Pest Ananlysis of Non Babking Sector
PEST ANALYSIS OF EXPRESS SAVINGS AND LOANS COMPANY LIMITED AND FACTORS THAT WILL ENHANCE GROWTH OF THE COMPANY.
INTRODUCTION
Enterpreneureural ambitions are easily killed when a business idea is implemented without considering factors that can militate against growth. Most companies fold up before their fifth birthday. These companies with great potential should have grown if certain technical indicators were assessed and the right panacea given.
PEST analysis is the analysis of the external macro-environmental factors that affect all businesses. Such factors are usually beyond the firms control and sometimes present themselves as threat. It is an acronym for Political, environmental, social and technological.
However, changes in such factor also present new opportunities. Many of these factors are industry specific and there is the need to perform the analysis on various industries to obtain an accurate picture.
This analysis is conducted using Express savings as a case study. ESLC is a non banking financial institution offering micro-financial services to SMEs.
POLITICAL ANALYSIS
As a savings and loans Company, government through the Bank of Ghana, regulates its activities. The following are some of the political factors that could cause the company’s actual result to differ materially from its expected result.
Change in laws and regulations. This includes changes in the reserve requirements of the banks, taxation requirement. There are potential fines imposed on financial institutions who are not able to meet the bank of Ghana reserve requirement. Suctions include force closure, etc.
Changes in the non-banking business environment including, pricing pressure from the review of the treasury bill rates. This directly or indirectly puts pressure on the company to review it lending rates as well. Bank of Ghana also reviews lending rates of financial institution every quarterly. As the company has not reduced its rates after the Monetary
INTRODUCTION
Enterpreneureural ambitions are easily killed when a business idea is implemented without considering factors that can militate against growth. Most companies fold up before their fifth birthday. These companies with great potential should have grown if certain technical indicators were assessed and the right panacea given.
PEST analysis is the analysis of the external macro-environmental factors that affect all businesses. Such factors are usually beyond the firms control and sometimes present themselves as threat. It is an acronym for Political, environmental, social and technological.
However, changes in such factor also present new opportunities. Many of these factors are industry specific and there is the need to perform the analysis on various industries to obtain an accurate picture.
This analysis is conducted using Express savings as a case study. ESLC is a non banking financial institution offering micro-financial services to SMEs.
POLITICAL ANALYSIS
As a savings and loans Company, government through the Bank of Ghana, regulates its activities. The following are some of the political factors that could cause the company’s actual result to differ materially from its expected result.
Change in laws and regulations. This includes changes in the reserve requirements of the banks, taxation requirement. There are potential fines imposed on financial institutions who are not able to meet the bank of Ghana reserve requirement. Suctions include force closure, etc.
Changes in the non-banking business environment including, pricing pressure from the review of the treasury bill rates. This directly or indirectly puts pressure on the company to review it lending rates as well. Bank of Ghana also reviews lending rates of financial institution every quarterly. As the company has not reduced its rates after the Monetary