Management Economics-2: Market Structures and Government Interventions in the Financial Industry

This study discusses different market structures in the financial industry and the impact of government interventions. It focuses on Barclays as a case study and explores the advantages and disadvantages of different market structures. It also examines the nature of the industry in which Barclays operates and the government interventions that affect the company.

MANAGEMENT ECONOMICS-2

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Company overview......................................................................................................................3
Company current operating market structure (500).....................................................................4
Different market structure (700)..................................................................................................4
Nature of the industry in which company operates.....................................................................6
REFERENCES................................................................................................................................9

INTRODUCTION
Management of economies is something which refers to the process of managing resources,
finances, expenses, income and other management of business and perform all functions’ which
can help them out in improving revenue (Bertoletti and Etro, 2017). This present study is based
on Barclays which is British multinational investment bank s well as financial service company.
It was founded in the year of 1690 by Jes Staley and Nigel Higgins. This present study on
Barclays in going to discuss different types of market structures such as monopoly, oligopoly,
monopolistic and others in which companies and industries operate as per the nature of their
products and services and accomplish goals accordingly. Further, it will discuss some advantages
and disadvantages of all types of marketing structure in order to select the best one and
motivating companies to make their products accordingly and taking competitive advantages.
Lastly, this study will show the nature of industry in which Barclays actually operate and how it
is helping out in meeting goals along with some governmental interventions having critical
impacts on its performance.
MAIN BODY
Company overview
Barclay is the British multinational investment bank and financial services company organized
toward four core business such as the personal banking, corporate banking, wealth management
and investment management. The company is known as place of opportunity maker who are
working together to help the people rise the different customer, client, colleagues and society in
respective manner. The company is creating opportunities and measure the people such as
employees in order to create better value and bring work life balance.
The company is highly dealing in the insurance product which are divided in the different
categories such as Barclays home insurance, Barclays life insurances, Barclay tech insurances
along with Barclay travel insurance.
The important of the Barclay life insurances is underwritten by the legal and general assurance
society limit in term, conisation, exclusive and legality criteria. The company life insult leaves a
legacy by insuring he life for you love one in upcoming future. This can be done as paying
university fees or making assurance mortgage coverages. The insurance has been identified a
fixed monthly payments and simple helps process which make the easier to protect family and
future of the love one. The life assurance is providing support in tough times which is been
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difficult, emotional ad stressful. Barclay life insurance looking the affordable payments in
different circumstance and situation changes jus as if policy have started.
Company current operating market structure (500)
The insurance market has a structure that’s is involving all property and causality insurers, life
insurer as we’ll as health insures. This insurer has regulation that the company have the
application of different policies that they provided. The insurance markets is regulated by the
combination of the state or federal laws depending the type of insurance they is offering. The
company is currently dealing in the monopolist market as the low barrier to the entry and exit as
many companies basically the finance companies are competing in these sectors nowadays. it is
important the effect of life insurances settlements on the insurance contract designing. The
policyholder tends to have the facing the mortality risk but also the having the heterogenous
liquidity risks which hold all policy holders to sundered and settle the policies in respective
manner. In the monopolist’s insurance market, the settlements have market lowers the insurer’s
profit, and consumer welfare increases whenever demand increases and possibly increases even
when demand decreases. The company have the various level of offer holding the company as
there making the life insurance on mortgage as owning the own home can offer better level of
stability and security to family. This is the biggest financials commitments the company is
offering to the customers getting the life insurances is the simple way to make its protected in
case the person dies or be the terminally or critically ill.
As from the ats 30 years, Barclays insurance is working as the trust insurance advisor to the
business helping out ins decrying and ongoing the continued success. The firm have extensive
level of experience and expertise in the insurance group industry. The firm life insurances in
designing and implementing best advisable benefits provenances for unique corporate needs and
objectives. Hence the Barclay insurance is providing the business and individuals with well-
defined strategies for the customized insurance plans. There have been offering all delivering
life, disability and health acre insurances for being the unique corporate and personals security
needs.
Different market structure (700)
Market structure is in different types for different company’s company operates and it all
depends upon the type of their business and nature of their products. The company have the
describing such as perfect competitor, imperfects competition, oligopoly and monology. the
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insurance sector of the Barclays has separatable legal entity for the Barclays group. The
company s delivering the critical service to business to enhance the operational continuity for the
development of different business unit. On the other hand, the company have acuate level of
product differentiation in life insurance sector as fascinating the execution of recovery and
resolution plans in different events of financial difficulty. In the monopolistic, where the product
differentiation has been considered as important element, the company is turning out to be centre
of excellence such as eliminating the chance of fraud management and cyber security reducing
major level of duplication and promoting the different best practice across the business. The
insurance company cannot have the discrimination in the policyholders on the bases of liquidity
which are insured in the surrender and settlements.
Previously being in oligopoly markets have been characterized as the he market where there are
few number of sellers selling either homogenous of differentiate products. In the other words,
this markets have clear level of is between the pure monopoly and monopolistic competition,
where few sellers dominate the market and have control over the price of the product. The
company was facing there more level of challenges as due to the formation of cartel between the
different compositive companies. So the firm have the greater level of potentials as due to the
interdependence between the firm, the company is effected by firms price and output. in addition
to that’s the firm have fail to gains more level of markets share due to the legal normed of
oligopoly markets so it has turned mor important for the Barclays insurance company to break
the macerater and enter into monopolistic markets. intimately the coast have faced servals issues
but later on the firm have settle in term of proper identification and need of the customer.
In the context of Barclays, it can be said that it is now operating in a legal entity of both Barclays
UK and Barclays international. Barclays UK offers everyday products and services to consumer
customers, retail as well as small to medium size enterprises of the UK. Barclays international
offer products to large corporations and international banking clients. All institutions and
financial companies including Barclays will have to maintain certain lending levels to consumers
as well as small businesses. Consumers can take advantages of it and can improve their living by
taking effective insurance services. In the context of Barclays it can be said that it is now
operating in a legal entity of both Barclays UK and Barclays international. Barclays UK offers
everyday products and services to consumer customers, retail as well as small to medium size
enterprises of the UK. Barclays international offer products to large corporations and
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international banking clients. Barclays it can be said that as per the nature of product and service
it comes under oligopoly market structure as there are limited markets and companies
focus on quality development is one of the main features and skill of Barclays which has made it
able to take competitive advantages and being the market leader in this industry.
Barclays provide excellent services and benefits in financial and insurance services to consumers
and also make them aware about its importance. Because by doing so all institutions and
financial companies including Barclays will have to maintain certain lending levels to consumers
as well as small businesses. As the to be more level of focus in developing there and bringing out
the compilatory business to be more closely together helping out in creating the enhanced focus
for the client proposition and offering across the all targets echoed. The company have the
establishes the centre of excellences which is drive in efficiency and creating the better group
reliance.
Nature of the industry in which company operates
In the context of market structure it can be said that there are different types of marker structures
in which different companies company operates and it all depends upon the type of their business
and nature of their products. For example: if company has unique features of products and there
is no one who produces that type of products then it comes under monopoly and when there are
some competitors and produces same type of products then it comes under oligopoly market
structure (Altuntas, Berry-Stölzle and Cummins, 2019). There are some companies who either
operate in monopoly, oligopoly, perfect and others structures and some operates in more than 1
type of structures if they have different products range. In the context of Barclays it can be said
that it is now operating in a legal entity of both Barclays UK and Barclays international. Barclays
UK offers everyday products and services to consumer customers, retail as well as small to
medium size enterprises of the UK. Barclays international offer products to large corporations
and international banking clients.
In the context of insurance and financial company of Barclays it can be said that as per
the nature of product and service it comes under oligopoly market structure as there are limited
markets and companies but competition in this industry is high and companies require providing
unique features of services and adding some extra features in order to being in the competition
and attracting customers to the large extent. But now it operates in monopolistic market
structure as there are several competitors in this market.
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There are several advantages when companies operate in monopolistic structure such as:
Products differentiated: It is one of the other main advantages of operating and in monopolistic
market as there are several players but all companies sell different products than each others and
focus on quality development is one of the main feature and skill of Barclays which has made it
able to take competitive advantages and being the market leader in this industry.
Price discrimination: In this market structure different companies charges different prices as it
depends upon the features of products and services which company provides to customers. For
example: Barclays provide excellent services and benefits in financial and insurance services to
consumers and also make them aware about its importance. It may change its prices of services
as per the demand and features which it adds (Zhou, Zheng and Huang, 2017).
Consideration: Companies gain several significant advantages while operating in monopolistic
competition and by investing more in technologies and focusing on continuous product
development, Barclays can increase customers retention rate.
Government intervention
Government interventions can be defined as regulations, policies as well as taxations which
affects market. Government intervene in markets have aim of public consideration and public
welfare by promoting general economic fairness and with financial support. There are several
common examples of government interventions such as: implementing some regulations on
companies and industries which motivate them to minimize pollution and becoming sustainable
among all interventions some interventions have good effects while others have some negative
effects. There are some government interventions related to this financial industry and Barclays
include:
Corporate sustainability: It is founded that government are supporting financial institutions in
order to prevent them against failures and improving overall economy of the country. But on the
other hand, it is found that Barclays attempted to defuse investor criticism of its 7 billion pound
capital-raising by offering existing shareholders 500 million pounds as the issue of high interest
capital instrument for other new middle investors (UK Government Barclays Shore up
Recapitalization Deals, 2018.)
In addition, UK government announced The Asset protection scheme as there preliminary aim
behind doing this is protecting all financial institutions against exposure to exceptional future
losses on bad asset (Farmer, 2020). It can definitely help and protect Barclays against failure of
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some policies and other strategies related to insurance and by making an effective use of
awareness programme it can increase revenue and also make people feel valued. Under the Bank
Recapitalisation Scheme developed by UL government, the UK sought and obtained the
committed and active participation of many of the largest UK banks and building societies
including Barclays. All participations institutions or organizations agreed and told to people they
will take extra care of it and try to increase their aggregate tier capital by GDP 25bn
(Government Interventions in Financial Market, 2009). It will direct affect financial sector and
people to the great extent in an effective manner. Because by doing so all institutions and
financial companies including Barclays will have to maintain certain lending levels to consumers
as well as small businesses. Consumers can take advantages of it and can improve their living by
taking effective insurance services. So, overall, it can be said that Government is taking effective
steps and actions regarding improving financial institutions and preventing them against failures
or financial crisis.
CONCLUSION (100)
from the above file , it can be concluded The company is known as place of opportunity maker
who are working together to help the people rise the different customer, client, colleagues and
society in respective manner. The insurance has been identified a fixed monthly payments and
simple helps process which make the easier to protect family and future of the love one. In the
monopolist’s insurance market, the settlements have market lowers the insurer’s profit, and
consumer welfare increases whenever demand increases and possibly increases even when
demand decreases. The insurance company cannot have the discrimination in the policyholders
on the bases of liquidity which are insured in the surrender and settlements.. All institutions and
financial companies including Barclays will have to maintain certain lending levels to consumers
as well as small businesses. As the to be more level of focus in developing there and bringing out
the compilatory business to be more closely together helping out in creating the enhanced focus
for the client proposition. Barclays it can be said that as per the nature of product and service it
comes under oligopoly market structure as there are limited markets and companies but
competition in this industry
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REFERENCES
Books and Journals
Online
Altuntas, M., Berry-Stölzle, T.R. and Cummins, J.D., 2019. Enterprise risk management and
economies of scale and scope: evidence from the German insurance industry. Annals of
Operations Research, pp.1-35.
Bertoletti, P. and Etro, F., 2017. Monopolistic competition when income matters. The Economic
Journal, 127(603), pp.1217-1243.
Farmer, M., 2020. UK Governmental Interventions and Transnational LGBT Activism.
In Transnational LGBT Activism and UK-Based NGOs (pp. 147-203). Palgrave
Macmillan, Cham.
Zhou, W., Zheng, Y. and Huang, W., 2017. Competitive advantage of qualified WEEE recyclers
through EPR legislation. European Journal of Operational Research, 257(2), pp.641-
655.
Elliott, M. and Galeotti, A., 2019. Market segmentation through information. Available at SSRN
3432315.
Braedt, O. and Standa-Gunda, W., 2020. Woodcraft markets in Zimbabwe. International Tree
Crops Journal, 10(4), pp.367-384.
Watrin, C., 2020. The social market economy: the main ideas and their influence on economic
policy. In The Social Market Economy (pp. 13-28). Springer, Berlin, Heidelberg.
ONLINE
UK Government Barclays Shore up Recapitalization Deals. 2018. Online Available through: <
https://www.reuters.com/article/us-britain-banks/uk-government-barclays-shore-up-
recapitalization-deals-idUSTRE4AH6KH20081118>
Government Interventions in Financial Market. 2009. Online Available through: <
https://www.mayerbrown.com/public_docs/0213fin_Summary_Government_Interventi
ons_UK.pdf>
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