The Changing Wealth of Nations - Essay Example

Following the recent global financial crisis, there is a need for financial institutions to re-evaluate their business strategies to avoid extinction (Shiller, 2008).  This paper seeks to develop a business strategy proposal for Barclays.

Barclays is one of the largest financial institutions in the UK. It offers services in over 50 countries in the world.  The sub-divisions of the bank include Barclays Capital, Barclays Corporate, Barclaycard, and Barclays Wealth. The bank offers services in the banking sector. This sector has been badly affected by inflation rates and reduced support from the government. Additionally, the rise of many micro-financial institutions is a threat to large banking institutions. Thus the need to come up with new strategies would mean low profits or even closure of the business. Barclays pioneered the first world ATM and has made several advancements in technology.  Clients and customers in this bank benefit from services such as mobile banking, asset financing, brokerage, wealth management, foreign exchange, stocks, and bonds trading among others. In the interim results, the company has recorded zero losses on acquisitions and disposals, as compared to £65m in 2011 (Interim results 2012). According to Martin Taylor, a previous chief executive of Barclays, the bank has stepped back from investment banking at least twice before, thinking it as being too difficult or too dangerous(Smith, 2012). Current, leadership wrangles and ongoing acquisitions form a fertile ground for a strategy. This year, Barclays has moved to acquire ING Direct UK, a move that necessitates the need for a business strategy.

Strategic strengths of Barclays include;

• Presence of a large economic base (capital).
• An organizational culture that encourages innovation in technology.
• Differentiated customer services.

(Barclay’s wealth…, 2010)

The main objective of the research will be to analyze the current position of Barclays in relation to the macro-environment forces, its core competencies, and strike the way forward for the bank. The analysis will also include services provided by the bank alongside their significance in maintaining the bank’s growth. An assessment of the SWOT analysis for Barclays and models that can be used by the bank will be carried out. The possibility of acquisitions and the resulting effects on the bank will also be investigated. The data for research will be retrieved from the company’s website and other hand or periodical study materials from other writers. Online libraries will also form a significant source of data.