Global Factors and Strategy Businesses are affected by an external environment as much as they are affected by the competitors. Global factors influencing business are legal, political, social, technological and economic. Understanding of these factors is important while developing a business strategy. Social factors - These factors are related to changes in social structures.
Barclays global financial services provider 1. Barclays offers personal banking services to its customers all over the world and provides a variety of other products like loans, debit card, saving account, insurance, online banking etc.
Barclays has almost 49 million customers and clients worldwide. Barclays has so many achievements in his name. In Barclays was the first financial institution to launch its website.
In Barclays was the first UK bank to offer customers a mortgage in euros to buy a british home. In Barclays was the first bank in UK to announce a mass roll-out of contactless-enabled debit card.
For example the tax for Barclays to do its business in India will not be same as it is in UK. And also different-different country has different- different rules for its banking industry.
According to Treanor report Senior bankers are complaining that political interference is the biggest risk facing their industry despite the billions of pounds of taxpayer money being used to prop up the banking system.
Treanor, The UK Prime Minister said for a more responsible banking, in which he said "banks are the servants of economy and society and never its master".
He said banks should have help UK business by giving them loans. Barclays was rapidly losing market share to Bank of Scotland and mainland European banks according to survey by the Manchester Business School.
Trapp, Bank of Scotland was regarded as the toughest bank, but it is felt to offer a better service. Smaller banks, such as the Co-op, Abbey National, Bank of Wales and Yorkshire, were considered less aggressive than the main hight street clearers in terms of fees and pricing.
Robbins, The existing recession also played a major role in affecting the business of banks. Bank should win the heart of its customers to maintain its reputation.
It should make a strong bond with customers. Because of that Barclays had suffered from a spate of bad publicity. However Barclays said eight million customers with standard current accounts would not be a hit by higher changes, and banks has not changed the rates paid by its credit card customers in UK.
However customers reacted angrily against Barclays bank. Customers face problem in loging on and doing online banking. Some Customers feel unsecured doing online banking. In January many account holders were not able to check balances and transfer money via online banking.
Many customers complained on Barclays forum for unable to access account. Barclays admitted the problem was associated with a software upgrade which went live overnight.
The basic F-Secure anti-virus will protect customers account and will alert users if any malicious programs installed. European Countries implemented numerous regulations for banking industry, to achieve the level of harmonization required for the establishment of a single, competitive market for financial services.
However, after that European banks have also experienced a negative effect on competition. In March, Barclays bank obtained a court order banning the Guardian from publishing documents which showed how the bank set up companies to avoid hundreds of millions of pounds in tax.
The information was leaked by a person who was working with bank.
Guardian, In January, Barclays and other 22 international companies got a legal action brought by a South African activist group.
That legal action was for allegedely benefited companies from doing business in South Africa in the apartheid era. Barclays was forecd to pull out of South Africa in after protests against its involvement in South Africa during the apartheid regime. Bank should should give customers requirement first priority in its business.
Banks should keep a track in advance on the political stability of that country, to know how its political change will affect its business. And bank should make a strong bond with governemnt regarding its policies and regulations so that government will help the banks at the time of economy downturn by giving banks special packages to rescue from economy downturn.
Banks should make a strong bond with government regarding tax paying. As mentioned in 2. Banks should involve Fiscal Policy in their policy. Fiscal Policy helps to reduce the rate of inflation and stimulate economic growth in a period of economy downturn.
Fiscal Policy aims to stablise economic growth, avoiding boom and bust economic cycle.Global factors influencing business are legal, political, social, technological and economic.
Understanding of these factors is important while developing a business strategy. a. Social factors - These factors are related to changes in social structures. These factors provide insights into behaviour, tastes, and lifestyles patterns of a population.
Mergers and acquisitions (M&A) are transactions in which the ownership of companies, other business organizations, or their operating units are transferred or consolidated with other ashio-midori.com an aspect of strategic management, M&A can allow enterprises to grow or downsize, and change the nature of their business or competitive position..
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Welcome to the Purdue OWL. This page is brought to you by the OWL at Purdue University. When printing this page, you must include the entire legal notice. The Social And Legal Factors Economics Essay. Print Reference this. Published Social and legal factors also affect the strategies Barratt adopts because change in patterns of living may dictate what type of houses become more in demand, (for example, family style houses as opposed to flats or vice versa), while changing laws and.