Management Report Essay Example | Topics and Well Written Essays - 2000 words

Management Report - Essay Example Table of Contents Executive Summary 2 Table of Contents 3 1.0Overview 4 2.0 Analysis of the Organisation’s Business Environment 5 2.1 Porters Five Forces 5 2.2 Industry Life Cycle 7 2.3 Scale and Scope of Barclays Bank in India 8 2.4 The Key Reasons for Barclays’ Success 9 2.5 Evaluation of Sustainability 9 3. Analysis of the Organisation’s Strategy 10 3.1 Value Chain Analysis 10 3.2 Resources of Barclays Bank 12 3.3 Strategies Adopted by Barclays Bank 12 3.4 Competitive Stance of Barclays 13 4. Critical Appraisal of the Strategy 14 14 5. References 15 1.0 Overview Barclays Bank Plc (Barclays), which is an English bank, is one of the chief financial service providers globally. Barclays entered Indian Retail Banking sector through Global Retail Commercial Banking (GRCB) in the month of May, 2007. The doors of Barclays were opened to commercial customers in India in November 2006 and at present it has around 2000 clients. It provides a wide range of services to its clients such as loans, payments and cash management services, deposits, trade finance as well as treasury solutions. In the present scenario, Barclays Corporate has a set-up of around 50 distribution points. In March 2008, Barclays Finance was launched (Sakariya & Paliwal, 2010). Therefore, in this context, the report endeavours to analyse the business environment of organisation in which key success and sustainability factors of the Bank is explored. The strategy of the Barclays Bank has been analysed with the help of value chain analysis along with analysis of the competitive stance of the bank. In the concluding section, critical appraisal of the strategies has been presented. 2.0 Analysis of the Organisation’s Business Environment 2.1 Porters Five Forces Entry Barriers (High): In the emerging markets such as India, multifarious decisions such as interests on loans, deposits as well as money supply are regulated by Reserve Bank of India. Reserve Bank in India had decided to provide licenses to a few numbers of foreign or new banks in India (RBI, 2010). These entry barriers prevent the entry of any foreign bank in India. A lot of control has to be kept on loan lending, the number of branches which are to be operated in the market and deposit taking. Since the people are likely to invest in the public or governmental sector banks instead of private banks for the purpose of the safety deposits the brand identity for Barclays in not well-known. Also because of the restrictions imposed on the number of branches, rural area people would stay untouched. As far as product differentiation is concerned the strategy of Barclays Bank works for the corporate or urban customers. Barclays Bank’s services which are efficient and quick enable them to attract a lot of customers. Rivalry among Existing Competitors (High): The competitors include private as well as public banks along with microfinance institutions located in rural areas. Acquiring most important stakes in Absa provides Barclays easy access in an untouched market which also helps them in brand visibility (Barclays Bank PLC, 2010). Bargaining Power of Suppliers (Medium): The customers, parent company and other funding sources are the suppliers of the bank from whom the bank can increase funds. In the market, the customers have a high bargaining power. Barclaycard provides an attracting scheme to their customers which in turn help them to get large funds that are important for