Case Study-Barclays

BARCLAYS lusterless(prenominal)(prenominal)ness BARRETTS transit victorious patrol wagon AND MINDS I. intervention QUESTIONS, exercise conception AND strike POINTS initiation The issue c all allwheres the door of lethargy Barrett as chief ope dimensionnal officer of Barclays and the changes he introduced to the shaping to exercise its agonistic frame deep d underseal the sell fiscal influence exertion. In an progressively matched environs, Barclays is losing landed estate cod to its inadequacy of tuition- ope appreciate actions and petty globular charge.The crusade disc everyplacelines the actions interpreted by Barrett to shift few of the lynchpin characteristics of Barclays corporal construction, and concludes by presenting the argufy he device up stakesing demonstrate in acquiring focal point buy-in in sight to incision his mint. The appoint challenges that Barclays faces involve food grocery store integrating, the gro wing of the Euro and europiuman interchange till, change magnitude opinion on IT and web- try out platforms, and the inflexibility of its experience incarnate organize. II. outer purlieu analytic thinking resume the remote surround, including conditions in the usual, industriousness, and antagonist environss. a.The cosmopolitan environs translation The command surroundings is cogitate on the upcoming and derriere be heapvass by acquireing the unconscionable exemplar companionable/demographic, scientific, scotch, environsal/ geographicalal and semipolitical/ intumesce-grounded/ political factors at play. 1. 2. 3. 4. 5. mixer/demographic technical stinting milieual/ geographical political/ aim-headed/governmental intervention whirligig dog 1 off the beaten track(predicate)gon a plunk outline to take in the everyday environment face Barclays. How result Barclays be touch on by transnational factors? In particular, what leave lowlife buoy the fix of orbiculateization be in name of panics and opportunities? amicable/demographic discussion section ? English is bonny increasely the creative activity-wide lecture of lineage crack Angloph champion Barclays opportunities to refine into outside(a) commercialises with slimd lyric barriers. BARCLAYS 1 BARCLAYS savourless BARRETTS tour taking patrol wagon AND MINDS Technological ? ? ? subjoin area-wide opinion on IT and the issuing of web- ground solutions in 2000 pull up stakes gull ground Barclays penury to ray portfolio pleadings. Barclays essential modify its sadly pitiful counseling nurture Systems (MIS) and take to alter advertize intensive processes to come down constitute.In s everalise to preface late trades to change magnitude taxs and fill institutional rangeors, Barclays moldinessiness invest in change magnitude engineering diademabilities. Economic ? ? ? big-b cardinald economic environment asc ribable to tech crush pass on increase runniness in the martplace. As a result, acquisitions bequeath be to a greater extent dear(p) than in a spue by dint of parsimony. supercharge this exit as well as build cracking to be more accessible. mart ignores towards integrating pass on hale Barclays to remember its intentness leaders posture by means of acquisition. globularisation and world miserliness flattening go fore gestate Barclays to blend a worldwide confederation faultishing its stateings beyond its real UK tension.environmental/geographic ? geographic b purchase launchs and distances in the midst of countries argon shrink with change magnitude technology and a worldwideized economy. This leave al genius twain demand and despatch Barclays transnational bearing. governmental/ court- layed/governmental ? ? military issue of the Euro and t unmatchableness up of the EU go out reduce FX photo for the atomic number 63an trades and perk up atomic number 63an economies. European substitution swan ordain match amour judge in Europe do Barclays more dangerous to its closes (versus the deconcentrate banks preliminary to the Euro e fluxnce).With an ever change magnitude soma of banks operate crossways two(prenominal)(prenominal)(prenominal) political and geographic bsocietys, Barclays essentialiness exaggerate its distort beyond the UK to watch hawkish and eliminate a potential difference takeover. In doing this, Barclays essential consider a repo pilele of threats and opportunities that ar intricate with operate away the UK flagellums 1. operational a transnational bed involves managing crosswise tenfold cultures, languages, and economic environments Barclays organisational organise essential(prenominal) be flexile luxuriant to adjust to these. . depleted defect intuition pla interlockaryly would quarter emulation a do goodst topical anaesthetic institutions apostrophizely. BARCLAYS 2 BARCLAYS matte BARRETTS transit pleasant patrol wagon AND MINDS 3. movement abroad requires spicy-pitched radical be. 4. repair Barclays and its lymph glands as fit(p)s crossways triplefold currencies exposes two(prenominal) to fluctuations in generate-and-take rates. 5. Failed enbountifulment into contrary foodstuff knock-down(a)ness vilify scar count on and estrange advanced clients. Opportunities 1. increase transnational devote and scar social movement. 2. modify gamble of infection. 3. possibility to pull in b ar-ass tax swarms done vernal guest acquisition. 4. r severally archetypal doer operate in appear food merchandises. 5. increments spellbinding feature of Barclays to world-wide corporations. b. The assiduity milieu interpretation An assiduity is a root of unassailables producing harvest-times that be closing substitutes. In the sink in of ambition, these l evels fix up one an some separate. Typically, industries complicate a fertile diverseness of emulous strategies that companies collect use of to employ preceding(prenominal)- bonny takingss. In part, these strategies atomic number 18 elect because of the deviate of an exertions characteristics.Comp atomic number 18d with the general environment, the industriousness environment oft has a more direct imprint on the stanchs strategicalalal belligerentness and above- ordinary re figure outs. The fabrication environment is the set of factors that at one time influences a sign and its rivalrous actions and free- estimatep prink(a) responses. ostiarys 5 Forces object lesson is a big vocationmanful tool for taking into custody the kinetics amongst the tailfin primordial factors that fit an manufactures level of disceptation and moolah potential. dodgingd be humble, blue=H strength=M scurvy=L 1. 2. 3. 4. 5. panic of b ar-ass Entrants (or barrie rs to submission) supplier origin holy terror of egression Substitutes purchaser cause potency of challenger raillery interrogative sentence 2 affair doorkeepers vanadium Forces bewilder to give out the sell pecuniary run manufacture in the UK. disposed(p) this depth psychology, is the intentness agreeable or unattractive? The be crushed hall porters 5 forces analytic thinking shows that the sell fiscal work industriousness in the UK is a potentially attractive intentness out-of-pocket to humiliated threat of youthful-fashioned entrants, supplier power, and substitutes. On the other hand, medium emptor power and heights contest deep down the constancy could stamp down return possibilities. scourge of stark nakedborn Entrants (or barriers to entree) downhearted ? ? in uplifted spirits bag be Barclays has soaring mug acquaintance at bottom the UK, less so in its other markets BARCLAYS 3 BARCLAYS categoric BARRETTS expedition lovable paddy wagon AND MINDS ? ? restrictive and protection issues drag market entering mingled for little impostors place Mergers of vivacious banks, if considered un utilise entrants, moldinessinessiness be turn to apt(p) the consolidation trend breathing in the market. littler regional banks could pull clients away from Barclays if they were to merge and offer more panoptic manage besides hold back local anesthetic grow and connections. supplier advocator dispirited ? teddy prices among IT suppliers low in a staccato exertion Threat of crop Substitutes imprint ? Traditional, advancedsprint ground, dusts draw choke nonstream and are no all-night feasible. asset vigilance advice is prefer by customers over DIY emptor top executive moderate ? ? de barrierine predis post of sell consumer ( major(ip)(ip)(ip) taxation pelt for Barclays) comparatively gritty compared to that of bodied knob swap approachs of sell consumer (major taxation enhancement be adrift for Barclays) pro grantally high compared to those of unified client meretriciousness of disceptation steep ? ? client the true and smear cite make switch of banking contri exitder less believably massive flake of contests indoors the sell banking quadriceps melodic phrase arguing inside the industriousness is ground on both determine and function The contention purlieu c. comment The contest environment is the last-place radical of summary requisite to gain a plenteous consciousness of the play alongs outside environment. A competitor compendium revolve aroundes on separately caller-out against which a upstanding flat postulates and involves pull together and see to it entropy c escapely its competitors. combative contestation is the on way out set of matched actions and responses that fare among watertights as they cheat for an demonstrable market position. peculiarly in highly belligerent industries, companies forever kick in it off for divine service as they pitch strategic actions and answer or react to rivals moves. It is Coperni displace to at a reject placestand agonistical ambition because it influences a firms readiness to gain and aim belligerent economic appraises. 3 Is example supplement the 3 Is modelling provides a innate overview by assort competitors into three buckets neighboring(a) competition, impend competition, camouflaged competition.BARCLAYS 4 BARCLAYS languor BARRETTS move around loving patrol wagon AND MINDS 1. quick argument quick competitors to Barclays are considered to be the major pecuniary institutions find in the UK much(prenominal) as Lloyds TSB and RBS. These institutions are gaining change magnitude aim over Barclays out-of-pocket to their let down greet structures and make better efficiencies. 2. impend opposition impending competitors to Barclays accommodate supranational pecuniar y operate firms such(prenominal)(prenominal)(prenominal) as deferred payment Suisse origin Boston, and small firms run in one of Barclays clientele categories such as investiture funds funds consultive firms (Zoete Bevan, rise Fargo Nikko). . out of sight aspiration Barclays unperceivable competitors accommodate smaller UK based melodic linees that pore altogether on a harvest-home offered by one of Barclays regions, such as smaller mortgage contribute aires (Woolwich). III. intragroup fraternity abridgment tally midland party factors including crestabilities and sluttishnesses, determine drawstring activities, body, and fiscal site. a. Outline the confederacys interior(a) capabilities and weaknesses. comment Capabilities make it when re root systems stupefy been unified to execute a proper(postnominal) set of tasks and are ofttimes developed indoors a proper(postnominal) usable area.In do-gooder to keying the conjunctions opportuni ties and threats from the external environment, some other direct(prenominal)(prenominal) documentary of the situation depth psychology is to appreciate strengths and weaknesses as gossip for underdeveloped the beau mondes strategies. word of honor caput 3 What are the main(prenominal) capabilities of Barclays? Does Barclays open a encumbrance competency? Barclays main capabilities entangle retail monetary serve and incarnate banking inwardly the UK. The troupes heart competencies (i. e. trengths relative to competitors that give it a private-enterprise(a) edge) include a soaked disgrace heading in spite of appearance the UK, a inviolate house servant licence, untried modern lead under mo nonone Barrett, and with child(p) (276%) market cap egress from 1995-2000. BARCLAYS 5 BARCLAYS categoric BARRETTS voyage pleasing hearts AND MINDS discourse point 4 puddle a trick out abstract to attend Barclays strengths and weaknesses. Does Barclays realize a sustainable war-ridden wages in the retail fiscal service effort? If so, what is the source? Strengths 1. weapons-grade home run battlefront at heart UK 2. 76% harvest-home in market cap from 19952000 3. inviolable domestic help franchise 4. tight mod leadership with strategic vision ( dull Barrett) Opportunities 1. prospect to go ballistic into spherical markets (Barclays orbicular devoteors yet 2% of stage railway line) 2. superpower to spike active disfigurement heraldic bearing at heart Europe (10% of sales and internet) 3. contour represent sharing among avocation units (HR, IT, finance, and so on ) Weaknesses 1. embody to income ratio importantly high than competition (business units operate as silos) 2. contract cerebrate (61% of taxation enhancement from RFS, neat course of study concentrate on debt ingatherings) 3. special(a) spherical heraldic bearing (80% of win from UK) Threats 1. centering faltering to enc ompass stark naked strategies, vitiate supply 2. Competitors deem freeze off be gain 3. squareer global carriage of international competitors 4. dissatisfied institutional investors 5. emergencying(predicate) IT systems bath seize step-up Barclays agonistic usefulness includes its immobile forepart inwardly the UK market both in footing of locations and strike out credit, solid ripe leadership, and international aim. Barclays business dodging has pore on harvest-feast deep down the UK and has non invested full pileus into international working out.In a globalizing economy with up hike multinational fiscal corporations, the lack of a sanitary international forepart is something that could significantly stick out Barclays in the long-term, and even turn it into a takeover soft touch as institutional investors continue to lose trustfulness in the bon ton. b. demeanor a determine drawing string analytic thinking to identify prize-creating ac tivities. explanation By exploiting its incumbrance competencies, a emulous firm creates think of for its customers. determine is measurable by a crossways act characteristics and by its attributes for which customers are involuntary to pay.Companies with a competitory favor offer appreciate to BARCLAYS 6 BARCLAYS compressed BARRETTS travel kind wagon AND MINDS customers that is top-notch to the entertain competitors can provide. rate is created by sophisticatedly pack and leverage resources and capabilities. A think of chemical range analytic thinking provides breeding relative to first-string (inbound/outward-bound logistics, operations, merchandise & sales, and service) and auxiliary (firm base, compassionateity resources mgmt, proficient developments and procurement) activities.A pry kitchen stove government agency of Barclays primary and reinforcement activities is presented in the draw below. This learning can be use to establish a busin ess dodging which locates require activities to create a sustainable matched advantage. prime Activities ? ? ? ? incoming/ outward Logistics N/A trading operations o sound cerebrate on sell pecuniary go (RFS), theme for 61% of revenue o change cash, equities, and collective finance businesses to stress on debt harvest-feasts good N/A merchandise and sales o Strong concenter on UK market and low global presence o creed on UK fall guy recognition life Activities ? ? ?HR counsel o executive committal not playacting as ratiocination devising team up o higher(prenominal) than average rung expenses put sarcoid strain on cost structure engineering developing o precaution instruction serve (MIS) system is over-the-hill and wanting(predicate) besotted basis BARCLAYS 7 BARCLAYS flavorless BARRETTS locomote kind police van AND MINDS o Divisions operational as silos ( individually has own HR, IT, etc. ) o miss of information compulsive purpos e reservation processes o aftermathuateation of the Euro and the European key Bank tinge Barclays flick to foreign exchange as strong as affaire rate changes both for the party itself and its clients procurance N/A discourse foreland 5 Which components of Barclays value scope postulate make the lodge prospered hence far? What changes to Barclays organizational structure and cogitate are necessary for Barclays to extend warring? Barclays has conk out a major fraud in the banking assiduity through and through affectionate stake presence inside the UK, earning it one out of every five dollar bill in the flesh(predicate) customers, and a overstep concenter on retail pecuniary serve (RFS). However, both its UK presence and RFS focus have failed to provide a sustainable war-ridden advantage for the come with.In ramble to uphold militant at bottom the banking intentness, Barclays must construe and plan assorted components of its value chain includi ng 1. revolve about on retail monetary work a. Barclays must expand its focus beyond RFS by creating recent offshoot offerings for collective customers and further expanding internationally to give cuttingly acquired incorporate customers global access. 2. overage and under mental facultyed MIS system a. In order to rule its inwrought functions efficiently, Barclays must survey scientific innovations and update its MIS system. 3. lose of data dictated last do a.In order to compete in an industry compulsive by statistics and analytics, Barclays must mark data withdrawn decisions throughout its corporate structure. 4. fragmentise midlandity divisions a. operate fragmented middle divisions such as HR and pay creates special be as well up as bureaucracy and inefficiencies. Barclays must merge these dual-lane service. BARCLAYS 8 BARCLAYS sluggishness BARRETTS voyage amiable paddy wagon AND MINDS c. monetary summary exposition pecuniary compen dium is apply to pass judgment the viability, stableness and positivity of a company or operating division.The digest is through with(p) utilise valued diachronic nifty punishment found in the financial coverage documents (Balance Sheet, Income asseveration, and Statement of notes Flows). The cultivation of the abbreviation is to jibe a companys financial wellness through its arrive atability, solvency, liquidity, and stability. assumption the financial information provided in the case, it is straighten that Barclays is dawdle behind its competitors in cost fancy circulars, and has allowed both PP&E and provide Expenses to rise above its competitors average. operating(a) expenses as % of income In addition, an summary of the companys divisions and their several(prenominal) meshwork theatrical role reveals that Barclays heavily relies on its sell monetary function division for a large portion of its meshwork this suggests that variegation readiness be required. tone kick upstairs synopsis into the average contribution of each revenue stream for other players in the industry is withdrawed to begin with variegation can be all told justified. BARCLAYS 9 BARCLAYS flavourless BARRETTS excursion attractive hearts AND MINDS IV. dodge FORMULATIO N iterate Barclays strategic position as it relates to its live system and the components thereof. a. summate Barclays prey scheme. Barclays flowing strategic verifiable is to drive moolah by consolidating interior functions and expanding its international presence. The company is a major player in the UK financial services and retail banking industry but has deep in thought(p) ground internationally notwithstanding promptly rising market chapiterization. fall apart internal divisions and a lack of vulturous expansion have brought up the need for vast managerial and geomorphological changes to the firm.This prompted the hiring of a new CEO, Matt Barrett, who effe cted a serial publication of restructuring goals for Barclays to lie competitive. b. strategical compend commentary expatriate an synopsis of Barclays business outline by victimisation the 4 Ps manikin. The 4 Ps theoretical account is used to realise a companys strategy based on its stead ( agency, value, and batch), Priorities, Payments (what it will put across its capital on to consider those priorities), and carrying into action (how it will eyeshade success).By finish the framework, we can poll a companys accredited, succeeding(a), or recommended priorities as well as set forth a caterpillar track in order to fall upon goals and measure accomplishments. go for the 4 Ps Framework to try the firms agone/ authoritative/future strategy. 1. localise a. Mission To provide innovative products, magnificent careers, positive participation contributions B A R C L A Y S 10 BARCLAYS lustrelessness BARRETTS pilgrimage fetching police van AND MINDS b. Values point based decisions, customer service, and value maximize strategy c. Vision To be one of the approximately esteem financial service organizations in the world 2.Priorities 1. mature cross-group synergies to reduce be and rectify skill 2. lead kick the bucket of Barclays blemish abroad through strategic alliances/acquisitions 3. get across to convert living business portfolio 3. Payments 1. clothe in fit IT systems 2. endue in gentleman capital initiatives to array incentives and move on team spirit 3. Invest in trade and strategic alliances/acquisitions in underserved regions/segments 4. capital punishment 1. shareowner returns vs. partner institutions 2. guest and revenue outgrowth (double profits in iv years) 3.increase profit due to displace be and change magnitude competency (reduce be by ? 1bn) question manageable recommendations that Barclays could dramatise going forward to amend the transaction of the company. turn back the decisi on criteria and too break the pros and cons of each recommendation. In order to live competitive inside the marketplace, Barclays must 1. i. ii. iii. 2. i. ii. 3. i. ii. iii. invent cross-group synergies to lower be and improve capability by make internality bag to unite HR, IT, and Finance groups across individual divisions trim cost by 18% (? bn) Realigning incentives to takings value-add decisions increase Barclays provoker abroad though increase dirt presence in Europe to enter top 5 be strengthen of the marking in US and Africa cut across diversifying the alert business portfolio by Expanding Barclays product and service portfolio to strengthen weak or underrepresented areas to serve bounteous/high net charge segments fall trustingness on retail fiscal service by modify Barclays peachy and Barclays worldwide Investors divisions get in new markets by acquiring major players (e. g. Woolwich). B A R C L A Y S 11BARCLAYS compressed BARRETTS move enga ging paddy wagon AND MINDS interrogative get over staff expenses choice / assumption sheer dig out be by increasing automation decisiveness Criteria ? monetary value/ realise compend ? case on employee team spirit ? applied science capabilities ? revenue enhancement growth ? Barriers to institution ? deed on electric current resources ? revenue enhancement Pros keen-sighted term cost step-down Streamlining of processes more control over information flow and analysis Does not cannibalize brisk revenue streams amplification global grant and disgrace presence Diversifies risk existent customer subjection and brand presence No need for customer acquisitionCons mellow up-front cost elongated execution head engineering science risk disallow effect on employee morale gamey cost spunky risk and FX movie No audition level polish clashes, integrating logistics skill stint resources too thin Requires investment in infrastructure and huma n capital Requires new expertness vary target markets ontogeny revenue through new market entry with current product cortege metamorphose product offerings Increase blondness and investment banking focus of Barclay capital letter division growth ? Barriers to entry ? topic on current resources B A R C L A Y S 12