Barclays Strategic Analysis

Topics: Bank, Financial services, Commercial bank Pages: 18 (6096 words) Published: May 17, 2011
Barclays Strategic Analysis |

Barclays Bank HQ, Docklands, London

Page No
History of Barclays 3
Company’s Structure, Planning and Control4
SWOT Analysis 5
Five Forces Framework 9
The PESTEL Framework 11
BCG Matrix 13
Competitive Advantages 17
Present and Future Strategies 17
Conclusion 19

Barclays Strategic Analysis

In this report – Barclays Strategic Analysis, we shall investigate the strategy of Barclays plc over the past few years within a financial services sector generally and banking sector particularly. We will provide information about its nature of business, size, and structure. Using some analytical tools such as SWOT, PESTEL and BCG, we will analyze the strength, weakness, areas of potential vulnerability and environment within which Barclays operates. After revealing its core competencies, sustainability and present strategy, we will then make our own assessment for the way forward for the company’s future strategies. Finally, we shall recommend some improvement in their existing strategy to cope successfully in future business environment. Barclays financial services group traces its roots approximately 300 years back in the United Kingdom (UK). It started out first as goldsmith bankers and expanded through acquiring local banks and after that moved on internationally. Between 1905 and 1918, Barclays extended its branch network by making acquisitions of small English banks to increase its market share and profit. During this period, Barclays’ all strategies were about to increase its ability to perform effectively and become “big bank for a big world” (Barclays – Company History). After the acquisition of different banks in UK, Barclays had reached its maturity stage within UK and then moved to look opportunities overseas. In 1984, Barclays posted record profits and the following year, Barclays Bank and Barclays Bank International merged to form Barclays PLC (Barclays – Company History). New millennium started with company's takeover of Woolwich. In 2003, Barclays bought the American Credit Card company Juniper Bank and rebranded it. In 2005, it acquired 54% stake of Absa Group Ltd S.A. The next year Barclays purchased the HomEqServicing Corporation and also acquired financial website Comparetheloan. (BBC News – 20.09.08). Barclays is one of the world’s leading banks now; it moves, lends, invests and protects money for over 42 million customers worldwide with 135,000 employees in more than 50 countries and supports more than 3600 branches worldwide. Its operations include personal financial services, corporate banking and asset management for wealthy individuals. Barclays Woolwich is a leading mortgage lender and Barclaycard is a foremost credit card issuer in Europe. US-based Barclays Global Investors is one of the world's largest asset managers. Barclays Capital handles foreign exchange, derivatives, and fixed-income business. Barclays plc also runs one of the UK's largest online banks (Barclays Business Review, 2007).

Furthermore the group is organised into Global retail and commercial banking, Investment banking and Investment management. Global retail and commercial banking comprises UK retail banking, Barclays Commercial Bank, Barclaycard and International Retail Banking. While the Investment Banking and Investment Management comprises Barclays Capital, Barclays Global Investors and Barclays Wealth.

Forming a structure for a business or a company is a very important part for the success of any organisation. An organisation’s structure affects its people’s behaviour, their roles, interaction, way of communication and knowledge they exchange within the organisation. The multidivisional structure of Barclays plc enables the organisation to compete in an intensive competitive and highly consumer bargaining...
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