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Environmental Analysis: The Banking Industry
Banks have existed longer than money has. It evolved from a community making deposits which consisted of grain and later other goods including cattle, agricultural implements, and eventually precious metals such as gold, in the form of easy-to-carry compressed plates to a global phenomenon. (Wikepedia.com) The banking industry now has evolved to do so much more than what it originated from, it now plays a crucial role in the ecnonomy. Banks in reality do not create new wealth , but the stability of the banking industry is very closely linked to the existence of a healthy economy. I am employed at Comerica Incorporated which is one of the many banking instiutions in the banking industry, it is the responsibility of each employee to understand the economic impact that daily banking transactions and managerial decisions have on the economy as a whole.
Comerica Incorporated is a financial services company that started out in Michigan in 1849 as the Detroit Savings Fund Institute. They are now headquartered in Dallas. Comerica’s focus is separated into three business segments, The Business Bank, The Retail Bank, and Wealth and Institutional Management. The purpose of this paper is to identify the key macroeconomics variables that affect the banking industry and to address based on the environmental scan the challenges and opportunities that exist for Comerica within their operating environment.
All industries in our economy are impacted by macroeconomic variables. There are four economic variables that will be discussed in regards to impact in the banking industry. The four variables are Gross Domestic Product (GDP), unemployment, interest rates and inflation. There are also three components within the organizations external environment. The four variables affect these three components in different ways. The three components within the organizations external environment are the remote environment or...