Environmental Analysis of Barclays Bank Plc Essay Example

Environmental Analysis of Barclays Bank Plc Essay Example Environmental Analysis of Barclays Bank Plc Paper Environmental Analysis of Barclays Bank Plc Paper They face increasingly well- informed and energetic customers, determined legislators, and electorates ho are becoming environmentally aware. They have to adapt to changing economic and market conditions, fast changing consumer needs and expectations. Their business is influenced by global economic, political, regulatory, technological and other unpredictable factors. Consequently, they have to device their strategies, policies and operations to adapt to these changes in order to meet stakeholder expectations and satisfy consumer needs. In this assignment, try to describe and evaluate changing business environment of Barclay Bank Pal over the last five years. INTRODUCTION About Barclay Bank Pal Barclay is a major global financial services provider engaged in retail banking, credit cards, corporate banking investment banking, wealth management and investment management services with an extensive international presence in Europe, the Americas, Africa and Asia. Barclay Group headquarters is at 1 Churchill Place in London, UK, but it has operations all over the world, with products and services to meet the needs of customers and clients in local markets. With over 300 years of history and expertise in banking, Barclay operates in over 50 countries and employs more than 144,000 people. Barclay moves, lends, invests and retests money for more than 48 million customers and clients worldwide. Organizational structure Barclay is made up of Clusters: Global Retail Banking, and Corporate and Investment Banking and Wealth Management, each of which has a number of Business Units. The third major area of the business is Group Centre, which comprises all our essential support functions. I-J Banking Industry Auks banking sector, following the IIS and Japan, is the worlds third largest and considered foremost in terms of: efficiency, dynamism and return on capital. In addition to having one of the largest commercial banking industries, the UK is also a major international centre for investment and private banking. The UK banking sectors strong international orientation is reflected in the substantial foreign presence and sizeable assets of foreign banks in London. It services 95% of the population with about 3. 5% of Auks workforce over a million workers. Banks and financial services contribute E ban to the Auks national output (6. 8% of GAP) and provide 25% Of total corporation tax (Been) to the UK Government. The main retail banks provide over mm accounts, clear ban transactions a year and facilitate 2. Ban cash tetrahedral per year from its network of over 30,000 free Atoms. Banks in the UK contribute well over El mm per year to charities and local community initiatives. UK banks are authorized and regulated by Financial Services Authority under the Financial Services and Markets Act 2000 (FSML). Financial Services Authority is an independent non-governmental body which exercises statutory powers under the FSML. The FSML requires the FSP to pursue four objectives: to maintain confidence in the UK financial system; to promote public understanding of the financial system; to secure an appropriate degree f protection for consumers whilst recognizing their own responsibilities; and to reduce the scope for financial crime. Banks of England is responsible for maintaining overall stability of the financial system a whole. The Bank sets interest rates of UK and is also responsible for identifying and limiting systemic financial risk. ANALYSIS Barclay bank operates almost all over the world and hence its actions are influenced by the global economic conditions. Have used PESTLE framework to describe and evaluate business environment of Barclay Bank pal. It categorizes environmental factors into six main types: political, economic, social, technological, environmental and legal. Lattice * Government stability * Taxation policy * Foreign trade regulations * Social welfare policies Economic factors * Business cycles * GNP trends * Interest rates * Money supply * Income distribution * Social mobility * Lifestyle changes * Attitudes to work and leisure * Consumerism * Levels of education Technological * Government spending on research * Government and industry focus on technological effort * New discoveries/dev elopment * Speed of technology transfer * Rates of obsolescence Environmental * Environmental protection laws * Waste disposal Energy consumption Legal * Monopolies legislation * Employment law * Health and safety * product safety The change in the business environment of Barclay bank The collapse of a global housing bubble, which peaked in the IS. S. In 2006, caused the values of securities tied to real estate pricing to plummet thereafter, damaging financial institutions globally. Questions regarding bank solvency, declines in credit availability, and damaged investor confidence had an impact on global stock markets, where securities suffered large losses during late 2008 and early 2009. Economy sees worldwide slowed during this erred as credit tightened and international trade declined. Governments and central banks responded with unprecedented fiscal stimulus, monetary policy expansion, and institutional bailouts. The subsequent emergence of a wider set of credit problems in mortgages and in corporate lending, and in particular in commercial real estate generated credit capacity constraints and economic slowdown. An initial focus on funding problems, with the failure of Northern Rock caused not by immediately evident solvency/credit quality problems, but by the drying up of the market for both securities credit assets and wholesale funding availability. Such funding issues were also critical to the problems of Bradford ; Bentley and HOBOS in September/October 2008. The UK economy was officially declared to be in recession on 6th May 2009. The Office of National Statistics said that Gross domestic product (GAP) fell by 1. 5% in the last three months of 2008, after a 0. 6% contraction in the previous quarter. Recession is generally defined as two quarters of successive contractions in GAP, which means the UK had been in recession since July 2008. Industrial production fell by a massive 3. 9 per cent over the quarter, while the dominant set-vices sector fell by one per cent. Unemployment had also risen to 2. 47 million in the three months to July 2009. It Was at its highest level in 14 years since May 1995. The KICK economy came out of recession in 2010, after figures showed it had grown by 0. % in the last three months of 2009. In the second week of January 201 0, UK unemployment fell for the first time in 18 month. The Auks production and service sectors each grew by 0. 1% during the quarter. The UK recession began in the April-to-June quarter of 2008, and was the longest I-J recession on record. During 18 months of re cession, public borrowing increased to an estimated El ban, while output slumped by 6%. Impact on Barclay Banks performance Barclay announced record profits of more than Ell billion for 2009 a 92% rise on the previous year. Its performance driven largely by a strong revival in its investment banking arm Barclay Capital. Profits were also boosted by sale of fund management business Barclay Global Investors, and the addition of the New York operations of failed investment bank Lehman Brothers at the end of 2008. The BIG sale added E. 3 billion to pre-tax profits. Barclay Capital contributed E. 5 billion of the banks underlying profit of E. 3 billion which was 13% down on sasss E billion. However, the banks profit was highly affected by the global economic slowdown and deteriorating economic conditions in the UK. Its UK Retail Banking profit before tax in 2009 decreased 55% (E mm) to Emma (2008: El mm), impacted by low interest rates resulting in margin compression on the deposit book and increased impairment charges which together more than offset well controlled costs and an improved assets margin. Impairment charges rose to Emma (2008: Emma), reflecting the impact of the economic recession across the business with continued pressure on corporate liquidity, rising default rates and lower set values. Barclay enforced strict criteria on new credit card applications, using a scoring system that takes over 400 variables into account when assessing an applicants likely ability to manage their credit. Around 50% of applications for credit cards are declined as a result. Strong income growth (2009) across the portfolio driven by increased lending, improved margins and foreign exchange gains, was offset by higher impairment charges, driven by the deterioration in the global economy. Impairment charges in the international businesses increased Emma, driven by higher delinquencies due to deteriorating economic conditions. UK portfolio charges were higher as a result of rising delinquencies due to the economic deterioration, especially in the loan portfolios, and the inclusion of Goldfish in UK Cards. The impairment charge in Global Retail and Commercial Banking increased by 85% (E,mm) to E,mm (2008: E,mm) as charges rose in all portfolios, reflecting deteriorating credit conditions across all regions. Impairment charges on loans and advances increased 50% (E,mm) to E,mm (2008: E,91 mm). The increase was primarily due to economic deterioration and portfolio maturation, currency movements and theology enhancements, partially offset by a contraction in loan balances. In Investment Banking and Investment Management, impairment was broadly unchanged at El ,mm (2008: El ,mm). The impairment charge against available for sale assets and reversed repurchase agreements increased by 41 % (Emma) to Emma (2008: Emma), driven by impairment against credit market exposures. Political During 2008, the UK government acted in the banking sector to recapitulate banks and guarantee toxic assets and deposits and new lending for essential infrastructure programmers. This was essential to shore up lending for nonusers and businesses and restore confidence in banks. Also it was vital to avoid the unprecedented banking crisis having even more wide reaching and catastrophic effects in the wider economy. This decision was not taken lightly and wasnt considered an easy ride for the banks. Banks wishing to participate in the Asset protection Scheme for example had to make additional lending to households and businesses. But the overarching priority in the banking sector was first to ensure the continuing supply of credit to the wider economy. This means returning the banks to solvency and profitability, ND maintaining financial stability. On 13th October 2008, the government nationalized the Royal Bank of Scotland (ORBS), taking up a 63 % stake in exchange for EWE billion of taxpayers money (now 84% owned by the government) on condition that no executive bonuses paid during 2008; no dividend until the governments Been of preference shares are repaid and the government appointed three directors; ORBS had to maintain mortgage lending at 2007 levels. On 31st October 2008, Business secretary Lord Mandelas waived competition law for takeover of Lloyd Tats takeover of Halifax Bank of Scotland creating the fourth biggest bank of Britain to calm uncertainty about the strength of HOBOS after a run on its shares. The combined bank accounts for a third of the mortgage market. Although the merged bank is smaller than Barclay, HASH and Royal Bank of Scotland, because it has less of an international profile than the Other banks, it is the market leader in terms Of savings by a huge margin. In order to shore up confidence in the banking system during 2008, the government injected money into Lloyd TTS Bank (E. Ban) and HOBOS (El 1 ban) and became owner of 43. % of the combined roof, directors were asked to receive sasss bonus in shares; no dividend until preference shares are repaid; government appointed two directors; Lloyd asked to maintain mortgage lending at 2007 levels for next three years. As the Financial Services Authority increased the capital ratio requirements for all UK banks, Barclay had been forced to raise E. 2 billion from Middle Eastern Investors on generous terms. A further El . Ban was being raised from institutional investors to strengthen its balance sheet. Chancellor Alistair Darling introduced a temporary one-off super-tax of 50% n bankers bonuses paid above E25000 between December 2009 and April 2010. Bankers still had to pay income tax on any bonus they receive as usual. The new tax was designed to discourage banks from awarding large bonuses to employees in the wake of the major taxpayer support they have received in the financial crisis. Consequently, Barclay paid IEEE million in windfall bonus tax for 2009. Sociological According to British Retail Consortium (BRB), more people are using cash to pay for their purchases amid growing consumer concerns about how much money they are spending. The global credit crunch is causing consumers to e more cautious with their money. Figures from the organization showed that cash was used for 60 per cent of all transactions during 2008, an increase of 54 per cent from 2007. Cash represented 34 per cent of all money spent in the retail sector during 2008, compared with 32 per cent in 2007. According to BRB, peoples enthusiasm for using cards is slipping as they are not only reluctant to borrow but also reluctant to use cards. A survey released on 22nd January 2009 by communications consultants Cohn ; Wolfe revealed the full scale of LIKE consumers anger with financial institutions. I-J consumers perceive their banks to be greedy and impersonal, according to the survey, which polled 852 consumers in January 2009. The study also revealed that 60% of consumers dont believe that their bank is looking after their best interests. When asked which words best describe the perception of their financial institution, consumers identified greedy (49%), impersonal (36%) and distant (34%). Positive and desired descriptions including ethical (2%), trustworthy (4%) and transparent (5%) were among the least common terms used by consumers to describe their financial institutions. Almost two thirds (64%) of respondents trust in financial institutions had weakened over the last 18 months. A lack of confidence in banks was further emphasized with 74% of consumers saying that they do not believe that their bank would help them recover any money they had lost in 2008. Respondents also identified the financial services they trusted most. Retail banks were comfortably (59%) the most trusted type of financial service. At the other end of the scale, investment broker (2%), insurance providers (5%), online financial service providers and supermarket retailers (both 6%) come off worst. Due to such negative attitude towards ban king industry and intense public interest and concern for banks and bankers pay, Barclay chief executive John Barley and president Bob Diamond both agreed to sacrifice bonuses for two years, 2008 and 2009. In late 2004, Chip ; PIN technology was introduced as a strategic response to tackle counterfeit and lost ; stolen card fraud in the face-to- face environment. Up until this point, UK consumers signed for their goods and services and only used their PIN for ATM withdrawals. During 2007, Barclay sent out PIN sentry machines to over half a million customers in an tempt to prevent online banking fraud. The PIN sentry reader is meant to be used once an online account holder has logged in to the banking site. After logging in, customers slot their bank debit card into the card reader, which generates a unique code which they must input before making a transaction. Also, retailers and banks are using more fraud screening detection tools and online fraud prevention tools, such as Mastered Secured and Verified by Visa, which make cards more secure when people are shopping online. This led to phone, internet and mail order fraud losses falling 19 percent from IEEE. Million in 2008 to IEEE. 4 million in 2009. Environmental Climate change has become the single biggest challenge the world faces at the beginning of the 21st century, and in response Barclay is focusing increasingly on its work on the environment, which includes both its direct and indirect impacts. Barclay remains committed to increasing its energy efficiency, and reducing its carbon footprint on an ongoing basis, as well as helping its supply chain reduces its emissions. In 2007, it invested in emissions trading capability, and moved into the consumer market with new lower-carbon products and services. An example is Barbarically Breathe, a new card that gives consumers incentives when they buy green products, and donates half its profits to environmental projects. In the wholesale market Barclay Capital has committed to the ELI emissions trading market to brings its full range of commodity trading and risk management expertise to bear to help clients manage their carbon risk. Since 2005 it has traded over 600 million tones of carbon credits, with a notional value of over $14 billion. Gal factors The global financial crisis resulted in a significant tightening of regulation and changes to regulatory structures globally. The changes in the legal framework, policies and banking r egulatory action, have an impact on Barclay businesses and earnings. The market for payment protection insurance (PIP) has been under scrutiny by the UK competition authorities and financial services regulators. In 2006, the FSP published the outcome of its broad industry thematic review of PIP sales practices in which it concluded that some firms fail to treat customers fairly and that the FSP would strengthen its actions against such firms. Barclay voluntarily complied with the Fags request to cease selling single premium PIP by the end of January 2009. On 21st February, the UK government introduced Banking Act 2009 which provides the Authorities with tools to deal with failing banks and building societies. The Banking Act provides a permanent and appropriate regime for the resolution of failing banks. It is a major step forward in the Governments programmer to strengthen stability and confidence in the UK banking system, in the wake Of the global instability experienced by financial markets. In order to discourage excessive risk taking by large banks, FSP published its new Remuneration Code of Practice in August 2009. The code states that firms should not encourage risk taking to generate short-term profit the focus should be on long term success. It required firms to give pay details to FSP so that it can monitor compliance. Barclay discretionary pay awards for 2009 were fully compliant with the FSP Remuneration Code which resulted in an increase in the deferred awards by approximately 70% and greater use of equity in deferral structures, particularly to senior staff. 100% of the discretionary pay awards for 2009 to its Executive Committee were deferred. RECOMMENDATION From previous chapters it becomes clear that Barclay bank operates in unpredictable and volatile business environment. In such circumstances, it is highly recommended that it should be clear about its strategic framework for the coming years and should maintain a sound financial and organizational footing that anticipates and adapts to the regulatory changes. It can achieve superior growth by diversifying its profit base by geography and by business line. It should focus intensely on cost reduction and risk management. It is required to create the internal framework, processes and culture to respond rapidly to new opportunities, threats and regulations. It is also required to re- establish trust and relationship with customers by fulfilling their needs with reduce innovation and customer centric approach. CONCLUSION The global economic slowdown and subsequent recession in UK and in many other countries of the world have changed the business environment in substantial way. Barclay Bank operates in a business environment which is highly influenced by political, economical, coloratura, technological, environmental and legal factors. In order to compete successfully, it has to adapt to changing business environment. Its performance in last five years shows that it has the ability to run the business profitably even in such deteriorating economic conditions where other players in the market trudged to survive. However, it needs to undertake a balanced set of strategic initiatives in such unpredictable and extreme volatile business environment which is beyond the organizational control.

The Best AP US History Notes to Study With

The Best AP US History Notes to Study With SAT / ACT Prep Online Guides and Tips Want some notes to help break down your AP US History class? Or are you looking to brush up on a historical period you’re having a hard time remembering? We have detailed notes organized by US History units, which fit under the most recent 2015-16 AP US History guidelines. Read on to get help with AP US History and be prepared for the test. Wait, What? New AP US History Guidelines? Yes, the AP US History course has undergone some revision. For the 2015-16 school year, the APUSH course will be using revised guidelines. These guidelines build on revisions in recent years to make the class more skills-based, though the most recent changes were affected by a political controversy. These new guidelines are in response to a controversy regarding the curriculum raised by political conservatives. In short, conservatives thought the curriculum was an overly negative look at US History that didn’t emphasize ideas like American exceptionalism. You can read a summary of the controversy here if you’re interested. Regardless of how the new guidelines came about or how you feel about them, the reality is that APUSH now has new guidelines we have to work with. We will briefly break down these new guidelines before getting into the chronology of US History and notes. AP US History has three broad learning objectives: historical thinking skills (basically how you analyze what you learn), thematic learning objectives (themes to look for in each period of US History), and finally the concept outline (the traditional division of US History by time periods). We will go over the first two areas (historical thinking skills and thematic learning objectives) so you know what to look for as you dig into the notes, which are chronological and thus fall under the third objective. You can read the complete description of the new guidelines here if you’re curious about the changes. Historical Thinking Skills The AP program wants to help US History students develop historical thinking skills, rather than just memorize a string of facts about a certain place or time period. Especially since AP US History is notorious for requiring students to memorize tons of dates, facts, and names, the new curriculum aims to develop history skills so the course isn’t mostly memorization-based. Each APUSH exam question will test one or more of these skill-based objectives as well as one or more of the thematic objectives. So keep these skills in mind as you go through the chronological notes. Your AP US History teacher should be working on these skills with your class. If they’re not, we recommend getting a prep book, which will review the skills in detail and show you how to demonstrate them in the essays. The skills are as follows: Analyzing historical primary and secondary sources and evidence: this skill teaches you to compare the content of a source with the authorship, point of view, purpose, audience, and format or medium of a source. You also have to decide how useful or flawed the source is as historical evidence. Making historical connections: can you compare, contextualize, and synthesize various historical developments? Chronological reasoning: you'll learn to identify causation and patterns of continuity and change over time. You'll also learn about periodization (how historians create different chronological periods and why that matters). Creating and supporting an argument: you'll learn how to define and frame a question about the past and then make a claim or argument about that question. A strong historical argument requires a specific thesis or claim, supported by detailed analysis of different types of historical evidence. The argument and evidence used should be framed around the application of a specific historical thinking skill (comparison, causation, patterns of continuity and change over time, or periodization). Thematic Learning Objectives Beyond just the basic facts of US History and broad historical thinking skills, the AP program wants you to get a bigger-picture understanding of major themes and developments across America’s history, like you would in a college course. Have you ever heard the phrase "missing the forest for the trees"? The same goes here - the AP program doesn't want you to memorize a bunch of years and names without understanding the larger relevance of them. The goal is to be able to connect these themes between different periods in US History and be able to discuss them in an essay. As we get into the concept outline, which breaks down APUSH by time periods and where we are linking to notes, think about these themes and see if you can connect them to the outline notes. These are important themes to trace throughout all of your AP US History studying! American and National Identity: how and why definitions of American and national identity and values have developed, including citizenship, constitutionalism, foreign policy, assimilation, and American exceptionalism. Politics and Power: how different social and political groups have influenced society and government in the United States, as well as how political beliefs and institutions have changed over time. Work, Exchange, and Technology: the factors behind the development of systems of economic exchange, particularly the role of technology, economic markets, and government. Culture and Society: the roles that ideas, beliefs, social mores, and creative expression have played in shaping the United States, as well as how various identities, cultures, and values have been preserved or changed in different contexts of U.S. history. Migration and Settlement: why and how the various people who moved to and within the United States both adapted to and transformed their new social and physical environments. Geography and the Environment: the role of geography and both the natural and human-made environments on social and political developments in what would become the United States. America in the World: the interactions between nations that affected North American history in the colonial period, and on the influence of the United States on world affairs. The Concept Outline by Time Period Finally, the AP US History course is organized by chronological periods as well as the historical skills and themes discussed above. In other words, this is your basic "first A happened, then B, then C" structure you're probably used to from past history classes, the specific dates, names, and events of history. After all, a great essay about the development of democracy in America would be weakened if you didn't know the year the Constitution was ratified. That was in 1788, by the way. So yes, chronology is the easiest way to think about history. But remember to think about the seven themes and try to connect them to the basic facts you're learning. For example, when thinking about secession, you should know when the Southern states seceded (in 1860 and 1861), but you could also connect the "Culture and Society" theme to explain why: "the belief in a distinctively Southern way of life and a refusal to abandon it drove the Southern states to secede." In short, understanding those themes will help you gain a broader understanding of the names and dates you're learning. Plus, being able to write about them will take your essays from good to great. These chapter outlines come from APStudyNotes.org. The source is The American Pageant, one of the best AP US History textbooks. The time periods don’t always exactly match up with AP’s guidelines, which is going to be true of most textbooks (there are only a few out there written exclusively for APUSH). But we have organized the outlines so they mostly match up with the AP US History's division of the timeline. Whether you’re using The American Pageant or not, these outlines well provide helpful overviews which can help you study either over the course of the year or in the run-up to the AP exam. 1491 - 1607 (5% of exam) The Planting of English America: 1500-1733 1607-1754 (10% of exam) Settling the Northern Colonies: 1619-1700 American Life in the Seventeenth Century: 1607-1692 1754-1800 (12% of exam) Colonial Society on the Eve of Revolution: 1700-1775 The Road to Revolution: 1763-1775 Launching the New Ship of State: 1789-1800 1800-1848 (10% of exam) The Second War for Independence and the Upsurge of Nationalism: 1812-1824 The Rise of a Mass Democracy: 1824-1840 The Ferment of Reform and Culture: 1790-1860 The South and the Slavery Controversy: 1793-1860 Manifest Destiny and Its Legacy: 1841-1848 1844-1877 (13% of exam) Renewing the Sectional Struggle: 1848-1854 Drifting Toward Disunion: 1854-1861 Girding for War, The North and the South: 1861-1865 The Furnace of Civil War: 1861-1865 1865 - 1898 (13% of exam) Paralysis of Politics in the Gilded Age: 1869-1896 Industry Comes of Age: 1865-1900 America Moves to the City: 1865-1900 The Great West and the Agricultural Revolution: 1865-1896 1890 - 1945 (17% of exam) The Path of Empire: 1890-1899 America on the World Stage: 1899-1909 Progressivism and the Republican Roosevelt: 1901-1912 Wilsonian Progressivism at Home and Abroad: 1912-1916 The War to End War: 1917-1918 American Life in the Roaring Twenties: 1919-1929 The Politics of Boom and Bust: 1920-1932 The Great Depression and the New Deal: 1933-1939 Franklin D. Roosevelt and the Shadow of War: 1933-1941 America in World War II: 1941-1945 1945 - 1980 (15% of exam) The Cold War Begins: 1945-1952 The Eisenhower Era: 1952-1960 The Stormy Sixties: 1960-1968 The Stalemated Seventies: 1968-1980 1980 - present (5% of exam) The Resurgence of Conservatism: 1980-2000 Notice that the textbook’s chapters fall roughly within the APUSH guidelines for chronology in terms of the amount of time spent on each period. All US History textbooks approved by College Board will have good coverage of all chronological topics, so if you have chapter guides or notes from your own class's US History Textbook, you can (and should!) use those as well. What’s Next? Did you know many colleges require SAT Subject Tests to apply? Luckily you can put your AP subjects to use on these – for example you could take the US History SAT Subject Test after you study for AP US History. Find out which colleges require SAT subject tests and the best time in your high school career to take them. Also studying for the SAT/ACT? Find out when you should take the SAT/ACT and learn about the best prep books you can buy for the SAT/ACT. Want to improve your SAT score by 160 points or your ACT score by 4 points?We've written a guide for each test about the top 5 strategies you must be using to have a shot at improving your score. Download it for free now: