Therefore, the source of competitive advantage for Barclays would be quality customer care as envisaged in their strategy in citizenship and continuous development of new and unique products for the market. The ability to enjoy economies of scale from supplies and large capital structure should also offer Barclays, a hand in increasing competition. Institutional capabilities and endowment Barclays bank has both physical and intangible resources to help it grow to a leading financial institution in its strategic plans. It has both distinctive and threshold capabilities to allow it create a competitive advantage against its rivals (Warner, 2010). Financially, Barclays was able to raise £2.3bn from a share issue. This boosted its capital base …show more content…
This will save on time and cost of operation and help in creating clear and precise business level strategies. Though effort has been put to up the competitive advantage, more is still required. In Resource Based Analysis, the capabilities and competencies of Barclays cannot meet the VRIN criteria in its full view. First is the value criteria. Based on the products offered by Barclays most of the customers seem to be getting what they envisioned while contracting the services offered by Barclays. Though the profits have dipped, the continued increase in the number of customers to approximately 48 million worldwide, is a major indicator of a firm offering value for their client’s money. Rarity is another way to evaluate the strength of the strategy. With the growing financial market and increased spending on research, many competitors, have found methods to be at par with institutions like Barclays in technology and management. In products provided, there is no unique product setting Barclays apart from the rest. It was the Barclays card but now each and every firm is running on similar …show more content…
This goal of the partnerships, mergers and acquisitions will welcome the professionalism in the management of Barclay’s affairs. Through mergers and acquisitions, it will be able to reduce the unfavourable competition and reduce cost of initial set-up that is more expensive than rebranding and acquired firm. Partnerships reduce costs by providing economies of scale. Mergers, on the other hand, reduce risk of venturing into new markets. These engagements allow firms to leverage risk on their combined assets thus lowering the risks associated with doing business. Partnerships will also make it easier to link Barclay’s customers across the world without creating a major presence in a geographical area. Though technology gives a firm a competitive advantage, it can also be a put-off to some clients. Barclays’ products in a way are sophisticated. To attract more customers, it should simplify its products to allow customers from all divide to enjoy them. Barclays has seen a change of management more in the last five years as compared to its competitors. In this aspect of management change, it is hard to grow a culture in an organization. Each manager that comes wants to leave a legacy and will, therefore, employ their strategies overtime they are appointed instead of building on existing
Click here to unlock this and over one million essaysShow More
Comptroller of the Currency said, “Culture is a critical component of a sound management team.” Glazer and Rexrode add that it could also significantly affect his agency’s rating of a bank’s strength. The article then states that there have been ideas floating around such as putting banks on a driver’s-license-like “point system.” With this system the bank’s licenses could be pulled for a bad performance. Glazer and Rexrode also contribute the ideas of “fining bank chief executives, banning bad traders from the business or factoring compliance breaches into compensation aim to build a more personal sense of responsibility.”
With this bank institution going down hill, is it possible for the corporate culture to change with just putting a man in place with some many converses himself. The decline of Wells Fargo has been going on since 2006. “The bank started by
Barclays couldn’t gain much of a profit because the country was suffering from financial crisis which left several companies being shut down. The manipulation of Libor rate left several industries under huge debts during the crisis and the financial crisis worsen up because of the debt individuals were in. Barclays didn’t gain but it lost a lot after the Libor scandal was revealed as the bank was being fined for its involvement in the manipulation of Libor rates. Barclays reputation as the largest bank was tarnished after the scandals were revealed. Barclays lost more money than they could have made by the fines they are currently paying for their role in the manipulation of the Libor rate.
“The study of history has been a study of leaders – what they did and why they did it” (Bass, 2008: 4). New contemporary styles of leadership have emerged that arguably are more successful in the long term (Dawson & Andriopoulos, 2014). This report critically evaluates different styles of leadership to determine if a transformational style will have a more decisive effect on employee motivation and organisational culture culminating in long term prosperity of the business. Fresh perspectives to leadership are required if organisations are to be successful in times of change while at the same time increasing employee morale (Conger, 1999). Studies done by Burns (1978) differentiates between transactional leaders and transformational leaders.
The merging of these two companies will also lead to saving and better utilization of the limited resources. This will enable the two companies to expand their market share, which will create and improve value to the stakeholders (Daidj, 2015). Merging of two companies is aimed at improving the strength and profitability of the two companies, which results in increased shareholder's returns (Daidj, 2015). When two competitor companies merge, consumers benefit from improved services, which retain the customer base (Daidj, 2015).
4. Analysis of strategic capacities of Nikon Corporation This section analyzes the strategic capability Nikon. It starts with a value chain analysis, followed by a VRIN evaluation to determine whether there is any capacity can be sustained competitive advantage. 4.1 Value chain analysis Porter developed the value chain to help determine the internal activities for a competitive advantage, and which are not.
When Sergio Marchionne was brought in as CEO of Chrysler, he was determined to solve the financial crisis that was afflicting the company to bring them back to prosperity. Marchionne know that the only way to make the transition successful was to change the culture of the company by altering their basic assumptions and observable artifacts. This transition would be a daunting task, but if Chrysler was going to be profitable again the change was necessary. Basic assumptions are unseen ideologies about the company. As these are invisible and not concrete evidence, the assumptions would be the most difficult change to be made.
Resources and Capabilities VRIO Framework V R I O Competitive Implication Strong corporate culture + + + + Sustainable competitive advantage Strong investment in R&D + + + + Temporary competitive advantage Outstanding customer service + + + + Sustainable competitive advantage
Introduction This report will critically analyse the Martin Smith: May 2002 case study focusing on the three investments opportunities. It will provide detailed analysis on the pros and cons of each of the investments and a recommendation will be proposed. When proposing the recommendation, the current situation of Newport Partners and Martin Smith, will be taken into consideration in order to explore the best possible transaction whilst eliminating as much risks. This report will also include a short summary of key points that were acquired while working on this assignment and whilst working in a group.
Stakeholder Analysis The answer to whether this partnership will be advantageous to both entities will hugely depend on how each of the management teams learn to understand, value and cater for various stakeholders involved. From an analytical perspective, a stakeholder approach can assist in promoting analysis of how the company fits into its larger environment and how its standard
“Management is doing things right; leadership is doing the right things. “ Peter Drucker Introduction Organisational culture represents the values and beliefs held by the members of a firm which strongly influence they interact at all levels (Hill and Jones 2009, p16), which is also seen in its people’s attitudes, the style of management the behaviour with relation to problem solving (Schwartz and Davis 1981). Whilst Kumar (2012) highlights the distinct tie between the organizational strategies, the culture and the people involved, Johnson, Scholes and Whittington (2008) warn us that strategic drift can occur in firms as they face ever changing environmental forces. Detecting changes in their environment, by way of monitoring of their
COST STRUCTURE OF SAMSUNG Low cost structure of Samsung and high responsiveness to economic events has made Samsung more competitive. For example, initially Samsung focused more on volume and domination on market rather than increasing profitability. However, in 1990s, during the Asian financial crisis, Samsung cut costs and reemphasized product quality and manufacturing flexibility, which allowed its consumer electronics move from project phase to store shelves within next six months. Under the resources-based view of strategic management, effective resources available to a firm, as well as the competency of a firm is responsible in affecting competitive advantage received by a firm.
Davis (1998) comments that, to improve performance, managers think they must change the culture of the team members but arguably it is managers themselves who must change their own culture. There can be a set of assumptions about organisations and people, and these assumptions are taken on by management and impact the design of the system. Unless managers understand how the system that they have designed drives performance, they will never know how to improve team performance (Davis, 1998,