The Primary External Factors Of Barclays Bank

As for external factors one of the external factors would be perhaps a new law that is given and affects directly or indirectly the business and that business needs to make some changes.

There are two types of social factors that can affect a business; there is external affects and internal affects. Internal affects are about demographics and lifestyle whereas external is about social costs and benefits

When manipulating a business’s strategy, it is important to focus on the external factors in the environment. An external analysis is where a business conducts environmental scanning that present a company with the key external forces influencing the organization. The facets of external forces examined are the business environment, remote environment, or the competitive environment. A business environment is all of the external factors in the general environment that a firm cannot control, but can affect their strategy. The remote environment is the forces that affect most firms. Lastly, a competitive environment is the firm’s specific industry and its entirety. The external analysis is pertinent to a company called Dick’s Drive- In; without it, Dick’s would not be a thriving popular business today.

External environmental factors are the macro environment affecting a business; they are factors outside the company and which they have no control over (Kotler & Armstrong, n.d.) these external factors bring about impacts to the company thus a company should always be prepared to react.

The CEO of this company began to take steps into making the company better. Both external and internal driving forces drove this change. The definition of these two terms needs to be looked at in order to understand what they were. External factors are the factors that occur outside the scope of the company or organization, for example, the economy. These factors are outside the influence of the company (Lindbald, 2014). On the other hand, internal factors are factors that occur within the scope of the organization and are within the control of the company.

Externality is defined as an effect of a decision on a third party not taken into account by the decision maker. There are two types of externalities being positive and negative. Second hand smoke would be a negative externality. The smoker does not take into account the smoke emitted from their cigarette. Education would be considered a positive externality. When an individual is educated, their

Internal influence: They are factors which businesses have some degree of control like location, management and business culture.

Internal Factors: Internal factors are the factors within the company, which affects the success and operation of business. The company can control these factors. Effective internal management is the key to the successful business.

External influences cover a wide variety of factors, and their influence can differ between business types. These include the following:

External factors are those that affect business from outside the organization. There are several external factors that affect the outcome of day to day business, even for a huge corporation like Disney. Walt Disney has been known for its family entertainment for more than eight decades. It started small in the 1920s and has grown phenomenally today to a global corporation. Even a business this powerful and profitable is affected by external factors.

This report compares financial performance of two major banks of UK i.e. HSBC Bank Plc and Barclays Bank Plc on the basis of their Balance sheets and profit and loss accounts for the year 2009. This report also provides SWOT analysis of both banks i.e. HSBC and Barclays Bank Plc and provides an insight into their Banking Strategies.

Barclays as a financial institution has established itself as a major player in the global financial services and banking sector. The company has spread out from its native UK to the rest of the world and its presence in developing regions of South Asia and Africa is massive. Barclays has become a global player in the market for financial services and may continue to grow even further as the years go by.

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.

An analysis of the external environment includes the factors in a business’s external environment about a business's industry, competition, and political and social environments, and affects the firm’s strategy (Aaker, 2001).

Factors that happen in the external environment are known as external factors or influences. These will affect the main internal functions of the business and possibly the objectives of the business and its strategies. The main factor that affects most business is the degree of competition - how fiercely other businesses compete with the products that another business makes. The other factors that can affect the business are: