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Hi, need to submit a 2000 words essay on the topic Recession and Banking.Download file "Recession and Banking" to see previous pages... This was indicated by the McKinsey research which demonstrated t
Hi, need to submit a 2000 words essay on the topic Recession and Banking.
Download file "Recession and Banking" to see previous pages...This was indicated by the McKinsey research which demonstrated that the competitive analysis proved how the banking industry was not adhering to set market dynamics anywhere in the world. With differences in performance between regions, structures and sub sectors, the use of the five forces of competition easily came across in the changing global dynamics of the banking sector.
The McKinsey research further concluded that the next decade will herald a worldwide GDP growth reaching 16% by 2012. According to Deloitte, "The global banking industry weathered turbulent times in 2007 and early 2008. After rising interest rates and a decline in U.S. housing prices drove increased defaults among subprime borrowers, investors rapidly lost their appetite for securities based on subprime mortgages and soon for other securitized assets as well. Given the integration of capital markets, the impacts quickly ricocheted around the world, affecting banks, securities firms, and hedge funds in the United States, Europe, and Asia." (Global Banking Industry Outlook, 2008. Pp 1 to 12)
This can be seen in the fact outlines by Deloitte according to which the AAA downward trends have affected the hedge funds the most. While commercial and investment banking institutions had announced write offs of almost $100 billion by January 2008, increased legal activity (double of what was seen in the previous year) became the trend for August 2008 onwards. (Global Banking Industry Outlook, 2008)
In the face of these trends, this essay will seek to study the changing dynamics of the global banking industry according to the Pestel analysis and Porter's five forces of competition.
PESTEL ANALYSIS
Following are the features according to which the analysis has been carried out by taking the questions into consideration when studying the various pieces of literature to find a conclusion:
Political
What is the culture of the organization,
How is the HR function viewed by other functions
Who are the political champions of HR (or its adversaries)
Shareholder views
Economic
What is the budgetary position of the department,
Is more money available
Are our customers likely to spend more or less money on the services we offer
What is happening to the financial status of the organization
Interest rates
Inflation
Salary trends in the sector
Sociological
Other departmental attitudes to HR
Population shifts (age profile)
Education
Fads
Diversity
Immigration/emigration
Health
Living standards
Housing trends
Fashion &. role models
Age profile
Attitudes to career
Technological
What changes may be coming our way
What new technology/ systems,
How do we record attendance, performance how might this change
Use of and encourage home working
Communications technologies
changes of technology that will increase/ reduce the need for recruitment
changes to HR software
Legal
What is happening in our sector that will impact what we do
Minimum wage,
Working time,
Food stuffs,
Under 18 working,
Occupational/ industrial Training etc.
