Ethical Leadership and Business Strategy

The assignment delves into the crucial relationship between ethical leadership and successful business practices. It analyzes how ethical leadership contributes to good governance and enhances business performance within a dynamic environment. The analysis covers topics like innovation strategies, sustainable practices, and the influence of the business ecosystem on performance. Additionally, it explores how ethical considerations shape business models and strategic decisions.

BUSINESS AND BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
P.1 Different types and purpose of public, private and voluntary sector and legal structures.1
P.2 Size and Scope of a range of different types of organisations.........................................3
P.3 Relationship between organisation function and division and interlink to achieve
organisation objectives...........................................................................................................4
P.4 Identify the positive and negative impact of macro environment has upon businesses
operation of Barclays..............................................................................................................6
P.5 internal and external analysis of Barclay in order to identify strength and weakness.....7
P.6 Strength and weaknesses interrelated with external macro factors................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................11

INTRODUCTION
Business and business environment plays an important role in an organisation to bring
the better perspective to deal with various sources of firms. Barclays is a 325 year old
banking firm which offer multiple product line as retail banking, commercial banking,
investment banking and wealth management. The different types of organisations such as
private, public and voluntary organisation as well the sole trade and partnership firm and with
their size, scope and legal, structure are the key highlight in current report. This organisation
is associated with the primary, secondary or territory sector. There are two organisational
structure that Barclays business clients might have. Also, the relationship between various
organisation's function or division and link to structure and objectives of the firm. The
Political, economical, social, technological, environment and legal are affect the macro
environment. Also, the strengths, weaknesses, opportunity and threat of business specific and
interrelationship with the external and macro factors. The impact of these factor will be
hindrance in the business decision making.
P.1 Different types and purpose of public, private and voluntary sector and legal structures.
The nation growth and development will be based on the various organisations which
are important to bring the economic and social welfare.
Public: These are the organisations in which works with the partnership with government
and supreme bodies which are the important for the various development made in the nation.
It is an incorporated business entity which is managed by the board of directors instead of
shareholder but in the public limited firm, the shareholder can vote for key issues during the
annual general meeting (Naranjo Valencia and Jiménez Jiménez, 2010). However, the public
organisation provides three types of good and service as public, merit and essential. Public
organisation can easily sell there share to the member on the stock exchange and increase the
fund. As Barclays is also a public limited organisation in the finance industry of UK which
have various purpose as discuss below:
Purpose of the public organisations: The main motive of these organisations is balance the
nation economy and contributes in the social development by providing different goods and
services in low cost. While Barclays provide the financial service to the citizen to invest their
money for future or lend money for the business purpose.
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Legal structure of the public firm: They have to issue the certificate of incorporation and
certificate of trading will permit selling its shares to the stock exchange. But the main
decision will be taken by the supreme bodies of the government.
Private organisations: It is an organisation which has separate legal identity from the owner.
Private limited organisation are own by shareholder but there ownership will remain with
small and family run business. In the private limited firm shareholder remains the limited
liability for the organisation debt (Miller, 1988.). This organisation will run by the board of
director and chairmen will be the head of the company.
Purpose of private organisation: The main motive of these organisations is to maximize the
profit of the companies and provide better goods and services to cover the market share for
huge business.
Legal structure of the public firms: The different legal document has to make before the
formation of the private firm in which the most important document are memorandum of
association and Article of association with different detail about the organisation. After all the
process have been done, registrar of companies will issue the certification of incorporation.
Voluntary organisation: It is a non profit organisation which have motive to make the
society better with their contribution in various service during the hazardous situation. The
main purpose of this organisation is to help the poor people for their welfare and
development in the society.
Legal structure of Voluntary organisation: There are four types of the legal structure such
as follows:
 Charitable company limited by guarantee
 Trust
 Charitable unincorporated organisation
 Charitable incorporated organisations.
Sole trader: It is a single entity business which can be form with small amount of funds. For
examples, newsagents, grocery shops and market trader.
Partnership: This are the organisations are made to reduce the burden on trade. A
partnership will be formed with partners, having common objectives. Most of the
partnerships have the unlimited liability for their debt. The limited liability in the partnership
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will be considered when the additional funds raised by the existing partner and not by new
partner.
P.2 Size and Scope of a range of different types of organisations.
The size and scope of the various organisation as follows:
Public organisations: Barclays is a public organisation which has the huge market scope in
the banking industry and financial services. More than 129400 number of employees are
working in the organisation which has the strength of the firm. The number of product as the
Barclays is offering such as retail banking, commercial banking, investment banking and
Wealth management. They key division of the Barclays is Barclaycard, Barclays
inveiglement, banking and wealth management services.
Advantages: The various benefits of the public organisation such as follows:
 This will help to brig the better service to the customer in low price who are not able
to afford the high cost goods and services.
 The economic balance due to the expenditure will be maximise by collecting all the
revenue of the public organisation will spend on nation development and growth.
Disadvantage: Public organisation has various disadvantages such as follows:
 If this organisation will suffer loss, then it will be increase the deficit.
Voluntary organisation: British Red Cross
It is functioning admirably and having solid system around the world. Presently there
are 32500 volunteers the individuals who are working day and night to give quality
administrations to required individuals. It has employed 3500 staff individuals for leading
operations well. It acquires benefit however use cash for altruistic exercises. It is consolidated
by Royal Charter. It embraces framework structure where higher specialists endeavour to
improve correspondence with required individuals (Schaltegger and Wagner, 2017). It gives
them important help on time with the goal that their destinations can be accomplished.
 Advantages: it will help to the people who are not able to make social development
with low level of income.
 Disadvantage: less interaction of these organisations will suffer the increase the
social development.
Private organisation: Mark and Spencer is the private association which gives its
administrations to buyers over the world. Its primary plan is to upgrade its deals and
increment its productivity to incredible degree. It consistently enhances its administrations so
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it can meet with particular needs of target gathering of people. This technique of M&S has
made it the main brand of this industry. It deals with client driven approach which implies it
gives items and administrations according to the requirements of customers (Othman and
Rahman, 2014.). That is the reason individuals are steadfast towards the brand and it can
draw in new purchasers towards the substance.
Its business incomes are expanding constantly, its number of stores has been
expanded since a year ago and general benefit of the substance has likewise raised.
Measurable records demonstrate that last year it has earned £603m net benefit. In the year
2017 offers of the refereed to firm has tumbled by 5.9%. In any case, after that element has
enhanced its administrations and has enhanced its items quality which has expanded its
business incomes to extraordinary degree.
 Advantages: Private organisation will focus to give high quality of goods and service
to the citizen and contribute in the nation development by paying tax.
 Disadvantage: Loss in the private organisation will impact on the economy which
can cause huger unemployment.
P.3 Relationship between organisation function and division and interlink to achieve
organisation objectives.
For each association the best possible structure and capacity have been taken after the
accomplishment of the mission and targets of association. As the Barclays they have been
characterized into various office for their operational work. As they have to convey to set the
best possible progressive system of the association, for example, Finance, HR, Marketing, IT
and operation, data innovation is fundamental division in any association. As these structure
will accomplish organisation’s mission and destinations with their relational relationship in
Barclays with various capacity as follows:
 Finance: For accomplishing the hierarchical target the back division assume the
significant part in an association. As they take the choice with respect to back and
other cost sparing. To designate the financial plan for the distinctive capacity in an
association fund division utilize appropriate methodologies (Elkington, 1994). To
keep up the best possible records of association accounts and to demonstrate the
benefits and misfortune. For each capacity back is the most imperative angles in
association development and improvement. They are interconnected with other
division to raise the assets for operational work or whatever other costs which can be
useful for accomplishing hierarchical destinations and mission.
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 Human Resource: They have significant part in an association to accomplish the
mission and goals. In addition, they set association polices to control the labour and
bring successful result for the association. Enlistment and determination of the
representative in association is likewise done by the human asset division. On the
other hand, if any contentions have been emerged between the workers and
association then it is their obligation to understand that contentions with viable
choices. Likewise, they assume significant part to rouse the workers and they satisfy
the necessities of association to bring the correct labour at the perfect place.
Marketing: For Barclays, showcasing or marketing will assume the significant part in
association to elevate and draw in to the clients with various methodologies of
promoting. They are the income producing office for the BARCLAYS. As they
manage the client, they additionally set the financial plan for advertising for various
ways. Their primary concentrate on relationship working with clients by associating
via web-based networking media and other method of correspondence with client can
be conceivable. To change the patterns and acquire inventive items front of the client
is obligation of the promoting divisions.
 Operation: For the Barclays generation division have the duty to effectively get the
item to the client on time. With better generation group they would products be able
to as indicated by the requests from the client (Teece, 2010). This division will
concentrate on quality generation with the goal that fewer objections will originate
from the customer's side. Additionally, they utilise the association assets in a very
compelling way for better creation should be possible in association.
 IT: It is the most important division for the Barclays which will help to solve out the
issues of technology related such as software and other machinery for the
organisation. Information and technology division has to interlink with other
department to achieve the business objectives.
These can be the most vital angle for the association in which business structure with
all division are interlinked with each other to accomplish business goals. They have one of a
kind structure in which individual and corporate saving money. They have the chief on the
best who take all the choice for the bank. After that, human asset administration will deal
with all the labour and other division is legitimate which will deal with all the enactment
related issues. Fund division have the duties(Othman and Rahman, 2014.). The client officer
is the different division which playing out the card operation, credits operation,
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accumulations, account opening. In this way it is imperative for Barclays to interface the
shopping centre as the division with each other to accomplish the authoritative mission and
target. Besides this, chance that the human asset will procure the better labour in association
the powerful generation can happens. On the off chance that the generation will be better the
advertising office can concentrate on the Customer to deal most extreme items. In such fund
office will concentrate on other cost of all division.
P.4 Identify the positive and negative impact of macro environment has upon businesses
operation of Barclays.
Barclays is considered as one of reputed banking firm which offers number of
banking services. In order to have effective operational values the consideration of macro
environmental factors is also essential. It has been noticed that by analysing macro factors the
issues in terms of operational values can be overcome in desired manner. For effective
analysis of macro factors the Pest analysis is being taken into account. It will provide
information in regard to positive and negative influence of macro environment factors on the
operational values of Barclays. Political: It has great impact on the business firm functioning because banking sector
trading is highly dependent over international market. If UK government is having
impressive relationship, with other nations then foreign investment can be advanced.
It will boost the financial conditions of nation and impact positively on the banking
services (Drucker, 2017). As same, if government increases tax rates and others then
company will have to pay more tax. It indicates that political and government
activities impact diversely over performance of bank. Change in legislation by
government regarding opening new bank branch can also affect the business of
banking services organisation. As same the changes in government, norms in respect
to employment will also force management of Barclays to have changes in its
operational timing in order to meet the government standards. Economic: Changes in economic values also influences the business firm in positive
and negative manner. If GDP of UK is not stable then management of Barclays will
focus on debt control so that better sustainability can be promoted in order to deal
with the inflation. As same, if exchange rate changes and interest rate changes also
affects the business operations in diverse manner. For example, interest rate has been
advanced then company can charge high interest on financial loans provided to
customers.
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 Social: It is also necessary to consider social changes because it also affects business.
For example, customer are more attracted towards educational loans but company is
making diverse standards in terms of home loan then it will decrease the sustainability
because services offered are not according to customer needs. Other hand, customer is
demanding for lower interest on loans then company must try to have control on debt
so that need of customer can be meet in order to promote business. Technological: It is one of most common aspect that influences the operations of
Barclays. If new security systems has been introduced in the market regarding cyber
security then management must invest on such development so that better support can
be provided to clients bank accounts. Proper up gradation in respect to technology
allows to have better security aspects in server. However, it may cost to company very
high which might affect financial sources. High cost may affect the business
development and expansion activities so such decisions must be according to
organisational needs and evaluation. Environmental: Government focuses on number of environmental values so
management of Barclays also need to ensure that paper wastage arrangements within
premises are appropriate. It will also meet the satisfaction level of government as a
stakeholder. If company is not having arrangements properly then it will create legal
issue as well as environmental issues.
 Legal: It is another main important part of macro environment, if government make
amendments in legislation. It means Barclays need to implement such standards
significantly so that better development opportunities can be promoted (Dima,
Grabara and Modrak, 2014.). Violation of legal policies may cause risk of license
cancellation which will also affect the brand values. Improved legal values within
workplace will reduce the risk margin. It will also advance the workplace
environment and ensure that equality factor is also well maintained within practice
prompted by the management of Barclays.
P.5 internal and external analysis of Barclay in order to identify strength and weakness.
There are various internal and external analysis of Barclays which are as follows:
Internal analysis:
Strength: it is the not important aspect for the organisation which will help to set up strong
image as the Barclays has strong brand identity.
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 They have the better record of integration complimentary organisation with the
merger and acquisition. Implementation of effective technology in past ad give
opportunity to the industry for rapid operation.
 High technology of action brought consistence of quality to Barclays good and has
change the organisation to measure up and down (Ramanathan, Bentley and Pang,
2014.).
 Strong brand portfolio: Barclays has invested the high on the infrastructure ans set a
strong brand portfolio.
 Strong free cash Flow: Barclays has huge cash flow that provides resources in the
hands of the organisation to launch new products.
 Good Return on capital expenditure: Barclays, comparatively roaring at execution of
fresh projection and make great return on capital expenditure by building new
revenue.
 Reliable supplier: Barclays has the huge base of certain provider of raw substantial,
therefore it is facultative the organisation to get over any supply chain portion
Weakness: Each and every organisation has the weaknesses which will make the slow
operation or impact on the services. Some weaknesses of Barclay are as follows:
 They are not focusing on the aggressive selling due to strong brand image as their
sales have been increase which has impacted on the firm’s revenue.
 They are not able to integrate the organisation in a various work culture. Due to the
single work culture, Barclays not able to attract the all types of customer as well
employees. These will be impacted on the firm’s performance.
 High attrition rate in workforce: it is another weakness for the firm that is increase
the attrition rate of the organisation as the employees are leaving the firm due to the
negative work culture and less care of the worker.
 Days inventory is high as compared to the competitor: Making the organisation which
will in
Opportunities: The various opportunity has been make the more strong brand such as
follows:
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 Government green drives is also an opportunity for supplier of Barclays’ products by
the state as well federal government contractor.
 New trends in the consumer behaviour will be the opportunity for the organisation
which will help to bring the effective products for the investment (Thompson and
McLarney, 2017).
 Decreasing the cost of transportation due to low shipping charges can be opportunity
for the organisation to boost the profitably and give advantages to the customer.
 Economic of the nation will give high opportunity to reduce the loss incurring the
finance industry.
 New customer can be attracted from the online: As the banking industry give the huge
digitalization will give high customer attraction for increasing the business
performance.
Threat: It is important for Barclays to protect from the various threat which can
damage the image of the firm. As the Barclays has various threat such as follows:
 No regular supply of innovation products: This can be the major threat for the firm
which will be impact on the organisation (Ward, Duray and Sum, 1995.). As they
done focus on the continue supply of innovation products which will take the
competitor advantages of these situation of the firm will break the market of Barclays.
 Changing consumer behaviour can shift the to the competitor which brings the more
adverse situation for the firms as they face decreasing in sales as well revenue of the
organisation.
External analysis: As the Potters five force help to identify the Barclays: external
analysis which can be describe below:
 Threat of New Entrant: For the new entry in the banking industry is not easy but the
new entrant will come up with innovation in the industry. But the huge pressure on
the Barclays bring the loss on the organisation. It is important to Barclays that have to
focus on the innovation produce to stop the threat from the new entry in the banking
industry(Roper and Davies, 2010).
 Bargaining power of Supplier: This can be major weakness for the organisation as
the bargaining power of supplier is huge due to the number of competitor are
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available in the banking industry which will be the major hindrance for the Barclays.
As the supplier will dominant the organisation which will brings the adverse situation.
 Bargaining Power of buyer: This can be the the major threat from the organisation
as the buyer are the high demanding and the organisation will take the advantages 0f
the firm. It is important for the organisation to build the relation with the customer to
provide the effective products will be benefits to the firms to increase the sales and
maximise the profits (Popescu, 2013.).
 Threat of substitute goods and services: This can be the major hindrances for the
organisation as the competitor provides the substitute good and service have threat in
terms of shifting the customer towards them which brings the less profit for the
Barclays.
 Rivalry among the existing Competitor: This can be another weakness for Barclays
due to high competition into the existing player. They brings down the market share
of the firm. The price war will be started among the all organisations which will
reduce the profitability of the firms.
P.6 Strength and weaknesses interrelated with external macro factors.
Strengths and weaknesses of business environment are most important factor to help
increase the level of performance. Management have to focus on strength of the company
and guide to remove weakness of organisation. Relation between macro surroundings'
element and structure strength and imperfection are as follows :-
 Economic factor: - In economic factor is change in interest rate and inflection
exchange rate is give positive impact if the organisation challenge on is strong in
financial streams. Company it should have focus on face to face in working
environment. Challenge rise due to change in economic factor (Chang, 2016.).
 Political or legal factor :- In political or legal factor is mostly same. Change in rules
and regulation and polices and change in economic policy is give impact on
performance in working environment. In legal challenges company is focus on
expertise staff in working condition.
 Social and culture :- In social and culture factor organisation should have good staff,
viable financial resources and natural resources. Company should have posture of
carry through consumer taste sensation as per the request in market is give optimistic
impact on it.
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 Technological factor :- As the technology is most important factor for organisation.
To change in technology is give positive impact on performance and taste and
preference of the customer. New technology is help to attract the customer. But some
time change in technology is give negative impact on performance on work and
increase cost and reduce profit in market. It is good if the company is had good
financial resources in market and help to increase the level of performance in
market(Eifert, Gelb and Ramachandran, 2005).
 Environment factor :- In environment factor All business concern system use natural
beginning for supply product and employment. For illustration if institution business
wooden piece of furniture then it has to follow situation laws and not miss use to
natural resource in market. It is give positive impact on the performance in market
and help to increase the demand in market.
The various kind of social factor will help to increase the level of performance and reduce
growth rate in market. But some time macro factor is help to increase the level of
performance and maintained he growth rate.
CONCLUSION
From the report business and business environment it is inferred that it will bring the
adverse impact on the organisation. As the the political, economic, Social, Technological,
Environment and legal can be easily identify the external environment of the Barclays. The
various organisation such as British red cross society and Mark and Spencer also play an
important role in the nation growth and development. The major weakness of Barclays is
rivalry among the existing competitor from the potter five force analysis suggest the less
profitability in the firm. Moreover, it has been elucidated that in order to achieve the business
objective of organisation, it is important to interlink all the divisions.
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