Pest Anaylsis Nordea

Topics: Electronic commerce, Online banking, Bank Pages: 5 (1459 words) Published: March 20, 2011
Pest Analysis on Nordea
1.Legislation/law for information systems
2.Effectiveness of law v internet
3.Monopoly legislation
4.Trading from investorsEconomical
1.Economy of information systems in Scandinavia
2.Economical trends
3.Trade and industry
4.Competition of cost outside Europe
1.Wide demographic
2.Applying decent pricing to customer’s needs
3.Innovative idea to suite customer trends
1.Using different sites to their advantage
2.Challenges of integrated systems
3. Innovative ideas
Political –
‘Political systems can exert significant pressure on the development and use of information systems in organisations’ (Beynon-Davies, 2004). This normally occurs through to requirements of particular aspects of national and super-national legislation. They generally require an organisation to behave in a certain way. (Johansson, 2009) One issue that is considered for Nordea’s e-business system is that it raises challenging questions about the effectiveness of law, which in the non-electronic world has evolved over centuries to reach its current form. This idea goes on to suggest that although the goals of low remain the same when applied to e-business, it often falls short of meeting these goals. ‘Hence new forms of legislation designed to cope with the practicalities of e-business are inevitable’ (Beynon-Davies, 2004). ‘Nordea is known as the biggest Nordic bank by market value’ (Reuters, 2010) Nordea Banks have outperformed banks everywhere else in Europe, thanks to a strong capital level and their ongoing strong performance. Regarding Monopoly legislation, as Nordea are gradually taking all customers in Nordic bank region, they need to ensure that they don’t become accused of violating its dominant position in the bank market by leveraging it to move into other e-business markets at the expense of its competitors. (Jelassi & Enders, 2008) Also if political and social barriers continue to raise this could prevent effective online transactions and hinder the potential for growth in e-Business for other firms (Amor, 2002). However their investors are still very much benefiting from their achieving firm. As at the beginning of 2010, Nordea's status shifted from an equity investment to an associate company, immediately increasing Sampo's reported profits. (The Swedish Wire, 2010) Economical –

Scandinavia being part of the leading areas of the world in e-commence, is a massive advantage for Nordea. (Fujisawa et al 2002). Due to their success in e-business, through creating new aspects such as “e-trust” and “e-habit” have proven to have a strong online economy in their homes. From achieving 84% of their students applying online for their student loans, to 78 year-olds doing their banking online, Nordea’s goal to interconnect their customers by integrating the different banking channels or e-banking, mobile e-banking etc. has proven to be successful. (Jelassi & Enders, 2008). Nordea’s home economy situation matches the path that they want to take, to accomplish the e-business world. Nordea are a great example of an e-business company that has shown its ability to operate profitable. They have at least 3.2 million e-banking online customers and 950,000 corporate customers (Jelassi & Enders, 2008). This is then accompanies by 35,000 employees and 1260 branches. With this economic environment rising, it allowed Bo Harald (Head of Internet Services) to put as much business up on the web so they could ‘reduce costs and free up branch employees to focus on selling complex, higher-margin financial products.’ Daniels, C.N (1994) points out that e-business is possibility one of the most successful moves a business can do. However, Nordea in the last two years they haven't been performing s well as they expected. ‘Harald believes that another important factor is that investors do not value e-banking activates appropriately at the moment’ (Jelassi &...
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