Management Economics: Overview of Barclays and its Products/Services
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This report provides an overview of Barclays, a British multinational bank and financial services company, and its products/services, specifically focusing on life insurance. It also analyzes the market factors that influence the demand for Barclays' products and services.
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Management Economics ā 1
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Contents INTRODUCTION...........................................................................................................................................3 MAIN BODY.................................................................................................................................................3 1. Overview of Barclays its products/services and history.......................................................................3 2. Market Analysis of Barclays to evaluate factors which influence its demand.....................................5 3. How factors influence the products and services of Barclays..............................................................9 CONCLUSION.............................................................................................................................................11 REFERENCES..............................................................................................................................................12
INTRODUCTION Managerial economics is characterized as the method of combining different financial core values within business activity and product. In order to sort out the business problems and other financial activities use economical concept and theories to remove negative impact. In other terms, management theory is based on the application of economic principles and logical thinking to the appropriate decision-making problems. The crucial function is to encourage the more efficient use of limited resources including such labor, capital and land. This has gained popularity among businesses in the modern age because it wants to promote the leadership of full financial documents in order to achieve particular market goals(Amran and Auzair, 2017). To better understand the concept of the report selected organisation Barclays. It is a British multinational investment bank and financial services company. The company deals in different products and provides the service of life insurance to people. In this report consist of overview of the organization and its essential products & services. Along with, analysis of market to identify factors impact on the demand and influence the product & services. MAIN BODY 1. Overview of Barclays its products/services and history Barclays is British multinational bank and financial service company that operates activities into different products. There are selecting product life insurance because in present time every people wants to secure future and keep safe their loving one. Life insurance provides something more than affirmation and economic freedom-if anything occurs to you, you can secure a way of life for those you love. The business manages operate over 50 nations and hires upwards of 140,000 people. It provides customers and companies the financing, investment, security, and transformational services. The Banking Division has officially been identified one of the world's greenest banks. As one of its online payment programs, Barclays provides insurance policies and these comprise Aviva life insurance(Clikeman and Stevens, 2019). Nonetheless, customers will not need to look for it anyway, as we will locate it for them while performing our company's thorough check. Standard & General assuredness Company Limited underwrites insurance coverage. Aviva's Barclays life insurance provides a large lump sum of up to Ā£ 500,000 and insurance payments of up to Ā£ 5 that continue set for the lifetime of the policy. This life insurance can be extended to UK citizens aged 18 to 66. Coverage begins on the
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seventyth birth. Customers can choose policies for a rate or for a declining amount. The optimum protection for everyone over 50, is tiered. Reportage is a total of Ā£ 300,000 between age 50 and age 54. Its Ā£200,000 from age 55 to 59, and Ā£100,000 from age 60 to age 66. The strategy may not be changed when it is successful. The standard term insurance company offers a lump sum payment after the insurance company long term illness diagnoses or death, and is meant to offer federal assistance to recipients. Over the policy period the rate and distribution situation remained same for. There is a general life scheme, but it can only offer a profit upon first passing. Barclay's rates and Aviva's that term plans are tailored for customers who need an excellent price for simple life insurance policy(Esposito, Tse and Soufani, 2018). NameAgerangeat application TermPays outJoint cover Barclayssimplelife insurance 18 ā 745 to 50 yearsif you die or get a terminal illness andarenāt expectedtolive longerthan12 months Yes ā only pays out for thefirst memberofa couple to become terminallyillor die. Barclaysmortgage holders life insurance 18 ā 745 to 50 yearsIf you die or get a terminal illness andarenāt expectedtolive longerthan12 months Yes ā only pays out in full once. Barclayslife insurancewith mortgageholders withcriticalillness cover 18 ā 745 to 40 yearsIfyoubecome criticallyill,are diagnosedas terminally ill, or die Yes
Barclays provides two different forms of life insurance coverage: Barclays Easy Life insurance and Barclays Life Mortgage buyerās policy. If people suffer or are treated with a fatal illness, both must pay a lump sum payment. It ensures that your friends and families will have some financial security in case you die mostly during duration of the scheme. As the title implies the Easy Life Insurance Barclays is fairly straightforward(Ezzi, Jarboui and Zouari-Hadiji, 2020). 2. Market Analysis of Barclays to evaluate factors which influence its demand In present time market capitalism it has been built that the production of goods and services is based on numerous variablesboth positively and negatively. Thereby marketing employees are forced to capitalize on these factors which determine the capital investment for the particularly sensitive to the effects. Manager uses lifestyle influences in enterprises to decide such as consumer desire, appetite and need, substitute and even some support merchandise, home ownership that also involves establishing an even more suitable method for their production process. This also translates to proactive forward-looking methods that can help competing with economically difficult times and higher resolution of obvious risks. There are evaluating various factors such as: Price of substitute: If the supply of a commodity that accentuates a good declines, it just raises the equilibrium quantity of the one and request with the other. If a replacement good's price reduces than apply appropriate for that money produced, thus reduces the amount for the better this is being substitutes for. In the context of Barclays company the substitute if life insurance of other type of life insurance that provide the safety and security to people for longer period of time. When people have not option of simple life insurance so they selects other type of life insurance(Haghighi and Gerayli, 2019). Price of complements: Complements are goods which are processed collectively. Substitutions are goods where one may be consumed instead of the other. Even the costs of supplementary or substitute goods change the consumer surplus. In present time Barclays face many competitors who provide tough competition they are JPMorgan chase, HSBC and many others. Such as, reduce interest of Barclayās life insurance so it will provide advantage of other competitor companies.
Customer income: Consumer revenue is the income a customer receives through either job or spending, along with dividends paid to his owners by corporations, and the benefit gained by acquiring an item, other than a home. After-tax profit is the amount a customer has left since paying federal taxes. When customer income increase so they are investing more amount in the life insurance and wants to secure their life. The selling of life insurance mainly depends on the customer income and depends on their increasing and decreasing in effective manner. In case of low income people do not invest into life insurance(Hitomi, 2017). Customer taste and desire: A good for which the desires and preferences of clientsare broader, its demand would've been better and thus its equilibrium price would be stronger. People's choices and desires for different products frequently shift and demand for them changes to the structure. Now a day peoples aware for their life and want to secure future of their loving ones. Thus they want to invest amount in life insurance and connect with the Barclays organisation to cover up their future. Price preference of consumers: Consumer preferences are characterized as the qualitative (individual) preferences of the different bundles of commodities as determined by usefulness. They allow certain bundles of products to be rated by the customer as per the degree of utility they provide. Please note the interests are wealth- and priceless. Barclays offer different types of life insurance to people according to their preference that helps to increase their selling in positive manner. Along with company provide the facility to payment in lump sum method to reduce problems(Huang, Nekrasov and Teoh, 2018). Demographics: Demographics are a community analysis focused on such variables as age, ethnicity, and sex. Demographic data pertains to empirically demonstrated socio-economic information, which includes job opportunities, education, income, college enrollment, rates of conception and birth, and also more. The life insurance cover to every type of people but it is starting from the 15 years and at the end of 40 year to 50 year. A term life insurance policy will protect you from 5 to 50 years, which will be paid out if you expire or are diagnosed with a fatal disease. A scheme like this will help your relatives handle your finances while you're overseas, then you're not going to have to risk leaving underneath a good pension. Or it can support the family of day-to-day spending, making sure they retain their quality of life.
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Therefore it has been evaluated from all across the variable research that improvements in consumer prices and expectations have significantly influenced Barclayās life insurance demand. It will also assist in satisfying their desires. Consequently the requirement for Barclayās life insurance is increasing in insurance industry. 31-Dec-1931-Dec-18 31-Dec- 17 31-Dec- 16 31-Dec- 15
Net Income/Starting Line4,357.003,494.003,541.003,230.001,146.00 Depreciation/Depletion1,520.001,261.001,241.001,261.001,215.00 Non-Cash Items5,801.00-5,343.009,822.00- 19,974.00-669 Cash Taxes Paid2285487087801,670.00 Changes in Working Capital-23,973.009,092.0046,208.0027,174.0011,821.00 Cash from Operating Activities-12,295.008,504.0060,812.0011,691.0013,513.00 Capital Expenditures-1,793.00-1,402.00-1,456.00-1,707.00-1,928.00 Other Investing Cash Flow Items, Total-11,033.002,079.004,958.0038,414.00-4,623.00 Cash from Investing Activities-12,826.006773,502.0036,707.00-6,551.00 Total Cash Dividends Paid-1,912.00-1,658.00-1,273.00-1,304.00-1,496.00 Issuance (Retirement) of Stock, Net504-2,104.00571-327599 Issuance (Retirement) of Debt, Net2,098.00-3,025.001,663.00314323 Cash from Financing Activities690-6,787.00961-1,317.00-574 Foreign Exchange-3,347.004,160.00-4,773.0010,473.001,689.00
Effects Net Change in Cash-27,778.006,554.0060,502.0057,554.008,077.00 Financing Cash Flow Items104------ 3. How factors influence the products and services ofBarclays Becausetherearevariousfactorspresent,suchbecausecustomerexpectations, replacement and alternative pricing etc. impact Barclays' appetite for life insurance, both positively and negatively. Therefore this organization is actively making improvements in goods andservicestoaddressthesedemandsandpreserveitsbrandidentity.Forexampleā restructuring the business globally to growing the challenge of replacements and supplements, and give Barclays advantages in converting its dream(Kolasinski and Yang, 2018). According to the law of demand rule, the increase in the price of just about every commodity was reported, the weaker any need for shoppers to buy. In general, therefore, the demand of life insuranceis considered as versatile. Insuranceis not really in the luxury sector because it acquires by the rich people. Individuals may delay buying new cars especially if their costs are too high or even beyond their income brackets. Offering good financial services along with other things is not necessary, or a basic need for people. This also has a significant impact on the general consumer credit access, wherein the folks who reside in high-ranking areas seek luxury purchases. Luxuryproductsorservicesincludingsuchluxuryautomobiles,specialistsalons, telephonesanddigitalequipmentandsoonoftencarryhigherelasticpropertiesthan convenience-related objects, as they're being neglected by an individual for extended amounts of time. Most of its aggregate economic the distributive bargaining, these are mentioned elsewhere here: Substitute availability: In the standard part, where it is easy to say that although the threat of competitors is low, the elastic price of the product will also keep rising and there is a powerful justification
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Price level: Based on price-related demand conductivity it is clearly regarded as a determining variable. Effectively, it has been said that expensive items like highly fitted PC, 4 K television, and much more, display especially tough elasticity. While one of the other variables such as reasonable product lines such as color coordinated bundle encapsulates, needle and so forth is relatively elastic to take into account(Meccheri and Fanti, 2018). Nature of commodity: Even the commodity structure influences and determines the elasticity of the market. Different people may have different perceptions to the nature of the product, such as comfort, price or necessity can be the good purchase for the product. When goods are not of acceptable quality, the total demand may decline and the sales figure will be affected by the applicable date Consumption level: Those are believed to be the product that can be everyone from soft drinks, candy, and so forth that doesn't come straight under the things that are needed or urgent. It can be seen fortunately, that these products are mainly highly elastic in request. Consumers are excluding this mainly if the price levels of such good and services are rising(Taj, Rashid and Bin Tariq, 2019). Pricing policy employ by business There are identified different types of pricing policies that employ by the Barclays in order to achieve Competition pricing: Price competition is a mechanism by which certain firms use the fixed prices. Using the price of a rival to just about price the specific goods. Offer or take a small amount to match the value of a product or service(Mirza and et.al, 2019). Demand pricing: Market pricing is also called demand-driven pricing, or pricing based on the customers. This approach of pricing uses customer value of a product or service as the principal aspect of establishing a price for products or service. Cost plus pricing: This pricing strategy is a cost-based approach for trying to set services and products prices. While determining the cost-plus level, consider the raw material costs and the manufacturing costs and attach these to the operating costs of the products or company.
Price skimming: Businesses with a good competitive advantage use the pricing structure. They join the high-priced services and goods sector. It is in order to get the most money. Until other competitorsmay move in with identical, inexpensive services or goods, to get an early replacement on manufacturing cost. Economy pricing: A very common financial planning for distributors and retailers. The pricing of the business is a simple form of advertising at low costs. It holds product prices down, targeting sales in a specific target market which is highly price-sensitive(Stamatopoulos, 2018). From the above pricing policies the Barclays Company apply the Cost plus pricing policy of life insurance in order to get benefits. CONCLUSION It was inferred from the broader economic management analysis that a company can make great business improvements by using the key concepts and their hypotheses. By implementing supply and demand law to goods and services, a business may evaluate the influence of external factors on its profits and selling rate and take corrective action. In the background of the insurance industry, financial management says that by making thousands of life insurances each year, this sector's contribution the main pivotal role in the development economy. In addition to this, large-scale business operations also help to reduce the unemployment rate which inevitably contributes to the growth of community as well.
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