Management Economics: Market Analysis of Barclays Plc

This report provides an overview of Barclays Plc, its products/services, and history. It also analyzes the market factors that influence the demand for Barclays Plc's products. The report explores factors like price of substitutes, complements, consumer preferences, and demographics. The analysis helps understand how these factors impact the products and services of Barclays plc.

Management Economics

Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
1. Overview of Barclays Plc its products/services and history.................................................................3
2. Market Analysis of Barclays Plc to evaluate factors which influence its demand...............................4
3. How factors influence the products and services of Barclays plc......................................................11
CONCLUSION.........................................................................................................................................15
REFERENCES..........................................................................................................................................17

INTRODUCTION
Managerial economics describes as a business administration term which integrates in a
productive way the original contributors including such revenue and expenditure, asset etc.
Usually, a company's management uses this definition to solve any business-related problems,
particularly financial ones, which offers a variety of key approaches and concepts for making
decisions (Adam, Quansah and Kawor, 2017). The current study would expand about how
organization has used the principle of management economics to understand their past actions
and predict potential business success. This report based on the Barclays Plc which is British
multinational investment bank and financial service company. It is a financial sector organization
that provides different types of products in different banking. The company operates their
business into various nations where supply of raw materials and variation in economic structure
impacts its demand of product in large manner. In the current study, various variables are
analyzed in order to examine this dimension, which also helps determine how competition for
Barclays Plc products is relatively elastic.
MAIN BODY
1. Overview of Barclays Plc its products/services and history
The financial sector is a segment of the economy composed of companies and
organizations which provide business and commercial easy access to financial products. This
field covers a wide variety of sectors, namely banks, brokerage companies, insurance providers,
and property developers. A substantial percentage of this business produces mortgage refinance
income, which increases value as interest rates decrease. The nation's economic wellbeing is
largely dependent upon the power of its finance industry. The better the market is the safer it is.
A poor banking industry typically indicates a shrinking population. In an economy to stay
unchanged, a sustainable economic provider is likely. This sector is advancing loans for
enterprises so they can grow, offer mortgages insurance, and provide protection coverage to
protect individuals, firms, and their properties. This also helps to strengthen retirement money,
which supports hundreds of thousands of individuals. For example, Barclays PLC is a
multinational financial services provider with services for retail banking , credit cards, corporate
banking , corporate banking, asset management , and investment strategic planning. Barclays

Bank, the Nation's biggest consumer banking company, maintains around 5,000 offices in
England and Wales and abroad, and has many branches in britain and other european. Barclay
Bank International Ltd., that has some 2,000 offices in over 70 countries, manages the
organization's international sales. The company's office is in London. The company provides
different product and services such as, retail banking, commercial, investment, private, wholesale
banking and wealth management (Adisetiawan and Surono, 2016). For the research selected this
company because it is leading finance Service Company that provides banking services in
different manner as per the customer’s requirements. The company continues to grow and
evolve, offering a broad variety of goods and services that support our consumers today fulfill
their objectives. They deliver an array of goods and services, ranging from award-winning
subprime mortgages to asset and financial advisory, and from revolutionary payment solutions to
internet banking online initially. The Group is divided into two sections: division Barclays UK
(Barclays UK) and division Barclays Global (Barclays International). Barclays UK provides
regular goods and services to UK-based commercial clients and small and medium to medium-
sized businesses (Bartkowski and et.al, 2018).
2. Market Analysis of Barclays Plc to evaluate factors which influence its demand
According to the modern economics i.e. supply and demand law, supply and demand of a
specific product or service are interrelated. Here, it is understood that the relationship between
these two main concepts is includes the central, that significantly influences the cost of goods
and services. When introducing in a given market the various goods and services, manufacturers
used it to come up with a way to offer the same as in the right value. It would attract more
potential a strong demand to meet potential buyers, through contemplated mechanism to prevent
damages at the same time. All these information can be explored by implementing the revenue
and cost principle, which states that the manufacturer must quality in order to fulfil the needs of
customers by providing the highest products of goods at a fair price. In the sense of Barclays'
marketing research, this consumer's demand is growing rapidly well after release, that also
overlaps its supply. There are a range of factors current in the background of the finance industry
which affects the supply for related goods such as personal and quality loans. It includes
alternative or complementary manufacturing costs, customer preferences & taste, customer
preferences, demographic and much more (Elena, 2016). The effect of these variables can be
evaluated in the following manner on the demand of Barclays Plc:

Price of substitutes: Influence on the price of replacement goods on just that marketplace would
also directly impact the actual demand. As far as the finance sector is concerned, the existence of
financial institutions' replacements generates a reasonable mortgage force. In this respect,
Barclays Plc's replacements include HSBC bank which is a major UK bank that provides
consumers with innovative financial services and goods. The strength of danger from these
replacements perceived as week because of expensive insurance assurance and low interest on
Barclays plc mortgages.
Price of complements: This consideration involves the price of supplementary goods such as
labels and various forms of banking, which significantly affects the price of executive support.
So, if other brands' prices increase their rates as in the case of Barclays, their key rivals are
HSBC bank, Citibank and others, it also significantly influences their own commodity prices.
For instance – Increase interest in many other banking services, this will bring advantage to
Barclays through changing the take the pressure, since customers first relate their loan issues to
their public picture, instead of lending rates.
Consumer taste & preferences: This aspect contributes greatly the market of every commodity
to the big change, either directly or indirectly. In the sense of the financial sector, an actual
consumer needs and preferences due to individual product knowledge. Consumer choice is type

of image a consumer likes and does not like. It is effective and it requires less taxation. The other
explanation for shifting consumer tastes and taste involves varying and successful interest rates,
whereby they seek to buy the loans that are priced and built according to their preferences and
living standards (Genovese and et.al, 2017).
Consumer expectations of price: Customers from the financial industry wanted to buy certain
cars that would provide them with better protection and pedestrian safety. The cars are strongly
expected to meet their requirements as inexpensive as per their distribution of wealth, energy
efficient, spend less in interest etc.
Demographics: Demographic shift also affects the outcome of the banking industry because, by
taking various loans, creative features and much more, customer behavior is heavily impacted.
Citizens also are easily moving to cities to enjoy the loan acquisition in order to satisfy the need.
It would also help increase the share of banking industry revenues by rising loan demand.
According to statistical evidence, there is a large market add significantly to development of the,
which also allows Barclays Plc to expand its business. Because of the change in demographics,
i.e. the migration of citizens in developing areas, the UK, Norway, the US and other advanced
nations find the largest differences between different mortgages (Hanley, Shogren and White,
2016).
This conduct is indicating a positive change in demand as per the rule of supply and
demand. As seen in the graph following, it has become obvious that consumers are able to buy
financial services at a certain value because of the highest products and great functionality. This
indicates good signs of increased sales and high profitability at the industry for Barclays
Sales Performance of Barclays Plc from last ten years –
Year Barclays Plc Annual Revenue
(Millions of US $)
2020 $6.624B

2020 $21.793B
2019 $27.622B
2018 $28.212B
2017 $27.163B
2016 $39.567B
2015 $40.868B
2014 $43.919B
2013 $44.567B
2012 $36.420B
2011 $44.431B

As per the chart it is identified that banking market share of Barclays 15.8% in
comparison of Lloyds bank. It presents good indicators and company provides their financial
services into different countries effectively.

31-Dec-19 31-Dec-18
31-Dec-
17
31-Dec-
16
31-Dec-
15
Net Income/Starting
Line 4,357.00 3,494.00 3,541.00 3,230.00 1,146.00
Depreciation/Depletion 1,520.00 1,261.00 1,241.00 1,261.00 1,215.00
Non-Cash Items 5,801.00 -5,343.00 9,822.00 - -669

19,974.00
Cash Taxes Paid 228 548 708 780 1,670.00
Changes in Working
Capital -23,973.00 9,092.00 46,208.00 27,174.00 11,821.00
Cash from Operating
Activities -12,295.00 8,504.00 60,812.00 11,691.00 13,513.00
Capital Expenditures -1,793.00 -1,402.00 -1,456.00 -1,707.00 -1,928.00
Other Investing Cash
Flow Items, Total -11,033.00 2,079.00 4,958.00 38,414.00 -4,623.00
Cash from Investing
Activities -12,826.00 677 3,502.00 36,707.00 -6,551.00
Total Cash Dividends
Paid -1,912.00 -1,658.00 -1,273.00 -1,304.00 -1,496.00
Issuance (Retirement)
of Stock, Net 504 -2,104.00 571 -327 599
Issuance (Retirement)
of Debt, Net 2,098.00 -3,025.00 1,663.00 314 323
Cash from Financing
Activities 690 -6,787.00 961 -1,317.00 -574
Foreign Exchange
Effects -3,347.00 4,160.00 -4,773.00 10,473.00 1,689.00
Net Change in Cash -27,778.00 6,554.00 60,502.00 57,554.00 8,077.00
Financing Cash Flow
Items 104 -- -- --

Using this statistical knowledge Barclays Plc's productivity and income has been
analyzed. Increasingly improved year by year, which also makes a major benefit to the growth.
Generally, it has employed much more than the financial and banking services staff members.
This demonstrates another major significant contribution to economic growth by creating jobs
for both qualified and low-qualified individuals on the job site (Hyers and Kovacova, 2018).
3. How factors influence the products and services of Barclays plc
As there are different aspects current, such as customer tastes, replacement and
alternative pricing etc. impact the market for loans in Barclays Plc, both positively and
negatively. Thus this organization is actively making improvements in goods and services to
address these demands and preserve its corporate image.
This figure reflects the market share of largest British (UK) banks' existing funds as of 2014.
Sales volume of direct debits is an significant metric for banks to compare, since a bigger
proportion of the credit card marketplace that more users are constantly holding their cash with a
specific bank. In fact, credit card share of the market is significant for the banks directly as an

increase in the sales of direct debits would result in an increase in income, because all
transactions, regardless of the size, have an related form of income. One can see that the London
based Lloyds Bank PLC has the highest share of the overall account market as of 2014. Around
that period, a maximum of over a quarter (27 per cent) of all direct debits were with Lloyds Bank
PLC. With a capacity of nearly one-fifth (18 percent) of the balance sheet market overall, at the
time Barclays Bank PLC and bank of Scotland were combined-second. After the implementation
by Payment Council of "credit card change system" (CASS), the losses and gains made by the
largest banking on the bank account sector have been carefully scrutinized (Ingram and Glod,
2016).
Building on our strengths as a diversification transcontinental retail and corporate bank that is
rooted in our two UK and US domestic markets with regional scope. It is how we'll fulfill the
employees and consumers' expectations, thrive in a growing world and contribute to
shareholders. When the leadership team of Barclays established the plan, they selected four
significant changes which change the banking environment.

Regulatory landscape: After the financial crisis of 2008, the financial budget deal raised the age
equity rates that banks are expected to maintain toward balance sheet assets and rising the usage
of challenging requirements banking. Recent UK law also allows wealth management (small to
mid - size businesses finance) to be "ring-fenced" from corporate banking which has led to
Barclays UK and Barclays Global being established as two separate companies (Martin and et.al,
2017).
Capital markets: As a result of the change in policy, the added price of bank cash flow financing
has resulted in a shift in commercial debt to financial markets. As either a result, the position and
scale of capital markets has increased dramatically over the past decade in promoting economic
growth, and trend is expected to continue. Thus, efficiently serving our business customers needs
us to sustain the size, scope and revenue potential required for efficient exposure to the financial
system in New York and London.
Digital: The increasing digitization of banking changes radically what we represent each
customer and company, from people's individual commercial banks to the up this job. To thrive
in this modern virtual environment needs substantial investment, strategic alliances with software
providers, and proprietary rights to retain and achieve a competitive advantage.
Payment and transaction: The advancement of payment technologies has helped companies and
individuals to transfer money more easily, with less pressure, and at lower costs. When more
types of transactions are digitized, the technology that makes these payments becomes an
extremely important component of banks money capability (Nica, 2016).

For the effective financial services to the customers, the business organization is often
concerned with that the good quality of element distribution along its inventory, particularly
those products that are not noticeable and noticeable to the intended audience. In addition to this,
the expansion of the use of visual techniques for reduced time and money growth, the
convergence of their vehicles and combustion design engineers also leads to a significant
variable in transforming their goods. Barclays Plc has also made investments in modern and
extremely efficient financial services, specifically in investment, corporate and retail banking
which meet customer demand. It also wants us to give preference to investment options in cars,
in particular inside its next-generation fuel-efficient and rechargeable batteries-electric systems,
which would boost its international overall sales (Nkundabanyanga, Akankunda, Nalukenge and
Tusiime, 2017).
According to the law of demand rule, it was observed that the rise in the price of just
about any product, the lower the need for buyers to shop. Consequently, the market for cars or
other automobiles in general is known as flexible. Since owning one's own home, car is not
really in the luxury segment. People may delay new car purchasing particularly if its price is too
high and even beyond their income bracket. Together with other items, providing successful
financial services is not essential or a fundamental necessity of citizens. It thus includes a greater

effect on global market credit supply, in which people who are living in high-standing areas are
demanding to buy luxurious lifestyle and extremely successful areas. There are setting the
financial services that must acquire by the middle class people in effective manner (Popescu,
2016).
In this context, Barclays Plc needs to follow successful interest rate initiatives to increase
international availability of economic operation. It involves overseeing right sale prices on
products which provide income backgrounds for customers. For the manufacturing of new
goods, the market for specific loans is needed to satisfy the expectation and the message
reductions to interest rates will have to be hammered on a regular basis. Easy and straightforward
pricing main message fails to attract consumer attention. In this end, it requires to adjust its
communication like 'Absolute Exposure Pledge' would attract financial service taker's attention.
The pricing strategy is efficient and has culminated in a consumer's unrestricted withdrawal
transfers from direct debits at safe, attractive interest rates payable annually (Siebenhüner,
Rodela and Ecker, 2016). Barclays also traded in fixed-income securities, which led to a high
increasing trend in its net earnings. Based on the success as a British universal bank, the aim is to
generate high returns: a financial institution with a rich tradition and close ties in the UK, but
also by the scope and versatility to serve its clients and consumers throughout the widest
spectrum of financial requirements from around globe. The companies include worldwide
consumer finance and payment activities (Wacker, Yang and Sheu, 2016).
CONCLUSION
It was inferred from the general economic strategic management that perhaps a
organization would make effective business improvements by using the main principles and their
assumptions. Through adapting supply and demand law to goods and services, a business may
evaluate the effect of various influences on its revenues and selling rate and take appropriate
steps. In the background of the automotive industry, managerial economics indicates how by
making thousands of financial services each year, this industry contributed the main role in the
growth environment. In addition to this, large-scale running enterprise also tends to minimize the
unemployment figure, which eventually also contributes to the growth of community.

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