Barclays Plc: Market Analysis and Economics Report - LCBB5003

This report offers a comprehensive analysis of Barclays Plc from a management economics perspective. It begins with an overview of Barclays Plc, its products, services, and historical background. The main body delves into a detailed market analysis, examining factors that influence demand, such as the price of substitutes and complements, consumer preferences, expectations, and demographic shifts. It utilizes statistical data, including revenue figures from 2011 to 2020, to illustrate Barclays' financial performance and market share in comparison to competitors like Lloyds Bank. The report then explores how these factors impact Barclays' products and services, including the influence of the regulatory landscape and capital requirements. The analysis highlights Barclays' efforts to adapt to changes in the banking environment. The report provides insights into the company's strategies for maintaining its market position and adapting to the ever-changing demands of the financial services industry.

Management Economics

Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
1. Overview of Barclays Plc its products/services and history.................................................................3
2. Market Analysis of Barclays Plc to evaluate factors which influence its demand...............................4
3. How factors influence the products and services of Barclays plc......................................................11
CONCLUSION.........................................................................................................................................15
REFERENCES..........................................................................................................................................17

INTRODUCTION
Managerial economics describes as a business administration term which integrates in a
productive way the original contributors including such revenue and expenditure, asset etc.
Usually, a company's management uses this definition to solve any business-related problems,
particularly financial ones, which offers a variety of key approaches and concepts for making
decisions (Adam, Quansah and Kawor, 2017). The current study would expand about how
organization has used the principle of management economics to understand their past actions
and predict potential business success. This report based on the Barclays Plc which is British
multinational investment bank and financial service company. It is a financial sector organization
that provides different types of products in different banking. The company operates their
business into various nations where supply of raw materials and variation in economic structure
impacts its demand of product in large manner. In the current study, various variables are
analyzed in order to examine this dimension, which also helps determine how competition for
Barclays Plc products is relatively elastic.
MAIN BODY
1. Overview of Barclays Plc its products/services and history
The financial sector is a segment of the economy composed of companies and
organizations which provide business and commercial easy access to financial products. This
field covers a wide variety of sectors, namely banks, brokerage companies, insurance providers,
and property developers. A substantial percentage of this business produces mortgage refinance
income, which increases value as interest rates decrease. The nation's economic wellbeing is
largely dependent upon the power of its finance industry. The better the market is the safer it is.
A poor banking industry typically indicates a shrinking population. In an economy to stay
unchanged, a sustainable economic provider is likely. This sector is advancing loans for
enterprises so they can grow, offer mortgages insurance, and provide protection coverage to
protect individuals, firms, and their properties. This also helps to strengthen retirement money,
which supports hundreds of thousands of individuals. For example, Barclays PLC is a
multinational financial services provider with services for retail banking , credit cards, corporate
banking , corporate banking, asset management , and investment strategic planning. Barclays

Bank, the Nation's biggest consumer banking company, maintains around 5,000 offices in
England and Wales and abroad, and has many branches in britain and other european. Barclay
Bank International Ltd., that has some 2,000 offices in over 70 countries, manages the
organization's international sales. The company's office is in London. The company provides
different product and services such as, retail banking, commercial, investment, private, wholesale
banking and wealth management (Adisetiawan and Surono, 2016). For the research selected this
company because it is leading finance Service Company that provides banking services in
different manner as per the customer’s requirements. The company continues to grow and
evolve, offering a broad variety of goods and services that support our consumers today fulfill
their objectives. They deliver an array of goods and services, ranging from award-winning
subprime mortgages to asset and financial advisory, and from revolutionary payment solutions to
internet banking online initially. The Group is divided into two sections: division Barclays UK
(Barclays UK) and division Barclays Global (Barclays International). Barclays UK provides
regular goods and services to UK-based commercial clients and small and medium to medium-
sized businesses (Bartkowski and et.al, 2018).
2. Market Analysis of Barclays Plc to evaluate factors which influence its demand
According to the modern economics i.e. supply and demand law, supply and demand of a
specific product or service are interrelated. Here, it is understood that the relationship between
these two main concepts is includes the central, that significantly influences the cost of goods
and services. When introducing in a given market the various goods and services, manufacturers
used it to come up with a way to offer the same as in the right value. It would attract more
potential a strong demand to meet potential buyers, through contemplated mechanism to prevent
damages at the same time. All these information can be explored by implementing the revenue
and cost principle, which states that the manufacturer must quality in order to fulfil the needs of
customers by providing the highest products of goods at a fair price. In the sense of Barclays'
marketing research, this consumer's demand is growing rapidly well after release, that also
overlaps its supply. There are a range of factors current in the background of the finance industry
which affects the supply for related goods such as personal and quality loans. It includes
alternative or complementary manufacturing costs, customer preferences & taste, customer
preferences, demographic and much more (Elena, 2016). The effect of these variables can be
evaluated in the following manner on the demand of Barclays Plc:

Price of substitutes: Influence on the price of replacement goods on just that marketplace would
also directly impact the actual demand. As far as the finance sector is concerned, the existence of
financial institutions' replacements generates a reasonable mortgage force. In this respect,
Barclays Plc's replacements include HSBC bank which is a major UK bank that provides
consumers with innovative financial services and goods. The strength of danger from these
replacements perceived as week because of expensive insurance assurance and low interest on
Barclays plc mortgages.
Price of complements: This consideration involves the price of supplementary goods such as
labels and various forms of banking, which significantly affects the price of executive support.
So, if other brands' prices increase their rates as in the case of Barclays, their key rivals are
HSBC bank, Citibank and others, it also significantly influences their own commodity prices.
For instance – Increase interest in many other banking services, this will bring advantage to
Barclays through changing the take the pressure, since customers first relate their loan issues to
their public picture, instead of lending rates.
Consumer taste & preferences: This aspect contributes greatly the market of every commodity
to the big change, either directly or indirectly. In the sense of the financial sector, an actual
consumer needs and preferences due to individual product knowledge. Consumer choice is type

of image a consumer likes and does not like. It is effective and it requires less taxation. The other
explanation for shifting consumer tastes and taste involves varying and successful interest rates,
whereby they seek to buy the loans that are priced and built according to their preferences and
living standards (Genovese and et.al, 2017).
Consumer expectations of price: Customers from the financial industry wanted to buy certain
cars that would provide them with better protection and pedestrian safety. The cars are strongly
expected to meet their requirements as inexpensive as per their distribution of wealth, energy
efficient, spend less in interest etc.
Demographics: Demographic shift also affects the outcome of the banking industry because, by
taking various loans, creative features and much more, customer behavior is heavily impacted.
Citizens also are easily moving to cities to enjoy the loan acquisition in order to satisfy the need.
It would also help increase the share of banking industry revenues by rising loan demand.
According to statistical evidence, there is a large market add significantly to development of the,
which also allows Barclays Plc to expand its business. Because of the change in demographics,
i.e. the migration of citizens in developing areas, the UK, Norway, the US and other advanced
nations find the largest differences between different mortgages (Hanley, Shogren and White,
2016).
This conduct is indicating a positive change in demand as per the rule of supply and
demand. As seen in the graph following, it has become obvious that consumers are able to buy
financial services at a certain value because of the highest products and great functionality. This
indicates good signs of increased sales and high profitability at the industry for Barclays
Sales Performance of Barclays Plc from last ten years –
Year Barclays Plc Annual Revenue
(Millions of US $)
2020 $6.624B

2020 $21.793B
2019 $27.622B
2018 $28.212B
2017 $27.163B
2016 $39.567B
2015 $40.868B
2014 $43.919B
2013 $44.567B
2012 $36.420B
2011 $44.431B

As per the chart it is identified that banking market share of Barclays 15.8% in
comparison of Lloyds bank. It presents good indicators and company provides their financial
services into different countries effectively.

31-Dec-19 31-Dec-18
31-Dec-
17
31-Dec-
16
31-Dec-
15
Net Income/Starting
Line 4,357.00 3,494.00 3,541.00 3,230.00 1,146.00
Depreciation/Depletion 1,520.00 1,261.00 1,241.00 1,261.00 1,215.00
Non-Cash Items 5,801.00 -5,343.00 9,822.00 - -669

19,974.00
Cash Taxes Paid 228 548 708 780 1,670.00
Changes in Working
Capital -23,973.00 9,092.00 46,208.00 27,174.00 11,821.00
Cash from Operating
Activities -12,295.00 8,504.00 60,812.00 11,691.00 13,513.00
Capital Expenditures -1,793.00 -1,402.00 -1,456.00 -1,707.00 -1,928.00
Other Investing Cash
Flow Items, Total -11,033.00 2,079.00 4,958.00 38,414.00 -4,623.00
Cash from Investing
Activities -12,826.00 677 3,502.00 36,707.00 -6,551.00
Total Cash Dividends
Paid -1,912.00 -1,658.00 -1,273.00 -1,304.00 -1,496.00
Issuance (Retirement)
of Stock, Net 504 -2,104.00 571 -327 599
Issuance (Retirement)
of Debt, Net 2,098.00 -3,025.00 1,663.00 314 323
Cash from Financing
Activities 690 -6,787.00 961 -1,317.00 -574
Foreign Exchange
Effects -3,347.00 4,160.00 -4,773.00 10,473.00 1,689.00
Net Change in Cash -27,778.00 6,554.00 60,502.00 57,554.00 8,077.00
Financing Cash Flow
Items 104 -- -- --

Using this statistical knowledge Barclays Plc's productivity and income has been
analyzed. Increasingly improved year by year, which also makes a major benefit to the growth.
Generally, it has employed much more than the financial and banking services staff members.
This demonstrates another major significant contribution to economic growth by creating jobs
for both qualified and low-qualified individuals on the job site (Hyers and Kovacova, 2018).
3. How factors influence the products and services of Barclays plc
As there are different aspects current, such as customer tastes, replacement and
alternative pricing etc. impact the market for loans in Barclays Plc, both positively and
negatively. Thus this organization is actively making improvements in goods and services to
address these demands and preserve its corporate image.
This figure reflects the market share of largest British (UK) banks' existing funds as of 2014.
Sales volume of direct debits is an significant metric for banks to compare, since a bigger
proportion of the credit card marketplace that more users are constantly holding their cash with a
specific bank. In fact, credit card share of the market is significant for the banks directly as an