2.

INDUSTRY ANALYSIS

2.1 SWOT ANALYSIS

SWOT analysis is a framework for identifying and analyzing an organization’s strengths, weaknesses,
opportunities and threats. These words make up the SWOT acronym. The primary goal of SWOT analysis
is to increase awareness of the factors that go into making a business decision or establishing a business
strategy.

The Co-operative Bank is one of the leading brands in the banking & financial services sector. The Co-
operative Bank SWOT analysis evaluates the brand by its strengths & weaknesses which are the internal
factors along with opportunities & threats which are the external factors.

The Co-operative Bank Strengths

The strengths of The Co-operative Bank looks at the key internal factors of its business which gives it
competitive advantage in the market and strengthens its position.

A list of strengths Is mostly the starting point in a SWOT analysis. Below are the Strengths in the SWOT
Analysis of The Co-operative Bank :

1. The bank has a ethical policy which prevents it from investing in companies involved in arms
trade, genetic engineering, fossil fuel extraction etc. The ethical policy is part of the banks
constitution.

2. Smile, the internet-only operation of the bank is among one of the top rated services in UK by
consumers

3. The bank offers a variety of retail banking services such as current accounts, mortgages, loans, credit
cards, investments etc.

4. The bank caters to a wide customer base including individuals, businessmen, corporate customers etc.
5. The bank provides its customers with latest facilities like internet banking facility and mobile banking
facility.

The Co-operative Bank Weaknesses

The weaknesses of a brand are certain aspects of its business which it can improve. Here are the
weaknesses in the The Co-operative Bank SWOT Analysis:

1. The bank had to face a severe financial crisis which saw it being taken over by US hedge funds.

2. Moody’s downgraded its credit rating by 6 notches to junk category

3. The bank has recently closed a lot of its branches and also terminated its off shore activities.

The Co-operative Bank Opportunities

The opportunities for any brand can include prospects of future growth. Following are the opportunities
in The Co-operative Bank SWOT Analysis:

1. The bank has come up with schemes such as the “Golden Hello” to win back customers after its
2013 financial crisis.

2. The bank should introduce new products and schemes to bring in new customers. It should also build
relationships with existing customers to retain them.

3. The bank should come up with better governance and be more transparent, in order to restore
customer confidence in the processes of the bank.

The Co-operative Bank Threats

The threats for any business can be external factors which can negatively impact its business. The threats
in the SWOT Analysis of The Co-operative Bank are as mentioned:

1. A more robust accounting system needs to be put in place. It was found that the bank had a hole in its
finances. Such scandals can erode customer confidence in the bank.

2. Default risk which is the risk that the bank may run into losses due to the counter party defaulting on
their liabilities.

3. A bad economic outlook can cause serious damage to the financial situation of the bank.
4. The bank faces threat of running out of capital to run its day to day business due to the severe
financial crisis it is going through.

2.2 PESTLE ANALYSIS

A PESTLE analysis is a tool used to gain a macro picture of an industry environment. PESTLE stands for
Political, Economic, Social, Technological, Legal and Environmental factors. It allows a company to form
an impression of the factors that might impact a new business or industry.

Political, Economic, Social, and Technological (PEST) aspects are used to analyse the market for a certain
business or organisational sector [26]. Used by businesses as a tool to monitor the environment in which
they operate or plan to introduce a new initiative, product, service, etc. [27]. A major factor in the
conversion of offshore platforms is politics [28]. PEST analysis is used to build development strategies by
doing a thorough Investigation of the external environment of a business or sector [29]. PESTLE analysis
makes it possible to thoroughly analyze the problems that have the cost implications on the expansion of
business activities or the projects that they must support.

POLITICAL FACTORS

•There is constancy in the rule of law and regulations because the Governments of each party have
abided by the agreements made by earlier administrations.

•Investment grade is the bond rating for the federal government.

ECONOMICS FACTORS

•The state of an economy is influenced by a number of Socioeconomic indicators.

•Impact on Economic Expansion, Supply And Demand Trends, Interest Rates, Inflation, Employment
Rate, Household Income, Disposable Income, Taxation.

SOCIAL FACTORS
•Social aspects characterise your potential customers, including who they are, what they do, how they
think, and what might affect their decision to buy.

•When a company targets a particular demographic, your efforts may be greatly impacted.

TECHNOLOGICAL FACTORS

•The marketing industry’s vital heart is technology.

•It does the majority of the mechanical labour for network Connectivity, intergated business procedures,
and demonstration Minutia and number circulation.

LEGAL FACTORS

•The strength and authority of the nation’s institutions are frequently reflected in the judiciary’s
independence.

•Even if a nation has the best laws, they won’t affect anything if they can’t be administered promptly.

ENVIRONMENT FACTORS

•National and local environmental standards and regulations.

•In order to protect standards, environmental standards Enforcement organisations play a crucial role.

2.3 OBJECTIVE OF THE INTERNSHIP

 To know about the real environment of the organisation.

 To know and analyse the strength and weakness of the organisation and forthcoming the
opportunities and threats for it.
 To develop interpersonal and managerial skills.
 To get a practical exposure of the organisation.
 To know more about the organisation.
 To understand the behaviour of employees in the organisation towards the customers.
 To know about the services provided by banks to the customer and their satisfaction.
 To understand the level of satisfaction about the co-operative bank.
 To study the different attributes for customer satisfaction towards co-operative bank.