounter. The firm however
should try to overcome the weaknesses and capitalize on the strengths.
Location
Bad reputation
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1.3 Opportunity
This refers to the change that rises when a new product or good is introduced in the
market. It gives a positive outcome to the firm, that is, there exists a chance in the
market. It mainly arises due to changes in business environment (Hirschman, 1970p.56-
59).
Technology
Technology is said to be a day-to-day strategy.
Market development
It will upgrade its goods and services and this in turn enhances good public
relations, which results to rise in the sales. The two companies have been said to be
working towards lowering customers cost from its services they offer. These low costs
will attract and maintain more customers thus increasing sales. Stiff market
1.4 Threats
These are the challenges, which a firm faces in the external environment for example
when joining the market (Hirschman, 1970p.50-57..
Price wars
One way of competing is by setting the prices whereby the competitor may decide
to lower its market prices to counter attack other competitors such as Standard chartered
and Royal Bank.
- Cost of market penetration.
- Pursuance of the consumers
- Market research.
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All these factors involve human expertise and so they hinder quick market
entrance.
Taxation
Tax is the highest threat for companies since it is a mandatory to pay (Oliver,
1999p.30-37). Different countries have different tax rates.
SWOT Analysis/ Step analysis
The following Swot were derived from the initial surveys.
Lack of communication
Lack of public interest in public jobs.
No impact messages and communication.
Low public interest.
No strong organizational branding.
Opportunities
Publicize the ability to offer god interest interests not matched by any one else.
Capitalize on proxy to government.
Capitalize on flexible service appointments.
Threats
Lack of well-integrated marketing plan capable of amassing all organizational
departments to pull in one direction. That aligns and integrates all institutional entities
Lack of tact in delivering the message to the market.
Lack of impact mission/vision statement.
Lack of enough funds to execute Integrated Marketing Plan.
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Strengths Weaknesses Opportunities Threats
-Good public image
and goodwill.
-Room for
expansion and
growth.
-Strong
management.
-Skilled
professionals.
-Public acceptance
and expectations.
-Continuous
demand.
-Strong industry
-Societal
acceptance.
- Availability of
expertise.
-Availability of web
technology.
-Negative customer
relations.
-Bureaucracy in
decision making
which hinders
progress.
-Weak policy
implementation.
-Funding required.
-Focus on
technology
improvement.
-Utilize partnerships
with government to
boost promotional
campaigns.
-Funding.
-General
acceptance.
-Competition.
-Maintenance of
services.
-There is a
perceived lack of
demand.
-Institutional
barriers such as lack
of autonomy.
-Legal liabilities.
-Reduced
independence.
-Growth may bring
more visitors to
offices already
receiving maximum
possible visitors in a
day.
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-Competition from
other banks.
STEP ANALYSIS
Social Technological Economic Political
- Life
improvem
ent.
- Improved
technology.
- Impact on
economic
growth.
- Strong
economic
system in .
- Established
infrastructure.
- Employment
creation.
- Interferences
from
government.
CONCLUSION
Adapting the integrated marketing will guide the organization establish and maintain a
leading role in the job market. The fact the market is full of banking organizations
releasing messages into clients, means that the organization will have to factor in the fact
that daily messages aimed at the same depositors are released through newspapers, TV,
therefore it becomes hard for the recruits to differentiate between good and bad banks.
The message the organization wants to sell is that, look; all depositors, we are different,
we just do not serve to make profits we want to build a corporate family, where your
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needs shall be catered for whether banking or investment. From the analysis above the
weaknesses of the do not weigh much compared to the strengths the bank has manifested.
Accordingly, the market is big, and therefore the opportunities are much available and all
the companies involved in the venture are bound to benefit very much, in terms of
market share increase, customer subscription base increase as well as realizing good
profits for the shareholders and therefore contributing to the economic improvement of
the countries where the companies operate. As for the UK business environment, can be
termed as conducive in aspect of environment, political, legal, social, technological and
economical. Therefore the market can be termed as favorable.
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