An investigative study into the impact of globalization on the barclays bank

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An investigative study into the impact of globalization on the Barclays
Bank
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ABSTRACT
The impact of globalization on the banking sector and the strategies adopted by the banks are the
major aims of the study. The researcher has done the study by taking Barclay’s bank as a case study.
The study on the impact of globalization on the Barclay’s bank is well performed in this study. The
study also covers the global strategies adopted by the specific bank for its global expansion. Through
this research, the author has been successful in defining and making understand of the simple
concepts of globalization, the relation between the globalization and banking, advantages and
disadvantages of globalization and the strategies useful to overcome the negative effects of
globalization.
The globalization is a widely discussed across the boundaries and this makes one of the reasons for
the selection of this topic by the researcher. The researcher has come into a conclusion by the
analysis of the data obtained from the secondary sources, to a large extent. The primary data
obtained through the questionnaire analysis of few staffs of the Barclay’s bank is also included to a
very small extent, to arrive in a conclusion. The researcher also gives certain recommendations as
well as suggestions.
Key words: Globalization, banking, strategies, Barclay’s bank Plc.

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CHAPTER - 1
INTRODUCTION
1.1 Introduction
Globalization is one of the most important process or techniques to be understood for the
expansion of the business of different industries all around the world (Conversi, 2009). For the
achievement of globalization process in banks various strategies have to be considered. Each
process will have typical strategies connected to that. These has to be analyzed properly at the
beginning and also theses has to be imposed in the banking sectors so that it can expand
globally gaining importance as well as profit including large market shares (Rowman et al,
2008). Globalization process shows large impact on different industrial sectors including the
banking sectors in the world.
As the title of the proposal, “How has globalization made a significant impact on the banking
sector? A case study of Barclays Bank Plc.”, the various details in connection to this is been
clearly explained via this proposal. The keywords connecting the title like globalization, global
banking, global strategies and impact of globalization in banking is clearly described in the
literature review section of this proposal. The last section explains the various methodologies
adopted by the researcher and also the justification of each method selected for the successful
completion of this proposal. A correlation of all these details is brought out to bring out the
output of the research (Simon, 2010).
1.2 Background of the study
The process of globalization was mainly the outcome of certain procedures called economic
reforms. The main aim of the globalization is to homogenize the social and political economy
across the boundaries. It is another term used for the process of liberalization or the processes
of openness. There are two classes of globalization, which are domestic globalization and
foreign globalization. It could be considered as a process of capital mobility (Manfred, 2010). In
order to prevent such a worst situation and to protect itself from the collapse, the Barclay’s
bank has adopted certain strategies which enable the assured success among the competitor
banks across the nations. With the adoption of the various globalization strategies existing,
Barclays Bank Plc. is trying to attain or enhance globalization process (Barclays, 2012). This will

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greatly help the firm to attain prosperity, importance attention and profit in the future to attain
successful surveillance in the world. The performance level of the bank is enhanced by
providing enough benefits to the customers. The decision making process and local
accountability is also modified as per the globalization strategy. Barclays Bank will attain more
output by being a global bank rather than by being a domestic bank. Various key factors
concerning the topic of the proposal is well explained so that impact of globalization in Barclays
Bank could be understood more precisely and clearly. The financial management of the banks is
highly influenced by the variation in the money as well as capital markets. The variation in the
money market is brought about by the process of globalization. The demerits of the
globalization include economic costs which include loss of jobs etc. In spite of these
disadvantages of globalization, the banks give much focus on the advantages associated with
the process of globalization, which they think to overshadow the demerits (Coulbeck, 2010).
1.3 Company background:
Barclays bank PLC a multi national bank or universal bank whose head quarter is in the United
Kingdom. It is a Public Limited Company and the business processes of the bank are extended
over 50 countries. Retail banking, Investment banking, Commercial banking and Investment
management are the types of services provided by the bank. It was in the year 1690, John
Freame and Thomas Gould together found the Barclays bank.
This is the third largest bank in the United Kingdom. It has got around 4750 branches which are
extended over 60 countries, of which 2000 branches are located in the United Kingdom. The
total number of employee working in the Barclays bank is 146,100. In order to make a provision
of services of personal banking, it has collaboration with the Post office Ltd also. It has adopted
a fine acquisition strategy which enabled the bank to expand throughout the world (Barclays,
2012)
1.4 Aim of the research:
To analyze the impact of globalization the banking sector would be the prime aim of the
present research. The research works on the on impact of globalization on Barclays Bank Plc.,
United Kingdom, specifically.
1.5 Objectives
The different objectives of the present proposal include
 To analyze the effectiveness of globalization on the Barclays Bank Plc.
 To recognize how globalization have an effect on the banking industry.

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 To analyze the various global strategies undertaken in the banking industry.
 To analyze the globalization strategies pursued by Barclays Bank to expand
internationally.
1.6 Research Questions
The various research questions that would arise during the conduct of this research would be
 How globalization is effective in the banking industry?
 What is the different banking strategies pursued in the field of banking industries?
 How effective is globalization on the Barclays Bank Plc.?
 What are the different globalization strategies up taken by the Barclays Bank Plc.
For its global expansion?
1.7 Rationale of the Research
The main aim of this proposal is nothing but to analyze the impact of globalization in Barclays
Bank Plc., UK. Globalization is one of the most important factors up taken by majority of the
industries including banks to expand their business in the world The researcher will be getting
some great knowledge of bank by conducting thorough research on the impact of globalization
in the banking sector. This is the significant personal rational for this research. As there are no
much research on the impact on globalization in banking industry is carried out the outcome of
this research will be very helpful who intend to carry out research on this kinds of complex
topic. This is also the academic rational of the study. In addition to the academic rational there
is one industrial rational as well. As mentioned above as there no much research conducted on
the globalization in banking industry, this research will be useful for other banks in the industry.
1.8 Scope of the Research
Globalization has found to show great impact in different industrial section including bank. It is
very much important to analyze the various global strategies imposed by banking sectors so
that in future these strategies cold be utilized by small scale banking sectors to expand
internationally. Further research could be done by researcher to enhance globalization in
various other industrial sectors too if the basics are known from this proposal and the basics of
globalization and strategies are clearly understood from the literature review section of the
proposal which is collected from the various already conducted works of different researchers.

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The Barclays bank PLC is considered as the main subject and the influence on the process of
globalization on the processes of this banking sector would be the main topic of the research
work. The present research reveals the clear idea of the process of globalization and what could
be the adverse effects of the so called globalization. Thus, the present research work also helps
in the suggestion of certain measures that could be helpful in the rectification of the demerits
of the processes of globalization. The present work also acts as a source of information or data
that would be helpful for any future research.
1.9 Purpose of the research:
The study concentrates on the influence or impact of globalization on the banking processes of
Barclays Bank PLC. The important and required strategies taken by the banking sectors,
especially the specific bank, the Barclays Bank PLC is also thoroughly explained through this
research work. There is also mentioning of the principles and policies adopted by the Barclays
Bank for its global expansion.
1.10 Statement of the problem:
The investigation about the effect of globalization on the banking sector is performed in this
research in a very brilliant manner. The research work is mainly focused on the well established
multi national bank, the Barclays bank PLC, which is head quartered at the United Kingdom.
Time constraints would be the major problem that the researcher had to face during his period
of research study. Since, this is a banking sector, the collection of primary data was not easy to
gather and collected only very few primary data, thus the researcher was forced to gain and
gather data from the various types of sources of secondary data (which include the books,
journals, publications etc). The researcher could not do the surveys and interviews etc, thus the
secondary data was the source of information for the completion of the research.
1.11 Structure of dissertation:
The chapters included in the present dissertation are Introduction, Review of Literature,
Research Methodology, Data Analysis, Conclusions and Recommendations. The first chapter,
which is the ‘Introduction’, deals with the provision of a brief or rough idea of the topic which is
supposed to be explained and studied in detail. The objectives of the research, problems
associated with the research, scope of the research etc.
The literature works which were carried out by the researchers on the topic are compiled and
presented in the chapter ‘Review of Literature’. These would be collected from various sources
and would be having a connection with our topic. The conclusions set up by the researchers
after doing many researches on the same topic are also considered as sources of data and these
are also presented in the second chapter.

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The third chapter which is termed to be ‘Research Methodology’ deals with the selection of the
most appropriate methodology for the successful completion of the research work. The
selection of the methods would be based on the type of research work the researcher would be
doing.
The next chapter ‘Findings and Analysis’ involves the findings obtained from primary data as
well as secondary data. The secondary data is obtained from variety of sources like journals,
articles etc and also from the chapter of literature review. The primary data is obtained from
the survey analysis of the employees of the concerned firm by making use of questionnaire
containing relevant questions.
The final summary obtained from the findings done in the fourth chapter, is summarized in the
final chapter ‘Summary and Conclusions’ (Winstabley, 2009).
1.12 Conclusion:
This chapter gives a general concept of the research study or the dissertation. The objectives
and purposes of the research are well described in this chapter. This chapter also gives a
perfect description of the scope of the study, background of the study, problem analysis etc.
This also gives a rough idea of the rationale of the topic.

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CHAPTER – 2
LITERATURE REVIEW
2.1 Introduction
It is the critical literature review which is given prior importance in this section of the research.
With the help of various theories and empirical work done by various other researchers, the
variant angles of the topic of the proposal are explained. The review of the previous work done
with the consent of the present researcher, evaluation and assessment of the present work to
be done will be carried out and this is known as critical literature review. As stated by Saunders
et al (2009), the basement and background of the present topic could be evaluated from this
review. It is mainly obtained from various sources like academic journals, articles, books,
magazines, publications and websites related to globalization and domestic and global banking.
This section also gives the perfect solution for the various research questions raised in this
proposal.
2.2 Background of Globalization
Globalization can be defined as the process which involves the escalation of political, cultural,
economic as well as social relations around the globe, through uninhibited trades and flow of
finance. This deepening and widening of the international flow of trades etc has resulted in the
integration of economic, political as well as technological aspects of the world (Manfred, 2010).
The process of globalization was mainly the outcome of certain procedures called economic
reforms. The main aim of the globalization is to homogenize the social and political economy
across the boundaries. It is another term used for the process of liberalization or the processes
of openness. There are two classes of globalization, which are domestic globalization and
foreign globalization. It could be considered as a process of capital mobility.
According to Manfred (2010), the connection of economy of all nations to a global market of
goods and services, most importantly the capital, would be the main objective of the so called

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process of globalization. The process of globalization can be featured as a continuous process.
There have been stated a number of definitions for globalization by different authors, according
to the context or situation. According to the definition given by a well known researcher,
Thomas (2011), it involves not only the exchange of goods and services through a world trade
market, but it also helps in the exchange of pollution, diseases, and infections also. This implies
that apart from the positive impacts caused by the globalization (that includes collaboration of
national economies, development of multi national companies, migration and elevated mobility
of persons etc), it also possesses some demerits.
This is a concept where both the knowledge as well as technology gets exchanged across the
globe. The free movement of labor resources among all the countries is also involved in the
idea of globalization. The main merit of globalization is that it plays a significant role in the
equalization of the economic status of all the countries (Boone and Kurtz, 2011).
The financial management of the banks is highly influenced by the variation in the money as
well as capital markets. The variation in the money market is brought about by the process of
globalization. The demerits of the globalization include economic costs which include loss of
jobs etc. In spite of these disadvantages of globalization, the banks give much focus on the
advantages associated with the process of globalization, which they think to overshadow the
demerits (Coulbeck, 2010).
The term globalization refers to international working of the financial and investment market
by enhancing the profit and customers and also by reducing the government rules through
which linkage and interdependence of the business and market of the world would be
enhanced, as stated by Sheila (2009). The connection of economical, cultural and political
systems is required for globalization. As explained by Conversi (2009), the whole world is
considered as a single market by all the industrial sectors to enhance globalization. A linkage
between people of different countries is brought out by the process of globalization.
According to Manfred (2010), the evolution that works for the systematic reconstruction of the
interactions which are carried out on a global basis by the breakdown of the barriers or the
obstacles, is generally implied by the term ‘Globalization’. Globalization has also led to the
enhancement of information technology as well as communication, as per the research findings
of Rowman et al (2008). It is also found that the political and cultural relationship of the
Barclays bank with the other banks has also enhanced by this process (Sheila, 2009).
Government influence and technological influence are very much important for the
enhancement of globalization in the firm. Transnational circulation of ideas and development of
contacts is brought out by the process of Globalization in the Barclays Bank Plc., UK.
Globalization led to the development of the firm and also yields huge benefit to the bank

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(Simon, 2010). International development of any industrial field including the banking sector
has led to the achievement of huge market share globally. This shows that Barclays Bank Plc. by
being a global bank has acquired a specific percentage of the total global market share in the
case of global banking.
2.2.1 Challenges of Globalization
The process of globalization, which is emerged as a result of the economic reforms has
benefited the banks in a number of ways which include the technological advancements, usage
of most inventive techniques, homogenization of the economic status of the nations etc (Hess,
2007). But, along with the advantages, globalization has got some prominent demerits also
which pose high threats and challenges for the functions and processes being carried put in the
banks. The challenges which the banks face as a result of globalization also need some
attention and detailed study. Some of the prominent challenges faced by the banks as a result
of globalization are compiled and summarized in this portion of the present chapter (Hayees et
al, 2011).
The foremost problem faced by the banks would be the intensive and greater competition.
Since the process of globalization occurs globally or internationally, the competition among the
banks of different nations gets enhanced to a high rate. This competition would be very tough
such that it can even lead to the collapse of these banks. If such a condition occurs, it leads to
the ultimate destruction of the nations itself, as the banks are sources of economy or finance
for their growth and development (Rowman et al., 2008).
Another major dilemma caused by globalization is the issues of productivity, reduction of costs
and efficiency. Since the globalization process enhances the limit of competition, the banks are
required to put more effort for the improvement in the efficiency, reduction of costs and
productivity. Thus, the existence of the banks depends on the steps taken to improve the above
aspects. This would impose a large stress and pressures on theses banks (Richard et al., 2009).
One of the important challenges the banks face is the management of risks. There could be
some risks associated with the processes of globalization. Such risks can be grouped into two
major classes, internal risks as well as external risks. The internal risks by the banks as a result
of globalization include errors, wrong estimates, omissions etc. Factors like political changes,
market changes etc are classed into the external risks of globalization. Both the internal as well
as external risks can lead to serious effects like cost overruns, penalty payments, late delivery
etc. Because of the tight competitions developed with the collaboration of the trades of all
nations globally, in order to survive and exist, the banks are in need to improve the quality of
the services provided, cross selling and delivery of the products or services (Richard et al.,
2009).

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The issue of product innovation in the retail banking is also one of the serious threats caused
due to globalization. Since the competitions get increased by the process of globalization, the
banks keep an eye on the innovative methods by which they can come up among the other
competing banks (Peng, 2008). One such serious issue would be the product innovation. This is
emerged due to two main reasons which are, the fear of loosing the market shares (as a result
of globalization) and the increased consumer demands. Many novel methods are introduced for
the easier access of the accounts of the customers, by collaborating themselves with the
software companies, telecommunication companies etc.
The upgradation of technological infrastructure is another important issue which is focused as a
result of the emergence of the processes of globalization. Certain facilities are made available
to the customers by the banks, in order for them to have a more convenient as well as easier
access of their accounts. These technological advancements include PC banking also (Morrison,
2006).
2.2.2 Financial Globalization
The heave in the flow of capital among the industrial countries and between the industrial
countries and developing countries as well reflects a process that came to happen since the
middle of 1980s and this process is termed to be financial globalization. This process of financial
globalization proved to be beneficial for some of the nations involved in this process, while
some other nations experienced a financial crumple and financial crisis too (Manfred, 2010).
Financial globalization can have some impact on the financial sector indirectly. In simple terms,
the banks are the primary targets which are affected through the process of financial
globalization. This is because, the intermediaries to resolve any problem occurring in the sector
is finance, is thought to be the banks of any country or a nation. The financial segment of any
nation is maintained and kept in a good pace by these banks. But since a number of banks are
available in the country, there will be a competition developed between these banks. To obtain
valuable information on the crises occurring in the financial area, some resources are used
upon by the banks, which would ensure them of getting chances for settling the crises through
the provision of loans and other financial dealings etc. Thus, the firms of the nations,
experiencing the demerits of the financial globalization are benefited by the provision of the
loans and other noted financial helps etc (Conversi, 2009).
The markets which are on the verge of development or emergence (and those do not possess
sufficient financial backup) are in requirement of the activities of these banks, as for instance,
they need the financial assistance provided by the banks. The banks would be the primary
reliable source of funds for the companies which lack the financial aid from capital markets. The

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domestic banks would be the most appropriate financial support rather than the foreign help or
assistance (as the globalization is carried out involving all the nations).
Since the banks play much significant roles in the maintenance of the financial security of the
companies (thereby the growth of the nation), any factors which affect the processes taking
place in the banks can have serious impact on the growth of the concerned nation itself. If
there is any collapse occurring in the banks, it would affect these companies as the flow of
financial aid to these firms would be terminated. If the banks are in crises, this would ultimately
lead to the currency crises. Both the bank crises as well as the currency crises would pose a
serious threat to the development of the country and it would take several years for the
situation to get reversed.
Thus it is the responsibility of a nation to take care of the banks (which provide them the
financial security) from a huge collapse.
2.3 Banking and Globalization
As per the findings of Hoggson (2007), a bank is a financial institution and a financial
intermediary that accepts deposits and channels those deposits into lending activities, either
directly or through capital markets. A system that brings out a close connection between
people with capital deficits and capital surplus is termed to be banking system as stated by
Simon (2010). It is the fractional reserve banking under which all the other banks are operating
together. Global banking is the term coined for the banking system which has adopted certain
globalization strategies and operating internationally, according to the findings of Macesich
(2010).
According to the findings and observations made by a well known researcher Morrison (2006),
the globalization carried out in the banks is not an imposed process, but, it is the resultant of
the forces for change of the human beings. The various economic functions of the bank consist
of issuing the money, netting and payment settlement, credit intermediation, credit quality
improvement, maturity transformation and money creation. Retail banking, business banking,
private banking and investment banking are some of the types of banking existing in the world.
Barclays Bank Plc. Is a type of global bank in which all the global strategies required of the
enhancement of globalization of a bank is been adopted. Global banking of the Barclays bank
has shown great impact in its expansion, working and earning of both customers as well as
profit (Simon, 2010).
2.3.1 Impact of globalization on banking
In the beginning stages, the functions of the banking were very much different and strict. Only
the supposed person should be there to carry out the process of money transactions. The

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alternate method was to get an authorization of the people who are holding the accounts. The
developing countries lacked the presence of modern instruments and advanced technologies,
as a result of which the loan as well as money transactions etc were much seen as a biggest
problem and it was time consuming also. This has made the less popularity as well as less
accessibility of even the most reputed banks (Hayees et al., 2011). But the things are not like
the same before. With the introduction of novel and advanced technologies, the banks also
have undergone a number of changes according to the needs and requirements of the
customers. One such prominent change is brought about by the process of globalization (Beck,
2011).
With the introduction of the concept of globalization, there have been many benefits and
profits that the banks derive. This led to the introduction of another concept called to be
‘Deregulation’. The definition of Deregulation is nothing but just eliminating or simplifying the
basic economic laws which are applied to the banks. Generally, free market advocates are the
ones behind the promotion of this concept.
The process of deregulation not only involves the simplification or elimination of the basic laws
applied to the industry, but also in the removal of the obstacles that prevent the collaboration
of banks with that of the firms working in any other field. The process of globalization functions
on a global basis, thereby it offers the widest range of financial services. It facilitates the
provision of large deals to the finances. Even the small banks or the regional banks also derive
benefits as the concept of globalization is also aimed at these small banks to a fair extent. This
is because of the consideration of the emotional relation that the customers may have with
that of the local or regional banks. That is, the access of local or regional banks by the
customers, because of the popularity of the banks (Beck, 2011).
The service delivery of these banks has also got improved very much with the emergence of the
so called globalization. The transaction of money is also made very easy with the use of ATM
(Automated Teller Machine). This would have a 24 hours service. The next most important
advantage of the globalization to the banking industry is the virtual banking. This could be done
through mobile phones or through online or internet banking.
2.3.2 Economic effects of globalization on banking system
For the last two decades, many changes have been experienced by the banking industries. The
system of banking was forced to wok on a global basis by the impact of the international trades.
These changes include advancement in the banking technologies, regulatory changes, elevation
in the collaboration of the international financial market etc. This process, termed to be
globalization, doubtlessly have increased the opportunities given to the banking industries (Ali,
2010).

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When the permission to change the structure of the banks is given by the government, the
reforms initiated could be simply reflected by the phenomenon of globalization. The studies
have shown that the different reforms may have different effects on the banking sectors.
According to the opinions given by Hess (2007), the banks were able to obtain control over the
overcost of deposits through the deregulation of deposit interest rate, where as increase in the
Capital Adequacy Ratio significantly caused the increased stability of the banking system. The
thrust enhancement on banking supervision and risk management resulted in the proper
allocation of funds by the banks across different lines of business and also in the progress of its
performance.
But along with the opportunities, they have exerted pressures on these banks also. This has
resulted in the increase in the pressure faced by the bank for the purpose of retaining of the
customers, and in the enhancement in the quality and standard of the services provided by the
bank. The competitions among the banks increased to a very significant extent. The existence of
international banks in other countries (as a part of globalization), have added fuel to this
competition. The traditional banking is experiencing a deep decline as a result of the elevated
competitions among these banks. This decline is highly reflected in the decrease in the profits
of those banks. In spite of this tight competition, if there is any subsistence of foreign banks in a
country significantly implies its efficiency as well as performance (Sheila, 2009).
There are some elements which elevate the intensity of the prevailing competition and these
include the deregulatory acts, increased globalization etc. Both the small scale and large scale
banks are equally affected due to these aspects. With the help of their power, size and
performance of the economy, large banks are capable of influencing the trends of the markets
and growth of banks internationally as well.
The impact of globalization on the system of banking is proved and studied by many researches.
It has both positive and negative impact on the functioning of the banks. The maximization of
the positive and minimization of the negative impacts would be the main responsibility of a
company or a country, in general (Aldon, 2011).
The globalization process has created a scenario where the banking system has become
unstable and traditional income stream of banks is significantly reduced by the new comers as
well as the novel banking services (Hennie and Sonja, 2009).
2.3.3 Globalization of banking and monetary transmission
Both the domestic as well as foreign banks are equally affected by the globalization of banking.
The monetary transmission of both these banks is affected by the process of globalization. The
banks take a step of activating the internal capital markets with the branches located overseas
in order to protect themselves from the liquidity shocks or conditions. The liquidity shocks are

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generally the resultants of lending to affiliated banks overseas and this is very well related to
the liquidity shocks. The globalization has led to a condition where the lending to affiliated
banks of the overseas got declined to a high extent and an enhancement in the monetary
transmission abroad (Peng, 2008).
Even though the globalization is known to have a great impact on the monetary transmission,
the exact process is still unclear and it demands a further study or a research. There exists a
hypothesis that those banks having roots in the foreign nations could withstand the liquidity
shocks (through monetary transmission) by the reallocation of the funds between their
branches, which are located in different countries. This hypothesis clearly indicates the internal
capital market activation by the banks, and the regulation of the flow of finance among their
domestic as well as the foreign branches (Hayees, 2011).
The foreign lending capability of the banks (working globally) would be highly affected if the
response of these banks to the liquidity shocks is mainly through the internal allocation of
funds. Thus, in order to come out of this scenario, the international transmission of monetary
policy would be adopted by these banks.
The size of the banking is definitely a determining factor to determine if the monetary policy of
the banks is affected or not. The studies show that the banks which are in the top five percent
of the asset distribution are affected by the monetary policy only in a negligible extent. This
significantly implies that for the lending processes of the banks, monetary policy would become
insignificant if the banks take a lot of time to expand its horizons in the foreign nations. Here,
the monetary effectiveness is not much affected by the globalization of the banking. A general
statement could be made that the monetary policy has a large impact on the large banks but
with only domestic operations, while the impact of the monetary policy on the large banks with
both the domestic and foreign operations would be very less or negligible. Thus, it is shown
through various researches and studies that the globalization of banks has a great impact on
the effect of the monetary policy. It is also proved that in order to acquire protection from the
monetary policy, alternative sources of external financing is very much important (Hennie and
Sonja, 2009).
It has also been shown that the monetary policy highly affects the small banks which are
associated to the large but non-global banks while the effect of the monetary policy on the
small banks which are associated with the large global banks can be ignored very well.
2.3.4 Globalization and financial stability
Financial stability is an important element which needs much focus and attention while talking
about the concept of globalization. By influencing the banking as well as capital markets,
globalization of the financial sector is very much capable of affecting the financial stability. The

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banks have started to show or reveal their exposures on the balance sheets as a result of
globalization. This ultimately enables them to become vulnerable. The scenario also exists
where the setting up and development of foreign banks are very much preferred by these
banks. Thus, the competition in the financial sector gets elevated due to this reason. With the
emergence of the concept of globalization, the banks also started to develop and prosper in a
very less time. The banks were forced to respond to the changes in the macroeconomic
conditions, as a result of the process of globalization (Ali, 2010).
2.4 Globalization in Barclays Bank Plc.
Development of the competitiveness of the economy is very much important for the
enhancement of globalization in the banking sectors. The major global strategies adopted by
Barclays Bank to enhance globalization include use of information technology application and
computer technology (Conversi, 2009). The trendy technologies utilized by this bank have
shown great positive impact in enhancing the globalization process. All these were considered
as part of the globalization. The various other improvements led to the globalization of the
bank is the development of credit cards, usage of ATM, usage of internets in the bank,
development of loyalty card etc.
Enhancement of the telecommunications and financial technologies also led to globalization in
the bank. This had reduced the barriers in global competition in the banking sectors.
Globalization has led to the growth of the Barclays Bank by earning more loyal customers and
huge profit along with global market shares. But the global market shares of the banking sector
are much less when it is compared with the domestic banking sectors. Also globalization has got
both positive and negative effect in the Barclays Bank Plc., UK. When compared, positive impact
is found more than the latter (Rowman et al, 2008).
2.5 Global Strategies for Banking
As stated by Hoggson (2010), various strategies are required for the development of the
process of globalization in the industrial field including banking sectors. Development of long
term plans is one among the globalization strategies of the bank. Immediate solutions have to
be found out for the various problems that arise in the banking field. Integration of the global
financial market is another strategy of the globalization process. This includes the development
of parallel system in the banking process. Perfect coordination is brought out among the global
oversight agencies for the proper working of the global bank (Simon, 2010).
The financial infrastructure of the bank is highly modified and moreover the deposit or the
lending banking paradigm is maintained. All these strategies are adopted by the Barclays Bank
Plc. because of which it is now formed as one of the successful global bank in the world. Market
oriented type of functioning of the bank is very much important for the successful surveillance

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of the global bank. Enhancement of the technology of the banking system is the next
globalization strategy and Barclays Bank is very much successful in this segment of the banking
by developing credit cards, ATM operation etc. All these had led to the development of
globalization of Barclays Bank Plc.
2.6 Strategies adopted by Barclay’s bank:
The globalization brings out certain demerits also (in addition to the advantageous effects)
which can have a destructive effect on the banks, and they may collapse. All banks are following
certain strategies or policies in order to come out of such scenario. In order to prevent such a
worst situation and to protect itself from the collapse, the Barclay’s bank has adopted certain
strategies which enable the assured success among the competitor banks across the nations.
These strategies include organizing well experienced experts, proper usage of the Information
Technology, activation of the International Capital Market, establishing links with the other
firms, acquisition of retail banks, through out research of novel products and services, lowering
the price of certain products and services, provision of incentives etc. These policies are helpful
in the establishment of the bank in the other foreign nations and in the attraction of new
customers (maintenance of the existing customers of the bank) as well. By following these
strategies, the Barclay’s bank is capable of withstanding the tough competition posed due to
the process of globalization, being carried out on a global basis. These strategies also help the
concerned bank to get established and expanded over the boundaries in a number of nations.
2.7 Conclusion
This chapter of the present dissertation has given a detailed note of the literature works done
on the impact of globalization, previously by a number of researchers. The chapter also gives a
note on the emergence of the concept of the process of globalization. The impact of
globalization on the banking sector is the selected topic and the literature works done on the
topic are compiled and highlighted in this chapter. This chapter also gives a very clear concept
of the relation of the process of globalization with that of the banking sector. The subtitles
which include the economic effects of globalization on banking, connection of banking
globalization and monetary policy, impact of globalization on the financial stability, etc are also
clearly described in the chapter by the author.
The literature works performed on the Barclay’s bank is also included in this chapter. The
strategies followed by the banks for globalization (overcoming the negative effects of
globalization) are given much description by the researcher through this chapter. The strategies
adopted by the Barclay’s bank are given much significance in this chapter.

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CHAPTER- 3
RESEARCH METHODOLOGY
3.1 Introduction
This chapter, Research Methodology, plays a significant role in the completion of the research
study as the path of success of the research is mainly determined by this part. According to Jan
and Collin (2010), the term ‘Methodology’ could be simply defined as the mode of strategies or
approaches which are widely used in the analysis, assessment and solution of the research
problems. As per the opinions of Gilbert and Dawn (2009), because of the availability of a
number of methodologies, the choice of the suitable methodology is a bit difficult process and
the care should be taken by the researcher while selecting the most suitable methodology. The
selection of the suitable methodology relies upon the time constraints as well as the restricted
accessibility of the resources. This section of the proposal mainly comprises of various factors
like research philosophies, research methods, approaches, strategies, data collection methods,
reliability, validity, data collection methods and sampling techniques which are required for the
successful completion of the present work. The justification for the selection of various
strategies is also explained in this section. With the help of the Onion research process which
was developed by Saunders et al (2009), the complete methodology of this topic is described
here.
Fig 1: Research process ‘onion’ (Saunder’s et al, 2009)

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3.2 Research Philosophy
According to Ranjit (2010), the process of the acquisition of the necessary data for the current
research is implied by the term ‘Research Philosophy’. The research philosophy also plays a
major role in the selection of the appropriate methodology for the present research work. It is
the positivism, realism and interpretivism, which are the three important research philosophies
that are required for the perfect creation of this proposal. These philosophies mainly help in the
better understanding and selection of the specific technique as stated by Bryman (2010).
Positivism:
Positivism, as explained by Gibbons (2008), concentrates on the quantitative methods which
are required for the achievement of exact details of the respective topics which is the prior
most method made used in the field of natural science. According to Sean (2006), the logics as
well as the scientific thinking necessary for the architecture of the methods of data collection
are included in the so called positivism. Here, the framing of the information is mainly done
with the aid of real objects. The assessment of the acquired data is done based on the scientific
thinking. The specific details to achieve the aim and objective of the topic are acquired via this
method.
Realism:
Scientific assessment and the information connected to this is been explained with the help of a
diverse approach known as realism (Dawson, 2009). It comprises of the information, beliefs and

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views that are long lasting and explains the output, remarks and thoughts of the research. The
concepts and views of the people are more possible by this research philosophy. As stated by
Gravetter and Forzano (2011), this philosophy gives much significance to the personal views of
every individual.
Interpretivism:
The third philosophy explains about the behavioral aspect of the workers and details connected
to it as per the findings of Giorgio et al (2010). This involves the maximum communication with
the people to obtain their personal ideas regarding the subject of study. Maximum number of
respondents is involved and gathering of their opinions is done to arrive in a general conclusion.
This research philosophy involves approaches like interviews, survey analysis etc.
3.2.1 Justification
When the three types of the approaches are been analyzed, it is found that realism is chosen by
the researcher as it concentrates on the long lasting information concerning the topics. The
truth which describes the methodological emphasis of the topic is been obtained by the
adoption of realism. It is the analyzed research information which is given importance rather
than just simple views. As per the research findings of Gibbons (2008), it is very clear that social
reality and the coinciding results are considered by the researchers and these outputs should
have a link to the research findings of other scientists too. Emphasis of the sensible data
procured from observation or analysis assess the term realism.
3.3 Research Approach
As stated by Jackson (2010), the specific technique to understand the objectives of the topic is
known as research approach. It helps in the better understanding of the purpose of the
research. There are two main classes of research approach and they are termed to be inductive
and deductive research approaches.
Inductive approach:
Inductive approach is the process of creation of theories from different observations and
findings (Richard et al, 2008) which mainly helps in the analysis and assessment of theories. The
most important salient feature of the inductive approach is its reliability in the data collection
which is required for the design of the theories. In this approach, the examination of a
particular topic is done by making use of the available hypothesis as well as theories which is
then followed by the extension of this topic. Jonathan (2010) states that qualitative data is the
most preferred type in this approach.
Deductive approach:

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As per the findings of Peter (2009), deductive approach is the explanation of already
formulated theories and hypothesis by various other researchers. The existing hypotheses are
developed into fully fledged theories in the so called deductive approach. This is the considered
as the most suitable approach when compared to the other in case of doing scientific research.
Unlike to the qualitative data used in the inductive approach, this approach of research makes
use of quantitative data (Bonnie and Donna, 2011). This would be the well suited research
approach for the present study.
3.3.1 Justification
The researcher chooses deductive approach over the inductive approach as valuable data and
suitable findings would be achieved via this process. This theory mainly concentrates on the
different research findings of other researchers from various published sources. This help to
achieve valuable and required data for the creation of the result of the present topic.
3.4 Research Strategy
The hypothetical methods or approaches which are fruitful in the answering of questions posed
in the research are highly reflected by the concept of ‘Research strategy’. This explains the
concepts and views which are responsible for the development of set of questions in any
research. Donald et al (2009) states that survey, cross sectional studies, case study, action
research, experiments, exploratory etc. are the different types of research strategies. Among all
these research strategies, the author chooses two prominent strategies are: Survey strategy
and Case study strategy.
Justification for choosing survey strategy and case study strategy
Survey strategy: The reason for opting survey strategy is that the deductive approach which
is mainly applied in the researches carried out in business and management is linked to the
survey strategy of a particular research. The survey strategy keeps the process of gathering
the information from the suitable set of people, as its prime strategy. This strategy keeps a
control over the complete process of research. The restricted extension or expansion of the
gathered data would be the only demerit of the survey strategy.
Case study strategy: In case study strategy, the analysis of the current happenings is easily
performed by compiling all the possible evidences regarding the subject. Moreover the case
study strategy is the distinct method by which the examination of an aspect is possible by
comparing with the realities, which in turn involves a number of influencing factors. The strong
approaches implemented in the case study strategy enable the people to have a better
understanding many complicated processes.

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3.5 Research Method
Each and every research must have a reasonable and sensible results and this would be
achieved only with the help of research methods. According to the definition given by Anderson
(2009), the sufficient procedures that are implemented to carry out the study in the most
perfect and brilliant manner, is meant by the term ‘Research method’. As stated by Kothari
(2008), research method comprises of the various ideas and views of different researchers.
Research analysis mainly depends on two types of methods namely qualitative and quantitative
methods. It is these research designs which help to create the backbone of the research.
Qualitative research method:
According to Wayne et al (2011), qualitative research method explains and evaluates about the
true feelings and views of the people. Their ideas are clearly understood with the help of this
research method. The approaches like surveys, interviews etc are included in this research
method. However qualitative research method comprises of all the non-numerical details like
attitudes, relations etc. (Rajendrakumar, 2009).If the sample size to be analyzed is less in
number, this would be the most preferred method for the collection of data.
Quantitative research methods:
Quantitative research method, as explained by Chris et al (2009), states the numerical patterns
of the research including objective hypothesis. It mainly considers the arithmetic processes and
data examination method (McBurney and White, 2009). The resultants and products are
represented statistically in the quantitative research.
3.5.1 Justification
In this research the researcher will opt both qualitative and quantitative data as part of data
collection. The researcher will gather only a few primary data through survey strategy as it is
very difficult get the information from bank. Hence the researcher mostly relies upon the
secondary data. The collected quantitative data will be analyzed with the help of diagrams and
graphs. The reason behind of opting qualitative method along with quantitative method is the
researcher is going to analyze secondary data as mentioned earlier.
3.7 Data Collection Method
The two types of data collected are primary and secondary data for each and every type of
research. Both of these two data play significant roles in the successful completion of any
research.
Primary data collection:

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According to the findings of Boone and Kurtz (2011), the data collected by the researcher for
the first time for the easy arrival of the conclusion is meant by the ideology of primary data.
This data is capable for providing excellent support for the research. Since this data is collected
and compiled for the first time, this would be considered as very fresh in nature. The
approaches like interviews, surveys etc are made use for the collection of primary data. The
demerit of this type of data this is not practically feasible always.
Secondary data collection:
As per the observations made by Kurtz (2011), the data which is already archived by the other
researchers from their previous works, is called as secondary data. Information sources like
journals, books, internets, articles etc serve as sources of secondary data.
3.7.1 Justification:
It is the secondary data chosen mainly by the researcher as it is not possible to go to the bank
directly and conduct interviews or surveys as a student. So the secondary data obtained from
various published sources help to achieve the exact output of the research. Still, the researcher
managed to collect primary data to a small extent.
3.8 Research Design
The research design is considered to be the most important fundamentals of any research as
this mainly deals with the analysis as well as the examination of all the basic processes carried
out in the concerned research (William, 2009). This helps in the smoothening of the
construction of the plan of all the necessary steps to be taken in any research process. The
renowned researcher, Flick (2009) states that the processes of interviews, analysis of surveys
are included in the process of research design. The queries which are asked in the research, are
solved with the help of research design.
3.9 Sampling Techniques
This is also one of the most important approaches that demands well attention for the
completion of the research work in a successful manner. According to Lohr et al (2009),
probability and non-probability are the two types of sampling techniques used by the
researchers.
Probability sampling:
The factors comprised under probability sampling technique are random, systematic and
stratified samplings. This is a type of sampling where all the samples of a group or population
get equal chance of selection. Thus, randomization would be the salient feature of the

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probability sampling. Both systematic and sampling bias would be lacking in this type of
probability sampling, which forms the important characteristic of the specific sampling
(Saunders et.al 2009).
Non-probability sampling:
Unlike the probability sampling, in non-probability sampling, not all the samples of a group
would get the equal chances of selection. The selection or choice would be confined to some
samples only. Thus, this type of sampling is very less likely to provide generalized opinions or
views of a population. Convenient, accidental, quota and purposive samplings are included
under non-probability sampling (Creswell 2009).
3.9.1 Justification
The researcher chooses probability sampling as the researcher give equal chances of selection
to the employees of the Barclays bank. Moreover as it is very difficult to gather the data from
the bank, there will be some difficulties to choose samples conveniently, therefore in this case
random sampling will be effective. Further systematic as well as sampling bias would be lacking
in this type of probability sampling.
3.10 Reliability of the Research
The quality of the research is assessed under the reliability (Edward et al, 2009). The final
conclusions obtained after the research study should be accurate if the research work is to be
genuine. The study would be taken as a perfect study if the result produced by the study tallies
with the results produced by any other study. Even if the results are obtained, it should be
taken as the final conclusion. The researcher should take care to present such reproducible
results. The data visualized and the data collected should be equal to make the research more
reliable. To make the proposal more reliable the data collected must be specific to the topic.
3.11 Validity of the Research
According to Kirk (2008), validation of the qualitative data collected in the form of secondary
data is a must. The data must answer the research questions and also the objectives must be
clearly analyzed and only then the research would be valid. The result must be more precise
and appropriate. There are two main classes of validity which are termed to be internal validity
as well as intentional validity.
3.12 Ethical issues
The ethics of research is tried to be strictly maintained by the researcher at every point of all
the processes of the present research work. While collecting the secondary data and some

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primary data, the researcher was able to follow the research ethics. In the current research, the
necessity of the performance or the carrying out of the research is clearly explained by the
researcher. Moreover, the researcher keep all the information gathered from the employees of
the bank as very confidential.
3.13 Limitations of the Research
The major limitation of the study is the difficulty in collecting true data because it is not
possible to go to the bank directly and conduct survey or interview as a student. Thus, the
researcher had to rely upon the secondary data which was obtained from several sources like
journals, publications, internet, articles, books etc. Upon comparison, the primary data appears
to be more fresh and reliable than the secondary data. Thus, the limitations in the acquirement
of the primary data would be the first important research limitation.
The next limiting factor is time. The time given for the completion of the work is too little for
the topic. Thus, the researcher had to complete the work in the permitted time (which is a bit
less) and this affected the perfection of the study to some extent. Due to the lack of time, the
researcher could not do a vast collection of the secondary data also.
3.14 Conclusion
The impact of globalization on the Barclays Bank Plc. is clearly understood from the various
data obtained under the literature review section. It is been concluded that the perfect
background of the research and also the scope and rationale of the research is understood from
the first section of this proposal. The keywords of the research like globalization, global
banking, strategies etc. are explained under the literature review section. Methodology section
explained about the research philosophy, methods, strategy, approaches and also the
reliability, validity and limitation of the research.

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CHPATER - 4
DATA ANALYSIS
4.1 Introduction
The analysis of data is entirely different from the presentation of data. The analysis of data is
very much important because the collected data should be analyzed thoroughly so as to end up
in a fine and valid conclusion. The proper analysis of data should be performed, whether it may
be primary data or secondary data. According to Saunders et al (2009), with the help of relevant
and significant data, exact conclusion should be reached and this would be the main aim of the
present research. The primary data was not able to collected in a significant level as the
researcher found it little difficult to do the questionnaire supply or the interviews in the bank,
Barclays bank. Thus, the researcher had to rely upon the secondary data mainly. Therefore, the
websites, journals, articles etc served as sources of secondary data which helped the researcher
to complete the research in a very successful manner. Even though the main type of data used
in the present research was secondary data, a certain level of primary data was also used in this
research work. Thus, this chapter contains the analysis of both the secondary data and primary
data as well.
The primary and secondary data collected from the primary and secondary sources initially
provided unclear data which was thoroughly analyzed by the researcher to arrive in a very clear
and fine conclusion. The quantitative format is the most preferred type used in the research.
Sometimes, it is in the qualitative format type, the data is obtained, which has to be converted
into quantitative type of data by the researcher. This is done by the application of programs like
Microsoft Excel spread sheets.
The literature review of the dissertation would also be useful in the analysis of secondary data
required for this chapter. This is because the review of literature collected on the proposed
topic is the results or conclusions made by the researchers some times earlier. These are the
outcomes of the previous researches or studies. According to Robert (2008), a foundation for
the analysis of secondary data would be provided by the review of literature.
The presentation of data, analysis of data and findings from the analyzed data are all included
in the present chapter of the dissertation.

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4.2 Aims and Objectives of the study:
4.2.1 Objectives:
• To analyze the effectiveness of globalization on the Barclays Bank Plc.
• To recognize how globalization have an effect on the banking industry.
• To analyze the various global strategies undertaken in the banking industry.
• To analyze the globalization strategies pursued by Barclays Bank to expand internationally.
4.3 Presentation and Analysis of Secondary Data
This section gives a clear explanation on the secondary data obtained on the impact of the
process of globalization on one of the prominent banks, the Barclay’s bank. The secondary data
collected on the strategies taken by the Barclays bank to overcome the demerits of the
globalization, is also studied and presented in detail in this section. The secondary data
obtained for these presentations are obtained from various articles and from the official sites of
the Barclay’s bank. The collected data is more sided towards the quantitative format. The
sources of these secondary data also involve the literature review section of the dissertation
(Ranjit, 2010).
4.3.1 Impact of globalization on the functions of Barclays bank
The process of globalization has certain merits and demerits on the banking sector. The
functioning of the Barclays bank is affected both positively and negatively through the process
of globalization. The bank has been always showing interest to serve the public by
implementing new and advanced technologies. This was made easier by the arrival of the
ideology of globalization. Even though, it brought about a number of merits, it also has very
prominent disadvantages.
The advantages of the globalization could be termed as ‘Globalization market opportunities’
and the demerits of the process of globalization could be denoted as ‘Global market threats’.

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These two are regarded as the key effects of globalization. The detailed and thorough study was
carried out by the researcher on the ‘Globalization market opportunities and Global market
threats’ of globalization of the Barclay’s bank and the secondary data obtained is compiled and
analysed in the following tables and paragraphs.
4.3.1.1 Global market opportunities
The positive features of the globalization are categorized in this topic. There has been proved
many advantages associated with the process of globalization. Some of the much significant
merits that the Barclay’s bank obtained through the process of globalization are briefed out
below:
Expansion of business: The globalization process facilitated the Barclay’s bank to get
established not only in one country but it is expanded into a number of countries. The business
functions are getting done over the boundaries.
Acquiring of resources: The resources could be exchanged among the different branches of
Barclay’s bank located at different places. This has resulted in the enhancement in the profit
margin of the bank. These resources include knowledge, technology, expertise etc.
These were the main aim of the involvement of Barclay’s bank in the process of globalization.
The Barclay’s bank was benefited by globalization in other ways also. The enhancement in the
market potential of the bank was a noted profit of the process of globalization. In addition to
this, the bank also experienced an elevation in trade potential and investment potential as well.
Through the concept of globalization, the resource availability also progressed to a greater
extent.
The positive impact of globalization on the Barclay’s bank not only caused the benefits of the
banks, but also the customers were benefited through this ideology. The bank was reorganized
with the help pf globalization in order to provide improved and excellent service to the
customers. The electronic and communication technologies were the starting elements of the
resultant of the globalization of the Barclay’s bank. These included devices like automation
devices etc. Next came the PC banking, ATM facilities, internet banking etc which were well
designed for the easiness of the customers. Thus, the globalization had a great positive
influence on the Barclay’s bank by gaining the special interest of the customers.
The Global market opportunities also involve the impact of globalization on the cost of
transactions. The most efficient mechanism would be generally preferred by the firms like
banks, as per the transaction cost economics. The cost of transactions of Barclay’s bank got
reduced to a significant extent by the concept of globalization. This is because of the more and

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easier access of markets and resources, which occurred as a result of the elevated global
market opportunities, which is a prominent positive feature of globalization.
The globalization process also led to some of the technological innovations of the Barclay’s
bank. These technological innovations include data mining, tie up arrangements, ATM, mobile
banking, insurance products, plastic money, virtual banking, phone banking etc.
The impact of globalization on the Barclay’s bank was studied by the researcher by using
several parameters. These parameters significantly imply the impact of globalization of the
functions of the Barclay’s bank. The researcher did the study of parameters for a time period of
the years 2000 to 2012. The results of those parameters are given in detail in the following
diagrams.
Growth of branches: The number of branches of the Barclay’s bank in the period of 2000-2005
was 3100 globally, while the number of branches got increased to 4200 by the time period of
2005-2010. From 2010 till present, the number of total branches of the concerned bank globally
is found to be 4750. The details of the study are given in the following graph.
Graph 1: Growth of branches
(Created by author in May 2012)
The above diagram shows the growth of the number of branches from 2000 till the present.
This data clearly indicates the establishment and growth of the Barclay’ bank, through out the
years.

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Number of employees of the branches: In the time period of the year 2000-2005, the number
of total employees working for the Barclay’s bank was calculated to be just 55,000 and the
value increased to 1,00,357 in the period of 2005-2010. Till now, the total number of staffs
working for the bank has been found out as 1,46,100. The results of the study are clearly shown
in the diagram given below:
Graph 2: Number of employees of the bank
The above diagram shows that the numbers of employees are increasing year by years which is
the ultimate reflection of the growth and prosperity of the Barclay’s bank. The number of the
employees of the Barclay’s bank is 1,46,000 which clearly indicates the absolute development
of the bank.
Percentage of growth in business of all the branches: The percentage of the business of all the
branches of the Barclay’s bank was around 65% in the year period of 2000-2005, and the bank
experienced a deep decline in the percentage of business which was noted to be 59%. From the

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year 2010 to 2012, (present calculation), the percentage again rose to 70%. The findings of the
analysis are summarized in the diagram given below:
Graph 3: Percentage of growth of the business of the bank
The above diagram depicts the percentage of growth of business from the years 2000 to 2012.
From the year 2000 to 2005, there was a growth in the business, but the time period of 2005-
2010 was a decline in the business which indicated the tough competition faced by the bank as

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a result of globalization. Since, the Barclay’s bank adopted strategies, it emerged successfully
even in the midst of competition that could be seen from the rise of the business after 2010.
Number of countries in which the bank expanded its business: In the years, from 2000 to
2005, the countries in which the Barclay’s bank did its business were 37 and the number
increased to 42 in the year 2010. From 2010 to till now, the Barclay’s bank is working in around
50 countries world wide. The results for this query, obtained by the analysis of data are given
below in the diagram
Graph 4: Number of the countries in which the bank got etended
From the above diagram, it can be seen that the number of countries in which the Barclay’s
bank is getting developed and established is increasing year by year. The analysis shows that
the bank has been established in 50 countries till the date. This clearly implies that in spite of

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the tight competition posed by the phenomenon of globalization, the bank has been able to
establish its territory in a number of countries. This was possible through the adoption of
different effective strategies by the bank.
Thus, from the detailed study and the secondary data collected from the previous works, the
positive impacts of globalization on the Barclay’s bank are:
• Faster means of enquires
• A significant reduction in the transaction time and transaction costs
• Increment in the productivity of the bank
• Enhancement in the growth and progress of the bank
4.3.1.2 Global Market Threats:
In addition to the advantageous effects of globalization, it also has some demerits which can
have negative impact on the Barclay’s bank. These demerits can be categorised in the class of
Global Market Threats. The two main demerits which are included in the global market threats
are: the enhancement in the level of competition as well as the high level of uncertainty
associated with the process of globalization. The threats occurring to the bank as a result of the
globalization could be classed into two categories.
1. Global Competitive Threats
2. Global Market Uncertainty
Global competitive threats:
The intensified competition which gets developed as a result of the increased emergence of a
number of strong competitors (resultant of the process of globalization) can be defined by the
term Global competitive threats. Liberalization of trades, development of advanced
technologies, as well as the convergence of macro economic policies, all add up to the threats
developed as a result of globalization.
Global market uncertainty:
The elevated complexity and demand uncertainty of the global market is reflected by the term
‘Global market uncertainty’.
The main problems that the Barclay’s bank had to face with the emergence of globalization are
studied, complied and shown in the list given below:

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a) Problems occurring during the provision of improved customer service: Since
globalization is a world wide process and the banks are getting established in many
countries, the customers of the bank would be from different countries. They may
be multi linguistic and it is the responsibility of the bank to make sure that they all
are comfortable with the bank by setting up pf many types of departments in a
single firm.
b) Requirements of experts: Because the bank is in a requirement to develop
cooperative relation with the external partners and these external partners belong
to different regions and cultures, it is the duty of the bank to appoint experts to
manage these external partners.
c) Realignment of the guidelines: For the survival of the Barclay’s bank among its
competitors, it has to realign its guidelines. This step is very much important for the
establishment of the bank in the midst of tight competitions. But this is not a very
simple process, but a much complicated process
4.3.2 Strategies for globalization of Barclay’s bank
Since the globalization also brings few but prominent demerits, the Barclay’s bank is in need to
develop certain strategies in order to cope up with the ill effects of globalization. These
strategies would also enable the bank to survive in spite of the competition and also to emerge
successfully among the other prominent competitive banks of all the nations. Some of the
important strategies adopted by the Barclay’s bank for the purpose of globalization are
summed up and presented in the list given below:
a) Appointment of cadre of experts:
The Barclay’s bank has successfully appointed a group of efficient and talented people who
have an ample of exposure in working with the global environments. This step is a very
important step as this would be the most important determining factor for the success of the
bank. The experienced persons know how to handle the adverse situations and they will be
capable of managing the functions of the Barclay’s bank, if incase the bank fall into a crisis
condition.
b) Development of excellent Information Technology and maintenance of International
capital markets:
This is another area of excellence of the Barclay’s bank by which the company gets maximum
expansion in the foreign countries. The Information technology is a developing area by which

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recent innovative products could be made and this would definitely attract the customers of
the foreign nations.
The Barclay’s bank has wisely into the activation of the international capital markets, which
doubtlessly would enable its establishment and success in the global markets.
c)Relation with other financial firm:
The relation with the other prominent and successful financial firm is strictly maintained by the
Barclay’s bank. This is to maintain cooperation so as to face even the toughest competition
together. These financial firms include investment banks, credit rating agencies etc.
Cooperation is one of the most necessary feature of a firm (with other firms) to ensure high and
mutual success in the field.
d) Research of services and products and their price:
The continuous research on the most appropriate service and products is being carried out by
the Barclay’s bank. This is more significant in the foreign countries as the understanding and
knowledge of the services and products which are according to the tastes of the customers over
there would definitely bring success to the concerned bank.The Barclay’s has given some
reduction for certain products and services with the aim of attracting more and more
customers towards their bank and they have attained success in their motto also.
e) Friendly atmosphere:
The bank has always taken care to see that a proper friendly atmosphere is maintained in the
bank which provides a comfort zone to the customers, thereby attracting more customers
along with the maintenance of the existing customers.
f) Effective and attractive advertisements:
This is also one of the most prominent strategies adopted by the Barclay’s bank for the
attraction of more number of customers. This is because every firm or bank, whether it may be
small or large, requires the design of attractive and eye catching advertisements in order to
take away the attention of the common people
4.4 Presentation and Analysis of Primary Data
Since the research ahs to be done with the banking sector, the researcher could not always go
to the bank and do the survey of analysis. That is why; the secondary data type was preferred
by the researcher. Even though the majority of the information was obtained from the
secondary data, little amount of primary data was also taken into consideration by the
researcher.

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The researcher selected around 20 staffs of the Barclay’s bank and they were given a
questionnaire containing six basic queries. Their opinions was taken and depicted in the
following diagrams to arrive in a generalized conclusion.
Q.1) Which mode of electronic delivery channels is mostly preferred by the customers?
This question was raised to know the tastes and preferences of the customers regarding the
type of electronic delivery channels. The result or findings for this question are clearly depicted
in the pie diagram given below.
Pie Diagram 1: Types of preferred electronic delivery channels
Types of electronic delivery channels
ATM
50%
PC banking
25%
Telephone banking
25%
ATM
PC
banking
Telephon
e banking
( created by the author in May 2012)
From the Pie diagram 1, it could be understood that exact half of the employees of the Barclay’s
bank believe that ATM (Automated Teller Machine) is the most preferred method by the
customers. Around 25% of the total employees surveyed believe that the telephone banking
would be the preferred mode of electronic delivery channels by the customers of the bank.
While the remaining 25% strongly believed that it was the PC banking, which was preferred by
the customers.

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Q.2) Do you think the Information Technology innovation do the enquiry of the state of
account faster?
The opinions of the employees for this query enabled the researcher to come in a conclusion
regarding the effectiveness and fastness of the Information Technology innovations. The
opinions of the employees of the Barclay’s bank are gathered and shown in the pie diagram
given below:
Pie Diagram 2: Speed of the enquiry of the state of the accounts by the Information
technology innovations:
Speed of the enquiry state of the accounts
Agree
47%
Disagree
20%
Neutral
33%
Agree
Disagree
Neutral
(Created by the author in may 2012)
From the above shown pie diagram, it can be seen that 47% of the respondents strongly agree
to the query asked to them. They had an opinion that the IT innovations are enquiring the state
of accounts in a faster manner. But, a contradictory opinion is given by 20% of the respondents
and they do not believe in the speed of the enquiry done by the IT innovations. The neutral
response was shown by the remaining 33% of the respondents.
Q.3) Do you believe that the innovations resulted due to the globalization led to increase in
productivity of the bank?

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The researcher could get different opinions from the respondents of the Barclay’s bank. The
result is highlighted in the diagram given below:
Pie Diagram 3: Increase in the productivity due to globalization
Increase in the productivity
Agree
74%
Disagree
13%
Neutral
13%
Agree
Disagree
Neutral
(created by the author in may 2012)
The above pie diagram very well shows the survey taken regarding the increase in the
productivity of the Barclay’s bank as a result of the innovations due to globalization. It can be
understood from the diagram that 74% of the respondents supported that the innovations
related to globalization resulted in the enhanced productivity of the bank. But a response of
disagreement was expressed by 13% of the total respondents of the survey. The remaining 13%
showed a neutral response for the survey.
Q.4) Do you think that the innovations help in the reduction of the time of bank transactions?
This query was asked to get a rough idea regarding the efficiency of the innovations resulted by
globalization, from the employees of the Barclay’s bank. The results obtained are given below:

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Pie Diagram 4: Time taken for the bank transactions:
Decrease in time of bank transactions
Neutral
13%
Agree
60%
Disagree
27%
Agree
Disagree
Neutral
(created by the author in May 2012)
Among the 20 respondents participated in the survey analysis, 60% had an opinion that the
innovations which were developed as a result of the phenomenon of globalization definitely
reduced the time taken for the bank transaction, thereby express high efficiency. But the
response obtained from the 27% of the total participants of the survey was reverse; they think
that the innovations do not much significant effect on the time taken for bank transactions. A
neutral response was shown by the 13% of the respondent of the survey, they did not express
their opinions on this.
Q.5) What is your opinion about the improvement in the service delivery?
The researcher could obtain a variety of opinions and statements when this question was asked
to the participants of the survey, or the employees of the Barclay’s bank. Their opinions are
acquired and given in detail in the picture given below:
Pie Diagram 5: Quality of the service delivery:

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Better service delivery
84%
14%
2%
Positive Negative Can't say
(created by the author in May 2012)
The statements expressed by the respondents of the survey are given in the above diagram in a
definite manner. From the diagram, it can be confirmed that the 84% of the respondents of the
survey were really content and satisfied with the quality of the service delivery. But, the 14% of
the employees of the Barclay’s bank who were surveyed had an opposite opinion and they
were not satisfied with the quality and standard of the service delivery. The remaining 2% of
the respondents did not express their opinions.
Q.6) Is it possible to attract more customers by means of globalization?
Through this query, the researcher tried to understand to what extent the concept of
globalization has reached the minds of the customers. This query also created different
opinions, which are highlighted in the following diagram.
Pie Diagram 6: Are the customers getting attracted?

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Attraction of new customers
43%
48%
6% 3%
Agreee
Strongly agree
Disagree
No response
(created by author in May 2012)
The data shown in the above diagram shows that 48% of the total respondents of the survey
analysis strongly had an opinion that the innovations, which are developed as a result of
globalization, are capable of attracting new customers towards the Barclay’s bank. 43% of the
employees of the bank also had an opinion of agreement (though not so strong) for the
proposed query. But 6% of the total surveyed employees of the bank did not believe that more
customers are attracted towards the bank because of the phenomenon of globalization. The
remaining 3% had no opinion on this topic.
4.5 Findings from the secondary data analysis
The general findings derived from the analysis of secondary data are given below:
Impact of globalization on Barclay’s bank:
The phenomenon of globalization has both positive as well as negative impact on the functions
of Barclay’s which are revealed through the analysis of the secondary data. The positive
features of globalization are generally termed to be ‘Global Market Opportunities’ and the
negative features of the globalization are called as ‘Global Market Threats’.
Global Market Opportunities
• The analysis of secondary data reveals that the expansion of business and acquiring of
the resources are the two main noticed Global Market Opportunities of the process of
globalization.
The positive impact of globalization on the functioning of the Barclay’s bank are summarized
and listed below:

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• Through the process of globalization, there was an enhancement in the trade potential,
investment potential and profits of the bank.
• The globalization helped in the progress of the bank indirectly by giving special care to
the interests of the customers and satisfying them.
• The reduction of transactions was also found to be possible through the concept of
globalization.
• The technological innovations were done through the emergence of the ideology of
globalization.
The researcher did a study on the four prominent parameters of the bank and the study was
concentrated on the years 2000 to 2012. The results are given below:
• The researcher observed a progress in the growth of business of the Barclay’s bank from
the years 2000 to 2012, which indicated the positive impact of globalization on the
business processes of the bank.
• The number of employees joining in the different branches of the bank was also found
to be increasing year by year, which also reflected the positive effect of globalization.
• The business growth of the bank was found to decline at some point of time, which was
an indication of the tough competition the bank had to face as a result of globalization.
• The bank got extended to many countries in this period of time, which also ultimately
implies that the globalization has helped the bank to grow and establish.
Global Market Threats
• The competition as well as the uncertainty is the two significant Global Market Threats
caused due to the phenomenon of globalization.
• The issues which may develop during the provision of special care to the customers, the
requirement of the experts as well as the realignment of the guidelines are some of the
negative impacts of globalization on the processes of the Barclay’s bank.
Strategies adopted by Barclay’s bank:
In order to come out the scenario developed by the ill effects of globalization and to have a
proper establishment, the Barclay’s bank has adopted certain strategies or policies which are
also revealed through the secondary data analysis. These findings are pointed out and given
below:
• The experts having a fair amount of exposure on the field of globalization are appointed
by the bank.
• One of the most important strategies would be the development of the perfect and fine
information technology. International capital markets are also well maintained.
• Establishment of a cooperative linkage with other firms as well as the provision of
friendly atmosphere to the customers is also the two important strategies followed by
the bank.
4.6 Findings from the primary data analysis

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The analysis of survey was done with the help of a questionnaire carrying 6 queries and
these were given to 20 employees of the Barclay’s bank. The opinions of these staffs are
compiled and are listed out below:
• 50% of them had an opinion that the customers preferred ATM as the electronic
delivery channel, while 25% had trusted that it was the Telephonic banking and the
remaining 25% of the staffs believed that the PC banking was the most preferred
electronic delivery channel by the customers.
• When asked whether the Information technology has created any speed up of the
enquiry of the state of the accounts, 47% were supporting, 20% were opposite to
the statement, while the remaining 33% did not express any views on this.
• 74% of the employees agreed and 13% of them disagreed when they were asked if
the globalization has had any improvement in the productivity of the bank. 13% of
the staffs had no opinion for this query.
• 60% of the bank employees believed that the globalization has really decreased the
time of transactions, 27% of them were opposing this and the remaining 13% were
showing neutral response.
• When asked about the quality of the service delivery, 84% of them believed that the
globalization lead to the improvement in the service delivery, while an opposite
opinion was given by 14% of them and the remaining 2% of them were in real
confusion.
• Majority of them, around 91% of the surveyed staffs believed that the globalization
has attracted more number of customers to the bank, while 6% disagreed to this and
the remaining 3% showed a neutral response on this query.
4.7 Conclusion
This chapter of the present dissertation has analyzed both the primary data and secondary data
as well. The secondary data required for this chapter was obtained from a variety of sources
like journals, articles, internets, books, etc. The literature review works also served as a source
for the collection of secondary data. The primary data necessary for the present chapter was
obtained by taking survey of 20 employees of the Barclay’s bank using a questionnaire
containing 6 questions, which are basic but relevant queries. The analyzed data is clearly
depicted in the pictures for the convenience of those who are going through this. The survey
carried out by the researcher was proved to be a success and the conclusions derived from
these findings are explained in the next chapter.

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CHAPTER- 5
CONCLUSIONS AND RECOMMENDATIONS
5.1 Introduction
The efforts taken by the researcher in achieving the objectives of the proposed research is well
explained in this chapter. This chapter also involves the findings or the conclusions (obtained
from the findings explained in the previous chapter). Some of the recommendations suggested
for the future study by the researcher are also included in the present chapter of the
dissertation.
The brilliant method to resolve the research questions is to reach the research objectives, as
there is always a correlation between the research objectives as well as the research questions.
The researcher made use of both the primary data as well as secondary data to end up in the
final findings. Thus, the validation of the data collected from the literature review of the
dissertation is mainly carried out through this chapter. This is because the review of literature
also served as a source for the secondary data.
5.2 Aim of the research
5.3 Objectives of the research
 To analyze the effectiveness of globalization on the Barclays Bank Plc.
 To recognize how globalization have an effect on the banking industry.
 To analyze the various global strategies undertaken in the banking industry.
 To analyze the globalization strategies pursued by Barclays Bank to expand
internationally.
Conclusion

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The researcher successfully discusses the different findings which would be reflected as the
relation of the research objectives with that of the research questions. The deliver of the most
accurate answer for the developed research questions (mentioned above) would be the main
purpose of the section, ‘conclusion’.
a) How globalization is effective in the banking industry of Barclay’s bank?
The findings and detailed analysis of the secondary data shows that the concept of globalization
has both the positive effect as well as negative effect on the functions of the banking industry.
It can be summarized that the merits occurring due to the process of globalization are generally
termed to be Globalization Market Opportunities; where as the disadvantageous effects
produced as a result of the globalization could be denoted as the Global Market threats. The
Global Market Threats involves enhanced competition as well as enhanced uncertainty in the
global markets.
The study confirmed the increase in the market potential of the bank through the process of
globalization. This also found to elevate the investment potential and trade potential as well.
The progress in the resource availability was also confirmed through the study.
Studies have proved that the customers are the strength of the banking sectors. So, the
satisfied customers would ultimately cause the growth of banking sector. The process of
globalization indirectly helps in the growth of the banks by satisfying the customers. The
electronic delivery channels introduced in the banks provided comforts and easiness for the
customers, and this indirectly had a positive effect on the development and establishment of
the Barclay’s bank.
The study was also concentrated on the cost of transactions and the findings obtained from the
secondary data showed that the innovations resulted from the process of globalization lead to
the reduction of the costs of transactions which were also one of the positive impacts of
globalization on the functioning of the Barclay’s bank.
The findings of the study which deals with the assessment of four major parameters gave a
result which shows the positive impact of the phenomenon of globalization on the processes
taking place in the Barclay’s bank. The growth of branches of the Barclay’s bank, growth of the
business of the bank, the increment in the number of the employees working within the
Barclay’s bank, and the number of countries in which the bank got extended were the four
parameters taken for the study and the results of the study of these parameters also support
for the statement of the positive influence of globalization on the Barclay’s bank.
Apart from the merits of globalization, that is the positive effect of globalization on the banking
sector of Barclay’s bank, the study also dealt with the demerits of globalization. The secondary

An investigative study into the impact of globalization on the barclays bank

An investigative study into the impact of globalization on the barclays bank

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