A Study On Barclays Bank

Barclays financial service group came to life in the United Kingdom approximately 300 years ago. It started out first as goldsmith bankers and grew and expanded after that. After it became one of the best banks back then, Barclays began acquiring other banks across UK, such as Bolithos in Cornwall and the South West in 1905. By doing this Barclays became known throughout the company and so increased its market shares and profits. Whatever this company did was related to the fact that it wanted to increase its ability to perform its business effectively. Another great move made by Barclays is its acquisition of UK's largest bank with its head office outside of London, Martin's Bank, in 1969. There were many great banks within the UK, which was acquired by Barclays - and one advantage of this is the fact that this company is now going to gain new market shares and profits.

After being satisfied with its progress in the United Kingdom, Barclays decided to make its name international by going abroad - which was another great move. In the United Kingdom, Barclays had acquired many other small banks, gained large market and profits with each acquisition. As a result of this growth, this company had reached its maturity stage within UK itself; it has reached its peak of growth where all this company now do is make money. In an attempt to keep its reputation of being one of UK's greatest banks, the move to go abroad was welcomed.

This international move started around 1925 with a merger of these very large banks, the Colonial Bank, the Anglo Egyptian bank and the National Bank of South Africa. These mergers initiated business in Africa, the Caribbean and the Middle East, this bringing in more market and profits.

As was mentioned before most of the company's growth and expansion was an attempt to better and maybe even gain more business operations. Take for example the company's take over of Woolwich in 2000, this was an attempt to better its mortgage banking since Woolwich was and still is known as UK's leading mortgage bank. Some of Barclays business, which will be discussed, came about from going international. An example of this is Barclays Global Investors and its investment banking operations which started 1986.

Barclays financial group is known to many as just Barclays bank, mainly because it is not known the extent of their business operations. Barclays is not only known for its commercial business offered to UK and international customers, (current accounts, Savings accounts, insurance, mortgages, etc.), but also Wealth Management and Stock Brokers. Both of which are available to high net work individuals. Barclays wealth management includes offshore banking, stock broking, private banking etc. The availability of such business operations ensures that every segment of each market is taken care of, working class or otherwise. This strategy which is used by Barclays is essential and effective as there is something in it for everybody; each individual is taken care of in this company, whether they are looking for just a savings account or financial advice for a new or ongoing business.

Barclays is not only bank of the financial group available in UK. There are many others, which are good - this therefore means competition for Barclays bank. Some of these competitions include Natwest, Abbey and Lloyd's TSB. These banks, like Barclays offer many different kinds of business operations, the difference, however, is the fact that these banks have not been as global as Barclays. In order to achieve goals and objectives this company sets, there is a need for in dept analysis of all factors which may have an effect on them actually completing their goals. One of these analyses is the competition analysis. Barclays can use or try to use its competition's strengths and weaknesses to their advantage - in an attempt to out do them. By analysing their competitors' capabilities and weaknesses, Barclays can tell whether or not, based on their resources available, if they will be able to win over customers. Also based on an analysis of the resources of its competitors, Barclays can tell if they would be a threat. Information of its competitors can come easily of their websites, brochures, media etc. so it will be easy to do a complete analysis of them to gain some leverage and information.

Barclays, in terms of reaching set goals and objectives can also look at its market. As was mentioned before, this company does a little of everything to accommodate almost each individual's needs. By focusing on specific needs of its market, Barclays can gain more information, try as much as possible to provide for these needs. It is seen that Barclays has segmented its market, one good strategy used, in order to provide for its specific needs - young, old, rich, poor, etc.

There are other external factors which affect Barclays financial group's ability to reach its set goals and objectives. These factors are Political, Economical, Social and Technological. The political factors which can affect Barclays is the fact that there are wars within the country. The business operation that will most likely get affected by this is its offshore banking. Within the world now, as it is now becoming a smaller place with almost one market with countries as buyers and sellers, there are many conflicts arising between and among nations. Take for example the new rift between USA and Venezuela, for oil no one knows what this may spark but as a global bank in these countries, Barclays can be affected. Global investors may not longer want to take part in their dealings or what they have to offer.

The Government for a particular country may raise taxis which will now affect the company's profits. At the end of the Budget this year, in London tax has risen for almost everything. Increased taxes mean more money to pay to the government and less money for you as profits. Barclays revenues and profits can suffer as a result of the extra tax it has to pay for just running its business.

The Economic factors which can affect Barclays is mainly the changes in currencies, not just the pound but also the US dollar etc. In order to be very effective, this company needs to be up to date as much as possible with the fluctuations of the currencies or the exchange rates as it is a bank and as it needs to be able to provide for its customers.

Every Season customers may require different things, whether it is money for a holiday, money for a house or they just want to save. These reflect the social factors, which affects Barclays business operations. Based on what customers prefer at a specific point in time is their, Barclays, duty to ensure

...