Barclays Retail Banking in India Essay Example | Topics and Well Written Essays - 2000 words

Barclays Retail Banking in India - Essay Example summary of Environment 5 1.1. fella Analysis 5 8 1.2. Industry Life Cycle 8 2.0. Competitive stance of Barclays in India 9 2.1. Porters Five Forces 9 Section 2 13 2.1. Scale and Scope 13 2.2. Analysis of St pass judgmentgy 14 2.3. Evaluation of Sustainability 15 References 17 Bibliography 21 Introduction After realising the authorization of the emerging markets, many internationally operating tune institutions have shifted their focus from developed economies to developing economies, such(prenominal) as China, Russia, and India (Raman, 2009). Following the trend, Barclays Bank Plc, which is by its origin an England-based financial institution, decided to expand its business in India in the year 2006. Conversely, the organisation had already entered the market almost 30 years before the fount of retail banking in the economy (Barclays, 2011). The paper focuses on the business environment of Barclays Bank Plc in India and service ren dered by the company in the economy. With this concern, the paper discusses the macro-economic factors existing in the Indian Banking Sector through curse analysis. It also intends to identify the strategic alliances adopted by the company with the assistance of Porters half a dozen Forces analysis and evaluate its appropriateness in overcoming the challenges existing in the economy. With the nonsubjective to analyse appropriateness of the strategies adopted by the company, the discussion of the paper presents a comprehensive outlook of the current status of the industry in the economic region. It also represents the various facts regarding the strategic behaviour of the company. Section 1 1.0. Analysis of Environment 1.1. PEST Analysis Political Factors The Indian political system has a great influence on the mercenary sector of the economy. The current scenario of the political environment in India possesses few advantages and disadvantages which in turn can make believe the banking sector to a large extent. For instance, the economy possesses a well-structured regulatory framework to control commercial banking and on the contrary a high inflationary rate which is most likely to have an effect on the growth of the banking industry (The Times of India, 2010). Moreover, in the current fiscal year the government of India have offer to recapitalise the public sector banks in order to assist them in achieving a target of 15% in terms of outstanding loans (Scribd, 2011). One major reason which can be identified in this circumstance is the growing concern of the political leaders in the economy to improve the financial market trends with an objective of stimulated economic growth. This reformation will certainly make the competition fiercer in the market and indeed affect the operations of Barclays in India. Economical Factors The GDP rate of the economy is preserve to continuously adjoin and currently figures around 5.75% (as was recorded in March 17th 2011). According to the economists, the economic growth rate shall persist to increase in the next few years (Ganesh, 2011). The interest rate of the economy is forecasted to shroud on a high percentage (i.e. 5.75%). However, the inflationary rates of the economy are also recorded at an increase with 9.30%. Interest Rates of the economy currently figures to 5.75% and thus reflects a challenging business environment (Ganesh, 2011 Trading Economics, 2011). The economic situation of