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Vikas Gurudev, ID NO: 11010560
Conclusions. References. Advantages and Disadvantages of Strategies. Company’s Information and Strategy.Content: Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Introduction. 2 . Comparing Strategies of Two Companies.
Barclays is a major global financial services provider engaged in retail banking. as these changes significantly affect the ability bank to achieve sufficient high profitability and ability to stand in financial disturbance. As a responsible global citizen.Introduction: The financial market and the financial institutions are facing structural changes due to deregulation. Barclays provides financial services to more than 48 million customers in over 50 countries worldwide (http://group. Barclays is committed to ensuring the sustainability of the communities in which the business operates. 1999). Below are the examples of two banks Barclays and Standard Chartered. (2004) Returns on international equities are characterized by jumps moreover. and strives for sustainable relationships with customers and clients worldwide. Investment risk and risk in other deception making is a function of four attributes. by this we can come to know what are the advantages and disadvantage of their strategy and will discuss about external factors. Investment management requires to share their general definition of investment risk to the managers and clients. and Raman. U.com/Home). that is the potential for large loss.Since the business was established more than 300 years ago. Where we can know company’s information and strategy they use for their sustainability. 1997). these jumps tend to occur at the same time across countries. the potential for a below target return. the feeling of contra. credit 3 . as bank provide deposits and loans they also have a key role in two main sectors of financial system. According to Sanjiv. Company's Information and Strategy: Barclays . and technological development. implying that conditional correlations between international equity returns tend to be higher in periods of high market volatility or following large downside moves.barclays. that is converting saving into investment and allocating the risk (Lilja. Barclays has grown to offer a range of products and services tailored to meet the specific needs of its customers all over the world. R. internationalization. and the perceived level of knowledge (Olsen.
5 per cent at the end of September 2010). corporate and investment banking and wealth management with an extensive international presence in Europe.Barclays Group Chairman is Marcus Agius.barclays. the Bank signed a four-year sponsorship with Liverpool Football 4 .barclays. London.barclays. each of which has a number of Business Units (http://group. Barclays leadership . These results demonstrate that their efforts are starting to pay off. Africa and Asia.It has a history of over 150 years in the UK. but they acknowledge there is still more hard work required. They are supported by Barclays Executive Committee and the Board of Directors.com/Home). It also hosts significant Private Banking and International Banking operations. Barclays Group headquarters is at 1 Churchill Place in London. Standard Chartered .cards. It has been listed on the London Stock Exchange since 1969 and is currently a top 20 FTSE company and among the top five largest banks by market capitalization. and Corporate and Investment Banking and Wealth Management. Barclays moves.000 people. invests and protects money for customers and clients worldwide (http://group. Standard Chartered is regulated by the UK FSA and is one of the UK’s largest banks. London is a global financial center and a key hub for Standard Chartered’s Wholesale Banking business.Barclays is made up of two ‘Clusters’: Retail and Business Banking.com/Home). In additional to the many Group functions based in the UK. Regarding returns Barclays commitment is to deliver a 13% return on equity by 2013. UK (http://group. Barclays structure . and both the CEO and Chairman situated here.1 per cent at the end of September 2011 (from 6.barclays. Its headquarters are based at 1 Basinghall Avenue. And Barclays income growth have already taken decisive action in order to improve performance. and they will continue to create internally any additional capital that they will be required to hold to meet regulatory change over the coming years.com/Home) According to Barclays ((http://group. lends. In September 2009. Barclays operates in over 50 countries and employs over 140. and the Chief Executive is Bob Diamond. With over 300 years of history and expertise in banking. the Americas.com/Home) Core Tier 1 ratio (capital) stood at 11 per cent at the end of September 2011. and they adjusted return on equity improved to 8.
expanding its operations into Cameroon.com). and started business in Port Elizabeth in the following year.standardchartered. In 1957 Chartered Bank bought the Eastern Bank. the Standard Bank of British South Africa and the Chartered Bank of India. The traditional trade was in cotton from Mumbai. Ghana. hemp from Manila and silk from Yokohama. Standard Chartered Bank was formed in 1969 through the merger of two separate banks. rice from Burma. The bank played a major role in the development of trade with the East following the opening of the Suez Canal in 1869 and the extension of the telegraph to China in 1871. The Standard Bank The Standard Bank was founded in the Cape Province of South Africa in 1862 by John Paterson. It later extended its network further north to the new town of Johannesburg when gold was discovered there in 1885. sugar from Java. These banks had capitalized on the expansion of trade between Europe. Standard Chartered aspire to be the world's best international bank.com). The bank was prominent in financing the development of the diamond fields of Kimberley from 1867.Club starting from the 2010/11 season (http://www. Central and Eastern Africa and had 600 offices by 1953. Kolkata and Shanghai in 1858. In 1965. Gambia. Africa and the Middle East they are focusing on building deep and longstanding relationships with their clients and customers and constantly looking to improve the quality of their products and services. leading the way in Asia. together with the Ionian Bank's Cyprus Branches and established a presence in the Gulf. it merged with the Bank of West Africa. Asia and Africa. indigo and tea from Kolkata. Nigeria and Sierra Leone (http://www. In the last eight years Standard Chartered have reported record income and profits. The Chartered Bank The Chartered Bank was founded by James Wilson following the grant of a Royal Charter by Queen Victoria in 1853. tobacco from Sumatra. Australia and China. 5 . Listed on the London. followed by Hong Kong and Singapore in 1859.standardchartered. The bank expanded in Southern. 23 of their markets now deliver over US$100 million of income. The bank opened in Mumbai (Bombay). 15 over $100 million in profit.
And below graph show the performance highlights from year 2008-2010. As they say their success is a result of being obsessed with the basics of banking .Hong Kong and Mumbai stock exchanges. Standard Chartered rank among the top 20 companies in the FTSE-100 by market capitalization. enable multinational clients to conduct complex business transactions and service the needs of an increasingly international consumer base (http://www.pdf) Whereas on the other hand according to Standard Chartered annual report the company has invested more in 2010 compare to 2009. 6 .barclaysannualreports.com/ar2010/files/Annual_Report_2010.com). (http://www. they facilitate trade across markets. Comparing strategies of two companies: Investment made by Barclays in 2010 was higher than 2009.balancing the pursuit of growth with a disciplined management of costs and risks and keeping a firm grip on liquidity and capital. Through Standard Chartered international network and expertise. And the below chart show the key financial indicators from year 2006-2010.standardchartered.
countercyclical buffer. Both the companies have developed future risk management strategies which include capital and liquid aspects such as risk weighting. *To ensure that business growth plans are properly supported by effective risk infrastructure. their risk management objectives are: *To identify the Group’s significant risks. At a strategic level. quality of capital. *To manage risk profile to ensure that specific financial deliverables remain possible under a range of adverse business conditions. total leverage. Barclays has clear risk management objectives and a well-established strategy to deliver them. through core risk management processes.standardchartered. while establishing strong and independent review and challenge structures.pdf) As the graph shows both the companies are in profit from year to year.com/en/resources/globalen/pdf/Media_Pack_2011. *To formulate the Group’s Risk Appetite and ensure that business profile and plans are consistent with it. 7 .(http://www. Advantages and Disadvantages of Strategy: In the case of Barclays bank. *To optimize risk/return decisions by taking them as closely as possible to the business. minimum ratio. liquidity and funding which will help to avoid operational risk of the company. company use forbearance as an instrument in their risk management strategy by this they have a close look on customers business and in which company they invest.
After have all these strategies also Barclays acknowledge there is still more hard work required (http://group. with the objective of maximizing riskadjusted returns while remaining within their risk appetite. market.com). product range and geographical coverage.barclaysannualreport. *Competitive advantage: Standard Chartered seek to achieve competitive advantage through efficient and effective risk management and control (http://annualreport. in line with their strategy and within their risk appetite.*To help executives improve the control and co-ordination of risk taking across the business (http://www.asp?pageid=102). As part of this framework. One of the main risks Standard Chartered incur arises from extending credit to customers through their trading and lending operations.com/ar2010/index. reputational and other risks that are inherent to their strategy. All risk-taking must be transparent. As in the case of Standard Chartered The management of risk lies at the heart of Standard Chartered’s business. operational.barclays. They take account of their social responsibilities and their commitments to customers in taking risk to produce a return. Beyond credit risk. *Anticipation: Standard Chartered seek to anticipate future risks and ensure awareness of all known risks. controlled and reported. *Accountability: risk is taken only within agreed authorities and where there is appropriate infrastructure and resource. liquidity.com/business-review/operating-and-financial8 .standardchartered. they use a set of principles that describe the risk management culture they wish to sustain: *Balancing risk and return: risk is taken in support of the requirements of their stakeholders. *Responsibility: it is the responsibility of all employees to ensure that risk-taking is disciplined and focused. pension. they are also exposed to a range of other risk types such as country cross-border. Risk management framework According to Standard Chartered Effective risk management is fundamental to being able to generate profits consistently and sustainably and is thus a central part of the financial and operational management of the Group. Through their risk management framework they manage enterprise-wide risks.
Managers are continuously being challenged to address an increasing variety of opportunities and risks at both the routine operational and the more novel strategic levels (Ritchie. retailing and services sectors. net asset of year 2009-2010. Supply chain risk and its management are by no means novel problems for the manufacturing. The study demonstrate that both the banks Barclays and Standard Chartered have introduced risk management strategies which have very positive points. Peck.review/risk-review/risk-management. So it is important for organization to undertake risk management activities. total asset. In other hand Standard Chartered may need to modify their risk management framework to achieve more return in future. 2007). As in the case of Standard Chartered they have adapted Risk management framework through their risk management framework they manage enterprise-wide risks. Conclusion: Risk and Risk Management have become dominant features of the lexicon of today's management. C. B and Brindley. H (2005) found that efforts to improve performance against one measure (e. Maybe forbearance program in their strategy helped Barclays to achieve good return in 2009-2010.g. as in the case of Barclays company is using forbearance program in their strategy which keeps a close look on other companies investment. 2007). C. B and Brindley.html). From the above study we come to know that both the banks are in profit but Barclays have achieved good return than Standard Chartered when it comes to PBT. Risk Management is inherently a process of balancing potential risks against potential rewards to achieve favorable outcomes in terms of aggregate business performance (Ritchie. 9 . with the objective of maximizing risk-adjusted returns while remaining within their risk appetite. cost or quality) often inadvertently reduced performance and increased risk associated with one or more of the others.
Sanjiv. pp 43-63. 24-2-12. http://annualreport. Int J Phys Distrib Logist Mngt. 12.com/ar2010/index. R. 23-12-12. http://www. The Journal of the Operational Research Society. 59. 24-2-12.com/business-review/operating-and-financialreview/risk-review/risk-management. http://www. (2007) Risk Based Methods for Supply Chain Planning and Management. Olsen.asp?pageid=102. 35. 23-2-12. 53. pp 210-232. 23-2- 10 .standardchartered. 58. (1999) Structural changes in banking sector-driving force and consequences. (1997) Investment risk: The expert's prospective. (2004) Systematic risk and international portfolio choice. C. 6.com/Home.html. 4. Ritchie. Drivers of supply chain vulnerability: An integrated framework.barclaysannualreport. Peck H (2005). R. 23-2-12.com.pdf.com/en/resources/global-en/pdf/Media_Pack_2011. 2. and Raman. B and Brindley. http://www. Sveriges risk bank economic review. 11. Financial analysis journal. pp 2809-2834.com/ar2010/files/Annual_Report_2010.barclays. U. http://www.standardchartered. 4. The journal of finance.standardchartered.pdf. http://group. pp 13981411.Reference: Lilja.barclaysannualreports. pp 62-66. R.