Business Environment Report: Barclays Bank's Strengths and Weaknesses

This report provides a comprehensive analysis of the business environment of Barclays Bank, a multinational financial institution. It begins with an introduction to the business environment and its significance, followed by an examination of Barclays' organizational structure, including its various functions such as finance, human resources, sales and promotion, and operations, and how these functions interrelate to achieve the organization's objectives. The report then delves into the impact of the macro environment on Barclays' operations, utilizing PESTLE analysis to assess the influence of political, economic, social, technological, legal, and environmental factors. Furthermore, the report conducts an internal and external analysis using the SWOT framework to identify Barclays' strengths, weaknesses, opportunities, and threats. The report concludes by summarizing the key findings and insights regarding Barclays' position within its business environment and the factors shaping its performance.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Types and purposes of different organisations and their legal structures..............................1
P2 Size and scope of organisations.............................................................................................1
TASK 2............................................................................................................................................1
P3 Relationship between organisational functions.....................................................................1
TASK 3............................................................................................................................................3
P4 Impact of macro environment on business operations...........................................................3
TASK 4............................................................................................................................................5
P5 Internal and external analysis to determine strengths and weaknesses..................................5
P6 Interlink of strengths and weaknesses with macro factors.....................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................1

INTRODUCTION
Business Environment involves various activities that facilitates an organisation in
achieving its set goals and targets effectively and efficiently. It is defined as the surroundings
where company operates and perform its business operations for the purpose of gaining high
profits. Various forces are exist in the environment in which firm operates and all these variables
needs to be consider by management of every business firm. These factors impact operations and
activities of business enterprise in either negative or positive way (Aithal, 2016). In the present
assignment, chosen organisation is BARCLAYS which is a multinational bank of London. It
offers financial and banking services to their customers worldwide. The report involves size,
purposes, types and scopes of different organisation. Apart from this, it also discusses about
various internal and external environmental forces that put impact on business operations.
Interrelationship of different functions and its link with objectives of firm is also included. At
last, interlink of strengths & weaknesses with macro factors are defined in this project.
TASK 1
P1 Types and purposes of different organisations and their legal structures
Covered in ppt.
P2 Size and scope of organisations
Covered in ppt.
TASK 2
P3 Relationship between organisational functions
A business organisation ordinarily contains diverse divisions which incorporates
operations, human resource, finance, sales, information technology and so on. Every department
carry out its own activities and operations which helps in achieving the predetermined
organization's objectives adequately (Boons and Lüdeke-Freund, 2013). Every one of these
divisions are interlinked with each other. Each business venture intends to increase higher
gainfulness which they can just achieve by fulfilling their intended interest group and this is just
conceivable when organization makes and gives those items or administrations that meet the
client's prerequisites viably. Each of the four offices contribute similarly in gaining higher
benefit. The significance of every division is depicted as underneath:
Finance: Finance assumes an essential part in overseeing business task and working
capital adequately. It causes the organization to develop in universal market and take the upside
1

of propel innovation. Fund influences the capacity to enlist talented staff, buy merchandise,
grow, create and obtain new hardware. There are different sources through which an
organization can orchestrate its financing and they are obligation, value, speculators and so on.
Human Resource: The primary part of HR Manager is to adequately deal with the
workforce and keep up sound connection amongst representative and business. The quantity of
faculty works in Barclays is 129,400 which makes its HR division to confront numerous
difficulties (Aterido, Hallward-Driemeier and Pagés, 2011). Their HR administrator is centers
around holding its best representatives who contributes successfully in producing benefits for the
organization. The alluded organization additionally guarantees that they put opportune
individuals on right employment with the goal that specialist can put their best while playing out
their part or assignment. Barclay's likewise lead preparing program that enhances the
profitability of their general workforce.
Sales and promotion: Marketing is utilized by the business venture keeping in mind the
end goal to fulfill the necessities of their potential purchasers. It by and large incorporates deals,
advancement, publicizing and advertising. With the assistance of advertising, organization can
keep up enduring association with its customers. Barclay's is utilizing distinctive advertising
channels through which they impart imperative data among substantial number of individuals.
They share data by means of print-media, TV and its own site. They have likewise embraced
different sponsorship program that aides in keeping up their image esteem.
Operations: The part of operational chief is to adequately deal with all assets that aides in
producing incomes for the firm. It helps in masterminding organization's assets such that
prompts accomplish its objective in an adequate way. Activity office enable the organization to
deliver great and administrations helpfully with they help of imaginative and propelled
innovation (Cassell and Blake, 2012).
It is essential for an organization to clear target which help them increasing long haul
achievement and productivity. Organization's target ought to incorporate development, survival,
boosting benefit, fulfilling purchaser and expanded deal. Every one of these targets are
interlinked and antagonistically affect the distinctive bureau of the organization. With the
assistance of promoting division, Barclay's can achieve its one of its target which is fulfilling
shopper. Fund division can help in expanding the deals and incomes of the Barclay's and HR
office prompts accomplish vital development in the commercial centre when contrasted with its
2

rivals. All these division specifically or in a roundabout way helps in achieving organization's
goal in an organized and intensive way. The structure of the organization is additionally arrange
into client based, geology based, item based and topography based. Barclay's is both product &
client based organization who with their item or administrations satisfies the need and want of
extensive number of target gathering of people. In this focused world, it winds up imperative for
each business venture to fulfill their potential purchasers who are considered as the ruler of
commercial centre (Commander and Svejnar, 2011). Each firm is having its own particular goal
or objective which need to accomplish inside a predetermined time span. Organization's must
guarantee that all such office works successfully while accomplishing general goal and target.
Decentralization settles on the basic leadership process substantially less complex and accentuate
more towards driving durable achievement and association with purchasers which gives
Barclay's a competitive advantage over its rivals.
TASK 3
P4 Impact of macro environment on business operations
The influence of macro environment on operations of business can be identified by
conducting PESTLE Analysis. By this system, external analysis is done which underlines the
impact of macro forces on the execution and working of business. It alludes as a analytical
device which portrays the impact of outer factors on business venture. It essentially incorporate
political, social, environmental, legal, economical and technological elements. PESTLE is a
business key investigation apparatus otherwise called PEST Tool. To examine effects of an outer
issues of any organization identified with creation, fabricating or any administration segment,
this regularly utilized as the best apparatus. For each business it is basic to dissect the market
circumstance so proper choice would be conveyed down (Cavalcante, Kesting and Ulhøi, 2011).
Barclay Group is an expansive money related supplier working in Europe, Asia, Australia,
America, and the Middle East. It is an overall organization working in excess of 50 nations with
145,000 specialists at exhibit.
Political Factors: These elements incorporates the interventions made by government
that may influence the organization performance. For example, if government impose any new
tax, it may affect the performance of company as well as its overall revenues. There are different
political factors like work law, trade restrictions,tariffs and so forth that may influence
organization's task to vast degree. 2016 turns out to be exceptionally challenging for Barclay's as
3

government of United Kingdom introduce new surcharge on profits of bank. Brexit is also the
factor that influence overall functioning of business.
Economical Factor: Forces like inflation rate, growth, exchange rate etc. put adverse
impact on performance and decision making of firm. For example, expanded loan fee influence
the cost of capital of business endeavour. Exit of European Union turns out as a danger for
Barclay's on the grounds that Brexit may affect the significant money which consequently
manages financial instability of Barclay's.
Social factors: These forces involves growth rate, age distribution, cultural aspects etc.
that influence the society in negative way. These variables affect the company's item and how it
works in the commercial centre. The fundamental social factor that influences the Barclay's
execution is maturing populace of UK and US (Craig and Campbell, 2012).
Technological factor: Advanced and modern technology empower the company to get
high competitive advantage in market. Increased use of digital technology encourages Barclay's
to convey and convey vital data to its intended interest group in a successful way. Development
of portable managing an account and e-keeping money fill in as favourable position for Barclay's
as now it ends up less demanding for the organization to speak with extensive number of client at
the same time.
Legal Factors: These components incorporates different laws identified with client, work
, discrimination and so on that may influence organization's general cost and the interest for its
merchandise or administrations. In 2017, Barclays' senior official was discovered liable as they
manage Qatar with no legitimate detailing. This will influence the alluded firm notoriety which
consequently will bring down the piece of the pie of the organization.
Environmental Factor: Various factors, for example, climate, atmosphere additionally
influences the working of enterprises. In 2015 Barclays' plan to chop down the carbon
impressions which consequently assist the organization with maintaining manageability in the
commercial centre (Elliot, 2011). It manages condition related issues of the bank. Barclays' has
chosen to lessen the carbon impressions by diminishing vitality utilization which help the
organization in picking up supportability.
Positive impact:
4

Cost adequacy: This structure should be possible on a solitary bit of paper. It doesn't
require any product for its execution. The main cost that is connected with PESTLE is time. It is
a direct strategy, utilized by relatively every business venture keeping in mind the end goal to
decide the effect of outside variables as far as political, innovative, social and so forth on
organization's execution (Griffin and Pustay, 2012).
More profound Understanding: External Environment influences the business activity
straightforwardly and in a roundabout way. With the assistance of PESTE structure, organization
can decide the effect of such factors on its general execution. For example, Company can
recognize boundary in term of mechanical advancement in both provincial and urban zones. It
advances key reasoning that empower the organization to take the advantage of higher
aggressiveness level in the commercial centre.
Negative impact:
Numerous People Needed: Another hindrance is it requires substantial number of skilled
and taught specialists who can basically look at all full scale ecological variables. Organization is
at risk to tolerate the cost of every one of these specialists who are engaged with this procedure.
Consistent Reviewing: External elements continues changing on non stop premise in the
modern situation. Chiefs are require to continue auditing about changing outer factors. For
example, government may increment or reduction the duty rate as indicated by the current
political and practical state of the nation. For example, government has increase the duty rate.
Presently organizations will influence strategies as indicated by that and afterwards suddenly one
month from now they to have diminished assessment rate. Presently again organization needs to
change its policy as indicated by the present duty rate. Subsequently, it becomes imperative for
the organization to always audit the progressions that happens in the advertise (Gecevska and
et.al., 2010)..
TASK 4
P5 Internal and external analysis to determine strengths and weaknesses
SWOT is fundamentally a structure that examine what an enterprise can or can't do. It is
utilized for recognizing and examine the internal ( weaknesses and strengths ) and external
variables (opportunities and threats) that affect the suitability of a task, individual,or place.
SWOT stands for strengths, weaknesses, opportunities & threats.
5

SWOT on Barclays
Strengths:
The quality fragment of a SWOT investigation gives a territory to list everything done
right either exclusively or as an association. It contains both quality inside the organization and
outer quality, for example, customer relationship. Barclays has a remarkable nearness in the UK
advertise by appreciating administration position with a solid brand notoriety and gloats
innovative capacity as its centre quality. Brand name of bank is also one of the strength of bank
as it is the best known financial brand.
Weaknesses:
This portion contains the change that is required inside an association. It give an
unmistakable rundown of zones that need an improvement intend to cure the issues
distinguished. Barclays should be modernized its advancements and working foundation as its
material heritage directing issues keeping it down (Kaufmann, Kraay and MastruzzI, 2011).
Opportunities:
Opportunities for development exist inside all association. That makes this section so
essential in SWOT Analysis. Regarding profiting from the development of advanced saving
money, Barclays is in front of numerous heritage banks.
Threats:
To guarantee achievement, association may need to manage both future and present
dangers. By looking at dangers, for example, new rivals in the market, association can actualize
counter measures preceding the undermining. The real danger on Barclays is the legislature
administrative weight including new capital necessities. By presenting 8% extra charge on bank
benefit by UK government is likewise a danger for Barclays (Lee, Olson and Trimi, 2012).
P6 Interlink of strengths and weaknesses with macro factors
Both internal as well as external factor of an organization negatively influence their
functioning and performance. Internal variables assists in determining organization's core
weaknesses and strengths while external forces may identify the effect of political, social,
technological, legal, economical and environmental factors on success and growth of company.
Barclays' principle quality is innovation in digital field which empowers to draw in attention of
6

their customers in better manner. Increase in biometrics, Fin-tech etc. turns out as a major
strength for Barclays's.
The company likewise have risk related to deteriorating the estimation of significant
monetary standards as well as they are also confronting the danger from Brexit, as when United
Kingdom leaves the EU, there may be chances that legislature may put extra additional charge on
different policies which at last influences the organization's activities and operations. Increasing
population of United States and United Kingdom is their main weakness due to which they are
not able to administer effective services to people (López-Gamero, Molina-Azorín and Claver-
Cortés, 2011). Likewise the effect of BREXIT adversely impact the clients, consumers and
employees of Barclay's. Launching of mobile banking and e-banking services acts as an
opportunity for Barclays' as this will makes it flexible and easy for firm to oversee or handle
their customers adequately. Political forces assumes an essential part in each business whether it
is little or substantial. It essentially depicts how a legislature mediates in the economy. As
Barclays bank has its overall branches so it needs to join with government approaches. These
variables influence how a business work and settle on choices including monetary development,
trade and expansion rates. The financial hazard and vulnerability of UK from Europe represents
a test to numerous banks including Barclays too. Cutting edge subsidence additionally influences
the banks generally Social changes have a potential either to risk or an open door for Banks
including Barclays. Barclays must guarantee that its clients are fulfilled and its notoriety is kept
up. Technology has made a client's life simple in any area. Barclays keeps on building up its
innovation and has begun preparing exchanges in view of Block chain innovation (Onetti and et.
al., 2012). In any nation banks are controlled by different laws and organizations. In the year
2017, the senior officer of Barclays' discovered liable while managing bank secret data with
Qatar. This makes terrible picture and altruism of the organization among the objective shopper.
CONCLUSION
As per the above mentioned report, it has been concluded that operations and
performance of firm can be influenced by both interior and outside variables. Internal elements
serves to figures out what are the weaknesses and strengths of organization and external
examination inspects the effect of macro forces on organization's profitability and growth. Every
single association is having its own particular size and structure in which they ordinarily works
7

their everyday working. Diverse bureau of the organization all things considered cooperated with
a specific end goal to accomplish general association's target and objective in a better and
organized way. With a specific end goal to increase higher upper hand, organization apply
PESTLE and SWOT structure in their business activity.
8

REFERENCES
Books and Journal
Aithal, P. S., 2016. Study on ABCD analysis technique for business models, business strategies,
operating concepts & business systems. Browser Download This Paper.
Aterido, R., Hallward-Driemeier, M. and Pagés, C., 2011. Big constraints to small firms’
growth? Business environment and employment growth across firms. Economic
Development and Cultural Change. 59(3). pp.609-647.
Boons, F. and Lüdeke-Freund, F., 2013. Business models for sustainable innovation: state-of-
the-art and steps towards a research agenda. Journal of Cleaner Production. 45. pp.9-
19.
Cassell, M. A. and Blake, R. J., 2012. Analysis of Hofstede's 5-D model: the implications of
conducting business in Saudi Arabia. International Journal of Management &
Information Systems (Online). 16(2). p.151.
Cavalcante, S., Kesting, P. and Ulhøi, J., 2011. Business model dynamics and innovation:(re)
establishing the missing linkages. Management Decision. 49(8). pp.1327-1342.
Commander, S. and Svejnar, J., 2011. Business environment, exports, ownership, and firm
performance. The Review of Economics and Statistics. 93(1). pp.309-337.
Craig, T. and Campbell, D., 2012. Organisations and the business environment. Routledge.
Elliot, S., 2011. Transdisciplinary perspectives on environmental sustainability: a resource base
and framework for IT-enabled business transformation. Mis quarterly. 35(1). pp.197-
236.
Gecevska, V. and et.al., 2010. Product lifecycle management through innovative and competitive
business environment. Journal of Industrial Engineering and Management. 3(2). pp.323-
336.
Griffin, R. W. and Pustay, M. W., 2012. International business. Pearson Higher Ed.
Hall, T. J., 2011. The triple bottom line: what is it and how does it work?. Indiana business
review. 86(1). p.4.
Kaufmann, D., Kraay, A. and Mastruzzi, M., 2011. The worldwide governance indicators:
methodology and analytical issues. Hague Journal on the Rule of Law. 3(2). pp.220-
246.
1

Lee, S. M., Olson, D. L. and Trimi, S., 2012. Co-innovation: convergenomics, collaboration, and
co-creation for organizational values. Management Decision. 50(5). pp.817-831.
López-Gamero, M. D., Molina-Azorín, J. F. and Claver-Cortés, E., 2011. Environmental
uncertainty and environmental management perception: A multiple case study. Journal
of Business Research, 64(4), pp.427-435.
Onetti, A., and et. al., 2012. Internationalization, innovation and entrepreneurship: business
models for new technology-based firms. Journal of Management & Governance. 16(3).
pp.337-368.
Palo, T. and Tähtinen, J., 2011. A network perspective on business models for emerging
technology-based services. Journal of Business & Industrial Marketing. 26(5). pp.377-
388.
Roederer, M., Nozzi, J. L. and Nason, M. C., 2011. SPICE: Exploration and analysis of post‐
cytometric complex multivariate datasets. Cytometry Part A. 79(2). pp.167-174.
Saleem, M. A., 2017. The impact of socio-economic factors on small business success.
Geografia-Malaysian Journal of Society and Space. 8(1).
Weske, M., 2012. Business process management architectures. In Business Process Management
(pp. 333-371). Springer Berlin Heidelberg.
Zalengera, C., and et. al., 2014. Overview of the Malawi energy situation and A PESTLE
analysis for sustainable development of renewable energy. Renewable and Sustainable
Energy Reviews. 38. pp.335-347.
2