BARCLAYS BANK: HOW (NOT) TO COMMUNICATE
WITH STAKEHOLDERS
Corporate Communication Case study 1.1 09-17-2013 Josine Kremer - 414794
CASE STUDY 1.1
BARCLAYS BANK: HOW (NOT) TO COMMUNICATE WITH STAKEHOLDERS
QUESTIONS FOR REFLECTION 1. Discuss each image crisis for Barclays.
- Image crisis no. 1: ‘A world needs a big bank’ campaign vs. closing 170 branches in the UK. In 2000 Barclays launched a ‘Big’ campaign with the slogan: ‘a big world needs a big bank’. Barclays wanted to be seen as an ‘big’ bank by its important stakeholder groups. The adverts were slick and had received good pre-publicity, but it turned into a communication disaster. Because Barclays was spreading the word that is was a big bank, while closing 170 branches in
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3. What could Barclays have done to avoid these crises, or to anticipate the potential fallout?
Barclays clearly did not manage very well with their communication under crisis. Because crises have the potential to
Barclays Bank: how (not) to communicate with stakeholders
damage an organisation’s reputation it is important that organisations anticipate and plan for probable crisis scenarios and prepare crisis communication plans. Instead of getting in the defensive mode as Barclays did with image crisis no. 1, they should have started an acceptance strategy. A tactic of apologising for the crisis and accepting the blame. Instead of being arrogant, they could have said that they are sorry for closing 170 branches and give an explanation. Barclays also should have started a dialogue. They should have announced what they were going to do and why and then let the public react on their announcement. And to create less anger within the public they could have announced some form of compensation or help to the employees who were going to be harmed by the closing of the branches. The CEO of Barclays should have had a media training. In media trainings is thought how to work with journalists by creating simulations. If he would have known how to behave and what to say around media, the second crisis would not have happened. A third image crisis would have happened anyway, because if they
The emergency rescue of the Royal Bank of Scotland in 2008 has cost the UK government thus the British taxpayer a huge amount of money. Many people are upset about the high bonuses the RBS management board have received, both because of the outrageously high amount and because the performance of the bank on the long-term was not good at all.
The bank at some point received negative attention for issuing credit to arms companies, including companies like Boeing, Lockheed Martin, General Dynamics, Textron, Colbun, BAE Systems and EADS. Some companies within the bank’s portfolio have also been involved in environmental and labor rights violations scandals, for instance Wal-Mart and Total USA. This negative attention may lead to loss of investor confidence in the bank.
The Royal Bank of Canada experienced some fundamental managerial errors in May 2003. It was reported as a major “glitch” that had been caused by wrong configuration during the installation process. A simple problem had severely affected the lives of millions of people. In this essay I will discuss the security and control problems such as the simultaneous upgrade of both the main and back-up systems. This will lead into the strategies management could have used to prevent these problems happening in the first place and what they can do differently in future. I will also explain how management neglected the public relations side of the issue which had customers questioning the reliability and stability of Royal Bank of Canada ultimately
The objective of this case is to understand the importance of crisis management. This case is intended to make the reader consider not only financial implications at the time of the event but the effects on the long term strategies of the organization. Also, the case urges participants to think about the consequences not only on the customer but on those within the organization as well.
This systemic approach will engage the whole organization in efforts to avert the elongation of this crisis and at its best make sure to implement proactive and reactive management for the short-run and long-run. Since the company wasn’t properly prepared in advance of this crisis, different
3. Evaluate Gordon Biersch's efforts to raise outside capital. What would you have done differently?
Zaremba (2010) points out that “crisis is any unanticipated event, incident, situation, or development that has the potential to damage or destroy your organization’s reputation”. (P.234) This definition indicates two attributes of crisis: unexpectedness and destructiveness, so effective communication is crucial to manage a crisis. The Nuance Group, a successful management consulting company, with a reputation of experienced and highly educated consultants, was facing the crisis brought by its great “reputation”. As a consultancy, it’s their profession to market themselves. A glossy brochure with specific introduction of consultants’ information, which is the highlight of the company’s reputation, is a fabulous method to market
Extensive research has determined that the banking industry is in an unstable state. The industry’s profits have
In this section, there are two different case studies which is Lloyds Bank Group and the Deloitte. These two cases indicated that how the companies have been confronting the gender issues, while carrying the employee selection function and to what extent the female has been successful in ensuring the desired objectivity.
The ‘sub-prime’ crisis triggered by the meltdown of the US mortgage backed-securities market in 2007 was a precursor to the global financial crisis. It would drastically change the competitive landscape for all firms in the financial services sector, including Campbell and Bailyn (C&B), one of the world’s five largest investment banks.
From the onset, it is important to note that James and his vice president for production, John Healy, could have possibly prevented the scenario from escalating into a fully blown crisis by addressing the issue early enough. In my opinion, the company's top leadership should have acted during the second stage of the scenario, i.e. after concern deepened. The company's topmost executives instead chose to adopt the 'wait and see' stance.
The purpose of the review is to inform the reader about the possible dangers geopolitical risks might have on the financial industry when the industry does not look after them. I was intrigued by this dark side of modern communication and the effect it has on the safety of the banking sector.
Here we see a failure of the board to look at management critically. They accepted only the information presented to them by the CEO and did not demand a better picture on the state of RBS’s business in mortgage trading even while the CEO’s story seemed to constantly be changing. The board exists as a watchdog to the executive management yet nothing was done to hold the CEO accountable to the truth.
According to group´s performance from 2002-2006 identifies that Barclays´ performance underpinnings are represented by its strategy of acquiring other banking (such as ABN Amro and Banco Zaragozano) concerns to expand its retail as well as other banking services through representation in international markets as represented by the bank’s presence in 60 countries. This provides Barclays with the means to sell its highly profitable investment banking services as well as be positioned to service the cadre of multinational companies that utilize its diverse banking financial service packages.
Risk related to events even before the War on Terror began, the Sept. 11, attacks dealt a harsh blow to America financial standing (DePietro, 2017).sintressing the future role in which finance leadership is evolving. Equally alarming this crisis that influences an organization's decision-making, based on significant external and uncontrollable factors. Some of these aspects that remained obtainable in this discussed involve the economic factors, legal, political, and social conditions technological changes. The change of Interest rates in