Adapting Business to the Environment

Adapting Business to the milieuSuccess of every clientele dep annihilates on adapting itself to the environs within which it runs on. For e.g. if in that respect is any convince in government policies an institution has to depart its essential policies accordingly that could be wages, taxes, working hours and so on. smorgasbords in technology throw replaced type writers to computers. All these external factors ar beyond the control of a cable, so all(a) worry organization cast to adapt themselves to change in order to succeed. Hence judgement of various factors of Business environs is necessary.Business environment is categorized by two categories i.e. Micro purlieu and Macro environment, Micro environment factors deals with internal factors standardised employees, Suppliers, Customers, Stakeholders, Media. Macro environment factors deals with external factors like technological (PESTEL forces), Economical, Political, Social, Legal and Environmental (Palmer and Hart ley 2006).The above factors digest direct or indirect influence on an organization. For e.g. Change in environmental norms have forced car manufacturers to come with a clean technology which will keep pollution under control. Due to change magnitude work stress most governments have eased working hours from ennead to eight hours which in turn improvers cost. Due to increase crimes on women advanced laws have been added for safety of women, women working in call center in night shifts needs to escort to her home by a warrantor measures guard which means added cost to a business. If the value of domestic silver increases it will be difficult for export houses to match the prices with international contender as the prices of raw material overseas might not have changed with the forex change.Change wariness is a structured approach to moving individuals, groups, and organisations from a current state to a desired future state. Change focus includes both organizational chang e prudence processes and individual change oversight models, which unitedly are used to manage the pile side of change. state simply, change instruction is a process for managing the people-side of change. (Referencing)Survival of fittest is not the criteria, it is angiotensin converting enzyme who adapts to change quickly is successful, before taking harvests or services to an end user it is tyrannical that an organization should have or must do their home work on existing business environment ground on above factor, by doing so it will assistant an organization to formulate corporate strategy, marketing strategy sales strategy HR strategy, product development strategy and help the organization to be a part of value chain.Research conducted by McKinsey (LaClair, 2002) and by Prosci (Best Practices in Change Management report, 2007) has demonstrated a direct correlation between achieving the business objectives of a change and effectively managing the people side of that change. Proscis research with close to 400 organizations showed that a project had pentad times the probability of shock objectives if they implemented very level-headed or excellent change oversight practices.Based on the PESTEL theory and Change management we will be discussing various challenges fontd by an organisation. The company selected as a enumerate of this study is Barclays. In last five years Barclays had to deal with economic, social, level-headed and environmental challenges. It had to deal with Change managementOrganisation Description and primerBarclays is a major global monetary services provider active in retail banking, consultation cards, corporate banking, investment banking, wealth management and investment management services with an extensive international presence in Europe, the Americas, Africa and Asia.With over 300 years of history and expertise in banking, Barclays operates in over 50 countries and employsto a greater extent than144,000 peopl e. Barclays hits, lends, invests and protects money for more than 48 one thousand thousand customers and clients worldwide (www.barclays.com). http//group.barclays.comChallenges faced by Barclays towards it StakeholdersMainly in last 3 years Barclays faced lot of challenges due to recession. Barclays share value had immerse to the lowest which became a major concern for all stake holders. demise year, Barclays restructured its business model by merging corporate and investment banking together and leave retail and small business customers with the global retail bank. This do Barclays to focus more on retail banking.http//uk.finance.yahoo.com/news/barclays-shares-jump-as-investors-chew-over-idea-of-a-break-up-tele-5ad293816f03.html?x=0Barclays al ways believes in its stakeholders by listening, responding and working in partnership which is besides one of the main reason that the share price of Barclays grew at truehearted rate in spite of economic slowdown.Share prices of Barcl ays for last five years (guardian.co.uk) http//www.guardian.co.uk/business/barclayCredit risk impacts of a changing modalityChange in weather may influence the business in more possible ways than imaginable. Hence, due consideration is given when assessing the credit risk while issuing credit to a business.Physical risks such(prenominal) as damage to fixed assets arising from storm, seismic activities Supply chain deficits arising from scarceness of natural resources like water, changing patterns of customer needs due to change in extremes of temperatures. The annual average of Global surface temperature would inevitably pinch by 2-4 degree centigrade by year 2100 (Source IPCC 2007)All these factors but not limited to effect the companys balance sheet in various ways like increase in costs, scarce raw materials etc, changes the business operations practices and conditions, Or may reduce or stimulate the demand of the product or services of the company in question.To redress the c hallenge Barclays genuine collaboration with Acclimatize experts in the field of Climate Risk Management. The primeval sector identified most affected by the changing climate were businesses that are dependent on massive fixed assets, such as energy, and sectors like chemical fertilizer, Pharmaceutical and tourism among many others. Hence it was imperative for Barclays to include Climate change as part of mainstream business plan and risk management.As audiences of these reports were from a non technical background, these reports were developed accordingly for diverse geographys and time horizons.This to a fault helped Barclays to identify the opportunity presented by the climate change, like change in demands of product and services and early mover advantage, in addition to mitigating risks associated. This as well helps understand and monitor the interests and needs of external stakeholders including political sympathies regulators, insurance companies, and investors and c ompetitor suppliers. This helped Barclays to reduce and at times eliminated the adaptation lag, in turn giving an edge over competitors, and better intelligence of cursorily changing stakeholders position. Climate Proof projects at the inception phase by incorporating the adaptation measures that are robust in the face of climate change.Challenges on build internal capacity on adaptationThis was achieved by fosterage awareness, create a corporate understanding of climate risks, assigning responsibility for adaptation to staff and adopting a consistent approach. Involving and taking inputs from the staff for more acceptance and ownership.Some Geographical Locations are more vulnerable than others.E.g.Places that are already having very high temperature or very low temperatures (Permanent freezing Inhabitable) are at higher risks. Cities exhibiting Urban Heat Is democracy effect (Frequent twist of pool of hot air) exuberate high temperatures. Mean sea level rise, increase storms surge heights, wave heights, coastal flooding and erosion.Decreased seasonal precipitation, increased risks of drought, subsidence and wildfire.Water resources dependent on glaciers (those areas dependent on glacier bleed are probably observing increases in water resources in the absolutely term, as glaciers melt faster, but over time, the loss of glaciers will take place to decreases in water resource availability),Subsidence-prone soils.Regions with high rainfall, floodplains, Landslides and contaminated Environment land and water Areas at risk from tropical storms.Project VietnamBarclays with partnership with bring off is implementing Change microfinance.The objective of the project is to establish a community managed nest egg and loan association.Target of this project is to help young people in urban and semi urban areasDespite of the economic boom in last 15 years at that place has been a very fully grown population of disadvantaged youth in southern Vietnam, which suf fers from the underlying occasion of poverty and with high rate of rural-urban mobility there is lack of employment and opportunities, and poverty is prevailing on large scale.CARE and Barclays approach to the problem is to increase the understanding for significance of saving and improve their skill in managing habitation finance.This is aimed to benefit and reduce poverty among 10,000 venerable people, at to the lowest degree 50% of which are women and migrants through Group nest egg and Loans. To appeal to the masses of the targeted populations the schedule is called Group saving and Loans GSLs.Other Key objectivesTo establish at least 500 GSLs to develop a husbandry of saving and community management and supportTo provide guidance for group members to aid them in developing business plans and making loan applications. These in use by internationalist Labour Organization, German sustainable development agency GTZ and the Vietnam Chamber of transaction and IndustryTo buil d the capacity of the local partners, the Youth Union and the Womens Union, to go on pecuniary literacy and entrepreneurial skills among group members by providing training on business planning and household finance management. Manage and expand Group Savings and Loans. Support is also being provided to help to develop new fiscal products tailored to the needs of the groups, such as savings, loans and micro-insurance.Enhanced economic security through an improvement in financial inclusion. The promotion of entrepreneurship and support for donjon opportunities for young people and their families. This is to be achieved through the development of a culture of savings, an increase in financial literacy and an improvement in entrepreneurial skills and public office in public,This has also helped CAREs local partners from an increased capacity in managing community-based microfinance. In addition, they are gaining experience in establishing microfinance services for young people and providing business and entrepreneurial training.Change managementOne of the examples of change management Barclays did was on intercourses, biggest challenge was how to communicate its restructuring plan to 45,000 employees, cause if the restructuring was not communicated in effective way it could lead to chaos and also lead to attrition. So Barclays came with a plane which included following, but to start off they follow top three elements.Involve audience by engaging themTo simplify the means to employees by informing what was important for the businessEnsure all information was attributed to brand values and organizational prioritiesTo Ensure face to face delivery plays a vital roleUsing appropriate communication channelInvolving audience by engaging themIf top level managers cherished to share information they used a newsletter format, but if there was any information which was very important they used a photo or presentation on their internal website.To inculcate change s uccessfully, Barclays convolute its employees by taking their opinion by having open communicationSimplifying the messageImportant challenges were communicating the most important objective of the business.Thorough understanding of the stuff which they are working onWork as teamGiving high anteriority to customer, just the way we wanted to treat. proceeding based promotions.Focus on Face-to-Face DeliveryTo share financial results chief executive officer went on road show in which he asked questions and also addressed concerns that employees had. This presentation reiterated that change had been make and the communication between CEO and front line employees was progresses in smooth way.By following this change management in communication new leadership team conjugate hand together and concluded on one agenda, Employees were given the priority of tasks and number of miscommunication going crossways was reduced drastically, objectives got cleared.Merger and AcquisitionIn 2008 Bar clays acquired core assets of Lehman brothers which are fourth largest investment bank in US which filed for bankruptcy. By acquiring this Barclays made its strong presence in US in enthronization banking and trading business. This also added value to Barclays financial capital. ab initio employees were scared about their job loss. Though profit was down by 24% but there was asset inflow.After acquiring Lehman Brothers right away Barclays is facing court trials. Lehman is filling a case against Barclays for allegedly bust it off to the tune of $11bn over the deal. In this deal Barclays took over 10,000 employees and made a strong presence on Wall Street. Barclays is accused of negotiating some discounts on assets with co-operation of Lehman top executives who were offered better and more pay.( http//www.guardian.co.uk/business/2010/jun/21/barclays-lehman-brothers-court-case 30/07/2010 guardian.co.uk, Monday 21 June 2010 21.21 BSTIn 2005 Barclays acquired Absa, and in 2007 this a cquisition was criticized from the governor of the southeastward African Reserve situate saying that it will expose bank to greater risks in economy than acceptable. Whereas it over came all the criticism by fling better products and services to customers. In 2008 Barclays became the first bank in South Africa to reach one million internet users.Sustainability of BarclaysFaith and level of confidence was brought down in this year, share prices almost went down drastically. Many banks which had good financial assets were acquired by competitors. Barclays was not an exception even it had to undergo financial challenges which was brought by credit crunch. They had to raise capital to meet the new laws introduced across the banking sector. Barclays had to raise capital in way that it did not take lots preventive measure. This caused lot of turbulence amongst stakeholders.To overcome the above challenge Barclays started diversifying business and making it presence in market and sectors which were growing rapidly. Banks strength lies on diversification in terms of Business, Geography and products. Barclays made strategic move by acquiring Lehman Brother, The UK Goldfish Credit card business, Expobank in Russia, The Italian residential mortgage business of Macquaire Bank limited and PT Bank Akita in IndonesiaIntroduction on new products and innovationIn 2008, Barclays introduced rambling banking, now customer can pay their bill just by sending SMS, they can check balance in their account. Barclays also launched Al-Safi Investment platform, which is Islamic Finance equal to Shariah format for both stuffy equity strategies and also a prospect to gain from falling prices. Barclays also launched new investment products to help investors diversify their portfolio when market is uncertain or volatile and it was called Commodity investment index. Barclays focuses on new innovation to help clients for e.g. Contribution Pension plans offers wide diversification and bestow s solutions on income. By understanding this Barclays developed a product called SponsorMatch