Barclays banking group has been in existence for over 300 years, a period in which the company has grown from strength to strength. The bank has been on the forefront in introducing new innovations to the banking sector with the ATM being the most outstanding introduction. The company has however found the going tough in recent years as harsh financial times have been made worse by controversies and scandals. The challenges however do not mean the bank cannot regain its leading position in the market, through development and implementation of a strategic plan, the bank should be contesting for the pole position in the industry. This will involve identification of the challenges and opportunity posed by the environment in which the company operates so as to come up with the most beneficial strategy.
Barclays bank long and eventful history is an indication of the strides that the UK based banking and financial institution has taken. The institution that started as a bank for goldsmiths has grown tremendously just as the markets has developed. . Through its visionary and innovative leaders Barclays has grown to a world known banking institution with operations in more than 50 countries. This is however the result of strategic planning coupled with encouraging economic periods. Of importance to us however is the strategic plan that the multinational institution has adopted. Strategic planning can be termed as a holistic process that aims at not only improving but also transforming every aspect of a company or institution so as to achieve better results and better cope with its challenges. Barclays strategic plan is to identify its market position in each individual market and identify ways in which to achieve better results either through financial, corporate or policy adjustments.
BUSINESS PLAN & STRATEGY
Barclays bank mission statement states that the company aspires to be the most reliable and admired financial services organization in the world, recognized by its innovative, customer focused nature that delivers superb products and services to its customers anywhere they may be, ensures excellent careers for our people and contribute positively to the communities in which we live and work. This is to be achieved guided by the values of respect, integrity, stewardship, service and excellence.
The company’s vision on the other hand is guided by five key principles which are at the core of its operations. Winning together which aims at achieving collective and individual success is the first principle. The company also envisages to develop talented colleagues to reach their full potential and to ensure Barclays retains a leading position in the global financial industry through the ‘best people policy.’ Customer and client focus is the other principle which focuses on understanding the customers’ needs and serving them brilliantly. Pioneering and Trust are the last two principles and focus specifically on driving new ideas and acting with the highest integrity to retain the trust of customers, colleagues and stakeholders respectively.
Strategic planning is the systematic process of envisioning a desired future, and translating the vision into broadly defined goals or objectives and a sequence of steps of achieving them. A company can formulate and achieve its strategic plan using various strategies. There are five main models of strategic planning which are; vision based strategic planning model, the issue based model, scenario based model, organic strategic model and the alignment model (McNamara, 2006). The vision based strategic model is the most commonly applied as it acts as a guide to all the operations of the company. It involves the establishment of mission and vision, establishing goals that are in line with vision and mission, advancement of strategies and action plans as The Road Map and monitor and evaluate implementation (Ezendu, 2012). Barclays banking group already have this model established and working.
The company however is re-strategizing and has used the issue-based model which is usually termed as more comprehensive and effective (McNamara, 2006). This approach involves the identification of the major challenge facing the company which in our case is non-profitability. This is then followed by designing of programs (strategies) to address the issue/goal which are achieved through brainstorming and manifold thinking techniques (Ezendu, 2012). The company should then update its mission, vision and values, establishing action plans, develop a yearly operating plan and monitor or reviewing the strategic plan document to note the level of progress (McNamara, 2006).
Barclays bank has not been successful throughout its existence and had its own fair share of challenges and scandals. The most recent one was the rate-manipulation scandal whereby some of the bank’s derivatives traders were found to have attempted to rig the libor rate. This resulted with the company being slapped with a £290m fine and the resignation of the Chairman and Chief executive in 2012 (Treanor, 2013). This was followed by poor results on the company’s finances with the bank reporting a net loss of £1 billion down from a £3 billion profit from the previous year (Alden, 2013). This resulted to the bank focusing its attention on cutting down its costs as it key strategy as it planned to restructure. This resulted to cutting down its workforce by over 8 percent in its investment banking division in the American market (Alden, 2013).
This has resulted to the banking group unveiling a new strategic plan dubbed ‘Project Transform’ which is probably the biggest step that the company has ever taken towards meeting the long term profitability and sustainability (Speculations, 2014). But before we analyse the new plan let’s look at just how the banking group has been operating. The gro
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