Swot and Pestel Analysis of Close Brother Group (Essay Sample)

Swot and Pestel Analysis of Close Brother Group Name of Student Institution Date of Submission Internal Swot and External Pestel Analysis of Close Brother Group Close Brothers group plc is a merchant banking group that is leading in the provision of deposits taking, offer services of management of wealth, lending services and trading of securities. Their head offices are situated in Britain and specialize in financial services. The company has a long list of clients that it services and this has led to it expanding to various branches in order to serve its customers better (Great Britain, 2008). The company has clients that it considers corporate, investors who are institutional and also managing assets of clients. Internal Swot Analysis The SWOT analysis contains modest benchmarking, facts that are key, major employees, its location and its subsidiaries. There is also information of the products and services the company is offering. Swot describes the weaknesses and the Strengths of a business. This can be both internal and external factors. Focus will be put in the internal SWOT of Close Brothers group plc (Great Britain, 2008). Threats that are considered to be strategic to the company; core competency of the company will also be put into consideration and identification of opportunities which the company is not able to use because of lack of factors such as resources (Böhm, 2009). The SWOT analysis framework has been accepted worldwide because it is simple and gives the company the power to come up with a developing strategy. Data that is accurate and research is needed in identifying information that is vital in the Close Brothers group company. A look of Close Brothers group will be put into consideration and the way it relates to the market. These are the advantages the company has over its competitors. These are the things that the company should advertise in order to beat its competitors (Böhm, 2009) .Close Bother Groups has operated for many years and it has won the trust of many clients. It offers the best services compared to other banking companies, and it has international clients meaning that it has gained confidence internationally. Banking operations The company offers banking operations. It involves in banking services, order lending services to its small and medium customers who run both small and large businesses. Its also offers individual loans, and this is on the basis of classes of assets ,and deposit taking services are also offered by the company (Great Britain,2008). Close Brothers Invoice Finance This is a sister company of Close Brothers. The year 1984 was when the group was founded .This was after the acquisition of a factoring company based in Yeovil. In the year 1993, the company Century Factors which was acquired by Close brother was changed to Close Invoice Finance Limited. Today this division has over a thousand customers and this is allover UK, Germany and Ireland. In the year 2009, Ulster Factors another factoring business was acquired by Close brothers (Pahl et al., 2007). This company is based in Ireland .It had a history a company firms that run the longest running invoice. In the year 2010,Close brother took another move by acquiring an invoice which financed a long book to GMAC commercial Finance limited. This was estimated to be 98milion pounds. This led to 23 staff members who belonged to GMAC moving to Close Brother Limited. Securities Division This is a division that deals with the provision of trading security services to its customers. It offer services to brokers who are retail, and institutional investors are also involved .This is majorly through Winterflood Securities and Close Brothers Seydler. Close Brothers Seydler Brothers Seydler Bank is based in Frankfurt. This company’s branch offers market making services, brokerage and involves in services that are related to capital markets. This services range to companies that are listed and those that are not listed. The company handles more than 2,200 specialists who are international and they are good in accounts, and this enables the company to trade more than 800 bonds. Almost all available bonds are offered by its trading services, and this include cooperate, the government, convertibles, government bonds and all covers and straight bonds. This has made the company the largest existing market maker based in Germany (Pahl et al., 2007). This is due to the number of orders. This has also made it a bank that is market making and a leader because it was the first to introduced equity and debt. This enabled those interested in investing in Germany to deal with bonds that are of high yields. In the wall Street Journal the year 2013 Close Brothers Seydler became listed in Top 10 list in European brokers. The Company covers almost 120 companies that are public listed. Asset Management division This division is involved in the provision of a full range of advice, and this is in investment management and services that are self-directed, to cloistered, institutional and clients who are corporate and also advisers who are professional (Murray-Webster & Williams, 2010). There are also other service that the company is involved, and this is the provision of financial services to the armed forces of the UK, and this is through Financial Forces and the provision of mortgages and credit cards services. The internal challenges that Close Brothers group is facing is the management of the many branches and clients internationally. Due to its recognition, the number of clients is increasing, and this calls of the company to employ more experienced financial advisers and accountants. This is because it is handling large amounts of money that belong to the public (Murray-Webster & Williams, 2010). This is risky because the company can collapse due to internal theft due to lack of proper auditing. The company has to acquire qualified employees who are also needed by other banking companies that offer the same services as Close Brothers group .The handling of Securities is also important because it should ensure that brokers that are under it are able to execute their orders to customer in the fasted time possible .The sprouting of banks that offer financial service that are cheaper than those offered by Close brother is the major challenge (Pahl etal., 2007). This will force the company to offer lower services that are of good quality more that its competitors. The competition is not only domestic, but also internationally. It is the role of the company to ensure that all its customers are fully satisfied .Since Close bother covers more than 120 companies, management of its resources is very crucial, because this is what is keeping the company running .Internal coordination from all the managers and employees of the company is crucial because this is what keeps the clients and attracts more. This also keeps away the competition from other companies offering the same services. External Pestel Analysis PESTEL analysis represents Political, Economic, Social, and Technological, Environmental and Legal analysis. This is the conclusions of analysis that is strategic and an overview of the environmental factors which should be put into consideration by the company (Jolly, 2012).Political factors: This is in relation to how the government controls the economy of the nation. Factors that are political are involved in the tax policies, labor laws, and environmental laws, restrictions in trade, tariffs and stability of the state in politics. Goods and services which the government may want to provide or not to provide are also entangled in political factors. These are termed as merit and demerit goods (Pahl et al., 2007). Close Brothers group offers services that benefit both the government and the private sectors. This is for example it deals in the selling of government bonds to the public, and this is a great beneficiary of the nations that the company has its branches in. Economic factors: This is the growth of the economy, interest rates, and rates in exchange of currencies and the rate of inflation. This are major factors which influence the company and the way it makes its decisions .Interest rate vary in different countries that Close Brothers group has it branches situated. ...