Envionmental Analysis

Environmental Analysis Paper Individual Assignment #2

University of Phoenix

January 24, 2011

Environmental scan analysis and evaluates the internal conditions and external facts and factors that shape the organization. Environmental scan also helps to spot the internal and external strengths, weaknesses, opportunities, and threats (SWOT) that will influence the short term and long-term goals of the organization (C4K, 2011). This paper will provide an environment scan and economic analysis of SunTrust and provide a brief description of non-economic factors in SunTrust remote environment and provide a SWOT analysis of the critical part in the organization.

The industry that SunTrust operates is the banking industry. Regulatory policy used to be the main force behind changes and strong competition in the banking industry, innovations in information and communication technology (ICT) is playing an important role. These changes help reduce cost of producing financial services and facilitate the efficient flow of information in market (Eika & Reistadbakk, 1998). SunTrust investments in people, technology and infrastructure resulted in the introduction of new tools and products, completion of teammate development programs, and streamlined business solutions for clients and teammates (Wells & Rogers, 2010). “SunTrust key competitors are Bank of America, JP Morgan Chase, Citibank, Wells Fargo, and U.S. Bank. SunTrust faces competition from large commercial banks, community banks, and also from non-banks such as credit unions, insurance companies, brokerage firms, and mortgage houses “(Call, 2006, p. 20).

Macroeconomic factors help firms to determine the current market conditions and how beneficial these factors will be for the success of their companies. Macroeconomic factors that affect the banking industry are employment rates, interest rates, and income level, and consumer confidence. SunTrust has several macroeconomic factors that will affect its...