Barclays Case Study
1. Company Background:
Barclays has more than 300 years of history and expertise in banking from their beginning in Lombard Street. It all started when John Freame and Thomas Gould started trading as Goldsmith Bankers in London. In 1986 the company came together with 19 private banking businesses to create Barclays and Company Limited. Eventually the company would expand globally and became the first foreign bank to file with Securities and Exchange Commission in Washington D.C. After struggling with CEO leadership in the late 90’s, Barclays hired Matt Barrett as the new CEO. In 2000 PLC was on the top as a retail and financial bank in the UK, it was the 9th ...view middle of the document...
Incorporated value-based management under CEO Michael Barnett initially to revamp the company by cleaning up management incompetence and fix the core infrastructure.
f. Operations n over 50 countries and around 48 million customers
g. High CEO turnover rate (five different CEOs in 4 years)
h. Excessive cost base
i. Ineffective performance standards internally
j. High in-house expenses compared to competition
k. Declination of market capitalization rank
l. Need to bailout UK during recent economic crises
m. Decision making process becomes easier with value based management
n. Growth and expansion opportunities are more balanced in terms of acquisitions and global reach
o. Earning urban youth looking for investment options
p. Revamping the face of Barclays by looking at the risk and reward factor of a value based model
a. Stringent economic policies world over
b. Highly competitive environment
c. With Lloyd TSB and RBS, it became a very competitive environment rapidly, which made it more difficult to gain a competitive advantage
After analyzing the SWOT and internal/external environments of Barclays, it is clear to conclude that, in this case, the principal stakeholders are the clients of the bank. The clients invest their money in hopes of receiving a greater return in the future. Similarly, the management of the bank can be perceived as principal stakeholders too because they are the ones that have the vision and ability to make the clients grow with their capital and assets.
2. After analyzing the Barclays case, I would have to agree with the strategy that CEO Michael Barnett implemented at Barclays. Before he came, the...