Pestle Analysis of Barclays Plc

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PESTLE analysis is very useful for studying the environment in which a company operates and accessing external factors influencing the company in the markets it operates. PESTLE is the acronym for the following categories of investigation: political, economic, sociological, technological, legal and environmental (Cheverton, 2004; Partridge and Sinclair-Hunt, 2006).
Discussing the political factors influencing operation of the banks in the national, local and regional levels and legislation, it should be mentioned that banks have always been to a certain degree regulated by the government (Benston, 2000). For example, government determines the fraction of reserves that a commercial bank should keep with
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It may be concluded that the higher the GDP indices are, the greater amounts of money come through banking system, and the more favourable position Barclays plc would have in a given country. However, it cannot be stated for sure that South Africa provides better conditions for Barclay’s operation. The economy of the USA proves to be the largest and most of the bank’s transactions are carried out in the UK.
Interest rates in the discussed countries appear to look the following way:

Figure 7: United Kingdom Interest Rate


Source: Bank of England, 2009

Figure 8: United States Interest Rate
Source: Federal Reserve, 2009

Comparing interest rates in the UK and US, it can be stated that the US Federal Reserve conducts a zero rate policy. However, it does not imply that loans made in the US are free of charge for businesses.

Figure 9: South Africa Interest Rate
Source: Reserve bank of South Africa, 2009

On the contrary, interest rate in South Africa is rather high. It is not even close to zero level, but constitutes more than 7%. However, the tendency of fall from the period of summer 2008 may be observed. At the same time it does not mean that loans will be easier to obtain and that they will be available.
Speaking about banking industry, the set of socio-cultural, technological and ecological factors will not be excessively significant. Indeed, operating in the global scale, Barclays

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