Business Strategy: Barclays Bank Investment Banking Culture Analysis

This case study examines the culture of Barclays Bank's investment banking business, analyzing its strengths and weaknesses. The study utilizes the cultural web framework to understand the organizational structure, rituals, stories, symbols, power dynamics, and control systems within Barclays. It highlights the challenges posed by internal competition, negative cultural environments, and the impact of leadership changes, particularly under Antony Jenkins. The analysis further presents the advantages and disadvantages of drawing on Barclays' history, focusing on Jenkins' reformist strategies, tax avoidance, and the effects on employee morale, financial performance, and the overall working environment. The study concludes by emphasizing the need for a diversified team and improved reward systems to foster a positive and productive organizational culture within Barclays.

Business Strategy Case Study

Table of Contents
Overview......................................................................................................................................2
Analyze the culture of Barclays’ investment banking business..................................................2
Presenting the advantage and disadvantage of drawing on Barclays’ history.............................3
REFERENCES................................................................................................................................6

Overview
The present study is based upon the case study of Barclays Bank which helps to
determine the culture of Barclays investment banking business and also present the advantage
and disadvantage of drawing on this history.
Analyze the culture of Barclays’ investment banking business
In Barclay’s bank, the biggest problem is culture as it’s the author stated as per the
cultural web which is a tool that is used to map the culture of a firm and also understand the
different influence that also affect the organizational culture. Thus, in strategy formulation
process, the organizational culture present a framework in which strategic decision makers
operates in order to determine the strategy formulation within Barclays bank. So, as per the each
component of Cultural web, I.e. Organizational structure which includes the structure which is
define by the organization chart. This element also shows the unwritten lines of power and
influence which describe the most valued contribution (Cooper and et.al., 2019). In the context
of Barclays’ the organization structure show collaboration in a group, but face competition
against others. Also, most of the CEO and manager go because the culture is not effective and
hold the managerial powers.
Another element of Cultural web i.e. Rituals and Routine, which refers to daily behavior
and action of people that describe the appropriate behavior. In the same way, Barclays’ routine
and rituals shows a typical of an employee such that sometime employees do not help each other
but they all treat each other equally (Boutsi, Ioannidis and Soile, 2019). Next element is stories
which shows the past events and describe the condition of people. Such that company keep
changing its policies when someone goes, but it also provide bonus to their employees and also
provide expensive day trip if the employee perform extra ordinary. This is the positive working
environment within a company, but there is no respect for core values to each other.
In addition to this, symbol is another element of cultural web that represent the logo and
formal dress code and behavior of people. Such that its working tradition is to work for long and
hard, in return it also provide the fringe benefits as well. company keep providing innovative
task, but takes risk for gaining huge profit. Next is power structure, which show the real power in
a company and it is also involve some senior executives, managers at each department because

they influence the decision within a firm. In the same way, for Barclays’ there is no constraint
which means there is no power of senior authority and even there were many situation where
employee did not earn anything but still get bonus. Then Bob Diamond join in 1996 who belongs
to reputation US banks (Propheter, 2019). He also grew much criticized structure capital
markets tax planning business where he avoid tax and as a result, culture of a company got
affected with its brand image. In the firm only CEO has a power to make investment related
decision, but sometimes they also take wrong decision and as a result, company has to suffer.
Last element is Control system which show how the company is controlled such that its financial
system, quality system as well as reward system. Barclays’ keep monitoring the risk taking
process and also earn great reward because it emphasize on the trading. Its financial system is
strong such that it will help to minimize the risk issues.
As per the above key element of cultural web, it can be stated that the culture of
Barclays’ is consider an issue but it never discriminate the people on the basis of caste, gender
and religion. Its ethics are also so strong but due to low management strategies, the company got
affected in negative manner which in turn leads to employee resistance as well. Further, it can be
stated that is the company develop the strategies which in turn help to minimize the issue, then it
affect the positive working culture of the company as well (Carretta, Schwizer and Fattobene,
2020). Beside this, it is also analyzed that company have good workforce and there is a strong
collaboration within a group but they also faces strong competition with each other. This is
clearly reflected that people live together but they also face competition this affect the
performance of an employees in negative manner. That is why, it is analyzed that company faces
the biggest issue with regards to negative cultural environment.
Presenting the advantage and disadvantage of drawing on Barclays’ history
As Reformist Antony Jenkins uses Barclays’ Quaker history as a resource for a change
because his strategy to run a business is not like by the staff members. Many staff members also
given some nicknames such that dual monikers which refers to Jenkins split the staff in to two
form that affect the culture in negative manner. Many of them says Mr. Nice because he started
to using illegal practices within a company and that is why, he is fired within a firm because it
completely change the business but try to make profit for the company as well. These strategy is
creates negative impact upon the business culture and these are as mention below:

Advantages: the biggest reform in Barclays’ with the Antony Jerkins strategy is to avoid
the tax and this in turn help to meet the define aim and generate profit as well. He has a
transformation mind and also state that company have to make changes in its overall strategy so
that it help to make employees motivated and encourage to treat customers with respect (Maina,
2017). The man always have a concern related to financial position of the company and that is
why, try to make strategies that assist to run a business in better manner. That is why, he also
admits that he play a part in min- selling payment protection insurance and also defended the
socially useful role of investment banks to raise money in order to grow their exposure for thee
currency movements.
Also, Antony is focused upon the staff performance and that is why, stated that
performance assessment is not mainly focused upon what employees deliver but on how they
deliver. This will assist to examine the strategy which they used in order to sell the product in
market. Also, Antony mainly focus on financial performance and that is why, he litigate cost as
well as fines increases that helps to increase profit which is not right (MATHENGE, 2016).
Thus, to minimize this issue, company may start offering the rewards to the people in order to
increase the overall business performance in market but it does not mean that company’s should
may use it in unethical and inconsistent manner with the Barclays’ values. As a result, it will
assist to motivate the employees to attain the define target of the firm and this in turn increase the
financial performance and gain respect from customers as well.
Disadvantages: Company’s employees are not happy with the CEO Antony Jerkins
because his strategy is completely different from others. Such that his main concern is to increase
profit and that is why, he reign split between those appreciated but in the ethical manner. As a
result, it increase the competition between employees which in turn affect the company’s internal
working environment in negative manner (Roemer and Buckle, 2017). He also falls the rate of
many offered products and this justify its not reduction in cost, it a change in the way we do
things which company actually required. On the other side, CEO did not consult with any
shareholder and this in turn shows that he apply autocratic leadership style that affect the entire
working culture in negative manner.
In addition to this, Antony Jerkins mainly focus on the financial performance of a
company and that is why, made changes which somehow affected the culture of a company in

negative manner. Such that secondary study shows that when Jerkins promise to bring pay at the
investment bank down but in 2014, the rival bank started to poach top performers and as a result,
the banking pay ratio is increases from 39.6 to 43.2 percent that affect the entire company in just
adverse manner (Ayakoroma, 2017). Therefore, when the culture of Barclays’ reviewed, it is
stated that company believe that business practice for which a firm has rightly been criticized
were also re-shaped through its culture and rest of them are on uncertain foundations. Thus, there
is no sense of a common purpose in a group and that is why, there is a need to have a diversified
team so that they present their views in order to make changes accordingly. Though he is also
make sure about the performance level of employees but on the other side, Antony did not
concern about the rewards system that helps to keep motivate their employees for better
performance. Thus, these reforms of Barclays also have a negative impact upon the company.

REFERENCES
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