Recession and Banking Essay Example | Topics and Well Written Essays - 2000 words

Recession and Banking - Essay ExampleThis was indicated by the McKinsey research which demonstrated that the competitive analytic thinking 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 challenger easily came across in the changing global dynamics of the banking sector. The McKinsey research further concluded that the next decade will herald a cosmopolitan GDP growth reaching 16% by 2012. According to Deloitte, The global banking industry weathered turbulent times in 2007 and early 2008. After uprise 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 otherwise securitized assets as well. Given the integration of capital markets, the impacts quickly ricocheted around the world, affect ing 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 spell out 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 judge will seek to study the changing dynamics of the global banking industry according to the Pestel epitome and Porters five forces of competition.PESTEL ANALYSISFollowing 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 conclusionPolitical What is the ending of the organization, How is the H R 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(prenominal) money available Are our customers likely to spend more or less money on the services we offer What is incident 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 & use models Age profile Attitudes to career Technological What turns 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. What changes will impact the services of the organization Environmental Staff morale Staff engagement Need to reduce storage needs Management attitudes (inside dept/ function) Organizational culture Source RapidBi - Pestel TemplateFindingsThe basic finding based on the PESTEL analysis points to the following trends as outlined in the various