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The UAE Exchange is a money transfer organisation based in UAE with its branches in many parts of the world including London. The present PESTEL analysis is carried out on the UAE Exchange in London as following: Political: As money transfer is the business conducted by the organisation, the political scenario; both at the national and international level affect the business very much. The change in the government in UK after the general elections had created fluctuations in the money market in UK and hence the business was at stake in such times. Internationally, the new US Presidential election also affected the GBP Dollar exchange rate and it badly affects the money transfer business. As the most busiest branch of the organisation in UK , East ham (where Asians are crowded, especially, the SriLankans ) experienced a dull business due to the civil strife in Srilanka as people were not willing to send money to Sri Lanka due to the political turmoil. The recent decisions of the UK government in the money transfer rate and financial regulations also affected the business badly. Economic: The economic situation in UK and at the international level following the economic recession also had its negative impact in the organisations business. Since the money exchange value became low, the sending rate of money also negligibly became lower. Further, the recent UK government taxation policy also affected the money transfer rate. Social : The social factors in London also affects the business; where the Eastham is a place where the Asians are crowded and also most of the illegal immigrants who neither have a valid passport or bank account lives, their only option of sensing money to their home country is solely by depending organisations like UAE Exchange. As the GBP lost its exchange rate when compared to the currencies in Asian countries, the transfer rate declined very much. A slight increase in the exchange rate, invites a huge crowd of money senders.

Technological: The technological factor such a s the electronic money sending system , credit card transaction guarantee etc. improved the performance of UAE exchange.

Environmental: The environmental factors like the biggest snowfall in UK especially in London in the month of February 2009 badly affected the money sending rate.

Legal: The recent laws passed by the UK government in the financial sector, and also in the immigration field , invited a less response to the business . Due to the tougher immigration control, the money sending rate decreased very much as most of the customers are immigrants.

The above PESTEL analysis of UAE Exchange, encompasses the external environment of the organisation; the factors that influence its functioning.


Existing competitive rivalry among suppliers: As far as this organisation is concerned there is not much strong rivalries in the field in London despite a few small level money exchange organisations in doing business in the Asian sector. Threat of new market entrants : The organisation presently do not have to face any such threats as it has almost a monopoly in the Asian sector money sending business in London. Bargaining power of buyers: The bargaining power of the buyers has huge impact in the business of UAE Exchange as the customers can withhold or even cancel the transaction in a period of monetary fluctuations. Power of suppliers : The power of suppliers is less when compared to the power of buyers in the money transfer business as the money sending business depends largely on the exchange value of the local currency and the US Dollar. Threat of substitute products: As far as UAE Exchange is concerned, there cannot be a substitute for its product; money in the form of currency and its other electronic forms.

INTERNAL ANALYSIS OF THE FUNCTIONIN GOF UAE EXCHANGE ----SWOT MODEL: STRENGTHS: The main strength of UAE exchange is that it is backed by the famous NNC Group based in the Middle East and in London it has no strong rivalries in the Asian sector. It almost enjoys a monopoly in the Asian money transfer sector. WEAKNESSES: The major weakness of the UAE Exchange is its business nature which largely depends on the global money market where there is great fluctuation in the

Dollar GBP exchange rate and bullion value. Another major disadvantage is that only the money sending business is dormant in London UAE exchange; not the money receiving rate. Nextly, the uncertainty in the money market makes the customers unaware of the current exchange value rate and many customers are unable to make use of the opportunity of good bargaining. OPPORTUNITIES: The currency exchange level remains the same or become less fluctuating, there is always room for further increasing g in the business. The making use of good customer relations and providing sufficient information for the customers in the local area would certainly improve the business. Also there is least threat from the local money exchange agencies in the Asian sector in London. A good collaboration with London based South Asian business people could be a boost to the company. THREATS: The present economic recession, the inactivity of UK government, the present Dollar - GBP exchange rate, low bullion rates and the growing Asian economies are a threat to the business of the organisation apart from the regularisation of financial services in UK by the government. Another potential threat is from the UK banks that started to provide attractive international financial services abroad.