Barclays Bank Case Study - Strategic Profile and Case Analysis Purpose

Strategic Profile and Case Analysis Purpose

The case study covers the introduction of Matt Barrett as CEO of Barclays and the changes he introduced to the organization to maintain its competitive position within the retail financial services industry. In an increasingly competitive environment, Barclays is losing ground due to its lack of data-driven actions and small global presence. The case outlines the actions taken by Barrett to transform some of the key characteristics of Barclays' corporate structure, and concludes by presenting the challenge he will face in getting management buy-in in order to implement his vision.

Matt Barrett had his work cut out for him. In my eyes, Matt's biggest challenge was changing the mindset of others to see it as he did. The key challenges that Barclays faces include: market consolidation, the emergence of its two competitors, increased reliance on IT and web-based platforms, and its corporate structure.

Matt Barrett as CEO had to identify its strategic issues and main points. To identify these Matt needed to dig into what these where and it was not going to be an easy task.

Barclays needed to:

* Understand the challenges associated with enacting these necessary changes within the organization.

* Determine how to identify the flexibility in a globalizing economy.

* Understand the importance of data driven decision making in modern corporate settings.

* Determine the effect of redundant business units in cost control measures.

* Adjusting business-level strategy.

Strategic Analysis

Barclays needs to complete an external analysis of the following:

* The General Environment

* The Industrial Environment

* The Competitor Environment

The general environmental analysis is best done in a STEEP analysis.

* Social / Demographic

* Women in the workforce

* Awareness of health

* Aging of the population

* Changing ethnic composition

* Technological

* Telecommunications

* Database technology

* Cloud computing

* Computerized design

* Economic

* Interest rates

* Trade deficits

* Budget deficits

* GDP

* Environmental / Geographic

* Concern for the environment

* Ecological issues

* Transportation

* Competitor locations

* Political / Legal / Governmental

* Antitrust enforcement

* Private vs. public

* Tax policy

* Trade agreements

Social/Demographic Segment

* English is becoming increasingly the world-wide language of business offering Anglophone Barclays opportunities to expand into international markets with reduced language barriers.

Technological:

* Increased world-wide reliance on IT and the emergence of web-based solutions in 2000 will elevate Barclays' need to diversify portfolio offerings.

* Barclays' must update its Management Information Systems and begin to automate labor intensive processes to reduce costs.

* In order to enter new markets to increase revenues and satisfy institutional investors, Barclays must invest in increased technology capabilities.

Economic:

* Market trends towards consolidation will pressure Barclays to regain its industry leadership position through acquisition.

* Globalization and world economy flattening will require Barclays to become a global company expanding its offerings beyond its current UK focus.

Environmental/Geographic:

* Geographic borders and distances between countries are shrinking with increased technology and a globalized economy. This will both require and facilitate Barclays' global presence.

Political/Legal/Governmental:

* Emergence of the Euro and strengthening of the EU will reduce FX exposure for the European markets and stabilize European economies.

With an ever increasing number of banks operating across both political and geographic borders, Barclays must expand its reach in order to be competitive and avoid a potential takeover. Barclays needs to be aware of such threats and take action to make sure it does not take place.

Threats

1. Operating a multinational corporation involves managing across multiple cultures, languages, and economic.

2. Low brand recognition internationally would make competition against local institutions costly.

3. Relocation abroad requires high infrastructure costs.

4. Locating Barclays' and its customers' assets across multiple currencies exposes both to fluctuations in exchange rates.

5. Failed expansion into foreign market might damage brand image and alienate new customers.

Opportunities

1. Increased global reach and brand presence.

2. Diversified risk.

3. Possibility to create new revenue streams through new customer acquisition.

4. Gain first mover advantage in emerging markets.

5. Increases attractiveness of Barclays to multinational corporations.

The