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 1. Introduction
The aim of this essay is to provide an in-depth assessment of Barclays by looking at its environmental
information, such as the variety of goods, market share, and landscape of rivals. In addition, this research is
going to evaluate all of the variables present in the operational context of Barclays and assess the impact of
these factors on the business's operations and position in the marketplace. Further, the research seeks to
investigate the impact of global environmental changes in the business sector on Barclays activities and its
standing in the marketplace in relation to other players in the industry. Lastly, a thorough investigation will
be performed to evaluate the PEST model (political, economic, social, and technological) factors relating to
the Barclays PLC Company.

2. Background information’s, competitors, products market in which is operated on Barclays.

In the beginning which all the primary, secondary, quaternary and tertiary, tasks of the economy are well-
defined to allow their separation and comparative analysis; or second, that changes in rank, contributions, as
well as input-output connections of these four main sectors affect the economy's growth rate and efficiency.
U.S. statistics assume four main economic sectors: primary, secondary, tertiary, and quaternary (Kenessey,
1987). Barclays Plc (BARC) is a British company with international operations was first established in 1690
and has a main office in London, United Kingdom. It is a worldwide bank engaged in the business aspects of
financial services and banking services, with activities in investment, retail, and wholesale banking, as well
as credit cards, wealth management, and mortgage financing. The primary market is the United States.
According to Barclays (2023), the banking firm offers about 48 million clients in more than fifty different
countries and territories where it operates. A tumultuous business environment was established because of
the global financial crisis, which was driven in the mortgage market for subprime loans in the United States.
This type of environment was especially challenging for the banking sector. Despite the efforts that have
been made to improve the situation, the landscape of business continues to be a looking glass. Even though
Barclays Plc is not completely protected from the effects of this crisis, the financial institution has managed
to able to experience tremendous expansion since its inception because to its forward-thinking leadership,
focused management, devoted personnel, and effective planning. With the purchase of Jupiter Bank in 2003,
the organisation now has a presence in countries like Africa, Asia, Europe, and the United States, which has
allowed it to penetrate more deeply into the collective consciousness of people all over the world. Because
of its worldwide growth, the company went from having a very small balance sheet when it was founded to
having a balance sheet of £1 trillion in 2022. Aims and objectives of Barclays are to use money to help
people and companies with empathy, honesty, creativity, and sustainability for the common good and long
term. (Barclays, 2023). A company scores high in employment. They have a good image since they pay
adequately making it hard for people to leave. HR managers at Barclays Bank branches have contributed
significantly to the company's success. This is due to employee motivations like promotions, salary
increases, and praise. The bank offers intangible services. Many marketers have struggled to sell services
because of this trait. Despite their intangibility, good marketers can offer these services. How these
marketers offer intangible services is by painting a picture of a service and showing how it will benefit
clients if they acquire it (Krishnan, 2009). A number of companies competes with Barclays mainly: Aviva
(AV), Scottish Housing Investment Trust (SMT), Prudential (PRU), the NatWest Group (NWG), Lloyds
Banking Group (LLOY), Standard Chartered (STAN), Legal & General Group (LGEN), Admiral Group
(ADM), AIB Group (AIBG), and Schroders (SDR) (Marketbeat, 2023).

3. Internal and external factors

Internal analysis helps uncover a company's strengths and problems. The corporation can reveal its strengths
and faults. This study compares the firm's operating, fixed, executive management, training, and research
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costs to its rivals. Using this info, the strategic manager could plan and create strategies to meet the firm's
goals and purpose. Firms do five forms of internal analysis, according to David (1999) and Mohamed
(1994). Analysis of the firm's management, marketing, finance, operational/production, and human
resources. Well-established firms with trained workers are required (Paulson et al., 1992). Firms must make
judgements and meet project requirements (Abdul Rashid & Aziz, 1999). Businesses should know it's scope
and have feasible short- and long-term goals. This ensures that developers can assess old projects and plan
future ones. To expansion, firms require solid financial sources. Strong financial standing allows enterprises
to seek out more contemporary and complex housing models to meet buyer wants or government policies.
Firms need effective management and administration to run smoothly. Image and reputation is vital to firms.
In procurement, building design, and idea, firms must use new tools and quality construction materials.
Firms should create initiatives in economics hubs (Baron, 2003). Human resources may be a company's
greatest asset in the global market, as concepts and digital skills create value. In general, staff may be a
company's strength or weakness based on their practical talents, work attitudes, performance, etc. If a
company has competent and motivated employees, they are its greatest asset. Conversely, poorly trained,
and dissatisfied workers will be a major issue for the organisation. In conclusion, owners should have a
strategy and solid human management system and policies for their organization's benefits and employee
development (Madura, 2007). When a firm has competent and motivated staff, an efficient operational and
organisational structure, it must ensure its infrastructure is adequate for all its duties. Modern, high-quality
facilities, stable electricity, internet, and Wi-Fi connection may help the company operate better. Better
infrastructure, the more chances your organisation must succeed (Palmer, 2006). Operational efficiency
involves optimising all your company's procedures, which contribute to your product or service. A
businessman must know his company's procedures and follow them to see whether they're performed
effectively as operational efficiency directly impacts market share. These suggestions can aid to improve
efficiency: analyse the business situations, assess goods and services, identify process failures, and use
technology to boost effectiveness (Hall, 2008). Every company is a wider environment. This external
environment includes occurrences and influences that impact an organisation. An organization's external
environment includes external factors that may impact its management system and those affected by its
activities (Madura, 2007). Business relies on the economy for inputs and sales. As company constitutes unit
of the economy, its dependence on the economy is expected. Economic considerations shape a firm's
economy. Managers must watch the economic environment since it is difficult to pinpoint a country's
economic climate, which affects strategic choices. It is also difficult to distinguish between political,
economic, and technical environments. Business economic environment elements include Economic
systems, industry, infrastructure, and changes. National income per capita, economic planning,
agriculture, Financial and fiscal areas, and Human resources. The main economic variables include interest
rates, unemployment, consumer price index, GDP trends, wage and price controls, credit availability,
disposable income, and so forth (Costello, 2005). Brexit lowers productivity by lowering trade operations
and increasing costs, resulting in a 6.3% to 9.5% GDP loss (Dhingra, 2016). Since UK is an open trade
nation that seeks to create a large clientele across borders, Brexit will have a major impact on its economy in
the short and long term (Tetlow, 2018). The COVID-19 epidemic lowered the market capitalization of
Europe's leading banks in 2020. Thus, the pandemic damaged the worldwide banking industry, lowering
global market value in 2020 but recovering in 2021. The four major chartered banks dominate UK banking
(Statista, 2021).

4. PEST Analysis of Barclays

First, PESTEL scans exterior areas the firm must consider. Business may explore macro and
microenvironment specifics through external analysis. The macro factors suggest obstacles that might affect
corporate success and the future. The aspects include political, economic, cultural, technical, ecological, and
legal. Market size, distributions, suppliers, locations, customers, and competitors make up the
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microenvironment (Jobber and Ellis-Chadwick 2020). PESTEL scans business externalities. Its improper
execution or neglect may have serious consequences for long-term success (Perera 2017).
Political These external variables influence government choices. Political results and stability
are political environmental elements (Perera 2017).
The expansion of the bank is impacted by the degree of economic and political stability
in the UK and Europe.
Together along with the European Central Bank, the EU will eradicate small banks.
Economic Organisational performance depends largely on economic considerations. Includes
income, gender, perception, and employment/unemployment rates (Perera 2017).
The conclusion of an economic cycle, sometimes known as a recession, has resulted in
an increase in the number of accounts held by small businesses. These accounts are
significant for the financial services industry as the total worth of was the amount of
£66 billion in 2013, and it is thought probable by experts that it is expected to rise to
£97 billion by the year 2018.
The interest rate has had a significant impact on the banking industry since it makes it
more difficult to save money and lowers the prospect of carrying out loans.
Robust economic development indicates a rise in the need for loans from bankers
(mortgages, loans), but a recession imposes lending restrictions owing to high-risk
concerns.

Social This section discusses ethical ideals, standards, beliefs, and attitudes (Perera 2017).
Expanding retail client base, which will influence sales number.
Banks are being forced to embrace a straightforward and straightforward bank account
access due to the more and more customer-oriented viewpoint in the world of banking.
The public is satisfied to the tune of 76%, given the competitive market.
Technological Technology is crucial to any organisation; therefore, technological factors must be
reviewed to maintain market position. Digital technology includes software, updates,
and infrastructure (Perera 2017).

Increasing access to the internet, as seen by the 68% market penetration of

smartphones in the UK, has completely transformed the retail banking industry by
facilitating the development of superior online banking services (Treanor, 2010).

5. Impact of global business environmental

As to the definition provided by the ICFAI Centre for Management Research, the global business
environment encompasses several sovereign nations and aspects that belong to or are external to the
organization's home environment. These factors impact decision-making about resource allocation and
competencies. According to Giddens (1994), globalisation may be defined as the amplification of global
social connections, wherein distant locales are interconnected in a manner that local occurrences are
influenced by events take effect at a considerable distance, and vice versa. Change is a natural phenomenon
within the corporate environment, especially prevalent in the context of globalised business operations
extending beyond domestic borders. Currently, the corporate environment is experiencing major changes
owing to uncontrollable variables such as government policies liberalisation, privatisation, foreign direct
investment, partnerships, advances in technology, and other macro-level choices. Globalisation encompasses
the unlimited movement of individuals, funding equipment, and assets, causing heightened economic
connectivity. This process is accompanied by profound political transformations and an upsurge in the
activities of large companies and global brands, resulting in the gradual constriction of world markets and
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the emergence of a globalised market resembling a global village (Clegg, 2015). Globalisation boosts
affluence and job quality. Consumers benefit from cheaper costs and more product options. It boosts
efficiency and production for organisations. Globalisation has driven growth in the US, China, and other
emerging economies and developing nations. Globalisation also has drawbacks. The global financial crisis
surprised many, and its macroeconomic effect is unknown. US and European economic slowdowns are the
biggest global economic issue. With rising global competition, businesses are finding it harder to start,
survive, develop, stabilise, and succeed. They face intense pressure to improve numerically and qualitatively
alongside save money. The business climate is changing fast, and companies must adapt or be forced out by
market forces. Modern globalisation has complicated corporate management. Business organisations must
enhance profitability, adapt goods and services to global client requirements, and evolve organizationally to
be competitive (Morrison, 2020). The digitalization of markets and advancements led to it simpler
corporations to acquire, store, manage, and exploit customer data, providing tremendous competitive
advantage. The recently used Open Banking framework shows how safe data sharing techniques can
encourage competition in financial services by enabling users to share bank transactions with rival third
party suppliers. A new GDPR (GDPR) law allows clients control over their data and allows them to migrate
it to rival services. Access to customer data lets rivals establish services and goods to suit consumer
requirements. The UK's Open Banking framework, introduced after the Competition and Markets
Authority's Retail Banking Market Investigation, allows consumers to share their financial data with third
parties and keep their bank relationship to boost financial services competition. Data portability may foster
competition in industries where customers contribute data over time, creating a large data footprint that other
providers can use to predict their future behaviour and customise their services. Most areas of the economy
impacted by the digital revolution, which is transforming how people order taxis, schedule holidays, and
bank. As shown in online banking and apps, the web has changed how people handle their money (Barclays,
2023).

6. The analysis of positive and negative effects

Government interventions aim to improve social and economic choices made by people, communities, and
businesses. Public bodies intervene in the market economy to effect social and economic activity beyond
contract regulation and public goods distribution. Government interventions in the market include taxes,
subsidies, price controls, minimum wage laws, bailouts, public ownership and privatisation policies,
competition policies, poverty alleviation, and social welfare programmes (Bois, 2020). Benefits of indirect
taxation include internalising negative externalities and achieving the socially optimal point. Government
tax income may be used to address externalities or compensate victims. Disadvantages include externalities
are hard to evaluate. Choosing the right tax amount is challenging since too high leads to underconsumption
and too low does not fully internalise externalities. Producers typically pay indirect taxes, raising UK
businesses' production costs making them less competitive globally. Using subsidies has advantages. More
money for firms to spend elsewhere. Bad points are Government spending on subsidies has an opportunity
cost since the funds may be better used elsewhere. Benefits of Regulation Clear, understandable laws are
established. Firms that break regulations may be shut down or fined by governments. Consumer protection
regulations prevent asymmetric information abuse. Fees to monitor regulations are a drawback. Government
failure stems in poor resource allocation due to rules. Firms have little incentive to minimise pollution below
regulatory limits. Firms would gain by consuming less than their limit under the carbon trading plan, but not
under controls. The advantages of regulation include Laws are established that are crystal clear and not
overly hard to comprehend. Those who do not comply with the legal obligations are at risk of being shut
down or being fined. Consumers are protected by consumer protection laws from being taken advantage of
by businesses in possession of unfair information. The terms disadvantages and monitoring regulations may
come with quite substantial pricing tags. If rules result in a less effective use of available resources, then

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there is the possibility that the government will fail to accomplish its goals. There is no financial incentive
for businesses to lower their pollution levels to levels that are under the legal limit (Patankul, 2014).

7. Conclusion
In the first point of the main body, the background information on Barclays is given, including how the
company got its start in business, when and where it did so, and how it has evolved and grown. It has been
determined that the items that Barclays sells include of things like financial services and investments,
mortgage, credit cards, and a few other things. Also recognised as rivals in this industry are Lloyds, HSBC,
NatWest, and a few other financial institutions. In the second point of the major body, three internal and
external elements that exist on Barclays, such as human resources, infrastructure, operational efficiency,
political, legal, and economic aspects, have been recognised and examined. In the third section of the
primary body, both internal and external elements that have an impact on Barclays were analysed and
categorised according to the PEST framework (which stands for political, economic, social, and technical).
In the fourth and last point of the major body, an evaluation and analysis have been performed to determine
the influence that the global business climate has had on Barclays. In addition, the negative and beneficial
implications of government initiatives and regulation on Barclays' ability to compete worldwide and
domestically have been examined towards the very end of the main body.

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