PEST-analysis

Outlook environment is the basis for the development of alternative development scenarios for the future of the bank, taking into account its potential chances and risks. Such forecasts may be qualitative and quantitative interpretation. The qualitative form of the forecast impact of external factors more reasonable to assess the political, social and technological factors, in part, and quantitative - economic. The results of PEST-analysis are used in forecasting the bank's positions in the market and making managerial decisions regarding strategic directions of its development. In the case of forecasting negative scenarios are the bank must develop a plan for responding to acts of God, which is a component of a business plan. For practical use of PEST-analysis of Ukrainian banks is expedient to create a centralized database to make information about changing the environment, to develop a standard collection of information (according to the scheme: the list of external factors influence the activity of the bank, the source of the media - radio, television, print media, the statement bank managers at conferences, symposia, seminars, hearings, statements of the bank and other sources, a responsible person who has made the information into a centralized database, comments, date of entry of information) provide the responsible division for tracking and processing information and identifying the most significant factors influencing the work of the bank. SWOT-analysis - an analysis of the strengths (S) and weaknesses (W) side of the bank, as well as opportunities (O) and threats (T) from the external environment. Conducting the SWOT-analysis is preceded by the development strategy of the bank. The main efforts of the Bank in the implementation of the strategy should be focused on overcoming weaknesses, achieving benefits through more effective management. Strengths and weaknesses of the bank's activities are compared on the following parameters: the level of capitalization, the effectiveness of marketing policy, the quality of its customer base, staff qualifications, level of operating and non-operating expenses, the profitability of capital and assets, etc. Topic: Analysis of controlling