External environment for banking industry

1704 Words Apr 8th, 2004 7 Pages
Standard Chartered is the world's leading emerging markets bank headquartered in London. Standard Chartered employs 30,000 people in over 500 locations in more than 50 countries in the Asia Pacific Region, South Asia, the Middle East, Africa, the United Kingdom and the Americas. It is one of the world's most international banks, with a management team comprising 70 nationalities. Standard Chartered has been committed to Hong Kong and China for nearly 150 years. Standard Chartered Bank opened its first branch in China in 1858 and is the oldest foreign bank in the country. The Bank has operated in Hong Kong since 1859 and has been issuing Hong Kong banknotes since 1862. Standard Chartered PLC listed on the Stock Exchange of Hong Kong in …show more content…
Organizations have different stakeholders (shareholders, customers, employees, government) who have expectations of the organizations and may exercise considerable influence and power over the strategy to be followed

As said earlier, the external environment plays an important role for banks. Most of the external factors are beyond the control of a bank. The factors such as competition; political, economical, legal, government rules and regulations influence the firm's choice of direction and action and also affect the internal environment of a bank. The external environment influences a company's strategic options as well as the decisions made in light of them. The firm's understanding of the external environment is matched with knowledge about its internal environment. Matching the conditions of the two environments is the foundation the firm needs to form its strategic intent, to develop its strategic mission, and to take strategic actions in the pursuit of strategic competitiveness and above-average returns. The external environment encapsulates many different influences which makes the tasks of CEOs more difficult. Identifying the different environmental influences though makes sense, is not very much useful as the overall picture of these influences
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