Keywords: barclays organisational framework, barclays management
Barclays bank offers its services in India in a few their selected business divisions. Barclays bank now desires to increase its services in India with other corporate units. This record is a aiding tool because of their expansion as it provides basic information needed for this expansion. Exterior Environment Analysis by the assistance of PEST, SWOT and Porter's five pushes provides essential information for the management of Barclays bank while making and utilizing business strategies with more knowledge, specialist and control.
Task1:
Business Framework of Barclays Loan provider:
Barclays is one of the leading United kingdom based multinational banking institutions having branches in 5 different continents around the world. Barclays lender has strong position due to its asset estimation of more than 2. 3 US dollars. Banking composition of Barclays is divided into Personal and corporate banking, Investment banking, Investment management and the unit of credit cards.
The main headquarter of Barclays is located at London and the customer's foundation of Barclays bank or investment company is more than 48 million in different continents including Africa, Asia, European countries, North and South America. The basic framework of Barclays is divided into two clusters:
1. Corporate and investment banking plus Wealth and investment management.
2. Retail and Business Banking
The further sections division has already been explained.
Barclays loan provider also takes on part in providing consultancy services for individuals in operating their small range business. The unit of personal banking provides its services to manage the investment of small size businesses. The security and quick access capacity level for borrowing purposes makes Barclays one of the typical financial service industries. The business product provides consultancy for personal bank borrowing. They offer innovation to get started on different small level businesses and provide attractive financial services and opportunities for personal loans. Corporate bank is one of the profitable units of business product of Barclays as it has more than 50, 000 customers in five different continents. Risk management device is also important to provide advisory for businesses that have potential to get and get revenue and provide opportunities for investment. Wealth and Investment management unit works in more than 20 countries to provide its services. The basic functions of this unit are international and private bank services, investment management services, fiduciary services and brokerage services. Business composition of Barclays standard bank allows top notch banking solutions for corporate customers as well as personal banking clients. Using up at this point technology in term of online bank solutions and mobility services offer an edge on opponents due to the latest procedures used in these services. Barclays rely on its global romance approach. Different relationships teams work around the world to include value to the business enterprise of corporate and personal clients.
- Impact of Market Structure
The basic reason for Barclays is to increase its business in term of customers and revenue, looking for customers all over the world, looking for growing economies and increase in such economies to fulfill its perspective of growth.
Barclays loan company is working in India for more than three years. Investment banking section was the initial business of Barclays banking in India. Now Barclays loan company is providing its commercial and personal bank services in India. This system of using determined divisions is due to market framework of India which is different as compared to Europe, Africa or America. People be reluctant to deposit in banking institutions and also there is less concentrate on borrowing from banking companies. The style is changing due to understanding and availability of latest technology. The firms of selected divisions in India implies that market structure have effects while working in international current economic climate. Changes running a business framework while working internationally are basic requirements credited to different values, buildings and perceptions of the clients surviving in international market.
Task2:
- Causes of Globalization
The change in the fads of international economy damaged the working of different organizations. The negative style of economy of different European and American business environment allows organizations to consider new markets, customers and better economic regions. That is one of the primary causes of globalization. The other cause is the improvement in technology and the availability of easy means of doing business. People came to learn about latest procedures, new innovations in products and services, the distinctions in the quality of products and services and new ways of communicating. These cause international companies to develop their business over the borders to target the needs and wants of such customers. The idea of international free trade also brought on globalization to take place because of the incentives associated with free trade. Option of better suppliers in the international market causes organizations not to rely on home suppliers. Availableness on quality suppliers on competitive basis is grounds of globalization. Lower salary rates in other areas when compared with home labors in European countries and America prompted organizations to increase their business in Parts of asia which are less costly for infrastructure and low rate employees. All of the previously listed reasons are main causes for globalization. Growth in technology, use of internet, e-mails, mobiles, and better visiting provided the foundation for globalization to take place. The growth in online technology provides basis for much better Management Information System to collect and analyze data all around the world to make investment decisions.
- Implications of Globalization
Better business control through internet, mobiles and MIS provides comfort for organizations to handle business from anywhere in the world. This has made tactical decision making easy and fast as response from customers and management is speedy when compared with previous systems. The improvement in the living style and standard are implications of the availability of international standard products and services in those areas. People came to know about the variety and quality of products anticipated to increased and reliable products and services as a result of international expansions. You can now see and purchase products through online sites, emails and mobiles mobile phones as they are easy and less costly way of communication nowadays. Now folks have more alternatives in term of products, services and prices. You can compare product quality and prices by the assistance of internet and websites to buy more reliable products relating to their budget. The other implications of globalizations are E-Commerce, better steps, improved developing techniques, computer simulations and low priced products and services credited to availability of reliable suppliers and processes in region.
- World Trade Organization
There will vary causes and implications of globalizations but nonetheless there was a need of laws and types of procedures for globalization and international business. WTO can be an international group to provide standard regulations for global businesses. Providing recommendations for business expansions far away by firmly taking inputs from variety and guest countries. Providing a set of interpersonal, legal and moral tasks to both people for better business is one of the tasks of World Trade Organization. Different members across the world have provided their inputs and recommendations to create standard laws and regulations for global businesses. Every business and country has to wok corresponding to these laws and regulations. Providing soft barriers for investment organizations and employing the idea of free trade for global business are the major tasks of World Trade Group. (THE ASSOCIATION OF BUSINESS EXECUTIVES, 2011)
Task3:
External Environment Analysis of Barclays Bank
Analysis of business environment through PEST analysis, SWOT evaluation, Force Field Analysis and Porter's Five Makes provides real and important info to decision making unit before formulating or execution of business strategies. The macro and micro forces can impact the strategies of management because of the dynamic nature. Exterior environment examination is not a onetime process; it is a continuing process to make changes in strategies according to external environment. (T R JAIN, MUKESH TREHAN, RANJU TREHAN, 2009)
PEST Analysis
Analysis of Politics, Economic, Public and Technological elements which can affect the strategies and decision created by management is performed under PEST evaluation.
(P)olitical Analysis
India is a country where people choose their associates of parliament through elections in a fix time period. The member of parliament makes procedures for foreign traders and multinational companies. There is absolutely no clue of treatment of any third power in the politics system. Opposition provides recommendations for insurance policies. So, there are fewer likelihood of changes in the regulations for foreign buyers which are a good thing for Barclays lender.
(E)conomic Analysis
One of the growing economies of the world with have emphasis on research is an attractive place for international investors to invest. The continuous growth in the GDP going back 10 years provides opportunities for Barclays and other overseas companies to extend in India.
(S)ocial Analysis
One of the countries having high populace and high expansion rate of society in future provides opportunities for Barclays bank to have significantly more targeted customers. Upsurge in literacy rate and recognition about latest and up as of yet services in region provides opportunities for Barclays loan provider to invest in India.
(T)echnological Analysis
Use of internet banking, mobile banking, ATM, credit cards, e-commerce and public media offers a great deal of opportunities for Barclays standard bank to bring in their up to date and latest services in growing economy of India. Barclays provides their services to improve banking operations in India which is why India allowed Barclays functions three decades again.
SWOT Evaluation of Barclays Bank
(BARCLAYS Loan provider PLC. )Using strengths of Barclays loan provider in term of most advanced technology and functions to get great things about opportunities available in India in term of large term of customers and markets can be possible insurance firms understanding of these inside resources and external business environment. SWOT research provides this information.
(S)trengths
- Global Innovator in providing financial and investment services in five major continents.
- Strong brand name in corporate bank operating system having more than 50, 000 corporate clients all around the globe.
- High trustworthiness in the growing market of Pakistan which is also based in Asia.
- Personal banking with no limit on least deposit provides an edge on majority of competitors.
- Focus on risk management.
(W)eaknesses
- Need of bailout in UK due to economy crises in recent past.
- Bad effect on image due to government money concern in Zimbabwe.
- Less advancement in marketing promotions related to Indian culture. Barclays is employed in India for a long time but they neglect to adopt market orientation related to Indian culture
(O)pportunities
- Past business connection with India has an extra advantages to make an extension decision.
- Growing banking sector of India, give attention to corporate banking and increased personal money due to stability and trustworthiness of Barclays lender.
- Investment opportunities in IPL and other Indian leagues anticipated to commercial image of the leagues can provide global promotional opportunities for Barclays standard bank.
- India is a country with large physical area and second highest people. India can offer a great deal of potential corporate and personal customers by making an extension decision in other parts of India.
(T)hreats
- Increase in interest levels has decreased the financing from personal bank sector. Government banks and investment policies provides more attraction for personal investors anticipated to bigger outcome of these services.
- Domestic banks with ethnic related strategies is a danger for Barclays
- More international banking institutions are moving towards Indian market due to the availability of business and customers. It can increase the size of competition in India.
Porter's Five Forces
- Entry Barriers
The access of new multinational banking companies like HSBC and other are growing their businesses in India credited to soft barriers of coming into and option of customers. This example can increase the competition level and quantity of saturated market segments in India.
- Rivalry with Industry
Services provided by different local and international banking companies are of the same type. So, it is important to change interest levels and services charges to catch the attention of more customers as compared to other banking companies. The switching of financial services for customers to other lenders is easy and not much costly so finance institutions need to develop latest or more to date operations to assist in customers.
- Threat of Substitutes
Innovations in the products and services provided by banks, including car funding, house funding and education financing provides opportunities for loan provider to target not only on traditional bank operating system. The local funding institutes with less interest for personal borrowing are also a menace for bankers in India.
- Bargaining Electricity of Suppliers
Reserve loan provider of India needs actions regarding financial suppliers which impact the way to obtain money in the current economic climate. Customers provide products in debris for personal banking and most banks are providing same interest levels. So, there's a need of technology in services to attract financial suppliers.
- Bargaining Ability of Buyers
Providing choice services in term of funding for car, properties, education, businesses and consultancy can bring the bargaining electricity of customer low as all the lenders are providing same type of services with same interest rates.
(Barclays, 2008)
Task4:
Business Targets of Expansion
Capturing the actual customers in other attractive areas in other cities
Boosting the existing market orientation of Barclays loan provider in India
Increasing the amount of divisions working in India to capture more opportunities
Investment in Global promotional opportunities in tem of Indian Top quality Group and other Leagues that have global impacts
Focusing on international earnings to carryout domestic and international operations. India can provide opportunities for much larger scale of earnings due to its population and physical area when compared with local branches in UK
Providing E-Commerce services in India anticipated to increased level of interest revealed by Indian customers for online operations
Capturing corporate and business customers of India as Barclays lender has strong base and experience of dealing with corporate and business customers. These customers can offer huge opportunities for income when compared with personal or investment banking. Having more than 50, 000 corporate and business customers is sufficient experience for Barclays to focus on corporate bank in India
India keeps growing economy when compared with major Europe so it can provide more opportunities for business in India. You will find number of corporate and business industries in India and variety of Billionaires entrepreneurs who provides a lot of opportunities for Barclays standard bank through their operations
Resistance from Employees
Making any change available structure or businesses can help bring employees out of the comfort zone. This is why why some of employees withstand against any type of change in composition of procedures. Making an expansion decision in Indian market means there will be a whole lot of changes to be produced to formulate and apply strategies for new geographical areas and segments. Altering the businesses of employees to have their assistance in growing operations can bring amount of resistance from employees. Providing them bonuses associated with successful development of Barclays loan company can help lower any amount of resistance from employees. Development may bring a lot of opportunities for managerial positions in new branches. Good real human learning resource management can communicate these opportunities with existing employees giving them attractive expansion and career pathways for potential employees to bring down the level of resistance from employees.
(T R JAIN, MUKESH TREHAN, RANJU TREHAN, 2009)
Recommendations
Focusing on promotional activities associated with global marketing can help Barclays in Indian and international market. Recent Olympics, Indian Premier League, Formula competition and other global events in India can offer a whole lot of help for Barclays in their promotional activities if they use these situations for marketing purposes.
Proving online services in home languages can offer a differentiation edge and USP for Barclays to target more customers.
Barclays should invest in cultural activities of education and inexperienced environment to construct a better corporate and business communal image in India
Focusing on innovation in term of alternative products can help to bring more revenue and customers to Barclays bank or investment company.
