Page 20 - Barclays Bank (B) Teaching Note

PEST

PEST (PESTEL) is a diagnostic tool used in strategy to

analyse the macro environmens and identify how future

trends in the political, economic, social, technological,

environmental and legal environments might impact

individual organisations within an industry.

Organisations study the key drivers of change behind the

PESTEL factors. These key drivers of change constitute

opportunities and threats in a firm’s external

environment and industry which can be overcome by

focusing on strengths and eliminating weaknesses.

For “its part, Barclays continues to develop new

technology and invest in digital and mobile

capabilities to improve and differentiate their
offering. Barclays is in fact one of a few banks that

has started processing transactions based on

Blockchain technology when together with

innovative start-up company Wave became the first

to execute a global trade transaction using

blockchain technology. The new blockchain based

system developed by Wave, uses distributed ledger

technology to ensure that trading parties can see,

transfer title and transmit shipping documents and

other original trade documentation through a secure

decentralised network. The new system could

therefore speed up trade transactions, reduce costs

for companies around the world and reduce the risk

of documentary fraud” (Annual Report 2016).