Business Strategy Report: Barclays' PESTEL, SWOT, and VRIO Analysis

This report offers a comprehensive analysis of Barclays' business strategy, examining the impact of the macro environment through PESTEL analysis and evaluating the internal environment using SWOT and VRIO frameworks. It delves into the political, economic, social, technological, environmental, and legal factors affecting Barclays, assessing its strengths, weaknesses, opportunities, and threats. The report also explores the company's resources and capabilities to identify competitive advantages. Furthermore, it evaluates Porter's Five Forces model for competitive analysis and discusses various strategic planning approaches. The report concludes with a summary of findings and references used.

Business Strategy

Table of Contents
Introduction......................................................................................................................................3
TASK 1............................................................................................................................................3
Smearing appropriate outlines analyse the impact and effect of the macro environment on a
given organisation and its strategies.......................................................................................3
TASK 2............................................................................................................................................5
Analyse the internal environment and capabilities of a given organisation using appropriate
framework...............................................................................................................................5
TASK 3............................................................................................................................................9
Evaluate Porter's Five Forces model for identifying competitive analysis of the market......9
TASK 4..........................................................................................................................................10
Various Strategic planning for the organisation...................................................................10
CONCLUSION..............................................................................................................................14
References......................................................................................................................................14

Introduction
Business strategy is the methods which are adopted by manger of a firm to formulate
business plan and policy for achieving organisational objectives. It can be said that it is a set of
different action plans to establish Better Corporation between departments of firm and to use
resource of organisation efficiently in a particular direction. They are made by keeping long
range objectives of organisation. Main aim of business strategies is to increase performance of
employee of organisation for increasing profitably of organization (Johnson 2016). This report is
carried out on Barclays, it is the British multinational investment bank and financial services
company which has the headquarters in London. In this report there is examination of macro and
micro setting of business which result strategic decision of firm . All these environment are
analyse with the help of different models which are VRIO, PESTEL , SWOT, etc. how the major
impact of these report will be identified and will stated in context of firm that how can study of
internal and external environment will be use full to firm in long run of their business.
TASK 1
Smearing appropriate outlines analyse the impact and effect of the macro environment on a given
organisation and its strategies.
In accordance of successful strategic formation and making effective business decision-
making firm have to clearly examine the external factors for regular check on there performance.
These can be done through PESTEL analysis which help the firm in studying political,
economical, social, technical, environmental and legal factor. Barclays PESTEL analysis is
mentioned below:
Political : The political orders are affected by Barclays banking sector in all over the
country. The level of corruptness specially focuses on the financial sector of a company.
Authorities and hindrance in foreign banks are affected by government. It plays a important role
in identifying the factors that lead to impact on Barclays Foreign Banks in order to disclose
various types of political environment and its system this will impact on firm as they have to
make their polices according to government on nation. Polices which includes curriculum which
firm should follow after the happening of uncertain events in political environment
(Soltanizadeh and et. al., 2016).

Economical : There are different type of economic factor in business which are
exchange rates, inflation rates, investment pattern and business cycle with there direct impact on
business of firm. In context to Barclays this uses economic factor which includes growth rate and
inflation in order to predict the future growth. It further includes exchange rates and steadiness of
growing economical monetary system. The financial market requires rising in the local market
which lead to increase in the efficiency of the market firm have regular check on there as
inflation rate will leads in making of contingency reserve and will decrease profit of firm. .
Social : Social factors are most important factors for any banking sector as it includes
demographic of population, age, gender which directly impact on the product. With reference to
Barclays that would encourage a superior product to the public whether the number of
population was lower class(Habib and Hasan 2017). The verifications in educational aspect
along with the marketplace and the target market in order to make it ambitious to connect
efficiently in the market. This banking sector requires to level of regulations, act to annoyance
demand and importance of environmental activity exist in the industry. This function will impact
business of firm as trends in society like use of interest free ATM cards and etc. can shape firm
customer differently.
Technical : These are those factor which includes the technical changes in business
environment . These are change in production technique, change in production pattern or change
in technology of product. In context to Barclays banking sector, it could develop new
technologies which are done by competitors. The easy and quick technology would improve the
product differentiation. The impact on this lead to the costs of the companies in the industry
which could go through massive. Various new innovations and ideas are evolved in this sector in
order to increase the profitability and productivity of a company this have its direct impact on
firm as firm have use new system in its functioning and there cost will increase because of
updating but it will also get benefit of smoothness in its work. .
Environmental: This factor emphasis the conditions of changes in climate in order to
sustain in the market for longer period. With reference to Barclays banking Sector Company, it
creates more opportunities which could help in the environmental improvement. The present
weather conditions affect on the abilities of Barclays for succeed in transportation of resources
and smooth product. Therefore, it would effect on the transfer dates of finished product in order
to unpredicted rainy season. This company could also offers the new products that highly affect

on the large quantity of waste which are necessary by law in order to succeed their
environmental habits. Further, it has to focus on new innovations which lead to improve in the
action of banking and financial sector. (Linder and Williander 2017).
Legal: The legal laws and regulations which are related to the corporate world. The
effects of these laws and regulations that are identified in this factor with the use of Pestle
analysis. Further, the regulations of the environmental assets in order to gain the better
opportunities. This lead to increase in the rational property of laws across the world. In context to
Barclays banking sector, the policies of laws and regulations has spot the ideas and evidence of
companies whose role is to maximise the profitability of required information. Further, it
enhances the rights and properties which lead to grow within the changes that are occurred in the
external environment. The laws which contains the quality level and reasonable price to support
for the customer and also prevents them.
TASK 2
Analyse the internal environment and capabilities of a given organisation using appropriate
framework
For analysing internal environment and capabilities of organization there different
approaches but ford chooses SWOT analysis and VRIO frameworks for there evaluation which
is stated below.
SWOT analysis
This is the favourite with used to identify the strength weakness and opportunities within
the organisation which can help forming making a good strategic plan for its management. . This
is the analysis of internal factors Formulating good policies and plants which can help me in
identifying new business opportunities and using its strength for effective utilisation of resources
and making a good business strategy in order to achieve objectives of firm.
Strengths Weaknesses
 Strong financial brand image in overall
banking sector this is the main strength
of Barclays banking sector this will
 Barclays has the problems in rendering
services to people which lead to invest
in the doubting of right issues where

help company in attracting more
customers in given market.(Oldman
and Tomkins 2018)
 Barclays has invented the new
innovations within their existing
products. It also brought into presence
of first credit card in 1966. Which have
impacted positively as firm have spate
brand image in mind of customer.
firm have to focus more on this.
 Barclays is paying immoderate bonus
to its directors which would not include
the financing of the government.
Opportunities Threats
 It could increase in financial knowledge
between young person to improve the
educational levels in order to increase
the number of minor(Sanden 2016).
 Barclays have also a opportunities of
larger function of services which could
attracts their clients to increase the
selling.
 Closing of subdivision which assume
the honour of not a customer friendly
company in order to support the
branches opened.
 This lead to the position in Asia is less
as compare to Europe in which the
difficulties of a company that are
appeared.
 The other economic stability is forever a
threat in such a way that lead to position
of banks that affects the drastic change.
VRIO framework
It is the analytical framework which helps the firm in identifying its competitive
advantage by analysing its resources, capability and core competence. It is a strategic planning
which analysis the abilities for sustain in the long term for the competition. Further, it involves
the firm mission and vision in order to achieve the objectives and strategies which are performed
for the better productivity(Mohelska and Sokolova 2016). Ford have four main resources which
are stated below.

Resources Value Rare NON
inimitable
Organized Result
Centralized decision
making
YES NO NO NO Parity
Strong Brand YES YES YES NO Temporary
Corporate Culture YES YES NO NO Temporary
Vast distribution network YES YES YES YES Sustained
The above mention table is showing the four main resources of Barclays which are
centralized decision making, strong brand image, corporate culture and vast distribution
network .
Valuable
valuable are those resources for which company pay special attention in there allocation.
These can give firm competitive advantage in long run. Barclays have four resources which are
valuable for it.
Centralized decision making: This resource of Barclays is valuable for a company as they
follow decision making style which facilitate company in effective implementation of policy and
procedures (Remane and et. al., 2017).
Strong Brand: Barclays is operating from last 111 years which is adequate to know about
strong brand image this has facilitated firm in establishing good image in eyes of customer which
is valuable for company in getting competitive advantage.
Corporate Culture: Barclays has a strong competitive culture in there banking sector as
they follow their rules and regulation properly which is valuable for a company. Corporate
cultures also help firm in getting access to number of opportunities like good management and
fact decision in working of firm.
Vast distribution network: It is most valuable resource for Barclays as it facilitates them
in achieving their objectives to enlarge large customer base. Distribution channel will help firm
in getting access to customer and supply and will benefited in development of market share.
Rare

Rare are those resources which give firm a unique identity that competitor can get those
easy in their firm (Maniora 2018).
Strong Brand: Strong brand is rarity for other company as it is the patent of Barclays that
no one can use their products because this company has its own available resources.
Corporate Culture: Corporate culture is a rare resource for competitor of Barclays as a
company have their own policy and procedures which are regularly changed by company in
every financial year.
Vast distribution network: It is that resource of a firm which is really rare for the
organisation as for making big distribution network competitor needed big capital.
Non imitable
These are those facto which other competitor can copy from firm.
Strong Brand: Strong brand image of ford is impossible for competitors to imitates.
Vast distribution network: For making distribution of various branches like Barclays
competitor has to pay huge investment which is impossible.
Organized
Vast distribution network : Barclays made their main focus on their distribution of
branches which could help them in gaining competitive advantage in long run(Alstete and
Beutell 2016).
Form the above analysis it can be concluded that Barclays have their main focus on their
variations in branches which could help them in gaining competitive advantage in long run .
Value chain analysis
This is the analysis is a framework in strategic management which is used by business
enterprise to identify firs valuable activities and will also help it in minimising the wasteful
activity which are leading in wastage of rescores.this will be coamnducted on Barclays
Primary activity
 Inbound logistic: firm have to develop good relations to suppler this is because it can
restrict Barclays in development time. Some examples of inbound logistics are

retrieving raw material, storing the inputs and internally distributing the raw material
and components to start production.
 Marketing and sells: this is the stage where firm have advantage of getting its
rescores according to the needs here firm good marketing and sells which is essential
for it to be used effectively and can provide firm the competitive advantage in long
run.
 Services; after and before sales services of this firm has its major impact on loyalty
of its customer this is because they have specialised in providing services to its
customers and provide them satisfaction.
TASK 3
Evaluate Porter's Five Forces model for identifying competitive analysis of the market
It is very important for a company to identify the competitive forces for market for
evaluating the best strategies for a business. The manager of John Lewis has analysed the Porter
five force in such a way to grow in the future. This also provides the strength and attractiveness
of Barclays banking company in order to gain the profitability and productivity. This further
helps in to understand the strategies which are based on the competitive environment. In this, the
analysis of Barclays banking company which is a multinational investment banking sector that
has headquarters in London. It further involves various models such as threat of new entrants,
threat of substitutes, bargaining power of customers, bargaining power of suppliers and
competitive rivalry are classified as follows:-
Threat of new entrants(high): It is defined as the new entrants in the competitive
market for the future growth. This is high because Barclays Bank 2008 could have to keep its
prices along with the increase in their funds and investing to disapprove new competition.(Zhu
and Chertow 2017). However, when the new company is entered into the market this directly
affects on the resources and its products. In context to Barclays banking company, it requires the
capital with financial resources of operations that would sustain in the market for a longer period.
Economies of scale which could achieve to the new entrants in the market.
Threat of substitutes(moderate): It refers to the alternative products which are available
in the market. This lead to be moderate because substitute products of banking sector consist of

transportation rather other substitutes products which could offer other products this lead to get
somehow similar credit cards which cannot create more expense. With reference to Barclays
banking company, the substitute products could focus on the central point of this company in
order to increase the competitive edge which lead to increase in growth of productivity(Tsai and
Lin 2016). Furthermore, this company involves the low performance within its products which
have alternative substitutes. The products which are considered in Barclays company such as
credit cards, loans and insurance.
Bargaining power of customers(moderate): It refers to the model in which customers
would spot the business for acquiring high quality of products and services. This is moderate in
nature because Barclays company could revising its existing products but cannot act in an
significant new product which helps to maintain the demand in the market. This company would
have done some changes in the planning of its production. It is well established investing and
financing bank which extended across the world. Moreover, this company involves the
accessibility of substitutes.
Bargaining power of suppliers(moderate): It is defined as suppliers in the company
that would increase their prices and also reduce it. This is moderate because the large scale
company has various benefits in decreasing the bargaining power of suppliers which results in
the existence of secondary buyers to strengthening position in an industry. In context to Barclays
banking company, the suppliers of this company involves the proceedings of raw materials such
as trade loans and insurance etc. it would focus on the need to offer competitive price to assure
securing for the long term business consent. This relates to the compromise of company as well
as its suppliers because the company do not have large number of suppliers for purchasing of raw
materials(Trevisan 2016).
Competitive rivalry: It refers to analysis of competition within the existing firms. The
banking industry consists of a high level of competition between the major business enterprise
which involves Toyota and Volkswagen. In context to Barclays banking company, this enables
to react well into the competition forces among the rival companies which accent upon the
quality and cost. Barclays company would design its products in order to code of demand which
affects the environment friendly and healthy for the better productivity and profitability. The
existence of large business manufacturers form the situation to keep market in control.

TASK 4
Various Strategic planning for the organisation
Ansoff Matrix is defined as a process in which it involves the planning for the strategies
that inspire the organisation for designing the defined goals and objectives in order to higher
growth in the near future(Trevisan 2016). Moreover, it is invented by American Igor Ansoff
who is a manager and a mathematician. It is a framework which involves various techniques that
is used by a firm to examine the future risk which is occurred in future. With relation to this, it
recognise the new innovative technologies in order to increase more profitability for the growing
of business. It further involves several strategies for the effective growth such as market
penetration, market development, product development and diversification which are described
as follows:-
Market penetration: It is defined as existing product in the existing market. It also
helps business to expand strengths and weaknesses in overall competition in the market. The
Barclays is the international investment bank provides different opportunities to the customer
that help them in gaining high interest rate in future time period. In context to Barclays, they
provides best interest rate to its customer that helps them in increasing their money value.
Market development: It refers to existing product with the new market conditions. With
reference to Barclays, for raising the income of customer bank provides various offer to its
customer in order to satisfy them. This is the banking company provides various financial
services as well as personal services to its customer. The bank manger focuses on providing the
best services in order to achieve competitive advantages over rival firms. The bank provide loan
to its customer with low interest rate that helps the customer in increasing their savings. This
company provided services that satisfy the customer.
Product development: It is defined as the new products in the existing market. In
context to Barclays, the investments which are done in small loans which could accomplish the
product development across the world . This strategy implies the product development within the
existing products. This company seeks various technique for carry high level of communication
as well as legal document arise for manufacture of such product across the world(Sanden 2016).
Diversification: It focus on the new products within the new market environment. In
context to Barclays, this strategy of company begins with the introduction of new products in the
upcoming year with the mission and vision technique. Further, it also innovate their products

with new ideas and innovations. Therefore, it consists of the efficiency of cost and also its
competitors in the market. This strategy focus on the high risk which lead to the research in
market that is required earlier while investing in new markets.
Strategic marketing plan:
There have been certain problems that have been identified such as there are low sales
because of strengthening of various competitors and no new contracts are being generated. So a
strategic marketing paln has to be prepared for achievement of certain laid objectives.
Objectives: Iincrease sales of new contracts by 10% in the London area by the end of 2020.
- Expand market coverage to 5 African countries those are Malwi, Mauritius, Somaliliand,
Rwanda amd Burundi by the end of 2021.
Different strategic options:
 Cost leadership: It is a strategy that is related with offerings services at lower prices. In
this value is higher but a company is willing to establish themselves as a cost leader in
given market scenario.
 Differentiation: In this there is some difference that is being offered in terms of services
that are being presented by a organization.
 Focus strategy: There can be a particular stagey on which organization can focus on
either pricing or on differentiation of services. Based on pricing there is price leadership
that is obtained and based on differentiation there is some different feature that is offered
in services.
Strategic choice & Justification:
From above discussion it can be said that there is nest strategy that is Differentiation that can
be helped Barclays in achievement of their high sales in five countries where this company is
willing t o enter and further increase in sales.
Tactics:
In case of present scenario, it can be said that Braclays cam make use of some tactics so that
they are able to achieve overall objectives that are being laid down in their strategic marketing
plan.
 Such as they can make use of a new additional services such as Free sim card they
should offer on every new contract that is being made by the organization with their
new customers.

 There can be use of their distribution strategy as a tactics in which they can expand
their outlets and also online services. If they will be more visible then it will be
helpful in attracting more customers towards their organization in comparison with
their other competitors.

Implementation:
In this the above discussed strategies have to be implemented in the organization by the
management of Barclays. It is responsibility of all managers in different functional departments
to make teams so that there is proper division of work that is taking place in the organization. It
will lead to more effectiveness in overall functions that is being assigned to individuals. It will
also be helpful in breaking down of work into smaller segments so that each person is aware of
actually what work has to be done. There will be benefit of timely completion of all the assigned
work if this type of divisional structure is being adopted while implementation of plan in
Barclays.
Evaluation and control:
In this particular step there will be proper checking of all above motioned palnninga and
tactics have been adopted or not. In case of Barclays there will be proper evaluation to see that if
there is no deviation on part of performance and contribution that is being done by overall staff
in the given course of time period. It will help in measurement of deviations recording them and
making sure that they do not occur in future course of business.
Alternative courses of action:
If in any case above motioned tactic cannot be adopted or it is not possible to achieve such
objectives by use of these actions. Then, there will be use of marketing mix as a new framework
so that different aspects can be understood in detail and help management of Barclays in
achievement of laid objectives in this marketing plan.

CONCLUSION
From the above described report, it can be concluded as the analysis of competitive
market in order to achieve high profitability and productivity for the growth in the future.
Different actions are done to improve the resources of organisation efficiently and effectively.
Further, various strategies are implemented in order to increase the performance of employees.
In addition to this, Barcleys company which is a well established investment banking company
which lead to results in assigning the credit cards and loans in such a way to maintain the
environment friendlily. This report involves the various models such as VRIO, PESTLE,
SWOT, PORTERS etc.
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