Barclays is a UK based financial services group involved in primarily in banking, investment banking, and investment and

Business description

As mentioned above, Barclays’ is primarily involved in banking, investment banking, and investment management.

Barclays also operates in many other countries across the world, where it is a provider of services to multinational companies and financial companies.

“The Woolwich” and “Woolwich” are trading names that Barclays operates under, and through these Barclays delivers banking solutions to UK retail and business banking customers.

Barclays serves its customers through a variety of channels comprising the branch network, cash machines, telephone banking, and online banking and relationship managers.

Key employees

The key products and services that are offered by Barclays are:

• Personal banking
• Corporate banking
• Premier banking
• International banking
• Private banking
• Investment banking
• Credit card services
• Mortgage lending services
• Asset management services
• Mutual fund services

Barclay’s top competitors are listed in the table below:

Competition amongst banks

Nottingham University produces a survey on “ private businesses and their banks”. It surveys around 500 small businesses, asking them about their relationship with their bank. The survey, which was carried out in 09/11/2004, showed that big banks were “outshone” by smaller rivals in the major bank report. Factors that are taken into account when compiling the performance league table (see appendix 1) for the various banks include competitiveness of interest rates charges, knowledge of industry, efficiency and reliability. Another significant point, which was developed from this survey, was that more than 40 per cent of small businesses banking with Barclays, Lloyds TSB and Natwest had cause to complain.

  (Appendix 1)

PEST (STEP) Analysis is a “technique for identifying and listing the political-legal, economic, socio-cultural and technological factors in the general environment most relevant to an organisation at that time”.

Social factors

The Sociocultural environment can be defined as the “cultural influences on business which may vary from country to country, factors such as religion, language etc are the Sociocultural factors”.

The demand for convenience in banking is increasing because of changes in lifestyle and values. Barclays has launched almost every single way of banking so far in the market and is currently researching on better ways of banking in future. Demographic changes such as smaller household sizes are also an aspect in changes in banking for which Barclays has signed a deal with Woolwich Mortgage to provide Mortgage to its customers which leaves the customers with the same bank. Barclays provides its customers loans such as short-term loan, long-term loan, career development loan, which means Barclays, covers the changes in lifestyle and values.

Technological factors

The introduction of the Internet has forced the British banking industry to modernise themselves. The popularity of Internet has meant that UK banks are forced to speed up the time it takes to transfer funds between accounts.

Barclays together with Vodafone have introduced WAP (Wireless application protocol) banking for its customers, which is a big leap towards the modernisation of banking. WAP customers are able to check their accounts making banking comfortable. The Barclays World Wide Web allows the customers to retrieve their bank accounts online. Barclays is able to use its Internet presence to advertise its products and services for its potential and actual customers who visit the website. Barclays have broadened the Internet service for disabled customers, together with RNIB (Royal National Institute for Blind). Barclays has improved the text on its online banking website making it easier for partially sighted customers to read on screen. Barclaycard also allows customers to check their account and pay their credit card using a debit card.

Economic factors

Barclays is committed to the economic environment as is it paid £1.1 billion to shareholders in dividends, £1 billion in taxes, and over £3 billion in employee salaries throughout UK, while providing employment for thousands and financial services to millions of individuals and enterprises.

Barclays is currently working with the British Bankers association in which one local branch will serve four Banks. The local Barclays branch at Brandon, Coniston and Sedgefield will welcome customers of HSBC, Lloyds TSB and Natwest in addition to Barclay's customers, this shows that Barclays is dedicated and open to any changes or any new resolution by any form of national bodies to make business at ease.

Political factors

Barclays has grown from a group of English partnerships to a global bank in Europe, the USA, Latin America, Africa, the Caribbean, Asia, the Middle East and Australia.

Over the years Barclays has also kept a strong relationship with UNIFI, a trade union that looks after the interests of its employees. As a result of this partnership, Barclays has developed performance and reward schemes to allow employees to share in the success of the company. Barclays has also had to be able to adapt to working within different political systems, for example, its mortgage scheme to suit the customer needs according to Scottish legislations, which are totally different from the ones in England.

Appendix 1

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