Contemporary Business: Barclays Bank's PESTLE and CSR Evaluation

This report provides a comprehensive analysis of Barclays Bank, evaluating its external environment through PESTLE analysis, which considers political, economic, social, technological, legal, and environmental factors. It also utilizes Porter's Five Forces model to assess the competitive landscape within the financial services industry. The report further examines Barclays' corporate social responsibility (CSR) initiatives, analyzing their relevance and effectiveness in relation to stakeholders such as customers, employees, and investors. Areas for improvement in Barclays Bank's CSR strategies are identified, with specific recommendations provided to enhance their impact and overall business performance. The analysis emphasizes the importance of ethical practices and CSR in shaping the bank's image and long-term success.

Contemporary
Developments in Business
and Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
PESTLE analysis.........................................................................................................................1
Porter’s five forces model............................................................................................................3
TASK 2............................................................................................................................................4
2.1 Analyse and relevance of corporate social responsibility on the organization......................4
2.2 Critical evaluation of effectiveness of Barclays bank's response to CSR.............................6
2.3 Areas for improvement in Barclays Bank and some recommendations................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
In today’s era, internal as well as external environment plays an important role for the
business organization. Some forces are there like political, economic, social, technology, legal
and environment which can influence the firm in both positive and negative manner. Industries
can control their internal factors but they are not able to influence their external forces.
International companies have to deal with the changing needs and demands of people (Bohari,
Hin and Fuad, 2017). Along with this, they have to perform their operations with the current
trends in marketplace. The present report is based on Barclays Bank which perform their
operations in financial sector and offer services in all over the world. Their operations get
affected due to some factors and the firm has to take care of these so that they will be able to
perform well. In this context, the current report explains primary external factors which can
influence organizational activities and their importance for the respective entity. Along with this,
it explains the way in which ethics and corporate social responsibility can affect decision making
process in an enterprise.
TASK 1
Barclays Plc is a multinational bank which performs its operations in all over the world.
This offers some products and services to their customers across corporate, investment, personal
and wealth management (Booth, 2015). They have different branches in more than 40 countries
and they have approximately 120,000 employees who are working at the bank. There are many
more factors which can affect the performance of an organization and so, it is the responsibility
of higher authorities to control such issues in order to achieve success at international level. In
order to analyse such forces, manager can use some tools like PESTLE analysis and five forces
model so that they will be able to identify their strategic position in the market area as compared
to other competitors. When their market position will be evaluated then it becomes easy for the
industries to make some effective strategies which will be beneficial in achieving the targets.
PESTLE analysis
This kind of model is used to analyse the company’s political, economic, social,
technological, legal and environmental factors (Chang, 2016). It is a vital concept of marketing
functional area which is used by companies in order to track the environment where they are
operating or where they offer their products and services. By using this, they will be able to
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monitor the macro environment on continuous basis which will help them in formulating
effective approaches. Some factors are there which are explained as:
Political: When an enterprise established its operations at global level then they have to look
over some different aspects like trade restriction, political stability, tax policy, inter country
relations and so on. It is important for the organization to evaluate that to what extent these
factors can influence their performance (Eskerod and Huemann, 2013). So, for this, Barclays
bank need to adjust their marketing strategy and approaches as per the current or future
legislations which are made by state government.
Economic: Some factors are there which can affect the decision making power of an
organization and due to these, their overall profitability will get influenced. These factors are like
interest, inflation as well as employment rate, economic growth, raw material cost and so on.
When inflation and interest rate get increased in the market then due to this, pricing strategies of
a business organization will get affected (Grant, 2016). When companies will not be able to
achieve profits then country’s economy gets affected. So, for the same, Barclays bank need to
follow some flexible strategy which will be appropriate in every situation.
Social: This is related to the demographic as well as cultural aspects of people. By focusing
on such factor, company will be able to estimate the expectations and requirements of
consumers. For example, due to changing lifestyle, needs of the people also get changed
(Marketing Theories – PESTEL Analysis, 2017). So, Barclays Bank has to focus on these so that
they will be able to fulfil the wants of service users.
Legal: Each and every organization has to understand the changes which are made by
government into some legislative laws (Gustafson, 2012). They should know about such laws
like consumer’s act, employment legislation, health and safety. This can affect the environment
in which firm operate their business. Cost can be affected and at the end, demand for products
get influenced as well. When an enterprise operates globally then they have to understand this
because every country has their own set of rules and regulations.
Technological: This includes some factors like technology advancements, innovation,
automation as well as research and development. In this, company should have focused on new
techniques for distribution along with the digital method. By using this, Barclays Bank will be
able to enhance their customer base which can lead them towards success.
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Environment: This is the last macro factor which is related to some aspects of ecological
and environment like climate and weather. By focusing on these, business organizations have to
restructure their operations and they have to adopt the concept of green environment (Hammer,
2015). For this, they have to follow all laws that are made by company in order to protect the
environment. This is also an essential factor on which the firm should be focused.
Porter’s five forces model
The five forces model has been developed by porter and now, organizations use this tool in
order to identify their competitive position in the market. By using this, they will be able to
identify the intensity of competition and attractiveness in terms of profitability. Through this
kind of analysis, companies will be able to make some effective strategies which will be more
appropriate for them in achieving the success (Harmon, 2014). These different forces are
explained as below in an appropriate manner:
Competition in the industry: In this stage, company identifies the number of competitors
who exist in current marketplace and their capability through which they threaten other
companies. If competition among companies is high, then customers or people can easily switch
to another company’s products if they are offering at low price. When this will be high then
companies also perform some advertising activities which can help them in enhancing their
brand awareness.
Threat from new entrant: An industries competitive position also gets affected when some
new businesses will take entry into the market (Hodgkinson and Healey, 2011). Barclays Bank
will be able to maintain their position in the market if there are some barriers for the new
industries. If there are no barriers, then due to this the threat from new entrant is also low. This
factor is important for the respective organization as through this they can sustain competitive
advantage at the market by lowering power of other rivals.
Threat from substitute: On the basis of this current factor, it can be analysed that how it is
easy for the service users to switch the products from one company to another competitor. Some
substitute goods are offered by the rivals to their customers so that it can be analysed that what
different strategies are they adopted to attract the people towards their services (Jeston and Nelis,
2014). For this, Barclays bank has to make some strategies after identifying the competitor’s
approaches so that they can grab the attention of those people which will help them in achieving
the success.
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Bargaining power of buyers: This is related to the power and ability of consumers towards
reducing the prices with high quality products. Their power is high when there are many sellers
who are selling same kind of products so it become easy for an individual to switch from one
company’s products to another (Jones and George, 2015). The power of purchase is low when
they are buying it in small amount and services are unique as compare to any other competitor.
So, for this Barclays Bank has to ensure that they offer more effective or unique services to their
customers as compare to their competitors.
Bargaining power of suppliers: In this, the bargaining power of suppliers has been analysed
that how much power they have and how it can be controlled at the time of rising potential
prices. If suppliers power is high, then due to this overall profitability of an enterprise will get
affected. If number of suppliers are less than they have more power and prices of the raw
material are increased to some extent. So, a business organization will be able to maintain their
position in the market if they have multitude of suppliers. This factor is also important for the
firm as through this they will be able to enhance their profitability level after evaluating number
of suppliers.
TASK 2
Each and every business organization has to follow some ethical practices and corporate
social responsibility so that they will be able to make their positive image in the society
(Meredith Belbin, 2011). The firm has to set some code of practices for their staff members and
their actions will be performed in the specific boundary so that smooth functioning can be
ensured when operations have been performed at global level. In this context, the relevance and
effectiveness of CSR has been identified for the organization. Along with this, the effectiveness
of organizational response has been evaluated in an effective manner.
2.1 Analyse and relevance of corporate social responsibility on the organization
Corporate social responsibility (CSR) is the kind of process that is used by organization in
order to improve the social welfare. Companies uses this for the betterment of their relationship
with the different stakeholders so that long term benefits can be achieved. By implementing such
kind of practices, an enterprise will be able to grab some opportunities in order to spread some
positive image regarding to the firm in the market (Moyer and et. al., 2011). On the basis of this,
it can be analysed that CSR is relevance for every enterprise either they are private or public.
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These kind of practices are not mandatory as companies can adopt these in order to improve their
brand image in an effective manner. Through these, they will be able to perform better at their
marketplace as compare to other industries. There are many stakeholders who are associated with
the company like employees, customers, investors, competitors who can be affected directly and
indirectly. It is related to many stakeholders like:
Customers influences: Customers are an important part of business organization who buy
services after making their purchasing decision regarding to the products. At the time of buying,
an individual identifies some alternatives and out of these they select one best possible option.
An organization has to attract number of people towards their services so that their brand image
can be improved at market area (Myers, 2013). Whenever an enterprise makes some strategies
then they have to look over the needs and demands of the end users.
Employees influences: Staff members are the important assets of business organization
who help them in achieving success at the market area. If they will perform well then
productivity can be enhanced and they will be able to influence the performance of Barclays
Bank in positive as well as negative manner. These people can influence the marketing strategies
as well as decision making process of an industry so that employees will be feel satisfied towards
the organizational practices. It is the responsibility of higher authorities to enhance the
motivation level of the people so that they will be able to perform well.
Investors influences: If some social activities will be conducted at the workplace then it
can help the investors in order to make their decisions regarding for some investments
(Rosemann and vom Brocke, 2015). By conducting the corporate social responsibility, an
enterprise will be able to improve social welfare which can help them in attracting many
investors for the funds. So, when an enterprise will perform some marketing as well as
management activities then through this they will be able to take a good amount of investments
which can help them in achieving the targets.
Competitors influences: There are many competitors of Barclays Bank who offer same
products and services at different prices with some attractive plan. These will act like a threat for
firm as due to these they will not be able to attract people towards their services. So, the bank has
to analyse the practices which are performed by their rivals so that it can become easy for them
in attracting the clients towards their services. For this, they have to focused on some marketing
activities like advertising etc. By performing the advertising, an enterprise will be able to
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enhance their brand awareness at the marketplace. If an industry is involved into the corporate
social responsibility and other social activities, then this can make their unique image which can
differentiate them from their rivals (Rothaermel, 2015). And through this, they will be able to
attain competitive advantage in an effective manner.
Public influence: Business media and press are two main components which can create a
positive image of an enterprise in front of their investors and different stakeholders. Good or bad
news can influence the organizational image in front of the consumers of company. Such kind of
news can be spread into the overall marketplace which can help them in grabbing the attention of
people. Through this, promotional activities can be performed which will help them in improving
their brand image at the market area (Sevkli and et. al., 2012). For this, it is necessary for the
higher authorities to make some effective decisions so that overall management can be take place
in an efficient as well as effective manner.
So, in this manner it can be analysed that corporate social responsibility is highly related to
Barclays Bank as through this they will be able to improve social welfare. This can also
influence the policies and decision making processes which has been performed by the company
at their work environment. After implementing such CSR practices, an enterprise has to make
decisions which are more appropriate for them in achieving the success.
2.2 Critical evaluation of effectiveness of Barclays bank's response to CSR
Barclays bank is one of the leading bank catering to the financial needs of the people. The
company largely carries out its operations in the United Kingdom. The company's
responsiveness to the CSR activities is admirable (What is Corporate Social Responsibility?,
2017). The community stands important for the company and always tries to do its part.
Community department and charity: The relationship of the company with the society is
sacred. The business house always focuses on creating a bonding between the two. The company
recently conducted various CSR activities to promote community development (Smit and et. al.,
2011). The charitable front of the organisation is very active as well. The company has promised
to contribute a share of its profits for the welfare and development of the society.
Customer satisfaction: The sole reason for the existence of the company is fulfilling the
need of the consumer and retaining them. This is the prime goal of the organisation because a
happy clientele is beneficial for business. A company must be active when it comes to solving
the query of customers. Because these factors lead to unsatisfied customers which lead to
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negative word of mouth. Imitating and communicating the consumers at regular intervals will
help in enhancing their level of contentment.
Sustainable Development: The company have adopted the sustainable means of
development. The bank has tried to minimize the use of papers as they are produced by cutting of
trees. The lesser use of papers will automatically promote digitalization. The company have
always shown great concern about the environment and works for the betterment of the same.
Employee Engagement: Employee engagement referred to the activities concerned with
the training and development of the employees (Srivastava, Franklin and Martinette, 2013).
Employees in the company bridge the gap between an organisation and its objectives. So
contentment of employees plays a crucial role in an organisation. So equipping them with proper
training, knowledge, salary and performance based incentive will really test their potential and
motivate them to perform better.
Minimizing unemployment: Unemployment is one of the biggest concern in the market. It
is a situation in which capable people do not find the jobs. Barclays have always strived to
reduce the level of unemployment in the country. The company employs around 129,400 people
which is many folds higher than the rival companies.
Communities: Barclays have always been front runner when it comes to initiate
community oriented practices. The employees of the company will not work for a day to assist in
the community matters (Sturdy, 2011). Along with this the banks organise citizenship programs
which focuses on rewarding the excellent candidate.
Sport events: During the period of 2001 to 2004 the Barclays have invested around 1.5
million euros to support and encourage football in the backward areas. The company have
invested around 40 billion euros internationally to sports activities to make encourage the
disadvantaged children to see the positive aspects of sports and progress in their lives. The
company manages nearly 200 sports communities in the country.
2.3 Areas for improvement in Barclays Bank and some recommendations
Whenever any organization establish their operations in market then they have to analyse the
environment where they perform their activities. After that, they need to make some effective
decisions which are more appropriate for them in achieving the specified targets. Through this,
they will be able to match their capabilities with the respective environment. Barclays Bank
perform their all operations like social, political, economic, legal, technology in an efficient
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manner so that they will be achieve effectiveness. The respective firm also follows some
legislative rules as well as regulations which can help them performing their all operations in an
effective manner. So, in this way they created an effective brand image in the minds of people
which will help them in achieving the targets or goals (Tavitiyaman and Zhang, 2011). The
company need to improve some areas like globalization where they perform their operations as
through this they will be able to fulfil the needs of the people.
There are some recommendations which needs to be followed by the firm so that they can
improve their specific areas and after adopting these they will be able to attain competitive
advantage. Firstly, the bank should have focused on their global issues or problems and after that
they have to make some strategies so that all issues can be resolved in an efficient manner. The
company have to focus on some services which will add some value and due to which their
overall satisfaction level can be enhanced in an effective manner. Barclays Bank establish their
operations at global well as local level so their marketing position is good which will help them
in attracting many people towards their services (Zadek, Evans and Pruzan, 2013). The company
should adopt a differentiation strategy through which they will be able to make their services
unique and through which they can attract many people towards their services. This
differentiation is a competitive strategy that helps the company in sustaining their competitive
advantage which will be beneficial for them in sustaining their competitiveness.
By following the differentiation, customer’s loyalty can be increased to some extent that will
help them in achieving the success (Grant, 2016). On the basis of this, an enterprise will be able
to attract mass clients which will help them in performing better at the market area.
Barclays Bank is focusing on hiring employees from society who can work for them in order
to provide effective services to customers. They should formulate plans in order to create
awareness among people about different schemes which can be used by them in order to achieve
success. This is valuable factor in order to develop health environment among people of society
thus contributing step forward towards Corporate Social Responsibilities.
The selected firms should focus on remote areas in order to make their development so that
they can easily cut down unemployment ratios and bring light among people in order to make
lives of person happy and healthier (Chang, 2016). This is also contributing factors towards CRR
activities.
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In present era many businesses are facing tough competition from their rivalry firms who are
executing in same banking areas all over the globe. While making comparison in UK economy
there is high level of competition at market places. Barclay Banks have to focus on those factors
which are creating difficulties while making their contribution towards social Responsibility.
These firms should design effective policies in order provide benefits to clients so that they can
invest money in order to achieve profitability and lead a happy life. Thus CSR are essential for
every business in order to make contribution towards social acts.
Barcley banks are taking initiative in order to provide financial assistance to those persons
who are facing difficulties in their life (Bohari, Hin and Fuad, 2017). This is valuable for them in
order to achieve success in their ventures. The resources which are used by them in performing
their business operations should not harm the environmental aspects. They should provide funds
to those business who want to start up their new ventures and needed money in order to buy raw
materials. They should give loans to people at lower rates so that can easily borrow money for
their operations. Banks are conducting blood donation camps in order to help people of society in
who are suffering from any disease any need money in order to get their treatment. They are also
organizing camps to make people about different policies in which people can safely invest their
money and gain profitability.
CONCLUSION
From the above carried out analysis, it can be concluded that a business organization is the
comprises of many factors which can affect their operations in both negative and positive
manner. There are various forces that influences an enterprise and their competitive position if
they established their business at global level. For this, PESTLE and five force model can be
used so that all factors can evaluated and along with this they will be evaluate their strategic
position. Along with this, an enterprise will be able to implement some corporate social
responsibility and ethical practices so that social welfare can be enhanced. After implementing
this, the sustainable objectives can be achieved which will help Barclays Bank in maintaining
their relations with the stakeholders.
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