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

Recession and Banking - Essay ExampleThis was indicated by the McKinsey look into which demonstrated that the competitive psychoanalysis 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 competition easily came crossways in the changing orbicular dynamics of the banking sector. The McKinsey research further concluded that the next decade go away herald a worldwide GDP growth reaching 16% by 2012. According to Deloitte, The global banking industry weathered turbulent times in 2007 and early 2008. After rising interest place and a decline in U.S. housing prices drove increased defaults among subprime borrowers, investors rapidly lost their appetite for securities base on subprime mortgages and soon for other securitized assets as well. Given the integration of capital markets, the impacts quickly ricocheted around the world, po ignant 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 feature outlines by Deloitte according to which the AAA downward trends have affected the hedge funds the most. While commercial-grade and investment banking institutions had announced write offs of almost $100 billion by January 2008, increased legal operation (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 essay will explore to study the changing dynamics of the global banking industry according to the Pestel analysis and Porters five forces of competition.PESTEL ANALYSIS following(a) be the features according to which the analysis has been carried out by taking the questions into consideration when studying the various pieces of literary works to find a conclusionPolitical What is the culture of the org anization, How is the HR 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 money available be our customers likely to spend more or less money on the run we offer What is misfortune 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 subsisting standards Housing trends Fashion & role models Age profile Attitudes to career Technological What changes may be plan of attack our way What new technology/ systems, How do we record attendance, performance how might this change Use of and bring forward 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 wi ll impact what we do Minimum wage, working(a) 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 postulate 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