Analyzing the Business Environment of Barclays

This assignment examines the external business environment impacting Barclays Group. It explores both macro-environmental factors (political, economic, social, technological, legal, and environmental) and micro-environmental aspects like competitors, customers, suppliers, and industry regulations. The analysis delves into how these factors influence Barclays' strategies and operations, identifying strengths, weaknesses, opportunities, and threats.

BUSINESS
ENVIRONMENT

INTRODUCTION
It is essential for all company to understand about their surroundings wherein they are
running their commercial actions. This has been recognised that different factors are present in a
business environs and used to give a huge effect on overall facets associated with unit of a
corporation, cost of merchandises, its position, arrangement, regulations, etc. Therefore, it would
be stated that development and success of an enterprise depends on acceptance of business
environs in which it operates (Iskanius and et. al., 2010). This includes external and internal
factor that are beyond control of every firm & comes as a obstructors and used to hinder their
functionalities. Such components are workers, users, government, suppliers, technology , social
group and many more. These elements is impacting a lot on process of taking decisions of
corporation in both ways directly and indirectly. The current project is designed on the basis of
BARCLAYS . Working of various types of organisation is going to be described in this
assignment. Apart from this, discussion will also be done on their different aspects like size,
ranges and legitimate structures. Additionally, for identifying the impacts of macro as well as
micro environment, pestle and swot analysis has been carried on respectively.
TASK 1
P 1. Several types of venture and their intention
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Public sector : Each of those firms which is run as well as control by government body used to
fall under this category. Such companies has been manufacturing products and services for the
civilians at cheaper rate so that each and every section of social group whether they are wealthy
or poor take benefits of products and facilities offered by them. In United Kingdom, there are
various public sectors ventures.
BARCLAYS is a public based bank which are offering services related to banking and finance to
the citizens of UK. Its operating revenue is recorded as approx. £3.230 billion and has made a
profit of around £2.828 billion in the year of 2016. Its headquarter is situated in London, United
Kingdom and was founded on 17th November 1690 in the city of London.
 Barclays Purpose : The main aim of this enterprise is serve common people so that they
can survive easily in country. It is to be noted that they are not keen interested in making
large sum of profitability like those of private corporations. The main purpose of these
kind or company are to provide employment and do social work fro the society such as
CSR activities etc.
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Legal structure – The administration of public sector company is separated on the ground of
respective areas such as local authorities, central governance, state government, etc. the which is
stated below :
 "Central governing system" includes of all administrative divisions of specific state and
other central units. Their obligation is to cover the entire region of a nation, excluding
the governing body of societal security funds.
 "State government" refers as an isolated institutional sector which is used to exercise
several government functions. It is to be noted that those bodies that comes under central
government are having more power and duties which are present at local governance
level.
 "Local government" includes of each kind of public governing body which has having
the duty to cover only a localised portion of the economic area, isolated from local
authorities of social security funds.
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Domino's pizza is considered as one of good instance of private sector firm. It is an American
pizza restaurant chain which was established in 1960. Its headquarter is situated at Ann Arbor,
Michigan in United State. From a survey, it has been founded that around 14100 work – forces
were present in enterprise – owned offices and stores. At the same time, approx. 29000 workers
were existing in its franchises in the yearn of 2017. They are earning nearly US$ 214.68 million
in identical time period.
Purpose : The primary aim of this company is to offer several types of food materials like Pizza,
Pasta, Chicken wings, Submarine sandwiches, Dessert, etc. to their potential consumers at
affordable prices in comparison to others. They wish to expand their business in all over the
world and earn high sum of profit from the same action. The main purpose of these organisation
are to earn profit
Legal structure : The licit model of private sphere firms has been grouped into various section
like limited companies, partnerships , sole traders and dealership or franchise.
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 Partnership – These are the type of business which is basically formed by two or more
individuals for the accomplishment of their target objectives and goals. For this business
pattern, they both are sharing equal liability, risk and profit as well. The profit and los has
been decided equally between each employee or on the basis of their capital.
 Sole propritors – These kind of businesses are basically set up by an individual. Their
main objectives is to getting desired growth. For this, they creates targt strategy to
surviving in target market.
 Limited companies – In these companies liability of employees has been determine as
limited. These organisations have separate legal entity by their owners.
Voluntary sector : This sector is variant from both of private & public since having some
different goals in relation to those. These involves all companies in which group of individuals
named as volunteers take part in providing social services to citizens of UK for accomplishing
particular social purposes. They try to decrease the issues of common people and provide them
basic services like food, water , clothes, shelter, care and many more to needy person. Oxfam is
treated as an example of this voluntary division.
Purpose : The primary motive of such ventures is to meet economical as well as social
requirements of whole communities of a country but particularly to weaker section. The main
purpose of these enterprises are to provide employment to the people and maintain their living
standard.
Lawful structure : Board of director is considered as committee member of this kind type of
association who are consisting the power of taking all significant decisions. They also set up
structure of operative activities. Volunteers are those personnel who generally obey as well as
abide the paths directed by participated committee associates.
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P 2. Scope, size & range of various types of firm
The scope and size of different types of private corporates are described as follows :
Sole traders : These kind of ventures is operated by single person comprising of liabilities
associated with taking care of their all hazards which are linked with commercial activities.
Scope : This main scope of such type of enterpriser is to earn or generate high sum of
money from their investment for enlarging already existed branches.
Size : This is midget in context of sizing and comprises of minimal number of store or
outlets.
Partnership : It is that type of business which is being run by more than one partner and
common sharing of work loads, profits as well as losses are done in this scenario.
Scope : Members or partners believe in making high profitability and distributing the
similar in each of the individuals.
Size : It is of medium size since dominated by more than one owner.
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Stakeholders affiliated with the organisation – The key stakeholder associated with the private
organisations are following : -
Worker – They are having the duty to perform appropriately for accomplishing day – to - day
assigned chores. Accomplishment of tasks may need an effectual group and thus workers should
have impressive interpersonal abilities. Employees have to be aware about the regulations and
norms of their company.
Consumers - They help firms in determining about their products and services to be
manufactured on the basis of their requests. They also aids Barclays in identifying about
dynamical tendency of contemporary marketplace and hence they can ready themselves for
upcoming needs and requirements of civilians.
Owner - Heads of company provide assets that are necessary for commerce in order to operate
it in efficient style. These involves the occupation of personnels, recognising appropriate
premises and obtaining machines, equipments and raw commodities as well.
Public sector's corporation size and scope : As these firms are regulated by legal bodies, so
their sizes quite larger. For instance, Barclays is a British international bank having around
119,300 workers in the year of 2018. They are operating in more than forty nations. The primal
scope of this venture is to serve large population of country in order to improve their living
standards.
Stakeholder of public sector venture are -
Government - It is used to regulate business affiliated actions in order to support consumers.
Governing bureau is assuring the product's regulations and norms too which is fit or appropriate
to affirm the security of customers’ fundamental right.
Society - The societal group usually used to set out business actions in correct path by making
them intended about their impacts on people surviving in a society. They used to write
applications to specific enterprise and different associate of media and try to express their
feelings with the assistance of them.
Voluntary sector's scope and size : This is also named as charitable associations which are also
of moderate sizes. Where as this is not compulsory, it would be small or large in few situation.
For example, Oxfam is a famous NGO that comprises of roughly 51 stores and employing
around more than 3000 staffs who are helping to aged, misfortunate and those child who are not
having guardian to feed them.
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Main purpose or scope of this kind of institutions are listed below :
 Primary goal of this venture is to perform social welfare by offering basic services to
debilitated or poor civilians such as orphans.
 Its other motive is to restrict crime that occurs in society on regular base such as child
labour, harassment of female, corruptness and numerous of other illegal actions.
 Stakeholders of these kind of firms :
 Voluntary associates exiting in board of member assist them in running organisation.
 Donors, aids providers like state or nationalistic agencies, foundations and so on which
are offering large amount of revenues or monetary fund.
TASK 2
P 3. Relationship between various organisational functions and their link with its objective
A whole business enterprise used to build and maintain their corporation-al construction
with different operative atmosphere. Here - in all individual usually furnish their job roles to
achieve company's goals and objectives. Holding up and governing several department environs
as well as maintaining relation and communication jointly within single roof of organization.
This entire procedure is known as commercial framework. (Klapper, Lewin and Delgado, 2011).
Different departments maintain their relationship and communication within Barclays are
mentioned as follows :
 Research and Development Department: This is considered as one of most necessary
section of Barclays that works on examining actuality of marketplace by applying
scientific techniques and business schemes. Forthcoming business plan of action and
strategy of Barclays totally relies on reports attained from R&D department. And leftover
all else division of business project would work accordant to investigation information
for improvement in presentation and productiveness of Barclays. This department is
helpful to production section in terms of providing desired information about market
trends and changing preferences of people so that appropriate goods will be produced.
For example, in Barclaysis is related to the research and development department, for
doing research finance department provide fund to this department for conducting
research. Marketing department help it in doing market research so that it can find out the
consumers needs and demands or conduct research according that.
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 Marketing Department : World has been converted into battle field of competition. In
promotion of merchandise as well as services of Barclays is very important and it is
playing vital role in holding over consumer kinship by providing or sharing information
with users about their goods and services by various platforms and channels too.
(Gecevska and et. al., 2010). Institution's fiscal development, sales as well as client
relationship is wholly depending on merchandising sphere schemes and principles. But
without receiving funds from finance division, accessibility of trade good for customer at
exact time from fabricate section; marketing department is not able to give its aid towards
organisation growth & sales with profitability. This department is related to the
marketing and various activity of marketing such as sales, distribution and use various
promotional techniques and channels for promoting the products and services that are
provided by the company. For doing all these activities the finance are provided by the
finance department.
 Production Department : This is also treated as one of the construct of Barclays since
without usage and enforcement of innovation and creativeness on fabricating of
merchandises, it return expensive goods that straightly or indirectly effect on firm's fiscal
and selling maturation as well as on users buying ability towards organisation
commodities and services. Besides this, manufacturing sphere is also focussing on
generating few waste materials which get created during the time of implementing
various processes. This helps in reducing cost of products which impact optimistically on
sales and financial growth of venture. Production departments is helpful to sales &
distribution in order to manufacture product in required amount so that they can supply
required goods in stores to fulfil needs of people accurately. This department also related
with the other department such as marketing department do marketing research to find
out consumer needs so that this department produces products according them.
 Human Resource Management Division: This department is playing critical part in
managing entire enterprise as a family unit. HR administration used to generate a healthy
and fruitful environs within venture wherein workers are providing appropriate services
for improvement of firm's future (Osterwalder and Pigneur, 2010). Their main objective
is to create grooming and acquisition sessions to workforces through workshops as well
as various creative activities. They are those people who generally make up a situation
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whereby disputes and concerns of personnels or trainees are to solved as well as create an
ambience in which they believe they are essential part of organisation not just for salary
only. HR departments is helpful to every specific section like marketing, finance, sales
and IT as it provides well skilled and experienced work force for them to fulfil respective
roles or duties properly. This department help other department and interrelate with them
because it hire and recruit employees for different departments.
 Accounting and Finance: They are the one who are commonly managing and funding
each and every departments fiscally. This division manage each and every economical
activity within organisation that set outs its precedence via funding as per the request of
current market. In addition to this, venture is trying to carry on top most priority for better
performance and production. (Organisational structure chart, 2017). Finance and
Accounts division bring off all cash flows within system, with trading accounts along
with maintaining annual budgetary plan of organisation with high status of projects and
chores. Finance departments make budget of every section so that they will get required
amount of funds to conduct desired procedures to complete their targets appropriately.
This department maintain budget and data of different departments and provide funds to
them. For example, if there are need to money to do research, it provide fund to research
and development department.
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Illustration 1: Organisational structure chart
(Source : Organisational structure chart, 2017)
TASK 3
P 4. Negative and Positive influences of macro environment on commercial operations
Macro factors comprises of those elements which are existing in outer world and are
giving impacts on entire activities related to business either positively or negatively. So, it is very
important to analyse such components so that every strategies are formulated according to those
factors. BARCLAYS are also experiencing these kind of effects. To evaluate such impacts,
PESTLE analysis is needed to be carried on in effective style which is described below :
Political factor : The cited venture has suffered from a difficult or hard political
atmosphere in 2016 since government of UK has been imposing new rules associated with
capital. Legitimate body has enforced new surcharges of about 8 percent on profits of bank in
time period of January in 2016. This extra - charging is observed as more onerous if an
organisation consist of abroad accessories.
Positive impacts - There are also some optimistic effects as governance is providing
supports to all these type of companies for their growth and improvement since they know that
such firms gives several services to common civilians and are attempting to reduce the number
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of issues of them. For example, if Barclays launch and new product and government make
change in its policies or if is in the favour of the company bit affect the company positively.
Negative impacts - This is description of the negative consequences of political
environment on Barclay's foreign subsidiary at Africa. Due to this reason, bank had sold their
property or shares from 50 to 60 % in the year of 2016. For example, if change in bank interest
rate cause of change in government policies or they are unfavourable fro the company they affect
negatively.
Economical factor : This is another important factor which is laying impacts on
performance of association. This firm is being influenced from the uncertainness and risks inter -
connected to economical situations of UK as they have exited from Europe. The political evinces
of exiting the European Union was relying on the ultimate world-wide concords that occur
between members of Britain and EU (Commander and Svejnar, 2011). Apart from this, it also
effected the current conditions of work – forces , clients and share owners.
Positive impacts - For the Barclays, Brexit has provided several antagonistic impacts on
the funds, commercial activities and principles. Fro example, If the company brought raw
material from other countries and the currency rate of that country decreased that create positive
impact on the economic condition of the company.
Negative impacts - As a result, the decline in the value of pound into money in
comparison to different another medium of exchanges like dollar & Euro has occurred. For
example, If there are situation o0f inflation are organised in the country that create negative
impact on the business of the company.
Social factor : Such factors includes alteration in the sociology of common people, their
cultural mobilities, living standards, labours, etc. The evolution of core marketing place in UK
and US is the result of such demographical changes which is presently effecting Barclays a lot.
The requirements of people are dynamic in nature and are changing day by day and this in turn
also impacting enterprise in several ways.
Positive impacts – The changing mind sets of people results into their different choices
which facilitate to generate favourable opportunities for given organisation to achieve growth of
business. If the company make products according to the consumers needs that affect the positive
impact.
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Negative impacts – This includes that social norms may impacts on promotion and
production because as given organisation should apply changes in the same which may cost
consuming and time consuming process. If Barclays do not use good quality raw material in its
products it create negative impact on the business of the company.
Technological factor : The improvement and progression in the technological aspects
offers optimistic impacts on the cited firm. It assists in increasing the development of banking
sector at very rapid rate. This has been noticed that every prospects or facets of banking
organisation can today be finished by taking help of internet or be accomplished through online
operations. Main innovations linked with financial sector are generally including biometrics,
technology related to block - chain, robotics automation, etc. (Drucker, 2017) Such kind of
modern techniques has totally transformed the global monetary system. They used to do their
ordinary actions such as depositing as well as transferring of wealth through taking use of online
services.
Positive impacts – These all contemporary tools could be utilized or adopted by Barclays
since this will support a lot in attaining their objectives and goals. Users are also receiving
advantages from this modernised applications and are making their day to day activities very
easy. If the organisation used new technology such as new promotional channels like social
media that attract more customer and affected positively.
Negative impacts – This involves that a minor fault may spoil overall database or work
which create huge loss for the company. And technical errors is responsible fro reducing
performance of overall company. If the company use old technology and consumer wants
products according new technology that negatively impact the business of the company.
Legal factor : These factors has been imposing different types of laws and legislations
for entire firms which are running their business in UK and this needs to be precede by all of
them in order to operate their operations in right manner. BARCLAYS was suffered from certain
legal components at a larger extent. This has observed from an investigation that Barclays and
four former senior executives were accused to be culprit for a fraud that happened in 2017
(Chow and et. al., 2011). This case was accomplished by the Serious Fraud Office for transaction
of bank with Qatar at the rising of financial crises. Apart from this, The libor scandal of 2012
was also occurred in this venture and it had compensated a high sum of money that is around
$200 million.
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Positive impacts – Legal rules are helpful to given organisation to select correct path of
carrying out business in proper manner which facilitate to improve brand image in front of
government authorities. Change in government rules and regulations that are good for the
business of the organisation and they affect positively.
Negative impacts - If Barclays were found faulty then they have to provide several types
of fines in the form of compensation and that would also greatly hit to the repute or image of this
bank in front of their consumers as well as government. If the government of the UK change in
the policies and rules or they are not in favour of the company, they create negative impact.
Environmental factor : Barclays is also being effected by the existing trending of
consumers and legal authorities since they are demanding for reduction of carbon foot print from
their businesses.
Positive impacts - As a result, for dealing with this situation, they are forming a
citizenship strategy and reasoning for minimising the footprint of carbon by making decrement
in their energy ingestion chiefly by carrying out sustainable improvement of their funds. If the
company work according without harming the environment and follow the pollution rules this
affect the company positively.
Negative impacts – The environmental problem in production of company is analysed
then government can take legal action against them and customers will avoid the brand
accordingly. If the company not follow the criteria that are setting by the government for
harming, this impact negatively to the company.
TASK 4
P 5. Internal and external analysis of BARCLAYS for identifying its strength and weakness
Every enterprise is having some strengths and weaknesses as well. Barclays also consist
the same which is mentioned below by conducting SWOT analysis :
Strength : Key strength of this firm is stated below :
Strength of Barclays
 Strong existence in the international marketplace : Barclays PLC contains powerful
presence since it recognises globally as a player which is capable of dominating the
market manifest in accordance to the information and facts declared in their financial
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statement. This enterprise is currently doing business in over 40 countries. Thus, they
are empowering themselves as a leading global actor.
 Diverse portfolio of business and brand perceptibility : This venture is performing
business's activities in different domains and their construction of business includes
personalised banking, investment bank and corporate , Client cards, UK cards and
payments, Barclaycard and wealth international, Entrepreneur and commerce
finance,etc. This venture is also concentrating on increase their brand image
(Chesbrough, 2010).
Some of the weakness of the Barclays are described below :
Weaknesses of Barclays
 Shortness in returns : Returns attained via the core business of Barclays specially from
the section of corporate and investment in US are yet very less in relation to that where
they need to be.
 The divestiture of Africa : It is appeared to be extremely time consuming and pricey
with Barclay as they have accepted for paying its African subsidiary that is Barclays
Africa Group Ltd, $972 million as portions or agreement associated with detachment.
There are some opportunities of Barclays which is listed below :
Opportunities
 BARCLAYS could still enlarge their firm in several another countries where they are
present yet and would achieve high consumer bases.
 This is examined as first bank which started processing on the basis of block chain
technologies. Thus, they can also make their positive brand image and can retain users
for long time period (Chavis, Klapper and Love, 2011).
There are some threats existing in business environment that requires to be focussed by Barclays
which are :
Threats of Barclays
 Dubiety in the Brexit act as danger for overall banking sector in United Kingdom
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involving Barclays especially if European Union financial regulations profitability
banks are recluse.
 Legal bodies are pressurising by formulating several rules regarding new capital
necessitates.
 Currently 8 percent extra charge was imposed by governance on the profit of banks in
UK is treated as greater threat.
P6. Interrelation of strengths and weaknesses with exterior macro elements
Environment of business is also characterized as the element and powerfulness which
influence the organisation via managing operation of business affecting the orientation of them
amongst trade and consumer at the same time. There are major two classifications variables
which influence the organisation i.e. extraneous and internal working environment (Cavusgil and
et. al., 2014). Barclays is one of the largest United Kingdom companies which has expanded
their business branches aiming financial support as the major objectives to private and public
companies for meeting the short and long terms goals and visions. Majorly, company has
deployed their activities of businesses across the nation and other countries to which there is
huge influence of external elements that is need to analyse by this organisation. Different
operation and business environment are interconnected with one other which affect the activities
of business. This has become more significant to evaluate the behaviour of individuals. Ways
through which the internal factors are effected by the external factors are discussed below:
Political and Legislative Factor: According to the legislation and political alteration in
the business can be effective as the team of management require to create principles, approaches
and control so this will influence the advertisers and promoter which they will alter their
arrangements and standards. This is essential for organisation to undertake the activities on the
basis of this in order to meet the required objectives in better manner.
Strength - Every time a new law is passed it effects the strategic strengths of the
enterprise. Management again has to rework on formulating the new policies and strategies so
that it can work with the changed political surrounds.
Weakness – Political norms and legislations are create problem in grabbing certain
opportunities which are beneficial for business in order to improve profits and growth in market.
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Social Factor: The cultural and social alternation influence whole business highlighting
the major indicators through selections or patterns of multicultural through public or buyers and
addition patterns and forms. This affects the consumer or service user according to the
requirements, needs, preferences and inclinations as per the modification (MARKETING
THEORIES – PESTEL ANALYSIS, 2017).
Strength – The social factors influence an organisation to follow ethical norms which
helps to improve brand image among customers.
Weakness – The society has different types of people with differentiated choices which
become weakness as company is not able to fulfil every choice of individuals by single product.
Technological Factor: Current products and service flow can be managed through
including the new adaptions along with helping in management of contenders that are taking the
interest of elements through meeting the innovation request. Company is working to gain more
clients through managing digitalised management or distribution of their services. Structure of
management and its advancement can help in better and smooth operation functioning of
business organisation in effective way. Quality delivery of services is the major strength of the
enterprise still it gets effected when there is a new application launched in the market.
Strength – It is helpful to improve productivity and profitability of company along with
gaining targets in limited duration of time.
Weakness – This involves that minor default in technological equipments or software
may spoil overall working of whole day.
Economical Factor: This is considered as major power which affects internal as well as
other organisational situation. This influences the creation of organisation along with the process
of leadership among buyers (Cantwell and et. al., 2010). These components incorporate
monetary improvement, cost of finance, expansion and management of trade or market rates etc.
Strength – Favourable economic condition is helpful to reduce overall cost of production
along with improving profit margin.
Weakness – Increase in economic factors like inflation impacts negatively on operations
and productivity of given company.
Environmental Components: Shortage in maximisation of required elements, impact of
carbon goals determined through state, contamination of goals and morals of business etc. are the
elements existing in the natural elements so that management of change in dynamic environment
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of organisation can be maintained (Carroll and Shabana, 2010). Though the working of the
organisation is carried out with care still the strict government laws against the protection of
surroundings has restricted the capacity of enterprise to grow. In every step which enterprise is
taking it has to make sure that it does not affect the surroundings.
Strength – This includes to focus on environmental problems to reduce them by changing
operations which facilitate to improve brand image among government and society.
Weakness – Implementing changes in operational techniques or methods to solve
environment issues results into increase overall cost of production.
Hence, this can be understood in the end that there is numerous interrelation between
macro and micro environment. For e.g.: after the modification in rules, acts, regulations and
norms, this has been properly evaluated in the bodies of state then this affects the strategies of
implied policies of Barclays in their business operations and their function. In order to handle
such factors, company should evaluate business environmental elements including macro and
micro for sustaining in market.
CONCLUSION
By examining facts and figures of this assignment , it can be concluded that components
present in business surroundings are giving great impact on the operation of every organisation
including the Barclays. Factors such as politics, geographical area, technology, social group,
legalisations, etc. has been influencing company in both positive as well as negative ways that
has described in this report. Besides this, different facets such as size, scope or legal artefact and
purposes of various firms for instance public, private and voluntary is also discussed
appropriately. Besides this capability, weak factors, opportunities and threats as well of Barclays
group has explained broadly.
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