CASE03_Barclays - BARCLAYS MATT BARRETTS JOURNEY WINNING...

BARCLAYS: MATT BARRETT’S JOURNEY – WINNING HEARTS
AND MINDS
I. DISCUSSION QUESTIONS, CASE INTRODUCTION AND KEY POINTS
Introduction
The case covers the introduction of Matt Barrett as CEO of Barclays and the changes he
introduced to the organization to maintain its competitive position within the retail financial
services industry. In an increasingly competitive environment, Barclays is losing ground due to
its lack of data-driven actions and small global presence. The case outlines the actions taken by
Barrett to transform some of the key characteristics of Barclays’ corporate structure, and
concludes by presenting the challenge he will face in getting management buy-in in order to
implement his vision.
The key challenges that Barclays faces include: market consolidation, the emergence of the Euro
and European Central Bank, increased reliance on IT and web-based platforms, and the rigidity
of its own corporate structure.
Summary of key learning points and strategic issues
1. Understanding the challenges associated with enacting fundamental changes within an
organization
2. The role of flexibility in a globalizing economy
3. The importance of data driven decision making in modern corporate settings
4. The effect of redundant business units in cost control measures
5. Adjusting business-level strategy in light of rivalry
Discussion Questions
1. Perform a STEEP analysis to understand the general environment facing Barclays. How will
Barclays be affected by external factors? In particular, what will the effect of globalization
be in terms of threats and opportunities?
2. Use Porter’s Five Forces Model to analyze the retail financial services industry. Given this
analysis, is the industry attractive or unattractive?
3. What are the main capabilities of Barclays? Does Barclays have a core competence?
4. Create a SWOT analysis to understand Barclays’ strengths and weaknesses. Does Barclays
have a sustainable competitive advantage in the retail financial services industry? If so, what
is the source?
5. Which components of Barclays’ value chain have made the company successful thus far?
What changes to Barclays’ organizational structure and focus are necessary for Barclays to
remain competitive?
6. What kinds of challenges does Matt Barrett face in achieving buy-in from Barclays’
management to enact his proposed organizational changes? How can he approach this issue
in a way that would mitigate resistance to change?
B A R C L A Y S | 1

BARCLAYS: MATT BARRETT’S JOURNEY – WINNING HEARTS
AND MINDS
II. EXTERNAL ENVIRONMENT ANALYSIS
Summarize the external environment, including conditions in the general, industry, and
competitor environments.
a. The General Environment
Definition: The general environment is focused on the future and can be analyzed by
considering the STEEP framework: Social/demographic, Technological, Economic,
Environmental/geographic and Political/legal/governmental factors at play.