Barclays bank report Essay Example | Topics and Well Written Essays - 2000 words

Barclays bank report - Essay Example Free trade policies and international business alliances have further encouraged the process of internationalization (Howes and Tah, 2003, p.35). Large scale and medium scale companies have started to expand their market boundaries in the overseas markets. With expansion of the business activities in the world market, the importance of the financial services on the global platform has become a necessary requirement. Moreover, the developing economic condition of target consumers has multiplied the business opportunities. Madura has described that business organizations who have successfully identified the new opportunities in the global market, are â€Å"capitalizing on global economic condition† (Madura, 2006 p.83). This paper will attempt to present an evaluation of the Barclays bank, a popular UK-based multinational bank for its Indian market. The primary focus of this paper is to analyze that how good the strategies of Barclays fits with the India business environmental an d Indian banking. In order to cater these objectives, an extensive situational analysis and strategies analysis will be conducted for the Barclays in India using multiple relevant strategic models and tools. 2. Analysis of environment 2.1. PESTLE In order to identify the external environment i.e. macro-economic factors, PESTLE model is an effective tool. It analyses six major factors relating to macro economic factors i.e. political, economic, socio-culture, technological, legal and environmental (Capon, 2009, p.40). For catering the stated objectives it is necessary to understand the macro-environment conditions of Indian market which has been explained below. The stable and favorable political system of Indian economy is one of the most important factors which attract many MNCs for making FDIs in this country. The government took very necessary initiatives to bring necessary reforms in its banking sectors. After the allowing the privatizing the banks, the number of private banks b etween 1969 and 1980 grow rapidly (Banerjee, Cole and Duflo, 2006). Such initiatives have caused to increase the competition by maturing the banking sectors. The appreciating economic condition of Indian economy is another major factor for better opportunities and competitions. Some of the major economic indicators of Indian economy are given below. Table 1: Key Economic Indicators (Source: CIA, 2011) As per the above figure, the Indian economy is rising at higher rate in spite of the global down turn of 2008. India has become a favorite market for many players and hence, many international banks like HSBC, RBS, and Bank of America etc have already entered. Moreover, McKinsey&Company ha reported that Indians’ disposable income is expected to rise by 25% from 22% by 2025 which will enhance the overall saving indicating better opportunities for the banks in India (Narayanswamy and Zainulbhai, 2007). Social structure of the India is also reshaping as consumers awareness among In dian is raising. India’s 1.17 billion populations is said to have higher availability of customers and clients (U.S. Department of State, 2010). The Reserve Bank of India is the chief regulatory body responsible for regulating the banking sectors. The use of information technology in Indian banking sectors have been raised significantly and the Banks in India is constantly increasing their