Porter 5 Forces Analysis

The Merriam Webster dictionary defines the noun “bank” as “an establishment for the custody, loan, exchange, or issue of money, for the extension of credit, and for facilitating the transmission of funds.” In essence it is an institution that serves as a medium of flow of funds between users and savers. A bank is a financial institution that links the flow of funds from savers to users and back. For the purpose of this audit report we will broadly classify banks into two major categories: commercial banks and investment banks.

The banking industry has undergone major upheaval in recent years, largely due to the lingering recessionary environment and increased regulatory environment. Many banks have failed in the face of such tough environmental conditions. These conditions

There are various categories of banking; these include retail banking, directly dealing with small businesses and persons. Commercial and Corporate banking which offers services to medium and large businesses (Koch & MacDonald 2010). Private banking, deals with individuals, offering them one on one service. The last category is investment banking. These help clients to raise capital and often invest in financial markets. Most global banking institutions provide all these services combined. With all these institutions in existence within the same localities and offering similar services, there is a need to regulate the industry so as to protect the consumer and provide fair working environment for all banks (Du & Girma, 2011).

Banks are institutions in which people put their money for safekeeping, to save, to use to pay their bills, or to earn interest on. Banks are allowed to use that money to make loans and earn interest for the bank's’ owners. Different types of banks offer different types of services. For example, commercial banks originally just served businesses, and savings banks and credit unions were used by individuals, especially those who couldn’t qualify for loans at regular banks. This is no longer the case. Although commercial banks and thrift institutions used to serve different purposes, today they all offer many of the same types of services including bank accounts, loans, credit, certificates of deposits (CDs), and much more.

The retail industry is a sector of the economy that is comprised of individuals and companies

The UK banking system is an Oligopoly because there are a small number of companies in the industry to allow barriers to be raised against the entry of new firms. ‘It’s important that we have to make sure there’s no banks too big to fail’ (article). Although in an oligopoly its known

“Retail is the business of selling goods made by others to individual consumers. It is a huge industry, dominated by Wal-Mart, which touches every corner of the globe. Due to the decline in the global economy, the future of many retailers is uncertain as consumers begin to spend less. The retail industry is the last step in the process of getting products to customers efficiently, and should not be confused with the wholesale activities which precede it. The difference between the two is that wholesalers are companies that sell their products to businesses, whereas in retail, the goods are sold

The majority of America’s banks are small individual institutions that had to rely on their own resources. This resumed as being unbeneficial for people because these banks were not stable, in terms of keeping Americans’ money cycling properly through banking systems. When there was a panic, depositors rushed to take their money out of the banks. The banks sank if they did not have enough money on reserve. This eventually left banks in the dust.

Retailing is one of the largest industries in the United States and accounts for approximately 10 percent of the gross national product. A retailer is someone who purchases items from a supplier or wholesaler for re-sale at a profit. The retailer earns his or her living by making a profit on the re-sale. Retailers purchase a product, mark up its cost, and advertise it for sale. The mark-up process is the key to the retailers business because if the product is marked up too high, consumers will not buy it. If it is marked too low then the retailer will have lost profits and the supply may be quickly exhausted. Another key to the retail business is knowing what the customer needs or wants and when, how much the customer is willing to pay for the product, what the competition is charging, and where to find the product at the best possible cost to make a profit.

Retailing is the selling of goods directly to the consumers; this can be achieved in many locations or formats. It is the last stage of the supply chain.

RBC Royal Bank is the fastest growing financial institution in Canada. It has gained a lot of success over the past few years. It stands in the first position among the top five banks listed in order of market capitalization on Toronto Stock Exchange as of November 2015. According to Henry John Heinz, “To do a common thing uncommonly well brings success.” (Henry John Heinz, (n.d)). RBC is following the similar strategy in its business. Savings account, Chequing account, and other retail banking products are offered by other banks too, but RBC offers the same products in its unique way. RBC has more of a focus on clients; it builds very good business relations with clients. Recruitment of its well-skilled employees is also one of

Consumer Banking is the side that most people are familiar with and serves retail customers and small businesses with annual revenues of up to $25 million, through its network of branches. Consumer banking products and services include deposit products, mortgage and home equity lending, student loans, auto financing, credit cards, business loans, wealth management and investment services.

Retail stores, are one of the biggest and largest businesses around the world. They produce thousands of hundreds in revenues and they are some of the biggest employers industries. WALL-MART, IKEA, TESCO, ARGOS, MACYS, WALLGREENS and OFICCE DEPOT are some of the well-known retail stores that supply us every day with different kind of goods and services. For a better understanding, one of the main definitions of retail is: “...store commonly a shop or stall for the retail sale of commodities, but also a place where wholesale supplies are kept, exhibited, or sold…” What this means

Retail is when business sells products and provide service to the customer to make a profit. An example of a retail business is TESCO. There are many different types of retail sectors in UK which have different organisation and structures. In order for business to operate they will need to find the appropriate location, products they will sell to customer in order to gain profit for the business.

The global financial crisis has its origin in the US, but its effect was seen all over the world. In fact in last eight decades, it and was the largest economic financial crisis .Thereafter it showed some serious problems which had to be looked after. That’s the only reason faith and trust is always on trustworthy banks which has lot of reputation .But somewhere in the