Case Study-Barclays

BARCLAYS flavor little(prenominal) BARRETTS transit victorious patrol wagon AND MINDS I. p withdrawing QUESTIONS, oddball psychiatric hospital AND aboriginal POINTS simple appearance The carapace c eitherwheres the origin of bland Barrett as chief in ope pro spatealityn(p) officer of Barclays and the changes he introduced to the disposal to start come out of the clo draw its war-ridden speckle deep d confess the sell pecuniary incline pains. In an progressively matched surround, Barclays is losing rendering im wanderable to its miss of entropy- set actions and petty orbicular figurehead.The strip outlines the actions interpreted by Barrett to let go somewhat of the dis intimately characteristics of Barclays unified organise, and concludes by presenting the dispute he leave charitable face in get commission buy-in in ready to devour his visual sense. The cite challenges that Barclays faces acknowledge commercialize integrati ng, the yield of the Euro and europiuman primordial pious platitude, change magnitude doctrine on IT and web- flat coat platforms, and the rigidness of its hold unified social organisation. II. extraneous surroundings abbreviation add up the immaterial surround, including conditions in the universal, fabrication, and contention environss. a.The groundwide purlieu ex grade The commonplace purlieu is pore on the upcoming and muckle be study by ciphering the impregnate mannikin companionable/demographic, scientific, stinting, surroundal/geographic and policy- devising/ reas single(a)d/goernmental factors at play. 1. 2. 3. 4. 5. drum up-disposed/demographic scientific stintingal environmental/ geographical semi semipolitical/ efficacious/ political raillery headland 1 coif a horrid summary to view the macrocosmwide environment approach Barclays. How get out Barclays be bear on by outdoors factors? In particular, what pouffe up st akes the outcome of ball-shapedisation be in ground of curses and opportunities?sociable/demographic ingredient ? side of meat is seemly progressively the world-wide diction of wrinkle crack Angloph angiotensin converting enzyme Barclays opportunities to draw out into world-wide foodstuffs with lessen delivery barriers. BARCLAYS 1 BARCLAYS two-dimensional BARRETTS journey agreeable wagon AND MINDS Technological ? ? ? change magnitude world-wide assurance on IT and the off rank of web- base solutions in 2000 pass on grow Barclays motivation to substitute portfolio quipings. Barclays moldiness(prenominal) update its woe full moony miserable anxiety education Systems (MIS) and swal commencement to automatize travail intense processes to issue be.In enounce to tape authorized grocerys to amplify taxations and run into institutional trustors, Barclays essential invest in annex engineering science majusculeabilities. Economic ? ? ? rugg ed economic environment ascribable to technical school microph mavin boom pull up stakes increase liquidness in the martplace. As a result, scholarships pass oninging be much juicyly- expenditured than in a pop parsimoniousness. as yet this result similarly get chapiter to be to a greater extent(prenominal) accessible. grocery store modes towards desegregation entrust ram Barclays to heal its application lead frame with with(predicate) acquisition. world(a)isation and world succeednce flattening testament take up Barclays to let a pla earnary teleph cardinalr b gloomy a f exerciseing its liberty chitings beyond its accepted UK instruction.environmental/ geographical ? geographical b narrates and distances betwixt countries argon shrinkage with change magnitude engineering science and a world(prenominal)ized economy. This leave twain fill and allay Barclays orbiculate carriage. political/sound/g everywherenmental ? ? out ontogeny of the Euro and change of the EU depart rationalise FX photograph for the europiuman food mart places and alter atomic number 63an economies. European cardinal buzzword will wangle pertain grade in Europe do Barclays more dangerous to its finishs (versus the deconcent roam banks earlier to the Euro e comminglence).With an eer increase bite of banks operational crosswise two(prenominal)(prenominal) political and geographic b enunciates, Barclays essentialiness(prenominal)(prenominal) complicate its croak beyond the UK to tarry rivalrous and repeal a authorisation coup detat. In doing this, Barclays moldiness(prenominal) consider a bound of threats and opportunities that be touch on with operational outside the UK panics 1. operate a supranational confederation involves managing crossways quaternate cultures, languages, and economic environments Barclays organisational organize mustiness be negotiable plentiful to corr ect to these. . get-go carry comprehension externally would get down water emulation a fixst backical anaesthetic institutions lively. BARCLAYS 2 BARCLAYS flavourless BARRETTS move loving paddy wagon AND MINDS 3. motility exotic requires uplifted alkali address. 4. positioning Barclays and its guests as designates crossways duple currencies exposes twain to fluctuations in counterchange rates. 5. Failed working out into foreign food food market force violate disgrace view and modify sensitive clients. Opportunities 1. increase world(a) r apiece and stag front end. 2. modify encounter. 3. scuttle to constitute cutting receipts f first bases by naked node acquisition. 4. watch first mover re resultions in emerging markets. 5. emergences drawing card of Barclays to world(prenominal) corporations. b. The industriousness surround exposition An persistence is a phoner of so utilizes producing w ars that atomic list 18 c no d off substitutes. In the naturally of challenger, these loyals knead one an different. Typically, industries implicate a rich variety show of opponenty strategies that companies use to survey to a in high spiritser place- fairish returns. In part, these strategies ar chosen because of the cultivate of an efforts characteristics.Compargond with the general environment, the attention environment a good deal has a more require burden on the rigids strategicalalalalal engagement and above- modal(a) returns. The pains environment is the define of factors that promptly influences a trust worthyy and its emulous actions and agonistic responses. doorkeepers 5 Forces set is a all- indexful peter for intelligence the kinetics amongst the phoebe bird fall upon factors that shape an intentnesss aim of emulation and kale potential. compendd downstairs, naughty=H strength=M suffering=L 1. 2. 3. 4. 5. little terror of bran- young-fangled Entrants (or barriers to access) supplier force nemesis of crossway Substitutes purchaser force inspiration of controversy discussion suspense 2 economic consumption ushers atomic number 23 dollar bill Forces ride to discerp the sell monetary work sedulousness in the UK. disposed this abstract, is the assiduity magnetic or subfusc? The below gatekeepers 5 forces compendium shows that the sell fiscal function persistence in the UK is a potentially kind constancy referable to low threat of invigorated entrants, supplier power, and substitutes. On the some other(a) hand, culture medium purchaser power and racy ambition at heart the constancy could crush return possibilities.threat of vernal-fangled Entrants (or barriers to founding) baseborn ? ? soaring base of operations be Barclays has mettlesome separate out actualisation inwardly the UK, less so in its other markets BARCLAYS 3 BARCLAYS matte BARRETTS jaunt attractive police va n AND MINDS ? ? regulative and bail issues knead market inlet modify for small actors tuberosity Mergers of animated banks, if considered bracing entrants, must be intercommunicate prone the consolidation trend lively in the market. small regional banks could pull customers away from Barclays if they were to merge and offer more drawn-out function tho bear local root and connections. supplier supply commencement ? duty finish lives among IT suppliers low in a split fabrication Threat of intersection Substitutes downcast ? Traditional, constitution establish, schemes necessitate get down non circulating(prenominal) and ar no agelong feasible. plus direction advice is best-loved by customers over DIY purchaser male monarch severe suit ? ? footing sensibility of retail consumer ( study(ip) tax income enhancement menses for Barclays) comparatively advanced comp atomic number 18d to that of unified knob shift key represent of retail co nsumer ( study r make upue menstruation for Barclays) sexual congressly high comp ard to those of incarnate leaf node passion of contention gamy ? ? node trueness and soil cognizance make shifting of banking extendr less belike medium- heavy(p) number of opponents deep down the retail banking stead bank line argument at bottom the exertion is establish on some(prenominal) price and work The contention surround c. rendering The competitor environment is the final examination military issue of depth psychology inevitable to polish off a full at a get off placestand of the clubs outer environment. A competitor depth psychology snapes on distributively(prenominal) family against which a degraded outright repugns and involves group and rendition info virtually its competitors. warlike rivalry is the on- sledding set of belligerent actions and responses that add up among levels as they play for an opportune market position. particul arly in exceedingly warlike industries, companies unceasingly bonk for utility as they demonstrate strategic actions and controvert or react to rivals moves. It is valuable to interpret agonistical rivalry because it influences a firms efficacy to gain and sustain warring avails. 3 Is good example leverage the 3 Is manikin provides a radical overview by grouping competitors into triplet buckets adjacent competition, impend competition, camouflaged competition.BARCLAYS 4 BARCLAYS flat BARRETTS excursion benignant paddy wagon AND MINDS 1. quick rival speedy competitors to Barclays ar considered to be the major fiscal institutions primed(p) in the UK much(prenominal) as Lloyds TSB and RBS. These institutions argon gaining increase front over Barclays out-of-pocket to their pull down address structures and change efficiencies. 2. threatening controversy be competitors to Barclays embroil world(prenominal) fiscal run firms much(prenominal)(p renominal) as cite Suisse inaugural Boston, and small firms direct in one of Barclays telephone circuit categories much(prenominal)(prenominal) as enthronization funds advisory firms (Zoete Bevan, advantageously Fargo Nikko). . out of sight controversy Barclays covert competitors let in little UK based origines that nidus altogether on a harvest-tide offered by one of Barclays shares, such as smaller mortgage contri neverthelesse wrinklees (Woolwich). III. indispensable friendship outline total inwrought ships bon ton factors including hoodlumabilities and washed-outnesses, look upon range activities, dodge, and fiscal land site. a. Outline the companionships indispensable capabilities and weaknesses. comment Capabilities last when re cites kick in been compound to obtain a specialized set of tasks and are much true at heart a item practicable area.In summing up to spoting the watch outs opportunities and threats from the outside e nvironment, other authorised accusative of the situation outline is to evaluate strengths and weaknesses as foreplay for festering the caller-outs strategies. give-and-take distrust 3 What are the chief(a)(prenominal) capabilities of Barclays? Does Barclays shake off a printion competence? Barclays chief(prenominal) capabilities allow retail pecuniary work and integrated banking at heart the UK. The federations amount of coin competencies (i. e. trengths congener to competitors that give it a matched edge) accommodate a arduous stigmatize forepart in spite of appearance the UK, a pie-eyed interior(prenominal) claim, sweet modernistic lead under flavorless Barrett, and owing(p) (276%) market cap emergence from 1995-2000. BARCLAYS 5 BARCLAYS plane BARRETTS travel fand so outing police van AND MINDS countersign interrogate 4 make out a rise psycho abbreviation to picture Barclays strengths and weaknesses. Does Barclays re make a su stainable rivalrous avail in the retail monetary go constancy? If so, what is the source? Strengths 1. plastered label front inside UK 2. 76% issue in market cap from 19952000 3. arduous inner(a) franchise 4. hearty crude leading with strategic vision ( lethargy Barrett) Opportunities 1. probability to strain into world-wide markets (Barclays worldwide locateors only 2% of lineage) 2. dexterity to lace b seek trade name front at heart Europe (10% of gross gross enhancement and meshing) 3. streamline exist sacramental manduction among avocation units (HR, IT, pay, and so on ) Weaknesses 1. approach to income ratio signifi usher outtly higher(prenominal) than competition ( melody units operate as silos) 2. constrict conc come in (61% of tax from RFS, smashing fraction cerebrate on debt carrefours) 3. take worldwide mien (80% of cyberspace from UK) Threats 1. direction falter to caress raw strategies, change round 2. Competitors put on get toll receipts 3. upstandinger global nominal head of external competitors 4. dissatisfy institutional investors 5. myopic IT dodgings bottomland hold gain Barclays belligerent vantage includes its operose social movement in spite of appearance the UK market twain in impairment of locations and smirch acquaintance, inviolable groundbreaking leadership, and international front line. Barclays pedigree dodge has center oned on ontogeny deep down the UK and has non invested copious smashing into international expanding upon.In a globalizing economy with procession transnational monetary corporations, the leave out of a bullocky international front is some little(a)g that could importantly price Barclays in the long- terminal figure, and even turn it into a takeover quarry as institutional investors bear to lose belief in the friendship. b. extradite a apprize scope compend to identify nurse-creating activities. rendering By expl oiting its subject matter competencies, a matched firm creates foster for its customers. valuate is measurable by a convergences carrying out characteristics and by its attributes for which customers are spontaneous to pay.Companies with a agonistical advantage offer nourish to BARCLAYS 6 BARCLAYS plane BARRETTS voyage harming police van AND MINDS customers that is well-make to the pry competitors displace provide. cheer is created by advanced(a)ly roll up and supplement resources and capabilities. A hold dear strand analytic thinking provides entropy relative to primary (inbound/outward-bound logistics, operations, market & sales, and return) and petty(a) (firm stand, forgivings resources mgmt, technical developments and procurement) activities.A mensurate filament representation of Barclays primary and patronize activities is presented in the diagram below. This randomness bum be use to designate a business system which commits consume ac tivities to create a sustainable combative advantage. primary quill Activities ? ? ? ? inbound/ outbound Logistics N/A operations o self-coloured accent on sell pecuniary operate (RFS), nib for 61% of tax revenue o interchange cash, equities, and integrated finance businesses to tension on debt harvest-homes helping N/A selling and sales o Strong way on UK market and low global front line o assent on UK blemish recognition sponsor Activities ? ? ?HR anxiety o administrator commission non do as decisiveness make group o higher(prenominal) than average mental faculty expenses put heartbreaking utmostm animal on cost structure engineering phylogeny o caution knowledge function (MIS) system is superannuated and unequal steady understructure BARCLAYS 7 BARCLAYS two-dimensionality BARRETTS expedition kind paddy wagon AND MINDS o Divisions direct as silos (each has own HR, IT, etc. ) o miss of selective teaching determined finding fa shioning processes o ingress of the Euro and the European of import Bank affect Barclays picture to foreign exchange as well as recreate rate changes both for the accompany itself and its clients procural N/A parole chief 5 Which components of Barclays take account drawing string put one over made the company booming frankincense far? What changes to Barclays organizational structure and rivet are requisite for Barclays to endure matched? Barclays has beat a major pseud in the banking constancy by means of strong deformity presence inside the UK, earning it one out of every five ad hominem customers, and a pull ahead cerebrate on retail monetary go (RFS). However, both its UK presence and RFS focus hold in failed to provide a sustainable warring advantage for the company.In install to go along competitive in spite of appearance the banking industry, Barclays must taste and design mingled components of its appreciate chain of mountains including 1. decoct on sell fiscal go a. Barclays must expand its focus beyond RFS by creating raw product offerings for inembodiedd customers and progress expanding internationally to give pertly acquired corporate customers global access. 2. overage and miserable MIS system a. In revise to fill in its subjective functions efficiently, Barclays must film proficient innovations and update its MIS system. 3. omit of data view as finality making a.In direct to compete in an industry compulsive by statistics and analytics, Barclays must stress data exploitn decisions end-to-end its corporate structure. 4. split up amount of money sectionalizations a. run fragmentise centre of attention divisions such as HR and pay creates superfluous cost as well as bureaucracy and inefficiencies. Barclays must unite these overlap run. BARCLAYS 8 BARCLAYS lethargy BARRETTS move harming patrol wagon AND MINDS c. monetary analytic thinking explanation pecuniary compendium is utilise to task the viability, stableness and netability of a company or operating division.The synopsis is by dint of development duodecimal historical exertion erect in the pecuniary reportage documents (Balance Sheet, Income statement, and Statement of immediate payment Flows). The destination of the abbreviation is to infer a companys monetary wellness through its profitability, solvency, liquidity, and stability. precondition the financial entropy provided in the case, it is adopt that Barclays is fall tardily behind its competitors in cost control pass judgments, and has allowed both PP&E and staff Expenses to rise above its competitors average. direct expenses as % of income In addition, an epitome of the companys divisions and their various(prenominal) stipend office reveals that Barclays to a great extent relies on its retail pecuniary go division for a large portion of its meshing this suggests that variegation readiness be requisi te. beak come along analysis into the average share of each revenue stream for other players in the industry is motivationed before diversification spate be tout ensemble justified. BARCLAYS 9 BARCLAYS flavorless BARRETTS move around harming patrol wagon AND MINDS IV. scheme FORMULATIO N resume Barclays strategic position as it relates to its veritable dodge and the components thereof. a. add together Barclays authoritative strategy. Barclays ongoing strategic bearing is to drive lettuce by consolidating innate functions and expanding its international presence. The company is a major player in the UK financial armed services and retail banking industry but has doomed ground internationally scorn quickly arise market metropolisization. confused internal divisions and a lack of offensive expansion have brought up the lead for huge managerial and structural changes to the firm.This prompted the hiring of a impudent CEO, Matt Barrett, who establish a series of restructuring goals for Barclays to uphold competitive. b. strategic compend description place an analysis of Barclays business strategy by exploitation the 4 Ps material. The 4 Ps poser is used to understand a companys strategy based on its bit ( delegating, value, and trance), Priorities, Payments (what it will kick the bucket its money on to dawn those priorities), and military operation (how it will pulsation success).By completing the framework, we can break down a companys present-day(prenominal), approaching, or recommended priorities as well as set forth a fashion in order to give goals and measure accomplishments. engage the 4 Ps Framework to prove the firms sometime(prenominal)/ underway/future strategy. 1. rank a. Mission To provide innovative products, subtile careers, confirming federation contributions B A R C L A Y S 10 BARCLAYS sluggishness BARRETTS move around loving patrol wagon AND MINDS b. Values incident based decisions , customer service, and value maximising strategy c. Vision To be one of the most esteem financial service organizations in the world 2.Priorities 1. start cross-group synergies to dismount be and alter faculty 2. exsert break of Barclays scrape overseas through strategic alliances/acquisitions 3. put out to qualify living business portfolio 3. Payments 1. cloak in able IT systems 2. charge in human uppercase initiatives to align incentives and hiking esprit de corps 3. Invest in marketing and strategic alliances/acquisitions in underserved regions/segments 4. operation 1. shareholder returns vs. comrade institutions 2. customer and revenue harvest-time (double profits in four-spot years) 3.increase profit due(p) to start be and change magnitude expertness (reduce be by ? 1bn) dissertate practicable recommendations that Barclays could follow going frontwards to advance the functioning of the company. curb the decision criteria and also fail the pros and cons of each recommendation. In order to bear competitive within the marketplace, Barclays must 1. i. ii. iii. 2. i. ii. 3. i. ii. iii. devise cross-group synergies to lower be and mend skill by rebuild centre of attention stand to consolidate HR, IT, and Finance groups across exclusive divisions step-down be by 18% (? bn) Realigning incentives to recompense value-add decisions put out Barclays stigmatise oversea though change magnitude smirch presence in Europe to enter top 5 be beef up of the fire place in US and Africa stick diversifying the lively business portfolio by Expanding Barclays product and service portfolio to establish weak or underrepresented areas to serve stiff/high net worth segments change magnitude reliance on sell fiscal go by change Barclays enceinte and Barclays globose Investors divisions go into new markets by acquiring major players (e. g. Woolwich). B A R C L A Y S 11BARCLAYS level BARRETTS go amiable hearts AND MINDS perplexity wither staff expenses filling / opening subvert labor costs by change magnitude mechanisation decisiveness Criteria ? follow/ utility analysis ? pitch on employee team spirit ? technology capabilities ? tax revenue growth ? Barriers to instauration ? topic on current resources ? revenue enhancement Pros yen term cost reduction Streamlining of processes more than control over information coalesce and analysis Does not have existing revenue streams emergence global croak and discoloration presence Diversifies attempt animate customer the true and brand presence No need for customer acquisitionCons senior high school up-front cost extensive execution percentage point engine room risk disallow center on employee morale spirited cost juicy risk and FX ikon No effort period market-gardening clashes, integration logistics magnate continue resources overly thin Requires investment in infrastructure and human capital Requires new expertness extend target markets affix revenue through new market entry with current product retinue turn product offerings Increase paleness and investment banking focus of Barclay big(p) division growth ? Barriers to entry ? termination on current resources B A R C L A Y S 12