A Swot Evaluation Of Barclays Bank Finance Essay

The global panorama of business acquired always been confronted with inevitable and unstable circumstances which includes always been challenging to them once they are confronted. Financial institutions, for case, have been rattled by the global economic downturn which has affected businesses in the recent years. To become bale to ease the effect of such circumstances, it is just a common practice among businesses to implement measures and tactics which are directed towards improving their performance amidst the tragedies in the economic status. One of the many ways in which they can do it is by using a SWOT research which speaks of analysis of the organization's talents, weaknesses, opportunities, and hazards. This analysis enables businesses to capitalize on the aspects in which they may be strong at and also to improve on aspect in which they deem as requiring improvement.

Barclays Loan company is one of the numerous financial or financial institutions in britain, which over the years, through their unwavering strategies and work, in addition has conquered the global surroundings through its business development. Within their recent time of operation, the lender is regarded as a worldwide financial services supplier, engaging in businesses which handles retail and commercial banking, credit cards, investment banking, prosperity management, and investment management services which extends its operation not only in britain but around the globe as well. This international enlargement can be tracked as early as following the First World Battle where the bank has expanded its operation to focus on the needs of other areas such as Africa, The Caribbean, the Near East, and the Mediterranean. The locations which were at first selected for enlargement of the lending company were countries with politics links to the United Kingdom (Coulbeck, 1984). In the present, however, the business has continued its extension on its quest to serve more markets also to set up a global presence. At the moment, rattled by the various economic troubles and the unstable future, Barclays is in continued procedure with much emphasis and attention dedicated towards better serving the general public and towards the sustainability of these business through responsible funding and business operation (Barclays, 2010).

In this review the researcher will be formulating a SWOT strategy evaluation for Barclays Standard bank to give a more intensive examination and evaluation of the bank's operation. The analysis of your company's strengths, weaknesses, opportunities, and threats, is the starting place of strategy formulation as it offers a thorough analysis and analysis of the business' strengths and weaknesses which are actually internal to their procedure and the opportunities and dangers which may be further examined by looking at the external environment. The results of this analysis can be utilized at the utmost by exploiting the advantages and opportunities of the business while neutralizing the threats and deliberately preventing the weaknesses (Griffin, 2008).


The strength of an company gives the business it competitive advantage over other players in the same industry of even among indirect players which can be classified as members in your competition. These talents could include their special functionality, resources, or skills which arranged them aside of your competition like their market dominance and a pleasant financial performance which is set to make sure they are perform better in the following years of operation (Stapleton & Thomas, 1998).

One of the talents which may be attributed to the operation of Barclays Loan company is its worldwide existence. The international development of this lender has enabled the business to tap more market and more territories which provided them the features of enjoying the economies of level and it let them relished the benefit for allowing dangers to be pass on among its numerous loan company locations. Their presence in different locations among different countries increases the potential of the business enterprise as they become more known in neuro-scientific finance and banking industry. The bank has a huge global existence across parts like Europe, SOUTH USA, THE UNITED STATES, Africa and Asia serving almost 50 million clients (BankAdvisor, n. d. )

2007 2008 2009 2007 2008 2009

The two charts which were shown above show another talents reaped by the lender in the past time. The first chart shows a comparative three yr analysis of economical profit which is regarded as as one essential key performance indicator of the business. This refers to the firm's earnings after taxes and other non-controlling hobbies less capital charges. The bigger economic profit of Barclays this year as compared to the previous year is indicative of its good performance so reflects a rise in the bank's earnings and reflects their effective use of capital. This power of Barclays necessitates that the business is doing good in terms of being in a position to generate economic income which is also reflective of good financial performance in the previous year. This would go to show that the business is performing well amidst financial difficulties.

Furthermore, the next graph shows the profit before tax of the lender. The chart implies that their profit this season is significantly higher compared to the previous time, another sign if the business's strength despite the major difficulties in the global economic situation particularly affecting international financial institutions. The total income before taxes is one of the very most essential profitability procedures which can be used to evaluate and evaluate the performance of a specific company in confirmed year. It can be used as an integral signal of the financial performance which most shareholders gauge to be able to determine how successful a small business performed before time. The financial data of Barclays, based on their Total annual Company Report, displays an almost doubled income before tax set alongside the previous year. That is another strength which can be considered for the company and such can have the ability to attract more assets because of the relatively good business in the past year.


Aside from the advantages of Barclays Lender which were enumerated above, it is also important that we have a look at its matching weaknesses. The weaknesses of a business the weaknesses of any business illustrates the areas in which they have got not shown exemplary performance and the areas where they did not show desired or predicted results. These weaknesses can refere to the features in which they need improvement. Once carefully recognized and stipulated, their weaknesses can help them formulate better strategies and practices so that they can be assured of a much better performance.

One of the weaknesses of Barclays is its control systems. For their deemed faulty and inefficient control systems, they were fined in Sept of this past year. This can be categorised as their weakness because this tarnished the name on the market of finance institutions and triggered them to truly have a bad reputation in the eye of the public. These were fined for their inability to provide daily data regarding standard bank transactions which will be used by the government to be able to track and research suspected mistreatment in the trading and also instances of manipulation in the market. This tougher banking regulation in addition has affected a few of the major finance institutions in Europe. Alas, it costs Barclays a whole lot as they paid an excellent amounting to 2. 45 million pounds for this reason violation on the federal government laws. The fine would have been bigger if in case they didn't cooperate earlier to be able to settle the situation (Olson, 2009).

2008 2009

The chart which was illustrated above shows another weakness of the performance of Barclays predicated on its performance in the last year. The graph shows the comparative analysis on the number of Barclayard users or customers for days gone by 2 yrs. Barclayard can be an international credit-based card that is multi branded. It is one of the leading bank card businesses in European countries with a relatively growing market in America and other areas of the world as well. The amount of customers handling the aforementioned bank card was taken to an entire almost two million customers low this season. This is attributed to the actual fact that due to financial and global economic crisis which struck the world in the last years, fewer customers want on credit buys because of the uncertainty of their respected financial situations. This can be regarded as a weakness for Barclays because this only illustrates that although other areas of the business is earning, this specific sector of the business enterprise is beginning to lose its customer base which can actually worsen in the next years and can inevitably result into decreased profits.

Aside from what has been stated, another factor which may be thought to be the weakness of Barclays is the fact it gives out large amount of bonuses to the associates of the Plank of Directors. Such practice has gained numerous feedback and criticisms from different groups in the past. If such practice will continue, it will haunt them in their operation and can cause more eye to be centered on them and may also disclose further problems and weaknesses that are inherent in the operation of the business enterprise.


The opportunities which confront the operation of international businesses is another factor that ought to be assessed when studying the performance of a particular company. These opportunities can start new door for the business enterprise, can be basis for extension or extension of operation, and can provide way to opening of new businesses and wedding caterers to more markets that have been not offered before. One of the opportunities for Barclays is the increasing need for the role which is played by the banks in the culture nowadays (Varley, 2009). Despite the numerous disadvantages that have been brought about by the financial and global economical problems, the role of the bankers in the modern culture did not weaken; rather it experienced increased importance especially in its potential to provide reliable and useful payment systems, safe storage space for cost savings and deposit, maturity change, management of advantage and other investment funds. This increasing importance of banks amidst financial turmoil supplies the industry higher opportunities to start its entry doors into new businesses and projects which can bring them ample amount of revenue and can let them enjoy sustainable competitive advantage over time.

2007 2008 2009 2007 2008 2009

The two charts which were provided above also shows areas of chance of Barclays Loan provider. The first one shows the degrees of customer satisfaction. before years, the level of satisfaction was only 67% versus this year's 72%. It is shown that there is a substantial increase which means that there is a relatively larger range of customers this year who felt that there is a noticable difference in the grade of service provided by the lender. This is classified as a chance because this may lead to more strategies focused on the customers and services which could better gratify their needs. This can also serve as an sign of more expansion in the line of services they offer since more people are happier with the result and quality of these service provision. The heightened percentage in the level of customer satisfaction can help the business realize more opportunities which can be people-related and it can also supply them with the opportunity to develop only better services to rest assured of higher satisfaction rankings in the a long time.

Furthermore, the next chart shows the amount of income made internationally. This reflects revenue which has been generated of their lenders and other varieties of businesses beyond your United Kingdom. For the entire year 2008, their international income reached a percentage of 47, and it increased to 57% this year, this goes to show that there surely is more profit this year produced from international operation as compared to the previous year. This international diversification of the organization's income provides them with an opportunity to lower the event of risk as they are displaced on lots of locations. The increase in the ratio of income generated from international operation can provide them with the opportunity to set up more locations in other countries and chance to improve service far away since these branches are having them more revenue year after year.


The dangers which confront any business are as ageless and inescapable as what have been previously discussed. These hazards can expand from inner to exterior and from minor to complex. Companies must be ready after they are met with these hazards to be bale to preserve and endure in the ever before competitive world of business. Menace should be supervised carefully to be able to outplay the competition and get over the struggles which were brought about by such challenges.

2007 2008 2009

The chart which was presented above shows one of the dangers confronting the procedure of Barclays. It must be noted that in the opportunities section, the rseracher included the increase in income produced from international expansion as a remarkable opportunity since there is a significant upsurge in the income from the said section of the business. However, needles to say, the increase in income does not always mean acceptable international performance. The chart above implies that almost 100 branches beyond your United Kingdom closed as compared to the number of branches in the last time. The closure of these branches is attributed to the fact they can be bypassed in terms pof performance of some banking transactions which doesn't need an actual bank operation to take result. However, the closure of such branches also poses a serious threat to the business since it only means that there surely is a reduction in the amount of locations where people can transact genuine and actually. Because they may have reduced the amount of their product owner locations, clients will then be prompted to explore your options they are really confronted and might actually choose for other banking company.

Another hazard to the procedure of Barclays standard bank would be the increased competition among financial institutions not only in the United Kingdom, however in the international market as well. Although the world has been confronted with financial and economic crunches, the role of banking companies in the society and in the lives of individuals has continued to increase overtime as its function also increased significantly. With that, if there is a relatively low rate of new entrants, it cannot be denied that those who jhave recently been in the most notable are perpetually increasing their initiatives to tap more markets internationally. Their attempts and strategies are unwavering towards provision of better open public service which in turn can give the customers a sense of satisfaction. Because of these initiatives and strategies, competition has been more stringent as they utilize more marketing tools which are aiding them in their procedures. This increased and tightened competition can be unhealthy especially if the work of Barclays aren't directed towards strategies to make it through the competitive playground.

Another risk to the operation of Barclays may be the fact that the company has been reputed for closing way too many branches in the past, specifically in the year 2000. Such act can lower their competitive position and can create and imagery without reliability and guarantee in terms of these procedure. The closure of these branches could actually signify poor financial performance therefore threatening both investors and its own array of potential clients.


The global financial and bank industry is not exempted from the financial and financial turmoil which confronts international businesses. Actually, these finance institutions can even feel the higher aftereffect of the predicament as they are concerned with the way the world transforms around financially. However, a careful analysis of the financial institution's talents, weaknesses, opportunities, and risks can be of help have the ability to formulate better strategies and to be able to eliminate routines that are not demonstrating efficiency in their global operations. A careful research of such could be able to help them determine and improve their position in relation to competition. The analysis on Barclays shows that they are still in a well balanced competitive position despite the predicaments which confront their procedure. They have a well balanced financial and management platform which enables them to control the adversaries that are perpetually striking the global businesses.

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