Table of Contents
Barclaycard Case Report and Summary
oInternal Current Performance
oInternal Long-term Performance
•External Environment Analysis
oPorters Five Forces
oExternal Factor Analysis
oIndustry Analysis (Porter)
•Internal Environment Analysis
oInternal Factor Analysis
oOrganization Key success factors
oResource Based Model Analysis
oValue Chain Analysis
oBCG Growth Matrix
Justifications and Strategy Choice
•Strategy Analysis (Pro’s & Con’s)
•Selection of Strategy
Action/ Implementation Plan
Barclaycard Case Report and Summary
The case study looked at the credit card market in the United Kingdom specifically looking at the Barclaycard from inception to the year 2003. The case presented before us is an illustration of the nature of the credit card market in the UK from one perspective and in this analysis, information from third party sources was carefully selected an utilized to enable the improved strategy formulation through the triple loop (emergent) model. This model fundamentally looks at an outside the box solution to the organizations situation and not necessarily the tightening of controls of strategic change.
The task at hand is therefore to identify Barclaycards previous strategies post the 2003 period from external sources and to formulate a new overall strategy that the organization can adopt through the careful implementation of strategic management tools, their analysis and justification leading to a carefully developed action plan for the company.
The analysis that is undertaken in this paper follows the triple loop strategy framework whereby, it is the emergent approach to case analysis that focuses on outside the box organizational strategies. Grinyer and Spender (1979) suggested that when organisational performance is less than satisfactory, its managers will first respond by tightening controls. If this does not work they will then examine the structure and/or strategy and make changes finally if this is not sufficient adopt a complete organizational strategy overhaul.
The following steps were taken in the triple -loop learning approach to strategy:
1. Critical issues
•Barclaycard was carefully evaluated along its financial performance for a period not less than four years prior in order to evaluate its position in as far a bottom line performance was concern. •The organizational customer performance was then evaluated including the internal current and long term performance which provided vital input on the potential directional strategies the organization can take up. One of these was found in the low income market share where Barclaycard has not tapped into. •The environment surrounding the organization provides the opportunities and threats that the organization must deal with in order to penetrate the given markets and this is made possible by maximising the organizational strengths and minimising its weaknesses. Careful internal and external analysis was carried out revealing potential in adopting new technologies and pulling out of failing markets in certain regions.
Listing strategic recommendations to address problems
•In order to put the extensive information that was gathered into perspective a well detailed SWOT analysis was developed followed by a comprehensive TOWS Strategy that enabled the formulation of various strategies that would deal with the diverse circumstances surrounding the organization. •These potential strategies were combined with those developed from the use of other tools such as the resource based model and the...