Business Strategy Analysis and Formulation for Barclays PLC

This report provides a comprehensive analysis of Barclays PLC's business strategy. It begins with an introduction to business strategies and their importance, followed by the identification and application of two key strategic models: VRIO and McKinsey 7-S framework. The report then formulates business strategies for Barclays to sustain its competitive position, exploring the 4 P's of the marketing mix (Product, Price, Place, and Promotion), segmentation, targeting, and positioning, along with financial information. An organizational audit is conducted using SWOT and PESTLE analyses to evaluate internal and external factors. Finally, the report develops and evaluates two possible strategies based on Porter's Five Forces, compatible with the organization's context, to assess industry profitability and attractiveness. The report concludes with a summary of findings and references.

Business Strategy (top
up year)

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK ..............................................................................................................................................3
Identify at least two key strategies theories, models and conceptual framework and apply them
to your chosen organization........................................................................................................3
Formulate a business strategies for your chosen organization to sustain the competitive
position. ......................................................................................................................................5
Organizational Audit of internal and external factor .................................................................7
Using different contexts with in your selected organization, develop and evaluate at least 2
possible strategies such as porter's generic strategies or porters five forces, compatible to the
organization context. ..................................................................................................................9
CONCLUSION ............................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
Business strategies consider as an action and appropriate decision that a organization
takes to accomplish its business objectives and also be competitive in its sector. With the help of
business strategies, organization easily find how to achieve business goals and it also guide in
decision making process so that organization allocate resources successfully. Business strategies
is responsible for planning, controlling activities and also helps in identify the strength and
weakness of the organization so that organization perform effectively in the market. For this
report, Barclays organization is chosen. Barclays plc is a international investment bank of
United Kingdom which providing financial services. Company headquartered in London. This
report identify two key strategies model and formulate business strategies in Barclays company
so that company easily sustain their competitive position. Company use different model for
strategic implementation.
TASK
Identify at least two key strategies theories, models and conceptual framework and apply them to
your chosen organization.
VRIO
It is framework in which organization analyse tools and also design to help and discover
and also protect the capabilities that give competitive advantage for a long period. This
framework is use after the vision statement and before the process of strategic planning. In VIRO
includes Valuable, rare, inimitable, organized. With the help of VIRO model Barclays company
plan and manage their business ( Akter and et.al., 2016).
 Valuable – in this step, Barclays analyse that company offer and provide those resources
which are valuable and Barclays utilize human capital management details to appoint
creative and innovative employees.
 Rare - in this step, Barclays focus on that no other bank use data based employees
management system effectively.
 Inimitable – in step deal with the costly and expensive data based to imitate for the
future purpose. Barclays company need to focus on technologies and software and give
proper training (Günzel and et.al., 2019)

 Organized – in this step, company analyse the importance of management system, and
also consider its process. Barclays mainly focusing on management system and its
structure.
McKinsey 7 -S Framework
This is prominent model to analyse the organizational effectiveness. In this model 7
internal elements of an organization analysed that need to be accomplish and aligned to get
success. Barclays use this model to evaluate the effectiveness of the company. In this model, 7
framework discussed that are given below-
This model analyse this elements in two way -
Hard elements – In this elements, Barclays identify strategy , structure and system and manage
it directly.
 Strategy – In this step, organization plan properly to build and maintain strategies as per
the competitive purpose. Barclays plan and organize the strategies in order to maintain
competitive advantage.
 Structure – in this step, company analyse strategies as per the company structure.
Barclays identify all the process like how it organize department and team as per the
structure (Impellizzeri, Marcora and Coutts, 2019).
 System – in this step, Barclays identify the company system and all tyhe activities that
staff members use to get the work done.
Soft elements – in soft elements, company describe less tangible and more effective
organizational culture.
 Shared Value- This includes core values of the company so that it display the company
culture and daily work ethic. This is also called superordinate goals. Barclays company
use this value to create the effective culture.
 Skills - Company analyse the skills and capabilities of the employees. Barclays focusing
on the work process their employees so that it will give benefit to company.
 Style – Leadership style mandatory for this elements. Barclays give training to their
employees so that their leadership power increase.
 Staff – In this elements, company generally focused on their employees. Barclays bank
giving proper concern to their staff members and employees so that they will help to
generate more profit.

Formulate a business strategies for your chosen organization to sustain the competitive position.
Barclays is a multinational company of London which is dealing with investment banking
and providing personal banking, corporate banking and investment and wealth management.
This is a famous public limited bank in London which offering financial services. Barclays also
invest, lends and protects money for their worldwide customers and clients (Jung, Bauer and
Heaps, 2017).
Mission
The mission of Barclays investment bank is to create opportunities to rise. Barclays is a
bank of opportunity maker and working together to help society, customers, clients and close
one.
Vision
The vision of Barclays is to achieve more growth and development through time by
enhance its business and increase its appearance in markets that are growing rapidly.
Objective
To create sustainable value for their shareholders by making one of the largest investment
bank, customer and corporate in personal and wealth management and business banking domain.
4 P's
Barclays is a international bank of British origin. This public limited company doing
business all over the world and dealing with banking and financial services. The 4 P's of
marketing mix are discussed below-
 Product – Barclays offering many products and services such as investment management
( cash pooling and corporate accounts), digital banking services, commercial banking,
retail banking, personal banking, premier banking and international banking (Lopes,
Oliveira and Silveira, 2020).
 Price – Barclays has approximately 48 million customers so its different operations need
a good pricing policy that is acceptable to its customers and clients. Company decided to
manage expenses so that it earn more profit and revenue. Its pricing strategy is
competitive.

 Place – Barclays serve their services at lest 50 countries. Barclays has a big network and
connection of distribution channel with 4750 branches all over the world and 1600
branches situated in United Kingdom.
 Promotion – Barclays is a oldest financial investment bank. Barclays promoting their
products and services through advertisement on television, print media and websites
(Mackie and et.al., 2019).
Segmentation
Barclays prepare proper plan for the market segmentation. Barclays segment the market
on demographically and psychophysically such as income , age and occupation. Barclays is
doing business with a huge number of subsidiaries and partnerships.
Targeting
Barclays is targeting those customer and clients globally who are looking forward to take
financial services for personal and wealth management. Barclays target market is very broad ,
millions of customers are utilizing Barclays services.
Positioning
Barclays positioned on the basis of products and services that are offering customers and
clients. Barclays market position is very demanding. Barclays managing continuously company
position in every criteria (Min and et.al., 2016).
Financial Information
Recently Barclays announced latest financial results . Barclays highlights financial
performances in various way such as the group income of the Barclays is £ 16.8bn , credit
impairment charges 63% . group cost 1%, group profit before tax is £ 2.4bn , corporate and
investment bank income is 24% (Barclays has announced its latest financial results. 2020).

Organizational Audit of internal and external factor
SWOT Analysis
SWOT analysis is an strategic tool which helps in assessing internal factors( strength,
weakness) and external variables(opportunity, threat) and helps in knowing the positioning of
business or implementing new project (Park and Mithas, 2020).
Strength
The company has diversified product portfolio
range.
Barclay's has strong market presence.
Timely adjusting to changing technological and
economic changes.
Weakness
The company has faced many allegations in
comparison to its competitors.
The company is not expanding as rapidly to its
competitors.
The customer satisfaction is still lagging.
Opportunities
 The company can expand further by
increasing its product offerings.
 The company should try to expand its
market reach.
 The online banking provides many
opportunities.
 Company can cater to youth by bringing
in new products .
Threats
 Changing economic and legal relations
of government may affect company's
profitability.
 The company should bring innovation in
its offerings.
Pestle Analysis
Pestle (political, economic, social, legal, technological and ethical) analysis is an tool
which helps in understanding of the macro environment and helps in identifying the
opportunities and threats from external environment. The PESTEL analysis of Barclay's bank is
as following:
Political Factors

With head quarters in UK, London Barclay being an global leading bank operates across
various countries. As the company operates in various countries, it needs to keep a tab on
changing political circumstances, The more the stable the political environment, the better is the
opportunity (Steenmans, 2019).
With a recent example, such as Brexit the Barclay is supporting all of its overseas clients
and ensure to maintain proper relationship with all clients and to meet the challenges and
opportunities which are presented to the UK caused by Brexit . The change in recent government
that is of Bris Johnson will result in changed taxation regime of country bank which affects the
bank interest rates. The tension with the China will also result in change in company's profit.
Barclay recognised and gave due respect to relations it maintains with all international clients
they extended the service range provided by the bank during the hard times to support them at
time of Brexit.
Economic factors
Economic factor play an important role in company analysis as it directly impacts
the performance. The economic factors include the interest rates and employment rates, foreign
exchange rates. The interest rates of bank also affects the consumers choice to put in. In case the
economy is under pressure, or inflation exists, the interest rates are kept low to attract the
consumer to invest in and banks want to increase the money supply in economy. The company at
this time should design innovative products to cater to consumer needs. As of now covid
pandemic continue the countries are having low purchasing power this directly impacts the bank
interest rates (Takata, 2016).
Social Factor
The social culture factors affect the company working and culture. The company
should try to focus on adjusting itself according to prevailing social and culture norms. 'The
Barclays social innovation facility' is one such example in this they incubate the products
according to the society with creating partnerships with consumers and try to serve whole new
consumer segment by building products with new technology. The Barclay also tries to serve
consumers by providing its website in different localised languages and providing advice and
assistance to consumers.
Technological Factor

The Barclay's is following the technological factor as its opportunity by giving seamless,
user friendly access to online banking and by giving all time assistance through phone, website,
message for providing best service to customers. The consumers can avail all facility on a click
through phone also. The company is updating its technology on daily basis to provide consumers
the best experience (Zhao and et. al., 2016).
Using different contexts with in your selected organization, develop and evaluate at least 2
possible strategies such as porter's generic strategies or porters five forces, compatible to
the organization context.
Porter's five forces is a important technique which is given by the Harvard Business
school professor the name of that professor is Michael Porter. This model is identify and measure
industry's profitability and its attractiveness. There are 5 forces of this model which are discussed
below-
Competitive rivalry - In this forces, this looks at the strength of the competitors.
Company analyse that how many rivals are exist in the market. Company also analyse that who
are the competitor and also compare the quality of products and services with competitors
products and services.
Bargaining power of supplier - This force determine that how accessible for your
suppliers to rise their prices. Company also identify that how many suppliers company have ?
And , what is the uniqueness and speciality of their products and services that suppliers are
providing. In this force company also analysing that how easily to switch from one to another
suppliers.
Bargaining power of buyer – In this force, company ask yourself that how simple for
the buyer to drive product price down. Company analyse that number of buyer available in the
the market and company work on their products and service offers and discounts so that
customers do not think about to switch to other company products and services.
Threat of substitution – This force mainly focuses on products substitution. It refers the
availability of another products that customer can buy from outside the industry. Competition
increase when threat of substitution increase.
Threat of new entry – In this force, company power is influenced by the force of new
entry in market. It also refers that threat of new entry pose to old competitors.

In the context of the Barclays company, 2 forces competitive rivalry and bargaining
power of buyer are most compatible for strategic implementation. Barclays is providing
financial and banking service so its mandatory to focus op the competition and also understand
the power of buyer to deal with the products and services.
Competitive rivalry – with the help of competitive rivalry forces, Barclays can easily
and measure and evaluate the competition level in the market. Barclays is a large company but
there are many some available in the market who are also offering same financial services so its
necessary to Barclays company to focuses on the market situation. Barclays offering suitable
products and services to clients and customers and also paying attention on their competitors
products and services so that Barclays company can give more pocket friendly offers to take a
competitive advantage.
Bargaining power of buyer – In this porters force, Barclays mainly focus on the bargaining
power of buyers and after this plan and implement company strategies. Barclays evaluate market
situation and also develop their plan. Barclays provide their products and service with low cast
so that its suitable for their customers and clients take Barclays product and services and do not
think about to switch another bank.
CONCLUSION
As per the report it is concluded that Barclays bank used many strategies and model to
analyse and develop the organizational situation and its effectiveness. With the help of VIRO
and Mckinsey 7 -S Framework company easily measure and set organisational business plan and
work for the organizational welfare. Company identify internal and external factors so that
company easily understand the strength and weakness of the company and also make plan to
work on it.

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Online
Barclays has announced its latest financial results. 2020 [Online] Availabe through:
<https://home.barclays/investor-relations/reports-and-events/results/q3-2020-results/>