What is the relationship between a business strategy and stakeholders and Who are the top three most important stakeholders as explained in the case of the bank (500 words)
Task 1: Business Structure of Barclays Bank: Barclays is one of the leading British based multinational banks having branches in 5 different continents across the world. Barclays bank has strong position due to its asset estimation of more than 2.3 US dollars. Banking structure of Barclays is divided into Personal and corporate banking, Investment banking, Investment management and the unit of credit cards. The main headquarter of Barclays is located at London and the customer’s base of Barclays bank is more than 48 million in different continents including Africa, Asia, Europe, North and South America. The basic structure of Barclays is divided into two clusters: 1. Corporate and investment banking plus Wealth and investment management. 2. Retail and Business Banking Barclays bank also plays part in providing consultancy services for people in operating their small scale business. The unit of personal banking provides its services to manage the investment of small scale businesses. The security and easy access ability level for borrowing purposes makes Barclays one of the standard financial service sectors. The business unit provides consultancy for personal banking borrowing. They provide innovation to start different small level businesses and provide attractive financial services and opportunities for personal loans. Corporate banking is one of the profitable units of business unit of Barclays as it has more than 50,000 customers in five different continents. Risk management unit is also important to provide advisory for businesses which have potential to invest and get profit and also provide opportunities for investment. Wealth and Investment management unit works in more than 20 countries to provide its services. The basic functions of this unit are international and private banking services, investment management services, fiduciary services and brokerage services. Business structure of Barclays bank allows world class banking solutions for corporate customers as well as personal banking clients. Using up to date technology in term of online banking solutions and mobility services provide an edge on competitors due to the latest procedures used in these services. Barclays rely on its global relationship approach. Different relationships teams work across the world to add value to the business of corporate and personal clients. Impact of Market Structure The basic purpose of Barclays is to increase its business in term of customers and profit, looking for potential customers all around the world, looking for growing economies and to expand in such economies to fulfill its vision of growth. Barclays bank is working in India for more than three decades. Investment banking division was the initial business of Barclays banking in India. Now Barclays bank is providing its corporate and personal banking services in India. This technique of using selected divisions is because of the market structure of India which is different as compared to Europe, Africa or America. People hesitate to deposit in banks and also there was less focus on borrowing from banks. The trend is changing due to awareness and availability of latest technology. The businesses of selected divisions in India shows that market structure have impacts while working in international economy. Changes in business structure while working internationally are basic requirements due to different values, structures and perceptions of the customers living in international market. Task 2: Causes of Globalization The change in the trends of international economy damaged the working of different organizations. The negative trend of economy of different European and American business environment allows organizations to look for new markets, customers and better economic regions. This is one of the biggest causes of globalization. The other cause is the advancement in technology and the availability of easy ways of doing business. People came to know about latest processes, new innovations in products and services, the differences in the quality of products and services and new ways of communicating. These cause international companies to expand their business across the borders to target the needs and wants of such customers. The concept of international free trade also caused globalization to take place due to the incentives associated with free trade. Availability of better suppliers in the international market causes organizations not to rely on domestic suppliers. Availability on quality suppliers on competitive basis is a reason of globalization. Lower wages rates in other regions as compared to domestic labors in Europe and America encouraged organizations to expand their business in Asian countries which are less costly for infrastructure and low rate employees. All of the above mentioned reasons are primary causes for globalization. Advancement in technology, use of internet, emails, mobiles, and better traveling provided the basis for globalization to take place. The advancement in online technology provides basis for improved Management Information System to collect and analyze data all around the world to make investment decisions. Implications of Globalization Better business control through internet, mobiles and MIS provides comfort for organizations to handle business from anywhere in the world. This has made strategic decision making easy and fast as response from customers and management is speedy as compared to previous systems. The improvement in the living style and standard are implications of the availability of international standard products and services in those regions. People came to know about the variety and quality of products due to increased and reliable products and services as a result of international expansions. One can now see and buy products through online websites, emails and mobiles phones as these are easy and less costly way of communication now days. Now people have more choices in term of products, services and prices. One can compare product quality and prices by the help of internet and websites to buy more reliable products according to their budget. The other implications of globalizations are E-Commerce, better procedures, improved manufacturing techniques, computer simulations and low cost products and services due to availability of reliable suppliers and processes in region. World Trade Organization There are different causes and implications of globalizations but still there was a need of laws and procedures for globalization and international business. WTO is an international organization to provide standard rules and regulations for global businesses. Providing guidelines for business expansions in other countries by taking inputs from host and guest countries. Providing a list of social, legal and moral responsibilities to both parties for better business is one of the tasks of World Trade Organization. Different members across the world have provided their inputs and suggestions to generate standard laws for global businesses. Every organization and country has to wok according to these laws. Providing soft barriers for investment organizations and implementing the concept of free trade for global business are the major tasks of World Trade Organization.
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