Strategic management Essay Example | Topics and Well Written Essays - 2000 words - 1

Strategic management - Essay Example A framework of analysis is used whereby the external and internal environmental factors affecting Barclays Bank operation in the retail sector is reviewed. The strength, weaknesses, opportunities and threat are presented in order to give a view of the situation prevailing in Indian banking system. Findings and conclusion show that the innovative strategies of Barclays are not sustainable because it is overtaken by the economic crisis which is the main reason for decline of growth. Foreseeable solution is an alternative strategy that the bank should consider to attain growth in the Indian market. Strategic Management The case study of Barclays Bank in India 1. Introduction The purpose of this report is to provide information on the strategic situation of Barclays Bank in India. This will consist of systematic analysis of factors associated with the external environment such as political, economic, social and technological that impacts the operation of the business. By knowing the fact ors that affect its operations, Barclays can align its corporate policies and strategic priorities in the present setting. Barclays Bank entered the Retail Banking system in India on May 2007 and used innovative growth strategies to attract the underserved population of the country. Barclays regarded this sector as a good potential for launching of its innovative products. But there is doubt on whether this strategy would work well under the economic crisis circumstances. The challenges faced by Barclay in pursuing this vision has been difficult, so that an analysis will be done to know if Barclays has succeeded to achieve growth in Indian banking. Barclays Bank is a late entrant to India but considered timing is just right. In an interview with Suresh Gurunani, Head of Barclays Retail Baank , said that it is better to start from scratch because it does not have any â€Å"legacy system† (Boir & Palande, 2007). Why India? India is a emerging market , it offers a wealth of oppo rtunities in trade, technology transfers, and direct foreign investment (Chuan, Li). Further to this, prediction as to the state of India’s economy states that soon enough, it will be one of the countries that will overtake the Group of 7 economies (Hamilton, 2011). Background. Barclay’s Bank mission in India is to offer a unique retail banking service with a vision of increasing customer convenience through innovative products and service offering. Barclays saw the opportunity of growth in the retail banking sector because of the large segment of population that do not go to banks. Barclays used innovative strategies to introduce the bank to the Indians. Its marketing strategy was done in three parts: first, the brand was introduced to create awareness and interest; the second phase was devoted to communication of Barclays as a heritage bank to create trust, and the third is the buildup of the brand suggesting its unique propositions. The business model of Barclays is composed of the following product offerings: The bank offered credit cards like smart budget card, Platinum debit card, seven-year personal loans and Premier League Card. The bank also proposed the â€Å"kudumb† savings account which allowed a family of maximum four people to have a single account that could also be extended to other members of the family like the maid. Their â€Å"No Frills† account has a maintaining average quarterly balance of as low as INR 350 equivalent to $7 only. Personal loans of up to a maximum of 1.7 million INR