Internal Environment of the Paragon Banking Group

Consultancy Name: Instructor: Course: Institution: Date: Introduction The Paragon Banking Group is among the largest mortgage and personal loans providers in the United Kingdom. As a mortgage lender, the company mainly focuses on large landlords who have vast tracts of land, and primarily rent their properties to students. When it comes to offering loans, the organization provides loans on behalf of the third parties. Adding on to the list of achievements, the Company is a component of the FTSE 250 Index and is also listed on the London Stock Exchange. The company was started in 1995, under the name, National Home Loans Corporation. After two years, the company changed the name to Paragon Group of Companies. The Paragon Bank, which provides services such as lending and saving account through the internet, was launched in 2014. Three years later, in 2017, the company changed its name again to Paragon Banking Group PLC. This change aimed to indulge fully into the banking business so that they can offer specialist lending services, which are not provided by the other mainstream banks. The essay discusses the company's strategic position, a set of recommendations to address the issues identified in the Paragon Banking Group and an evidence-informed implementation strategy. Internal Environment of the Paragon Banking Group Most of the lending functions of the bank supplement the other businesses. For instance, in cases where the company wants to develop properties, some of the involved parties may be their customers. As a result, both parties have a lot to gain from the business. There is potential for fast growth, which serves as an added advantage to the industry. The company has employees who help take the company to the next level. For example, there is the Learning and Developing Team in the Human Resource sector. This team is charged with the responsibility of making sure that all the team members and workers in the company are qualified to perform their specific tasks in a professional way (Worldwide 2014, p 1). New workers in the company are taken under the wing of the operational training team, which coaches and trains them on their respective roles in the organization. This is aimed at making sure all the workers feel comfortable and get used to the new working environment. It is common for people to feel pressured when working in such a big company. On the other hand, there is a management developing team in place that is in charge of the management population. This means that the team is supposed to make sure that the managers are guided so that they can work effectively. All these teams show how the company has braced itself to face any trouble that may arise in the organization. For example, most new workers in a company do not know what to do during their first week. As a result, many of them end up messing things and the schedules in the company. The Paragon Banking Group is, however, not ready to deal with all the problems. This is because it could affect the company in different ways. There is a team responsible for making sure the managers perform their functions well. A common occurrence in most companies is that most people tend to feel powerful when they are in high positions. This may jeopardize the operations of the business at the end. The Paragon Banking Group has braced itself for any problem that comes its way. In 2008, there was an economic crisis that led to the suffering of many financial sectors. Most of the businesses collapsed, but the organization was left standing. This is because they adopted securitization, to keep funding the people. Securitization is creating and ensuring tradable securities that can be supported by the assets or any other source of revenue generating income (Bhuiya, Ahmed and Haque 2015, p 1). The bank also put all their assets together and changed them into securities. This way, the funding process of the bank continued, even when most of the other banks were on a standstill. When coming up with a company, it is essential to make sure that all the factors are put into consideration. A business is supposed to be strong enough to weather any storm that comes along. The Paragon Banking Group is one of the most successful money lending companies in the United Kingdom. There is a decision-making team set in place that evaluates all the possible risks and advantages, before offering new products to the market. The definition of the term risk, it means a potential aim of attempting an act, for example, a business-related action where one could either win or lose their valuables. One could either lose or gain his or her social status, belongings, money, or emotional welfare. From the above definition, one could refer to risk as an act with uncertain and unpredictable results that could be either negative or positive. However, many undertakings for example in business undertakings or carrying out of projects, one could carry out an analysis to ensure that chances of gaining are higher than losing — besides, many personnel who perform activities that seem to have risk have a process of risk management. External Environment The external factors affecting the business are uncontrollable. Some of these aspects include the political, environmental, social and economic factors, among others. The political environment is unpredictable and can end up causing multiple problems to the business. The Paragon Banking Group has been in existence for a long time. The company operates in various companies around the world. The company can analyze political problems such as the risk of military invasion and the level of corruption in such countries. On corruption, the company can look into the regulations in the financial sector (Pirson 2014, p 1). Property protection varies with the different states in the world. On the economic factors, the company should assess how macro environment factors such as the savings and inflation rate determine the economy. In doing so, the company will know whether to outsource in the country or not. If these factors are not considered, it is possible for the business to fail, causing loses in the business. The economic indicators serve as a heads up to companies that want to invest in a particular country. It is always a wise strategy to invest in other areas. However, one should make sure that the decision to invest will not be the cause of failure in the business. The external factors of the environment cannot be controlled. However, it would be effective if the company came up with strategies to regulate the effects caused by the external environment. For example, the economics of a country cannot be predicted. That is why companies have to put regulations in place to deal with any problems that might face the company. That is what business is all about. The utmost quality of an entrepreneur is a person who is ready for anything in the business setup. It is difficult to predict how the business will be in the near future. Implementing strategies that cover the business for several years is a wide strategy for all the business owners. Risk Assessment The primary reason as to why people carry out risk management is that they aim to reduce chances of uncertainty in their undertakings and they are almost sure of the results before embarking on their activities. Both big and small projects integrate aspects of proper management, where the business majorly aims at reducing losses and increase profits, which is a chief concern for most companies and institutions. Some of the small project owners suffer losses in their undertakings. Scholars argue out that people who own small businesses tend to have less concern about the risk, as they seem to underestimate threats, improbabilities, and risks involved in the business undertakings. Project owners in a global context appear to give more attention to large projects, where they carry out proper risk management on the project. Conversely, small business owners tend to underestimate small project, as there is minimal risk involved. One achieves successful risk management through formulation and proper execution of risk management plans. The Paragon Banking Group has adopted strategies to ensure that the company does not suffer in case there is an undertaking of any risks in the company. These strategies serve the company despite the nature of the project. Despite the phenomenon of most business owners in small project omitting the risk management procedure and going straight to their project operations, skipping the process imposes creates an environment favorable for risk to shut down the project’s activities. Risks mostly include threats and opportunities from operations of both small and big projects. In the management techniques, one has to evaluate any assumptions and speculations about the business operations, prioritize factors and aspects that are positive to the business operations, and contemplate about issues that may affect the business both negatively and positively. Besides, one needs to create both positive and negative potential results in business operations. The risk theories are an important factor to consider in risk management procedures. One of the risk theories is cultural theory. The theory explains the societal perspective about risk, where the most societies have a culture that tends to make them believe that risk is something that is economically related and its influences revolve in the business and economic world. To some extent, this is true because most projects operate in a business manner with an aim objective to realize a profit at the end of the business operation (Derbali and Hallara 2016, p 116). However, scholars through most of their research and literature work have proved that risk is inevitable and unavoidable in most of the daily human activities. Another critical theory is the agency theory, which analyzes firms in a manner that proprietorship aspects are independent of full control of the business operations and managerial functions of firms and projects. The theory explains as to why most businesses have personnel who help in most of the function such as management and risk evaluation. For instance, in the Paragon Banking Group, there is a te...