SANTANDER

Global Business Strategy: The Santander Group



Global Business Strategy: The Santander Group

Introduction

Aims

The aim of the report is to assess the opportunities and issues of expanding the business internationally. In order to achieve this, company and industry will be evaluated to understand the internal and external environment in the industry, as well as, the internal strengths and weaknesses of the company (Verbeke 2009, pp.81).

Issues

Economic Slowdown

One of the major factors which affect the financial institutions is the economic environment of the country. For instance, the recent economic slowdown had negatively affected many financial institutions around the world.

Legal Environment

Another factor that creates problems for international expansion of financial firms is the different regulatory environment in different countries (Meiners et.al 2008, pp.76).

Research Methods

This research will be based on descriptive approach. The descriptive research approach addresses the questions: what, who, where, when and how (Creswell 2007, pp.2). Moreover, this method has been employed when a large amount of data and information is already available on the subject (Mills & Airasian, 2009). The research method, which will be applied in this study, is the secondary research involving the undertaking of study on a qualitative basis. Qualitative research, also known as qualitative inquiry, is an umbrella term used to cover a wide variety of research methods and methodologies that provide holistic, in-depth accounts of the interpretive nature of the business world (Anfara & Mertz 2006, pp.1). Due to its qualitative nature, collection of data involves the use of literature reviews. Some of the examples of databases to be used include Google Scholar, ProQuest Central, Sage Online Reference, and other relevant, such santander.com.

Major Findings

The financial results for the Continental Euro zone, as well as, the UK was negatively affecting in the second quarter of 2011. These results are highlighted in the annual report of the company. New regulations also bounded the ability of the company to earn greater profits in new markets (John & Gillies 1996, pp.22).

Conclusion

Despite the challenges due to slow economic recovery, the group managed generation of solid basic revenues as the driver of profit, as well as, good capital and liquidity position. High revenues and strong liquidity position will assist the group in international expansion.

Company Background

A Brief Overview of the Company

The Santander group is one the largest banking group in the world providing retail and wholesale banking products and services, as well as, insurance and asset management services. The group principally operates in Latin America, the UK, Spain and other European countries. The headquarters of the group is located in Madrid, Spain, and there are around 175,000 employed at separate business units. The group recorded revenues of USD 55,727.5 million in the financial year (FY) ended December 2010, an increase of 6.8% over FY2009. The net profit was USD 10,842.3 million in FY2010, a decrease of 8.5% over FY2009 (Datamonitor 2011, pp.4).

History

Santander Group was established as Santander Group, in 1857, to support trade between the port of Santander in the North ...