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Business strategy of barclays

Executive Summary

Business firms often compete with each other to gain their customer's attention and business. While doing so, each firm tries to chalk out its unique strategy or game plan based on its own internal strengths and weaknesses in terms of which products or services to pursue, which investment to make, which human resource policy to implement and which organizational structure to adopt. As the environment changes, companies may change their vision and objectives, structure, portfolio of business, markets and competitive strategies. Vision, Mission, Goals and objectives are the starting points of strategy formulation. In this project we are going to study the various aspects of Barclays in terms of strategy. The project highlights on Barclays Vision, missions, objectives and stakeholders. It helps us to know the Barclays PESTEL and Porters 5 forces. The writer also highlights on various strategies adopted by the organization. 

1. Outline your understanding of the organisation's missions, visions, strategic intent, objectives, and stakeholder analysis.

Introduction to Barclays

The essence of strategy lies in striking a harmonious balance between a firm; distinctive skills and capabilities and the external environment in which it operates. (Bhat Govind K, Strategic Management)

According to Schellen Berger and Boseman Strategic management is a continuous process of effectively relating the organization's objectives and resources to the opportunities in the environment.

F.R. David defines strategic management as process of formulating, implementing and evaluating cross functional decisions that enables an organization to achieve its objectives. (David Fred,2008)

Thus strategic management is stream of decisions and actions which lead to the development of effective strategy or strategies to help achieve corporate objectives. The strategic management process is the way in which strategies determine objectives and make strategic decisions.

B arclays Bank

Barclays Bank is one of the leading providers of financial services and is involved in retail as well as commercial banking, investment banking, credit cards, investment management and wealth management services. It is spread in many countries in the world and has a strong presence in USA, Europe, Asia and Africa. The company is headquartered in London, England, UK. The mission of the Barclays Bank is to make available products as well as services to help the customers to achieve their financial goals that would in turn lead to economic growth.

The history of Barclays Bank goes back to 1690 when John Freame and Thomas Gould started doing business as Goldsmith bankers at Lombard Street in London. In 1736 the company acquired the name "Barclays" at the time when James Barclay joined the business. In 1896 a number of banks including Gurney's Bank of Norwich and Backhouse's Bank of Darlington came together as Barclays and Co, a joint stock organization. This bank operated through 182 branches and was often jointly known as the Quaker bank.

In the early 20th century the company acquired more such banks including United Counties Bank, Bolithos Bank, and London, Provincial and South Western Bank. In 1965 the US affiliate of the bank, Barclays Bank of California was founded in San Francisco. It was in 1985 that Barclays UK and International was brought together to found Barclays PLC. The very next year the company became the first UK bank that was listed in the New York as well as Tokyo stock exchanges. In 2000 Barclays Bank took over one of the leading mortgage banks, Woolwich. In the next year it formed a partnership with Legal & General to bring to its customers investments and pension products. In 2003 Barclays Bank acquired Banco Zaragozano, one of the major banking groups in Spain.

In 2005 Barclays Bank acquired a major share in the leading retail bank Absa Group Ltd. The 2006 year is one of the most important years in the company's history when 50 percent of the profits of the company have been made from businesses in countries other than the UK. Barclays Bank is the first bank in UK that introduced personal bankers in the branches in UK. In 2008 the company bought Gold fish, the reputed credit card company at $70 million. In the same year Barclays Bank had also bought a share in one of the major Russian retail banks, Expobank at $745 million.

Barclays Bank aims to be one of the best universal banks that would be a leader in the financial services sector of the world. The company follows the strategy of anticipating the needs of the clients and the customers and serves them by offering a whole rage of services. (Barclays.com)

1.1 Mission and Vision of Barclays

The mission is an enduring statement of purpose that distinguishes one business from other similar firm. It identifies the scope of its operations in product and market terms. It implies the image the firm seeks to project and reflects the values and priorities of the firm's strategic decision-makers.

A good mission statement describes an organization's purpose, customers, products or services, markets, philosophy and sense of technology. A mission statement should i) define what the organization is and what the organization aspires to be ii) be limited enough to exclude some venture and broad enough to allow for creative growth iii) distinguish a given organization from all others iv) serve as a framework for evaluating both current and perspective activities and v) be stated in terms sufficiently clear to be widely understood without the organization.

(Rao Subbha, 2005)

Mission of Barclays

The Barclays mission is to be an innovative, customer-focused group that delivers super products and services, ensures excellent careers for their people and contributes positively to the communities in which they live and work.

In order to attain this mission Barclays concentrate on following aspects

Vision

It is important for managers and executives in any organization to agree upon the basic vision that the firm strives to achieve in the long term. A vision statement should answer the basic question, “What do we want to become?” A clear vision provides the foundation for developing a comprehensive mission statement. Many organizations have both vision and mission statement, but the vision statement should be establishes first and foremost. The corporate vision has the potential power to focus the collective energy of insiders and to give outsiders better idea of what organization really is. (Rao V.S.P., Hari Krishna V, 2008)

Vision of Barclays

Barclays are committed to building a world-class organization. They aspire to be amongst the most valuable and admired financial services companies in the world:

In short, a company that becomes a benchmark for all others.
In pursuit of these goals Barclays are now more than ever depending on the contribution of our supply partners to deliver high performance that directly and positively impacts on the service they give to their customers and the creation of value for their shareholders.  Barclays is committed to leading the development of professional sourcing and supplier management and maximizing the value derived from the relationships they have with their supply partners. This is key in establishing high and continuously improving standards of practice and behavior across both the Barclays Group and their supply partners. Barclays will increasingly be working with a smaller number of trusted supply partners for the majority of our key requirements. In return for this commitment we will require higher levels of performance, openness and collaboration than have been required in the past.

In return for a commitment to these high standards, Barclays will commit to long term, mutually beneficial relationships aimed at creating shareholder value for both organizations. This site details the essential principles, values and processes that will form the foundation and provide for the success of Barclays future supplier relationships.

1.2 Barclays Strategic I ntent

“ Strategic intent” is the leveraging of a firm's internal resources, capabilities and core competence to accomplish the firm's vision, mission and objectives in a competitive environment. When established effectively, a strategic intent can cause people to turn our excellent performance. The intent can take the form of a broad vision or mission statement or a more focused route covering specific objectives and goals.

Hierarchy of strategic intent includes the following elements:

Barclays, in terms of reaching goals and objectives can look at its market. As was mentioned the company does little of everything to accommodate almost each individuals needs. By focusing on specific needs of the market, Barclays gain more information, try as much as possible to provide for these needs. It is seen that Barclays has segmented its market, one good strategy used, in order to provide for its specific needs i.e. young, old, rich, poor etc.

Barclays growth and expansion was an attempt to better and maybe even gain more business operations. Eg. The company's takeover of Woolwich in 2000, this was an attempt to better its, mortgage banking since Woolwich was and still is known as UKs leading mortgage bank. Some of Barclay's business which went international was Barclays Global Investors and its investment banking operations which started 1986. 

1.3 Objectives of Barclays

Objectives form the basis for the functioning of organization. Objectives help to define the organization in its environment. Most organization need to justify their existence, to legitimate themselves in the eyes of the government, customers and society at large. In other words, objectives may be defined as the long term results that an organization seeks to achieve in pursuing its basic mission.

Objectives may be tangible or intangible. Tangible objectives include achievement of materially quantifiable targets or goals. Intangible objectives include factors like brand or company image, employee morale etc.

Objectives of Barclays

1.4 Stake holders of Barclays

Stakeholder analysis is important for the development of knowledge and understanding about other organization in the firm's environment. The first step is to list all stakeholders, and then position them on a stakeholder map. This indicates the main relationships and pattern of interdependence between stakeholders.

Such maps not only directly related stakeholders, but also include all those that are indirectly assist the business in achieving its objectives. The likely effect that any proposed strategy will have on these various groups (that is, support or resistance) can then be assessed.

1.2 Barclays Stakeholders engagement

Barclays recognize the legitimate interest of their stakeholders when seeking to challenge and influence business decisions. Exploring viable solutions to individual and collective employee related issues. Stakeholders try to maintain confidentiality when requested by Barclays. Barclay's responsibility is the first to communicate with its employees about issues affecting them when these are not in public domain. To provide proper service to their stakeholders Barclays had formed various committees to look after the internal and external stakeholders.

Barclay's compliance team works with internal and external stakeholders to advice on litigation affecting the global group's activities and assets. The corporate development team plays a huge part in supporting Barclays plans for global growth, advising on mergers and acquisitions, strategic alliances and joint ventures. The corporate affairs team protects Barclays trusted reputation, ensuring both international audiences and internal colleagues are kept informed of the Group's news and objectives. From mitigating the environmental impact of Barclays building to ensuring the company complies with property governance, Barclays property team manages the groups premises. Barclays Corporate Secretarial services to the board of directors and is based at the global headquarters in London. Responsible for financial reporting and forecasting, the finance team monitors Barclays budgets, ensuring stakeholders within the business have accurate information.

Barclays believe in demonstrating professional management and leadership and cultivating a culture of good corporate governance. It Values the diversity of all employees and help them to fulfill their potential. Barclays recognize and differentiate reward in line with performance and deal with underperformance in a fair manner.

Thus it supports the principle of continuous improvement in handling the interest of its members. They provide constructive feedback on performance systems and ideas for improvement of the Barclays' value chain.  

(BPP learning media, ‘Business strategy' pg.18)

Chapter 2

2. Conduct an environmental and organisational audit of the organisation making use of PESTEL, Porter's 5 forces; SWOT Analysis, Value Chain analysis etc. (use any 2 strategic audit models).

2. 1 PESTLE of Barclays

Organization does not exist in isolation; they depend on the environment in which they exist, from which they draw materials and customers, and to which they supply goods and service. Good knowledge of the external environment can help to improve planning. Analysis of the external environment and the trends which lead to change in it can identify threats and opportunities more quickly decrease the likelihood of major surprises and shorten the firm's reaction time to events. The external environment can be split into three elements, although these are often interrelated in practice.

The physical and social environment can be further divided into PESTLE factors

Political

Economic

Socio-cultural

* Technological

Environmental/Ecological

Legal

(Davis,K, 1995)

2.1 Various PESTLE factors

Barclays Bank identified the sustainability as a means of recognizing and managing the economic, social, and environmental issues across the Group, and at the same time, contributing to the wellness of the society. PEST analysis is created to identify the factors that might affect the sustainability of the organization.

2.1 .1 Political Analysis

The sustainability of Barclays' agenda has expanded rapidly. It reflects the company's increasing focus on the wider nature of business and made the stakeholders growing interests in competitive world of business. There is now a great awareness about the global challenges such as climate changes, poverty, scarcity of resources, and demographic shifting. The political factors which can affect Barclays is the fact that are wars within the country. The business operation that most likely get affected by this is its offshore banking. Within the world now, as it is now becoming a smaller place with almost one market with countries as buyers and sellers, there are many conflicting arising between and among nations. Eg.  New rift between USA and Venezuela, for oil no one knows what this may spark but as a global bank in these countries, Barclays can be affected. The Government for a particular country may raise taxis which will now affect the company profits. At the end of the Budget this year, in London tax has risen for almost everything. Increased taxes mean more money to pay to the government and less money for you as profits. Barclay's revenues and profits can suffer as a result of the extra tax it has to pay for just running its business

2. 1.2 Economic Analysis

The approach to the sustainability program is useful and encourages the company to be open and transparent to the issues such as the initiatives in further research and development, dialogue with the government and various organizations, and their priorities. The Economic factors which can affect Barclays is mainly the changes in currencies, not just the pound but also the US dollar etc. In order to be very effective, this company needs to be up to date as much as possible with the fluctuations of the currencies or the exchange rates as it is a bank and as it needs to be able to provide for its customers

2. 1. 3 The Social Analysis

The sustainability strategy focuses in their objective to improve the value of the business and their stakeholders. They give importance on the customers and clients such as maintaining the understanding of their needs and promoting the company by measuring satisfaction. It can be only possible by focusing of their global performance by their assurance to develop an innovative solution and enhancing performance. On the other hand, the people working under their organization make a great advantage in the performance of the business. In addition, they attract employees to collect the talent, develop them according to the competent world, and retaining them as much as possible. Every Season customers may require different things, whether it is money for a holiday, money for a house or they just want to save. These reflect the social factors, which affects Barclays business operations. Based on what customers prefer at a specific point in time is their, Barclays, duty to ensure that they provide for it. This company does this by having various promotions and special offers given to customers to make it easier for them. E.g. For a family looking to go on holiday in the summer; they can borrow money with little interest etc. This sort of offers attracts customers and so ensures the enhancement of Barclay's operation.

2. 1. 4 Technological Analysis

The Barclays uses the means of technology for their business especially in the areas of inclusive banking. Their aim to help the people in fight against poverty is possible through financial system. The technology makes it possible to empower the system and establish a competitive advantage. Pioneering the new ideas, adding the skills and operational excellence are the guiding principle of the organization. Using the latest gadgets within the company would usually mean they have time and energy to deal with issues, whether it is customer complaints or otherwise, effectively. More of these technology used means that Barclays is a growing company and it is up to date with what is going on; making things easier. The downfall to this, however, is the fact that it can be very costly to get it started. Firstly there has to be proper training for effective use and then there is the maintenance of it both of which can be a very risky endeavor.

2.2 Porter's 5 Forces

Barclays is attempting to expand their business and services and discover the potential and emerging markets. Through the investigation of the competition and entry in these markets, the sustainability of the bank can be identified. The Porter's analysis is used to measure the ability of the firm in performing in the foreign country.  

2.2 Five Porters Model

2.2.1 Entry Barriers

There is a high entry because of the emerging markets such as India and Africa that are actually highly regulated by the government and the central banks. A lot of control and decisions are operated in the banks of these countries that might regulate the interests on loans and deposits as well as controlling the money supply. The Barclays is not that popular in these countries because people are investing in governmental or public sector banks which is an advantage for Barclays to implement its strategy for the customers to have a quick and efficient service that can attract other potential clients.

2.2.2 Rivalry among the Existing Competitors

In the competition in the emerging markets, there is an indication of high rivalry because of the involvement of the public and microfinance institutions. It is therefore, difficult to compare Barclays because of the high regulations. Again, in the application of the strategies, the firm can acquire the major stakes in the market which gives them an easy entry and create a brand visibility.

2.2.3 Bargaining Power of Suppliers

There is a medium power among the suppliers of the bank who are definitely the people from whom the banks raise funds. The major source of funds of Barclays comes from the customers or depositors that are transformed to be their suppliers. In order to attract the larger funds, the private banks offer high interest rate which is important for the continuous sustainability of the bank. In addition, the Barclays Card is introduced to attract more clients and increase the volume of funds.

2.2.4 Bargaining Power of the Customers

There is a high power among the people in terms of utilizing the products such as their cards, loans and other services. The high power on the customers is gained because of the number of banks operating in the market that offer similar services. However, Barclays is in advantage because of the e-banking and the provided insurance services.

2.2.5 Threat from Substitutes

There are plenty of substitutes available in the market and it is said that there is a high threat coming from this group. Banks are offering the same services are aligned in the same agenda because of the similar services, although different in terms of interests and payments on credit. Therefore, Barclays is eyeing to compete from the unconventional companies which can give them the rate of return. In the emerging country, particularly in India, the customers are recognized to have a high propensity towards switching to other substitutes, especially in the case of private banking.

Conclusion

Barclays already experiencing the air of success and still aiming for more, this is possible through their ongoing view for sustainability. With the help of the traditional strategy, Barclays will set a leadership in standard model for the other firms.

Chapter 3

3. Based on the chosen organisation,  analyse business portfolio by using any 2 strategic models  e.g. .BCG Matrix,  Ansoff's matrix etc

3.1 BCG Matrix of Barclays

The Boston Consulting Group (BCG) model, popularly known as the BCG Matrix and Growth-Share Matrix is based on two variables, i.e. the rate of growth of the product-market and the market share held by the firm relatives to its competitors.

The market growth rate is an indicator of the attractiveness of the industry and the relative market share is an indicator of the strength of the firm in that industry relative to its competitors.

3.1 BCG Matrix

Barclays achieved what it has achieved so far by using various strategies. il. First of all, in order for this company to know what it is capable of in terms of the resources it has, and the count it generates, in other words, in order for them to know their position within the financial industry and their position in the market, Barclays has used the famous Boston Consultant Group (BCG) matrix analysis (Johnson et al, 2002). This tool of strategic analysis basically puts any company or organization within a specific industry in a position based on two dimensions of its market share, which is the amount or the share of customers that use their products or services; and its market growth, which means the growth of the industry the business is in or even the amount of money this business spends on gaining a place within the entire industry. There are four possible positions any company can be in within its industry. There is first of all, the question mark stage or the problem child stage. This stage basically depicts the introductory part of a company or organization and its products or services. At this stage, as one can imagine, the company is now trying to establish itself within the market, and as one can guess, will have little or no share in the market but very high costs of entering. These costs can be related to advertising and other promotions, which will allow people to become aware of its existence.

The second stage or the rising star stage is similar to growth within the industry. The company is now known by the customers so it will have a relatively high or large share of the market but will still have very high costs of growth at still because of advertisements, sales promotions, etc. At this stage, even though it is known, the company is still a way off from being in the ideal stage.

The ideal stage that is spoken of is known as the cash cow or the maturity stage. Within the industry, this company is as its peak where sales is very high due to its high market share and profits even higher because of low costs spent on the company, as basically the industry has gotten smaller; there is no more growth within that industry so money spent on attracting or wining over customers from their competitors is not really necessary.

The final stage of this analysis is called the dead dog, and as the name suggests, the company is dead. Low costs and industry growth as well as low market shares are characteristics of this stage. The company is now in decline and at this stage should think of various ways to revive its products or services.

Barclays financial services group had used this tool to figure out, based on its cash generations, market share and industry growth, what stage of the industry it is in. and based on whatever position, Barclays had come up with various strategies to ensure that it maintains a number one position within the entire market. At present, it can be said that this company is in its maturity stage of mainly because of its move to go international some years ago and the fact that the industry is not getting any bigger. Also, based on the expertise of the services provided by this company, it can be said that they are in the cash cow stage.

(Minzberg, Ahlstrand and Lampel (2005), Strategy Safari, )

3.2 Ansoff's Matrix analysis

The Ansoff Growth matrix is a tool that helps businesses decides their product and market growth strategy. Ansoff's product/market growth matrix helps to know the new existing products in new or existing markets.

3.2 Ansoff'sMatrix

The output from the Ansoff product/market matrix is a series of suggested growth strategies that set the direction for the business strategy. These are described below:

3.2.1 Market penetration

Market penetration is the name given to a growth strategy where the business focuses on selling existing products into existing markets. Market penetration seeks to achieve four main objectives:

The core competencies of Barclays include its personnel and corporate competency wherein the focus is on the company's relationship with its internal and external environment. These two competencies assist the company in its daily operations. It also provides the company the capability to create new trends in the market. The two competencies are given extra attention by the company since these two competencies can do various things for the company. In the instance of one of the competencies experiences some problem the company has to create solutions or it will experience more problems that may hamper the operations of the company.

3.2.2 Market development

Market development is the name given to a growth strategy where the business seeks to sell its existing products into new markets. Barclays can target children who are in secondary school. Children would love to be able to make credit payments and if Barclays can devise a plan which would allow parents to give their consent to their children making small cashless payments with a weekly limit instead of a monthly one. It could bode well for Barclays. This would set of as an opportunity again for it is basically targeting a broader market. The design and plan for the process requires a little bit of thought but find wise it is not a very expensive ordeal. Parents who are already existing clients will be an even easier target and would perhaps be interested without any kind of persuasion from the bank at all. Working with existing customers to target new ones is the simple part but gathering the untouched market would be the slightly hectic part. Again cost wise it would not be too expensive but the work required would be time consuming and perhaps some surveys would have to be considered for appropriate market research. Another element that has to be kept in mind is whether Barclays is actually adapting to the strategy of issuing out more credit cards given the loss they have already incurred and keeping the credit crunch in mind.

3.2.3. Product development

Product development is the name given to a growth strategy where a business aims to introduce new products into existing markets. This strategy may require the development of new competencies and requires the business to develop modified products which can appeal to existing markets. If Barclaycard came out with a new innovative product such as Lloyds did with their TSB Airmiles account, they would be tolling in a lot of new customers and new business from existing customers. Research and development would be involved for coming up with new product. The 3 costs of the mergers would be covered in the advertising schemes and the partnership agreement would allow Barclaycard to continue making revenue over the sales of their card. A card that is credit card and offers interest to the bank but using it for purchase would be a first from Barclay. This would impact mostly the external stakeholders in the industry, the customers and society. This would be operating at macro level for it would be technological advancement and if beneficial it will eventually reflect socially considering the trends in social factors are affecting the demand for a company's product.  

3.2.4 Diversification

Diversification is the name given to the growth strategy where a business markets new products in new markets. This is an inherently more risk strategy because the business is moving into markets in which it has little or no experience. For a business to adopt a diversification strategy, therefore, it must have a clear idea about what it expects to gain from the strategy and an honest assessment of the risks. Barclays have merger with various banks to promote their business. These mergers and acquisitions helps Barclays to expand its business in various areas.

(Davis, K. The challenge of Business, New York, McGraw hill)

CONCLUSION

Thus with Barclays support, other companies can benefit from their strategies used etc. With the company knowing this, it can take advantage of being in demand. Another opportunity for this company comes about again because of its size. As a result of it being so well known, the company may attract investors. This is a very good thing as it will gain more and more resources, which will fund its endeavors.

C hapter 4

4. Develop & evaluate possible alternative strategies for the organisation you have chosen.

4.1 Levels of Strategies of Barclays

Modes of strategic management are the approaches adopted by managers in formulating and implementing strategies. The approach addresses the issues of who has the major influence in the strategic management process and how the process is carried out. Managers generally use one of the three major approaches to strategic management. Entrepreneurial, adaptive and planning (Mintzberg, 2005)

Strategy refers to course of action. Strategy gives direction to the organizational plans to achieve its goals.  Based on the nature and level of strategy implementation, the strategies can be classified into:

  1.   Functional level strategies
  2. Business level stratifies
  3. Corporate level strategies

Each of these strategies operates at respective levels. After analyzing the environment and assessing the internal environment (SWOT analysis), the next step in the strategy is making process is to develop strategic alternatives to help the organization in achieving its objectives.

Alternative Strategy helps clients address the issues that have the biggest impact on their business' value. Organization approach focuses on a fact-based analysis of the market and competitive drivers of value creation. It generates strategic insights into the business thanks to our expert knowledge of the links between strategy, finance and performance.

Organization have experience of supporting senior executives allows them to translate insights into pragmatic strategies delivering tangible performance improvements. It also facilitates the alignment of the team behind the strategy and ensures that it is rapidly translated into action. Previous engagements helps to focus on strategic position assessment, profitable growth strategy, organizational structure, resource allocation, strategic cost reduction, due diligence and strategic management process.

Barclays can use various types' strategy like stability where the firm can maintain its status quo and sustainable growth. The firm can grow on various aspects. Barclays is one of top companies in UK. So they may require various alternative strategies in various dimensions. The growth may be internal growth. Organization may select growth strategy to reduce cost of production per unit. Growth strategies involve a significant in performance objectives.

4.1.1 Retrenchment strategy

Retrenchment strategy is a defensive strategy followed by a firm when its performance is disappointing or when its survival is at stake for a variety of reasons. In case of Barclays it does not require retrenchment strategy as almost in all sectors it is showing a consistent growth.

Barclay as a large organization generally can use a mixture of stability, expansion or retrenchment strategies either simultaneously, or sequentially. Example Barclays can achieve growth through acquisition of new business or divesting itself of unprofitable ventures. Depending on the situational demands, therefore, Barclays can employ various strategies to survive and remain profitable.

4.1.2 Horizontal I ntegration :

Horizontal integration refers to owing or controlling a number of similar but separate activities in the same kind of business. 

4.1.3 Vertical Integration :

It allows the firm to enlarge its scope of operations within the same overall industry.

We know all strategies we implement have to fall under the SMART criteria. This means that we have to know exactly what we want to execute to the point to make sure our actions are detailed and specific. We have to be able to quantify our data and make sure we know how much we have to put-in in regards of inputs and know how much we're getting back to ordain them measurable. We have to know we have resources as of now or will be readily available in the future to guarantee they're attainable. Based on this the results provided will be relevant. All this should be completed in a certain time-frame or have a dead line making it timely. This is the SMART criteria and this is the basis of us using the Ansoff Matrix and Porter's five forces theory. Understanding this and applying it to all the strategic options Barclays have outlined is a good way of keeping sure that our options are intelligent choices. We already have our inputs in order considering we can measure hem using the 4 P's (Product: Credit cards, Debit Cards and other technological advancements with similar and additional features, Place: The UK and smaller segments, Promotion: the advertising schemes and other strategies we choose to promote our products. Finally Price: which is the value we set based on the demand we forecast and the production costs of our product and services).

Barclays cannot only look externally to analyze if these goals are achievable, but they can also look internally. The difference is that the external analysis deals with outside the company as was discussed, Competitors, Customers, Political, Environmental, Social, Technological etc. Internal analysis, however, is the opposite of it comes from within the company itself, sales figures to see how it is performing, past promotions strengths and weaknesses. Therefore, Barclays can look at itself in order to pin point exactly where they get their most operations and try to gain as much as they can from it.

CONCLUSION

Thus Barclays can see where they make their losses and try to develop strategies in order to strengthen these. Some of these can be the company's sales sheet or its balance sheet at the end of the previous years; by taking these into consideration, the strategies they are using can either be good or bad, in terms of they can keep using them or try to figure out other means and ways to make profits.

C hapter 5

5. Outline an implementation plan for the chosen strategies in question 4.

Organizational Growth strategy in Barclays

Barclays Growth strategy can be implemented in following areas

5.1 Resources

The essential resources of Barclay include its own physical and human resources. These two resources are acquired and continuously developed so that its capabilities can be fully realized by the company. The unique resource of Barclay includes the company's intangible resource. This kind of resource cannot be easily and directly acquired and it may take some years before the full use of such resource can be realized.

5.2 Financial

The company funds come from either the parent company or from other sources like investors. The funds are used to pay for the different expenses of the firm. Barclays wants to focus on price based strategies wherein the main goal is to achieve more profits without sacrificing other things. The company has a set of priorities where it focuses its budget on. The company has been doing well financially but it still wants to maintain its financial standing through providing an effective and efficient service with lesser cost and maintained profits.

5.3 Human

In providing excellent service to the clients, a company needs to have a dedicated staff that performs well and knows that the service they give to the client can help the company have a positive or negative image. The staff of the company is well trained to ensure that the best service can be given to the clients. The company makes sure that it hires promising individuals that can assist in the company's task of reaching their goals. These people are trained well by the company so that each employee will have an important role to play in the company. The company provides various financial and compensation packages to their employees. This ensures that for every effective service the employees do they are greatly rewarded. The company also recognizes and gives awards to employees who perform above standards.

5.4 Skill

The personnel of Barclays are well skilled in providing services to the clients. The company makes sure that they hire individuals who are skilled in management, banking and finance. The company also looks for various activities that will help the personnel improve their skill.

5.5 Organizational processes

Barclays' organizational processes were well thought of and were designed in accordance with the need of the environment. Each organizational process whether it relates to production, marketing or sales has a specific goal that contributes to the success of the firm. The processes of Barclay underwent a rigorous analysis. The management team made sure that they choose well the processes that they will use.

Barclay'sfinancial group is known to many as just Barclays bank, mainly because it is not known the extent of their business operations. Barclays is not only known for its commercial business offered to UK and international customers, (current accounts, saving accounts, insurance, morthages, etc), but also Wealth Management and Stock brokers. Both of which are available to high network individuals. Barclay's wealth management includes offshore banking, stock broking, private banking etc. The availability of such business operations ensures that every segment of each market is taken care of, working class or otherwise. This strategy which is used by Barclays is essential and effective as there is something in it for everybody; each individual is taken care of in this company, whether they are looking for just a saving account or financial advice for a new or ongoing business.

(Rao V S P., Hari Krishna V, (2008): Strategic management)

CONCLUSION

Barclays is one of the UK's leading banks, and with its great history, puts it high above many others. This company has experience in doing what it does. Although there are many competitors, it is seen that this company is still ahead. It is still ahead because it uses various strategies which are working and which will continue to work effectively. One of the Barclays main goal is to build the best bank in the UK, it is seen that based on the moves it has made, with training staff, technology and even its choice to go global, it is on its way to doing that.  

The fundamental principal to Barclay's philosophy is to include the interest of all of their shareholders from customers, employees, shareholders and the wider community in route to providing a valued and prosperous circumference of satisfied stakeholders.

Barclays cannot only look externally to analyze if these goals are achievable, but they can also look internally. The difference is that the external analysis deals with outside the company as was discussed, competitors, customers, political, environment, social technological etc. Therefore Barclays can look at itself in order to pin point exactly where they get their most operations and try to gain as much as they can from it. On the other hand, their company can see where they make losses and try to develop strategies in order to strength these.

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