Explain in detail the company’s internal environment integration with the external environment

(PESTEL, Political, Economic, Social, Technological, Environmental, Legal)

Scotiabank is one of the leading banks in the Americas and operates in over 13 countries. Thus, it
must consider how it integrates with its external environments, ensuring smooth and uninterrupted
operation and giving it an edge over its competition.

Following the PESTLE analysis, we shall reveal how well Scotiabank understands its external factors
(focusing on Canada) and adapts to them to promote smooth and uninterrupted operations:

 Political:

Scotiabank prioritizes smooth functioning and ensures that its customers have access to its services
despite how the political landscape might change, thus it follows the topmost principle of adhering
to the laws/politics of the province it operates in, whilst trying to maintain standardization of
operations.

- Political Stability: Scotiabank evaluates the political stability of the countries where it does business,
as stable political environments mitigate risks.

- Level of Corruption: Monitors corruption levels, especially in financial regulation, to ensure ethical
practices.

- Government Interference: Analyses government interference in the banking sector and seeks to
maintain autonomy.

- Legal Framework: Ensures contracts are enforceable and abide by host country legal systems.

- Trade Regulations: Navigate trade regulations and tariffs related to finance, seeking favorable terms.

- Anti-trust Laws: Complies with anti-trust laws to prevent monopolistic behavior.

- Pricing Regulations: Adheres to pricing regulations imposed by governments.

- Taxation: Manages tax rates and incentives to optimize financial performance.

- Workforce Regulations: Adheres to labour laws, minimum wage, and employee benefits.

- Industrial Safety: Complies with safety regulations in the financial sector.

- Product Labelling: Meets product labeling requirements in the banking industry.

  Economic:

Wherever it works, Scotiabank is essential to enabling healthy economies. It offers nearly 90,000
people across its footprint the skills, opportunities, and training they need to develop to the best
extent possible. They put a lot of effort into giving their diversified clientele financial resources so
they can take part in and prosper in the formal economy. Their ESG department seeks to make
investments in the resiliency of local economies where they reside and operate. Because they think
that thriving communities are more likely to produce successful people, families, and enterprises,
including their own.

- Economic System: Understands the type and stability of economic systems in host countries.

- Government Intervention: Navigates government interventions in financial markets.

- Exchange Rates: Monitors exchange rates and currency stability.

- Financial Market Efficiency: Determines if local markets are suitable for capital raising.

- Infrastructure Quality: Considers the infrastructure quality in the banking sector.

- Comparative Advantages: Evaluate host countries' advantages and those of the financial sector.

- Workforce Skills: Assesses the skill level of the banking industry's workforce.

- Education Levels: Considers the education standards in the economy.

- Economic Growth: Factors in the growth rate and economic cycle.

- Discretionary Income: Analyses consumers' disposable income.

- Unemployment and Inflation: Monitors rates and adjusts strategies accordingly.

- Interest Rates: Responds to fluctuations in interest rates.

 Social:

Since Scotiabank operates in a multitude of countries and is headquartered in Canada which is one of
the most diverse countries in the world, they have a strong belief and focus towards creating an
inclusive and diverse work culture, combating racism and any intercultural barriers, increasing access
to opportunities.

- Demographics: Studies population demographics and skill levels.

- Social Hierarchy: Understands social structures and power dynamics.

- Education Standards: Considers education levels and standards relevant to banking.

- Culture: Adapts marketing messages to cultural norms and gender roles.

- Entrepreneurship: Considers the society's attitude towards entrepreneurship.

- Attitudes: Responds to societal attitudes, including those related to health and the environment.

- Leisure Interests: Factors in leisure interests when designing banking services.

  Technological:

Scotiabank Bank has received multiple awards for deploying up-to-date technologies to ensure a high
level of security is maintained for its customers and their accounts. In 2021 they received risk. Net’s
Technology Innovation of the Year award was recognized for its delivery of the Bank’s new risk engine
in Global Banking and markets, a system built for valuation adjustment (XVA) calculations that has
resulted in both speed and accuracy improvements for the Bank’s clients.

- Competitor Technology: Tracks technological advancements made by competitors.

- Product Impact: Evaluates how technology impacts banking product offerings.

- Cost Structure: Considers how technology affects cost structures in banking.

- Value Chain: Understands the impact on the financial sector's value chain.

- Rate of Technological Change: Adapts to the speed of technological disruption.

 Environmental:

Scotiabank is aware of its responsibility to the environment and feels that immediate environmental
action is required to save the planet's future. As a major financial organization, they think that
sustained environmental protection and long-term economic growth are mutually exclusive. By
lowering our environmental impact, funding sustainable solutions, exchanging knowledge, and
advancing the global dialogue on climate change, they show our commitment to sustainable
development and the shift to a low-carbon economy.

- Environmental Regulations: Compliance with laws related to pollution and waste management.

- Recycling: Incorporates recycling practices into operations.

- Support for Renewable Energy: Responds to attitudes and incentives related to renewable energy.

 Legal:

The Scotiabank is dedicated, in line with legal and regulatory duties, to providing prompt,
accurate and balanced disclosure and fair and fair access to all relevant information
relating to this Bank.

- Anti-trust and Discrimination: Ensures compliance with anti-trust and discrimination laws.

- Intellectual Property: Protects intellectual property rights.

- Consumer Protection: Adheres to consumer protection and e-commerce laws.

- Employment and Safety: Complies with employment and safety regulations.

- Data Protection: Safeguards customer data and privacy.