Analyzing Barclays Bank's Business Strategy: A Case Study (BO1BSRE301)

This case study analyzes the business strategy of Barclays Bank, focusing on its organizational culture and the impact of leadership changes. It examines the 'bonus culture' prevalent before 2012 and its effects on the bank's ethical practices and long-term objectives. The analysis explores the role of CEO Antony Jenkins in reshaping the bank's strategy, including his introduction of new values and the challenges of cultural transformation. The study utilizes the cultural web model to understand Barclays' culture, particularly its routines and control systems, while also acknowledging the model's limitations. The assignment evaluates the positive and negative impacts of Jenkins' reforms, considering their effects on employee morale, profitability, and the bank's reputation. Ultimately, the case study highlights the complexities of strategic change within a large financial institution and the importance of aligning culture with business objectives.

Running Head: Business Strategy
[Company name]
Business Strategy
[Document subtitle]

Business Strategy 1
Contents
Part 1: Culture of Barclays Investing Bank................................................................................1
Part 2: Barclay’s CEO Antony Jenkin’s Approach....................................................................4
References..................................................................................................................................6

Business Strategy 2
Part 1: Culture of Barclays Investing Bank
Organizational culture refers to the belief, values and behavioral norms presented in the
business environment that is being adopted by the people belonging to the organization.
Culture in the current environment has become an important aspect in helping the
organization to implement successful business strategies. The culture of Barclay was being
called as a toxic culture in the environment that was not good for the growth of the bank.
Initially, analyzing the aspects of culture with the strategy formulation, it should be noted that
organizational culture creates a roadmap for the strategic implementation of activities in the
business (Carè 2016).
Thus, it can be said that the organization could effectively utilize the tool of culture in
changing the strategies at Barclays. In an appropriate cultural environment, the managers
effectively know the ways to improve the performance of the employees by encouraging
them. Before the year 2012, the organizational culture of Barclays was famous as ‘bonus
culture’ and ‘culture of gaming’. Thus, it can be said during that time strategies were
appropriately implemented and budget for bonus was kept high for the employees (Barrett
2017).
Difference between the pay of employees present in different departments of the organization
made it difficult for the employees to survive without facing jealousy and other issues. The
organization subsequently focused on the short terms gains of the business while keeping the
long term objectives aside. Also, the bank aimed to make money in an unethical way which
affected the internal and external structure of the business. Lastly, huge amount of incentives
given to the employees acted as a negative factor for the bank because it depleted the
resources of the organization to an unproductive activity (Barrett 2017).

Business Strategy 3
The bonus culture of the bank was criticized by the people in the business environment. The
bonus culture ritual of the bank dominated the culture due to which the attitude and behavior
of the employees drifted in a negative manner. This type of culture affected the
implementation of new strategies in the business environment. Resulting in which, the
environment of the organization became rigid and not open to new changes in the business
(Nimoh 2017).
Further, even with the joining of new CEO in the business, the organization was unable to
change its culture and practices. The new CEO of Barclays Antony Jenkins called the
environment toxic as it made difficult fir the management to implement the strategies for
growth. Below mentioned is the use of cultural web model so as to understand the Barclays
culture in an effective way (Allen 2017).
Cultural Web Model
The cultural web is a powerful tool that helps the business management in addressing the
culture related challenges presented with the business. The cultural web defines several
components on the basis of which cultural of a business is evaluated. Based on this model,
the paper will discuss the use of routine and control system aspects in order to analyze the

Business Strategy 4
culture at Barclays. Routine refers to the ways in which things are implemented in the
business environment on a regular basis. Considering the routine actions at Barclays, it
should be noted that the main actions of the employees include running the process to settle
transactions, documentation and reporting of the transaction, investigation of breaks in cash
account etc. (Raghunathan, and Maiya 2017).
Furthermore, control system refers to the reward and recognition system that is used to
monitor the growth of the employees and motivate them to achieve better opportunities in the
business environment. Rewards and bonuses are extremely important for the employees in
Barclays because of the large sum that they usually get. Irrespective of the ethical context
connected with the bank, the organization provides high degree of bonus to the employees so
as to motivate them. Thus, it can be said that based on this model, it was analyzed that high
performance of employees give rise to high profitability from the management as well
(Thenya 2016).
Limitation of Cultural Web Model
Lastly, it should be noted that the cultural web model is a comprehensive set used for
evaluation of organizational culture, however, the model is not exhaustive. Different people
hold different perception in the business environment. Resulting in which, the strategies
might be seen fit by one would be disagreed by another person in the business environment.
The paradigms of this model are difficult to identify and implement. Thus, it should be noted
that more emphasis should be laid on the business objective and satisfaction of employees in
the business environment and then relate the functions with the model accordingly
(Liljenberg 2018).

Business Strategy 5
Part 2: Barclay’s CEO Antony Jenkin’s Approach
Change in leadership implements change in the business functions as well, otherwise the
business would not show any significant over the period of time. With the appointment of
CEO Antony Jenkins, it had become clear that the business needed to implement differential
strategies in the environment so as to change the organizational culture and prevail
profitability for the bank as well. The direction in which Barclays was moving was not in
favor of the organization, resulting in which, the need for change in leadership emerged.
Coming up to the history of Barclays, it should be noted that the bank holds the nature of
providing high monetary benefits to the employees so as to keep them aligned in the business
function (Lee, and Malerba 2017). Furthermore, analyzing the culture of Barclays, it should
be noted that before 2012, the culture of Barclays was extremely positive but with the change
in time after 2012, the environment shifted in a negative manner.
However, this strategy of Barclays was backfiring the business structure itself. Bob Diamond
had created a suitable environment for the employees by providing them high benefits
without considering the policies of the bank. Resulting in which, the bank was surely making
money but in an unethical way. Therefore, need of a reformist leader like Jenkins emerged
would could lead the organization in the right direction towards change. Now, the business
could have easily used the complete Quaker history of the bank but then changes it would
have brought to the current functions of Barclays would be different from expectations as the
CEO is running a bank not a community service association. It was crucial to give a
straightforward and clear message to the employees about the leadership of Jenkins and his
expectations from the organization. Resulting in which, he created values that were new and
differential in the environment that were excellence, service, integrity, stewardship and
respect. While the Quaker resources talks works on the basis of community of friends that
was not appropriate based on the conditions of Barclays bank (Hickman, and Silva 2018).

Business Strategy 6
The employees at Barclay work extremely hard to help the organization achieve success. The
employees even work at night so as to provide benefits to the business. The excitement and
entertainment from the life of the employees at Barclays is left behind. Due to which the
management believed that they need to provide additional monetary advantages to the
employees so as to keep then motivated.
Furthermore, considering the advantages and disadvantages of this type of reforms
implemented by new CEO of the bank it should be noted that it brings structural changes in
the bank that are both positive as well as negative. Positive in such a way that now the
business would proceed its actions in such a way that they want to prevail, while negative in a
way that it would include resistance in the environment and make the employees miss the ex
CEO of the bank. Further, the changes in the objective would bring positive changes in the
bank as now the business would focus only on ethical ways of earning money (Brunsson, and
Olsen 2018).
It would also make the employees concerned about the retail actions more than the
investment banking transactions. The advantage of this type of change is that it would lead
the business in the right direction that is to serving to the clients in a fair and just manner. The
actions of the organization would not hurt the interest of any stakeholder present in the
environment and it would eventually eliminate the negative actions implemented in the
business. However, negative impact of this action is that it would bring discomfort to the
employees and it would reduce their level of profitability as well (Li, et. al., 2016).
Resulting in which, the employees would start resisting towards change and they would also
lose the opportunity of creating a bond with new CEO of the bank. The advantage is that
tattered reputation of Barclays would subsequently rise by increasing the trust of customers in
the business as well. Resulting in which, brand image of the bank would subsequently rise.

Business Strategy 7
Lastly, it should be noted that this strategy would make the environment positive and reduce
the level of complexity in the business as well. The strategies would make the employees
understand their job role and position; therefore, they would work accordingly so as to help
the bank achieve its objectives (Hoffman, and Mitchell 2016).
References
Allen, M., 2017. Web 2.0: An argument against convergence. In Media Convergence and
Deconvergence (pp. 177-196). Palgrave Macmillan, Cham.
Barrett, R., 2017. The values-driven organization: cultural health and employee well-being
as a pathway to sustainable performance. Taylor & Francis.
Brunsson, N. and Olsen, J.P., 2018. The Reforming organization: making sense of
administrative change. Routledge.
Carè, R., 2016. The Libor Case: A Focus on Barclays. In Managing Reputation in The
Banking Industry (pp. 59-78). Springer, Cham.
Hickman, C.R. and Silva, M.A., 2018. Creating excellence: Managing corporate culture,
strategy, and change in the new age. Routledge.
Hoffman, G.D. and Mitchell, T.D., 2016. Making diversity “everyone’s business”: A
discourse analysis of institutional responses to student activism for equity and inclusion.
Journal of Diversity in Higher Education, 9(3), p.277.
Lee, K. and Malerba, F., 2017. Catch-up cycles and changes in industrial leadership:
Windows of opportunity and responses of firms and countries in the evolution of sectoral
systems. Research Policy, 46(2), pp.338-351.

Business Strategy 8
Li, M., Liu, W., Han, Y. and Zhang, P., 2016. Linking empowering leadership and change-
oriented organizational citizenship behavior. Journal of Organizational Change
Management.
Liljenberg, M., 2018. Cross-Cultural Web Design: Differences in Chinese and Western web
use and interface design.
Nimoh, I.A., 2017. Assessment of Electronic Banking on Banks Performance: A Study of
Barclays Bank Ghana Limited (Doctoral dissertation).
Raghunathan, B. and Maiya, R., 2017. Digital Transformation and Impact of SMAC
Technologies on Culture, Thinking, IT Practices, Organizational Structures, and Governance.
In SMACing the Bank (pp. 255-288). Auerbach Publications.
Thenya, C.W., 2016. The relationship between customer retention strategies and
organizational performance at Barclays bank of Kenya limited.