The external environment can be analyzed by using various tools like that of PEST analysis. The PEST analysis stands for Political factors, Economical factors, Social factors and Technological factors. The analysis of Capital One can be undermined as below:
Political factors – The markets in which the company was operational did not have much political disturbances and therefore it could be said that the company experienced conducive political factors for its new strategy on acquisition.
Economic factors – This was undoubtedly the most vital aspect for a company operating in the domain of financial services and products. The economic slowdown and the global meltdown really hampered the growth of the company. The financial performance of the company worsened on year – to – year basis even after following the strategy at an aggressive way. The faith of the general public upon the financial system was disturbed as one after the other too – big – to – fail companies became bankrupt.
Social – Capital One had considerable social acceptance and that proved beneficial for the company to continue the business even in the trying times of financial slowdown. The company had taken number of efforts and initiatives that contributed towards the community development and corporate social responsibility and those have paved ways for the sustainable growth of the company.
Technological factors – The company has been observed to be technologically sound and it was found that that Capital One offered best of the attributes based on the technological developments. It could be said that the research and development in the technological segment paid well as the environment is continuously changing.
In spite of having an aggressive policy based upon acquisition, it could be said that Capital One Financial Corporation did not had a great year. Though the reasons were primarily external, like that of the global meltdown and economic slowdown, yet