Analyzing the Impact of Macro Environment on Barclays' Strategies

Business Strategy

Table of Contents
Introduction......................................................................................................................................3
TASK 1............................................................................................................................................3
Smearing appropriate outlines analyse the impact and effect of the macro environment on a
given organisation and its strategies.......................................................................................3
TASK 2............................................................................................................................................5
Analyse the internal environment and capabilities of a given organisation using appropriate
framework...............................................................................................................................5
TASK 3............................................................................................................................................9
Evaluate Porter's Five Forces model for identifying competitive analysis of the market......9
TASK 4..........................................................................................................................................10
Various Strategic planning for the organisation...................................................................10
CONCLUSION..............................................................................................................................14
References......................................................................................................................................14

Introduction
Business strategy is the methods which are adopted by manger of a firm to formulate
business plan and policy for achieving organisational objectives. It can be said that it is a set of
different action plans to establish Better Corporation between departments of firm and to use
resource of organisation efficiently in a particular direction. They are made by keeping long
range objectives of organisation. Main aim of business strategies is to increase performance of
employee of organisation for increasing profitably of organization (Johnson 2016). This report is
carried out on Barclays, it is the British multinational investment bank and financial services
company which has the headquarters in London. In this report there is examination of macro and
micro setting of business which result strategic decision of firm . All these environment are
analyse with the help of different models which are VRIO, PESTEL , SWOT, etc. how the major
impact of these report will be identified and will stated in context of firm that how can study of
internal and external environment will be use full to firm in long run of their business.
TASK 1
Smearing appropriate outlines analyse the impact and effect of the macro environment on a given
organisation and its strategies.
In accordance of successful strategic formation and making effective business decision-
making firm have to clearly examine the external factors for regular check on there performance.
These can be done through PESTEL analysis which help the firm in studying political,
economical, social, technical, environmental and legal factor. Barclays PESTEL analysis is
mentioned below:
Political : The political orders are affected by Barclays banking sector in all over the
country. The level of corruptness specially focuses on the financial sector of a company.
Authorities and hindrance in foreign banks are affected by government. It plays a important role
in identifying the factors that lead to impact on Barclays Foreign Banks in order to disclose
various types of political environment and its system this will impact on firm as they have to
make their polices according to government on nation. Polices which includes curriculum which
firm should follow after the happening of uncertain events in political environment
(Soltanizadeh and et. al., 2016).

Economical : There are different type of economic factor in business which are
exchange rates, inflation rates, investment pattern and business cycle with there direct impact on
business of firm. In context to Barclays this uses economic factor which includes growth rate and
inflation in order to predict the future growth. It further includes exchange rates and steadiness of
growing economical monetary system. The financial market requires rising in the local market
which lead to increase in the efficiency of the market firm have regular check on there as
inflation rate will leads in making of contingency reserve and will decrease profit of firm. .
Social : Social factors are most important factors for any banking sector as it includes
demographic of population, age, gender which directly impact on the product. With reference to
Barclays that would encourage a superior product to the public whether the number of
population was lower class(Habib and Hasan 2017). The verifications in educational aspect
along with the marketplace and the target market in order to make it ambitious to connect
efficiently in the market. This banking sector requires to level of regulations, act to annoyance
demand and importance of environmental activity exist in the industry. This function will impact
business of firm as trends in society like use of interest free ATM cards and etc. can shape firm
customer differently.
Technical : These are those factor which includes the technical changes in business
environment . These are change in production technique, change in production pattern or change
in technology of product. In context to Barclays banking sector, it could develop new
technologies which are done by competitors. The easy and quick technology would improve the
product differentiation. The impact on this lead to the costs of the companies in the industry
which could go through massive. Various new innovations and ideas are evolved in this sector in
order to increase the profitability and productivity of a company this have its direct impact on
firm as firm have use new system in its functioning and there cost will increase because of
updating but it will also get benefit of smoothness in its work. .
Environmental: This factor emphasis the conditions of changes in climate in order to
sustain in the market for longer period. With reference to Barclays banking Sector Company, it
creates more opportunities which could help in the environmental improvement. The present
weather conditions affect on the abilities of Barclays for succeed in transportation of resources
and smooth product. Therefore, it would effect on the transfer dates of finished product in order
to unpredicted rainy season. This company could also offers the new products that highly affect