Walmart negotiation strategies - Free Essay Example

Sample details Pages: 4 Words: 1282 Downloads: 2 Date added: 2019/07/26 Category Business Essay Level High school Topics: Walmart Essay Did you like this example? Walmart is one of the major and more important retailers around the globe operating in more than 11,000 stores in over 25 nations (Hunt, Watts Bryant, 2018). The company was inaugurated in 1962 and has achieved significant progress due to its succesful business strategy (Hunt, Watts Bryant, 2018). Walmart operates both physical and online stores to enhance convenience for its global consumers. Don’t waste time! Our writers will create an original "Walmart negotiation strategies" essay for you Create order The company realized annual revenue of $500 billion in the fiscal year, of 2017 and boasts over 2.1 million employees from different parts of the world (Hunt, Watts Bryant, 2018). Although Walmart is a leading company, it operates in a highly competitive market and shares its customers with competitors such as Tesco, Costco, Woolworths, Carrefour, IKEA, Amazon, and Target (Hunt, Watts Bryant, 2018). In any case, Walmart has possessed the capacity to keep up its cost authority procedure that enables the organization to hold clients by offering quality merchandise at moderate costs.Walmarts slogan, Everyday low prices, gives the company a competitive advantage in the retail industry. This low-price strategy allows Walmart to capitalize on its size to realize economies of scale. The company has depended heavily on cost leadership to become a household name across the globe. Walmarts business strategies have also been centered on sustainability to conserve the environment and minimize indirect costs. In addition, Walmarts business strategies aimed at establishing a one-stop shopping by providing a broad assortment ranging from grocery to household wares. Walmart has over 60,000 diverse suppliers and it incorporates different negotiation strategies to bargain. Walmart aims at empowering its suppliers thereby establishing great partnership to guarantee the quality of goods. Walmart has maintained its traditional mission statement, We save people money, so they can live better (Hunt, Watts Bryant, 2018). This mission statement is geared towards lowering the cost of living to enable people to make extra savings to enhance their lives. Walmarts mission statement appeals mostly to the middle-class consumers who make up a large percentage of the overall customers in the retail industry. Walmarts vision statement aims at provided quality products at low costs while maintaining sustainable production. In order to maintain its cost leadership strategy, Everyday Low Prices, Walmart is compelled to incorporate various negotiation strategies with its suppliers to purchase large quantities of products at lower prices. The bargaining power of suppliers in the retail industry is relatively lower due to the existence of numerous suppliers (Lianos Lombardi, 2016). These suppliers also engage each other in stiff competition in order to win the tenders and supply their goods to the retailers. Some of the suppliers are compelled to offer their products on a discount to attract retailers (Lianos Lombardi, 2016). Thus, this means that a retail company such as Walmart has an advantage over the suppliers and can influence their decisions significantly including their prices. The sheer size of Walmart is another factor that impacts its negotiation strategy with the suppliers (Chatterjee, 2017). Walmart is a leading retail company with over 11,000 stores in different countries and therefore, the company buys goods in bulk. This is quite attractive to suppliers hoping to conduct business with Walmart. Walmart can also switch between suppliers at minimal costs. However, Walmart deals with some large suppliers, and thus, it are important to implement an effective negotiation strategy. Walmart should capitalize on its relatively strong bargaining power to influence the suppliers prices. An important aspect of negotiation strategy is to ensure options; Walmart should have a list of its suppliers and conduct research on their history to determine their prices, reliability and the quality of their goods. Having options means that Walmart is not limited to a few suppliers and thus, this helps the company to appear strong instead of needy during its negotiations with suppliers (Wang, 2016). Ensuring diversity of the suppliers is also key in lowering the prices of goods. By having options, Walmart suppliers will most likely lower their prices to avoid losing the business opportunity. Walmart should also look at the bigger picture and instead of focusing on the suppliers aim at controlling the entire supply chain (Allen Burrell, 2015). Thus, Walmart should use its bargain power to control the costs of transport and reduce its expenses (Stump, Joshi Kim, 2015). This woul d allow Walmart to transfer its cost saving to the customers in terms of lower prices thereby enhancing customer loyalty. Walmart negotiation strategies should align with its mission and vision statement. It is therefore important for the company to develop positive relationships with the suppliers and empower them. Hence, Walmart should deviate from exploiting its suppliers as this can tarnish its reputation and have a negative impact on its business operations. Thus, when negotiating with suppliers, it is necessary for Walmart to bargain reasonably and set a non-exploitative minimum. Walmart should be socially responsible by offering its customers the best quality. Since Walmart has significant bargaining power over its suppliers, it should use it for the benefit of the customers. For instance, Walmart should set rules and regulations meant to control the quality of products supplied by the vendors (Wang, 2016). Thus, the company should conduct investigations on the production techniques used by the suppliers to ensure they are sustainable. By doing so, Walmart will help its suppliers minimize polluti on and conserve the environment. Lastly, Walmart needs to set up a negotiation team with the skills necessary to win over its competitors. Walmart should ensure that it clarifies its objectives to the suppliers (Allen Burrell, 2015). However, it should have realistic expectations to ensure its objectives are attainable. This would help the company ensure that the suppliers understand its vision and purpose and therefore, provide products that are in alignment with its goals. Walmart is a powerhouse, and thus, it has the capacity to make calls when dealing with its suppliers. However, effective negotiation strategies are necessary to meet its objectives. The above strategies would help Walmart to buy goods from its suppliers at relatively lower prices and thus, transfer that to the customers in terms of reduced prices. Walmart can also be able to secure goods on credit since it purchases in bulk. Walmarts negotiation strategies would also ensure that suppliers meet the company standards in terms of quality and timely delivery. Walmart should emphasize sustainable production of goods, especially groceries to safeguard the consumers. Walmart has strong bargaining power over its suppliers. As such, Walmart can easily switch between suppliers without having to incur losses. However, Walmart usually deals with large companies, and therefore, its bargaining power diminish slightly. Walmart should capitalize on its bargaining power to set explicit rules and regulations and force the suppliers to adhere to them at all times. This includes the need for sustainable production of goods in order to reduce pollution and prevent customers from including indirect costs in terms of effects of climate change. In order to strengthen its bargaining power, Walmart should have options and a negotiation team to make sure its objectives are clarified and communicated to the suppliers. However, although Walmart has considerably strong bargaining power, it should avoid exploiting its suppliers as this can damage its reputation and affects its sales negatively. Walmart goal should be to empower all its shareholders including suppliers a nd customers. Thus, its negotiation practices should be fair to all the parties. A key element in negotiation strategies is a clear purpose. Therefore, it is vital for Walmart to enhance its relationships with the suppliers. A successful negotiation strategy communicates the values of the organization to ensure all the parties understand what is required of them. However, the focus of Walmart should be control of its overall supply chain in order to reduce costs and transfer the savings to the customers by offering goods at lower prices compared to its competitors. This is crucial in attracting new customers and maintaining customer loyalty.

Power, Authority, and Influence Brandmarker Case Study. Essay

Power, Authority, and Influence BrandMarker Case Study. SUBMITTED BY: S. L. REAMS MGT302 :: Org. Behavior and Teamwork Module 2 – Case Assignment Trident University 05 August 2013 CEO Tom Morris and his team are about to face consequential challenges. The first obstacle that needs to be overcome by Tom Morris and his team is the replacement of the old head of the division, John Goodwin. Since the latter has spent his last ten years as head of the Corporate Identity Marketing Division, it may seem quite obvious that a change with regard to this position is not an easy one to get used to. It can be assumed that the CIM team has been growing stronger together over the last decade, not only on a performance†¦show more content†¦This unrest could affect employees on many varying levels. It may divide the workforce into two categories; those who support the change and those who prefer the current way of business which could possible lead to an 8% increase in employee dissatisfaction due to the breakdown of interpersonal relation between peers. (Chapman, nd) This could also change the company policies and administration, as well as a large quantity of the work itself. Thereby, leading to a possible 40% increase in employee dissatisfaction. If change is not made, the company does face a loss in prosperity and hindered growth. (Chapman, nd) Initially, Tom Morris needs to identify the risks and rewards of both courses of action in order to begin to find a solution. If the current working order is suitable and showing mediocre performance, then the need for immediate and drastic change is not completely necessary at this time. Therefore, leaving more time to delve further into the issue. I would also recommend to Tom, that he needs to sit and speak personally with his employees and try to understand the corporate change from their perspective and understand why it is that the employees resist change. There could possibly be factors that can be easily overlooked from the CEO chair. Once this is understood then its mandate depends on the future of the company to determine whether it is beneficial or detrimental. Tom could also

Case Study-Barclays Free Essays

BARCLAYS: MATT BARRETT’S JOURNEY – WINNING HEARTS AND MINDS I. DISCUSSION QUESTIONS, CASE INTRODUCTION AND KEY POINTS Introduction The case covers the introduction of Matt Barrett as CEO of Barclays and the changes he introduced to the organization to maintain its competitive position within the retail financial services industry. In an increasingly competitive environment, Barclays is losing ground due to its lack of data-driven actions and small global presence. We will write a custom essay sample on Case Study-Barclays or any similar topic only for you Order Now The case outlines the actions taken by Barrett to transform some of the key characteristics of Barclays’ corporate structure, and concludes by presenting the challenge he will face in getting management buy-in in order to implement his vision. The key challenges that Barclays faces include: market consolidation, the emergence of the Euro and European Central Bank, increased reliance on IT and web-based platforms, and the rigidity of its own corporate structure. II. EXTERNAL ENVIRONMENT ANALYSIS Summarize the external environment, including conditions in the general, industry, and competitor environments. a. The General Environment Definition: The general environment is focused on the future and can be analyzed by considering the STEEP framework: Social/demographic, Technological, Economic, Environmental/geographic and Political/legal/governmental factors at play. 1. 2. 3. 4. 5. Social/Demographic Technological Economic Environmental/Geographic Political/Legal/Governmental Discussion Question 1: Perform a STEEP analysis to understand the general environment facing Barclays. How will Barclays be affected by external factors? In particular, what will the effect of globalization be in terms of threats and opportunities? Social/Demographic Segment ? English is becoming increasingly the world-wide language of business offering Anglophone Barclays opportunities to expand into international markets with reduced language barriers. BARCLAYS |1 BARCLAYS: MATT BARRETT’S JOURNEY – WINNING HEARTS AND MINDS Technological: ? ? ? Increased world-wide reliance on IT and the emergence of web-based solutions in 2000 will elevate Barclays’ need to diversify portfolio offerings. Barclays’ must update its â€Å"woefully inadequate† Management Information Systems (MIS) and begin to automate labor intensive processes to reduce costs. In order to enter new markets to increase revenues and satisfy institutional investors, Barclays must invest in increased technology capabilities. Economic: ? ? ? Robust economic environment due to tech boom will increase liquidity in the marketplace. As a result, acquisitions will be more costly than in a down economy. However this will also cause capital to be more accessible. Market trends towards consolidation will pressure Barclays to regain its industry leadership position through acquisition. Globalization and world economy flattening will require Barclays to become a global company expanding its offerings beyond its current UK focus. Environmental/Geographic: ? Geographic borders and distances between countries are shrinking with increased technology and a globalized economy. This will both require and facilitate Barclays’ global presence. Political/Legal/Governmental: ? ? Emergence of the Euro and strengthening of the EU will reduce FX exposure for the European markets and stabilize European economies. European Central Bank will control interest rates in Europe making Barclays more vulnerable to its decisions (versus the decentralized banks prior to the Euro emergence). With an ever increasing number of banks operating across both political and geographic borders, Barclays must expand its reach beyond the UK to remain competitive and avoid a potential takeover. In doing this, Barclays must consider a set of threats and opportunities that are involved with operating outside the UK: Threats 1. Operating a multinational corporation involves managing across multiple cultures, languages, and economic environments – Barclays’ organizational structure must be flexible enough to adapt to these. . Low brand recognition internationally would make competition against local institutions costly. BARCLAYS |2 BARCLAYS: MATT BARRETT’S JOURNEY – WINNING HEARTS AND MINDS 3. Relocation abroad requires high infrastructure costs. 4. Locating Barclays’ and its customers’ assets across multiple currencies exposes both to fluctuations in exchange rates. 5. Failed expansion into foreign market might damage brand image and alienate n ew customers. Opportunities 1. Increased global reach and brand presence. 2. Diversified risk. 3. Possibility to create new revenue streams through new customer acquisition. 4. Gain first mover advantage in emerging markets. 5. Increases attractiveness of Barclays to multinational corporations. b. The Industry Environment Definition: An industry is a group of firms producing products that are close substitutes. In the course of competition, these firms influence one another. Typically, industries include a rich mixture of competitive strategies that companies use to pursue above-average returns. In part, these strategies are chosen because of the influence of an industry’s characteristics. Compared with the general environment, the industry environment often has a more direct effect on the firm’s strategic competitiveness and above-average returns. The industry environment is the set of factors that directly influences a firm and its competitive actions and competitive responses. Porter’s 5 Forces Model is a powerful tool for understanding the dynamics amongst the five key factors that determine an industry’s level of rivalry and profit potential. [Outlined below, High=H; Medium=M; Low=L] 1. 2. 3. 4. 5. Threat of New Entrants (or barriers to entry) Supplier Power Threat of Product Substitutes Buyer Power Intensity of Rivalry Discussion Question 2: Use Porter’s Five Forces Model to analyze the retail financial services industry in the UK. Given this analysis, is the industry attractive or unattractive? The below Porter’s 5 forces analysis shows that the retail financial services industry in the UK is a potentially attractive industry due to low threat of new entrants, supplier power, and substitutes. On the other hand, medium buyer power and high rivalry within the industry could inhibit return possibilities. Threat of New Entrants (or barriers to entry): Low ? ? High infrastructure costs Barclays has high brand recognition within the UK, less so in its other markets BARCLAYS |3 BARCLAYS: MATT BARRETT’S JOURNEY – WINNING HEARTS AND MINDS ? ? Regulatory and security issues make market entry complicated for smaller players NOTE: Mergers of existing banks, if considered ‘new entrants’, must be addressed given the consolidation trend existing in the market. Smaller regional banks could pull customers away from Barclays if they were to merge and offer more extensive services but retain local roots and connections. Supplier Power: Low ? Switching costs among IT suppliers low in a fragmented industry Threat of Product Substitutes: Low ? Traditional, paper based, systems have become outdated and are no longer feasible. Asset management advice is preferred by customers over DIY Buyer Power: Medium ? ? Price sensitivity of retail consumer (major revenue stream for Barclays) relatively high compared to that of corporate client Switching costs of retail consumer (major revenue stream for Barclays) relatively high compared to those of corporate client Intensity of Rivalry: High ? ? Customer loyalty and brand recognition make switching of banking provider less likely Large number of competitors within the retail banking space NOTE: Competition within the industry is based on both price and services The Competitor Environment c. Definition: The competitor environment is the final subject of analysis required to gain a full understanding of the company’s external environment. A competitor analysis focuses on each company against which a firm directly competes and involves gathering and interpreting information about its competitors. Competitive rivalry is the ongoing set of competitive actions and responses that occur among firms as they maneuver for an advantageous market position. Especially in highly competitive industries, companies constantly jockey for advantage as they launch strategic actions and respond or react to rivals’ moves. It is important to understand competitive rivalry because it influences a firm’s ability to gain and sustain competitive advantages. 3 I’s Framework Leveraging the 3 I’s framework provides a thorough overview by grouping competitors into three buckets: immediate competition, impending competition, invisible competition. BARCLAYS |4 BARCLAYS: MATT BARRETT’S JOURNEY – WINNING HEARTS AND MINDS 1. Immediate Competition: Immediate competitors to Barclays are considered to be the major financial institutions located in the UK such as Lloyds TSB and RBS. These institutions are gaining increasing presence over Barclays due to their lower cost structures and improved efficiencies. 2. Impending Competition: Impending competitors to Barclays include international financial services firms such as Credit Suisse First Boston, and smaller firms operating in one of Barclays’ business categories such as investment advisory firms (Zoete Bevan, Wells Fargo Nikko). . Invisible Competition: Barclays’ invisible competitors include smaller UK based businesses that focus solely on a product offered by one of Barclays’ divisions, such as smaller mortgage lending businesses (Woolwich). III. INTERNAL COMPANY ANALYSIS Summarize internal company factors including: capabilities and weaknesses, value chain activities, strategy, and financial situation. a. Outline the company’s internal capabilities and weaknesses. Definition: Capabilities exist when resources have been integrated to achieve a specific set of tasks and are frequently developed within a specific functional area. In addition to identifying the company’s opportunities and threats from the external environment, another important objective of the situation analysis is to evaluate strengths and weaknesses as input for developing the company’s strategies. Discussion Question 3: What are the main capabilities of Barclays? Does Barclays have a core competence? Barclays’ main capabilities include retail financial services and corporate banking within the UK. The company’s core competencies (i. e. trengths relative to competitors that give it a competitive edge) include: a strong brand presence within the UK, a strong domestic franchise, new innovative leadership under Matt Barrett, and outstanding (276%) market cap growth from 1995-2000. BARCLAYS |5 BARCLAYS: MATT BARRETT’S JOURNEY – WINNING HEARTS AND MINDS Discussion Question 4: Create a SWOT analysis to understand Barclays’ strengths and weaknesses. Does Barclays have a sustainable competitive advan tage in the retail financial services industry? If so, what is the source? Strengths 1. Strong brand presence within UK 2. 76% growth in market cap from 19952000 3. Strong domestic franchise 4. Strong new leadership with strategic vision (Matt Barrett) Opportunities 1. Opportunity to expand into global markets (Barclays Global Investors only 2% of business) 2. Ability to strengthen existing brand presence within Europe (10% of sales and profits) 3. Streamline cost sharing among business units (HR, IT, Finance, etc. ) Weaknesses 1. Cost to income ratio significantly higher than competition (business units operate as silos) 2. Narrow focus (61% of revenue from RFS, capital division focused on debt products) 3. Limited global presence (80% of profits from UK) Threats 1. Management reluctance to embrace new strategies, demoralized staff 2. Competitors have lower cost advantage 3. Stronger global presence of international competitors 4. Dissatisfied institutional investors 5. Inadequate IT systems can inhibit growth Barclays’ competitive advantage includes its: strong presence within the UK market both in terms of locations and brand recognition, strong innovative leadership, and international presence. Barclays’ business strategy has focused on growth within the UK and has not invested enough capital into international expansion. In a globalizing economy with rising multinational financial corporations, the lack of a strong international presence is something that could significantly hurt Barclays in the long-term, and even turn it into a takeover target as institutional investors continue to lose faith in the company. b. Conduct a Value Chain analysis to identify value-creating activities. Definition: By exploiting its core competencies, a competitive firm creates value for its customers. Value is measured by a product’s performance characteristics and by its attributes for which customers are willing to pay. Companies with a competitive advantage offer value to BARCLAYS |6 BARCLAYS: MATT BARRETT’S JOURNEY – WINNING HEARTS AND MINDS customers that is superior to the value competitors can provide. Value is created by innovatively bundling and leveraging resources and capabilities. A value chain analysis provides information relative to primary (inbound/outbound logistics, operations, marketing sales, and service) and secondary (firm infrastructure, human resources mgmt, technological developments and procurement) activities. A value chain representation of Barclays’ primary and support activities is presented in the diagram below. This information can be used to establish a business strategy which targets select activities to create a sustainable competitive advantage. Primary Activities ? ? ? ? Inbound/Outbound Logistics: N/A Operations: o Strong focus on Retail Financial Services (RFS), account for 61% of revenue o Sold cash, equities, and corporate finance businesses to focus on debt products Service: N/A Marketing and Sales: o Strong focus on UK market and low global presence o Reliance on UK brand recognition Support Activities ? ? ? HR Management: o Executive committee not performing as decision making team o Higher than average staff expenses put heavy strain on cost structure Technology Development: o Management Information Services (MIS) system is outdated and inadequate Firm Infrastructure: BARCLAYS |7 BARCLAYS: MATT BARRETT’S JOURNEY – WINNING HEARTS AND MINDS o Divisions operating as silos (each has own HR, IT, etc. ) o Lack of data driven decision making processes o Introduction of the Euro and the European Central Bank affect Barclays’ exposure to foreign exchange as well as interest rate changes both for the company itself and its clients Procurement: N/A Discussion Question 5: Which components of Barclays’ value chain have made the company successful thus far? What changes to Barclays’ organizational structure and focus are necessary for Barclays to remain competitive? Barclays has become a major player in the banking industry through strong brand presence within the UK, earning it one out of every five personal customers, and a clear focus on Retail Financial Services (RFS). However, both its UK presence and RFS focus have failed to provide a sustainable competitive advantage for the company. In order to remain competitive within the banking industry, Barclays must examine and redesign various components of its value chain including: 1. Focus on Retail Financial Services: a. Barclays must expand its focus beyond RFS by creating new product offerings for corporate customers and further expanding internationally to give newly acquired corporate customers global access. 2. Outdated and inadequate MIS system: a. In order to manage its internal functions efficiently, Barclays must adopt technological innovations and update its MIS system. 3. Lack of data driven decision making: a. In order to compete in an industry driven by statistics and analytics, Barclays must emphasize data driven decisions throughout its corporate structure. 4. Fragmented core divisions: a. Operating fragmented core divisions such as HR and Finance creates additional costs as well as bureaucracy and inefficiencies. Barclays must consolidate these shared services. BARCLAYS |8 BARCLAYS: MATT BARRETT’S JOURNEY – WINNING HEARTS AND MINDS c. Financial Analysis Definition: Financial analysis is used to assess the viability, stability and profitability of a company or operating division. The analysis is done using quantitative historical performance found in the financial reporting documents (Balance Sheet, Income Statement, and Statement of Cash Flows). The goal of the analysis is to understand a company’s financial health through its profitability, solvency, liquidity, and stability. Given the financial information provided in the case, it is clear that Barclays is lagging behind its competitors in cost control measures, and has allowed both PPE and Staff Expenses to rise above its competitors’ average. Operating expenses as % of income In addition, an analysis of the company’s divisions and their respective earnings contribution reveals that Barclays heavily relies on its Retail Financial Services division for a large portion of its earnings; this suggests that diversification might be needed. NOTE: Further analysis into the average contribution of each revenue stream for other players in the industry is needed before diversification can be en tirely justified. BARCLAYS |9 BARCLAYS: MATT BARRETT’S JOURNEY – WINNING HEARTS AND MINDS IV. STRATEGY FORMULATIO N Summarize Barclays’ strategic position as it relates to its current strategy and the components thereof. a. Summarize Barclays’ current strategy. Barclays’ current strategic objective is to drive profits by consolidating internal functions and expanding its international presence. The company is a major player in the UK financial services and retail banking industry but has lost ground internationally despite rapidly rising market capitalization. Fragmented internal divisions and a lack of aggressive expansion have brought up the need for extensive managerial and structural changes to the firm. This prompted the hiring of a new CEO, Matt Barrett, who established a series of restructuring goals for Barclays to remain competitive. b. Strategic Analysis Definition: Conduct an analysis of Barclays’ business strategy by using the 4 P’s Framework. The 4 P’s Framework is used to understand a company’s strategy based on its Position (Mission, Values, and Vision), Priorities, Payments (what it will spend its money on to reach those priorities), and Performance (how it will measure success). By completing the framework, we can analyze a company’s current, future, or recommended priorities as well as set forth a path in order to achieve goals and measure accomplishments. Use the 4 P’s Framework to analyze the firm’s past/current/future strategy. 1. Position a. Mission: To provide innovative products, excellent careers, positive community contributions B A R C L A Y S | 10 BARCLAYS: MATT BARRETT’S JOURNEY – WINNING HEARTS AND MINDS b. Values: Fact based decisions, customer service, and value maximizing strategy c. Vision: To be one of the most admired financial service organizations in the world 2. Priorities: 1. Develop cross-group synergies to lower costs and improve efficiency 2. Expand reach of Barclays brand abroad through strategic alliances/acquisitions 3. Continue to diversify existing business portfolio 3. Payments: 1. Invest in adequate IT systems 2. Invest in human capital initiatives to align incentives and boost morale 3. Invest in marketing and strategic alliances/acquisitions in underserved regions/segments 4. Performance: 1. Shareholder returns vs. peer institutions 2. Customer and revenue growth (double profits in four years) 3. Increased profit due to lower costs and increased efficiency (reduce costs by ? 1bn) Discuss possible recommendations that Barclays could follow going forward to improve the performance of the company. Determine the decision criteria and also analyze the pros and cons of each recommendation. In order to remain competitive within the marketplace, Barclays must: 1. i. ii. iii. 2. i. ii. 3. i. ii. iii. Develop cross-group synergies to lower costs and improve efficiency by: Rebuilding core infrastructure to consolidate HR, IT, and Finance groups across individual divisions Reducing costs by 18% (? bn) Realigning incentives to reward value-add decisions; Expand Barclays brand abroad though: Increased brand presence in Europe to enter top 5 ranking Strengthening of the brand in US and Africa; Continue diversifying the existing business portfolio by: Expanding Barclays product and service portfolio to strengthen weak or underrepresented areas to serve affluent/high net worth segments Decrea sing reliance on Retail Financial Services by strengthening Barclays Capital and Barclays Global Investors divisions Entering new markets by acquiring major players (e. g. Woolwich). B A R C L A Y S | 11 BARCLAYS: MATT BARRETT’S JOURNEY – WINNING HEARTS AND MINDS Question Reduce staff expenses Option / Hypothesis Reduce labor costs by increasing automation Decision Criteria ? Cost/Benefit analysis ? Effect on employee morale ? Technology capabilities ? Revenue growth ? Barriers to entry ? Effect on current resources ? Revenue Pros †¢ Long term cost reduction †¢ Streamlining of processes †¢ More control over information flow and analysis †¢ Does not cannibalize existing revenue streams †¢ Increase global reach and brand presence †¢ Diversifies risk †¢ Existing customer loyalty and brand presence †¢ No need for customer acquisition Cons †¢ High up-front cost †¢ Lengthy implementation period †¢ Technology risk †¢ Negative effect on employee morale †¢ High cost †¢ High risk and FX exposure †¢ No trial period †¢ Culture clashes, integration logistics †¢ Might stretch resources too thin †¢ Requires investment in infrastructure and human capital †¢ Requires new expertise Diversify target markets Increase revenue through new market entry with current product suite Diversify product offerings Increase equity and investment banking focus of Barclay Capital division growth ? Barriers to entry ? Effect on current resources B A R C L A Y S | 12 How to cite Case Study-Barclays, Free Case study samples

Motivation and Self-managed Work Teams free essay sample

?External Locus of Control Individuals with a belief that what happens to them is due to luck or chance. The belief that events in one’s life, whether good or bad, are caused by uncontrollable factors such as the environment, other people, or a higher power. Which Factors influence perception? Attitudes Moods Motives Self-Concept Interest Cognitive Structure Expectations Perception is: A process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment. Terminal Values: Prosperous Life, Exciting Life, Accomplishment, Pleasure, Equality, Friendship What Is Important to Managers: Sense of Accomplishment, equality, and Self-Respect According to Rokeach, Terminal_____ values refer to desirable end-states of existence. Instrumental Values: Ambitious, Broadminded, Capable, Cheerful, Clean, Honest, Responsible Hard working-broadminded, capable. What are intrinsic factors of motivation? Internal desires to perform a particular task, people do certain activities because it gives them pleasure, develops a particular skill or its morally the right thing to do. Examples: Achievement, Recognition, Work Itself, Responsibility, Advancement, Growth. What are extrinsic factors of motivation? Factors external to the individual and unrelated to the tasks they are performing. Examples include: Policy and administration, Supervision, Relationship with supervisor, Work conditions, Salary, Relationship with peers Motivational factors are intrinsic factors, like advancement, recognition, responsibility, and achievement, that are directly related to job satisfaction. The absence of motivational factors does not cause dissatisfaction; rather, a state of neutrality. Cognitive evaluation theory A version of self-determination theory which holds that allocating extrinsic rewards for behavior that had been previously intrinsically rewarding tends to decrease the overall level of motivation if the rewards are seen as controlling Motivation: any internal condition, although usually an internal one, that initates, activates, or maintains an organisms goal directed behavior. Self-determination Theory : a theory of motivation that proposes that three basic, organismic needs (competence, autonomy, and relatedness) characterize intrinsic motivation. Motivation that focuses on 5 levels of needs? Maslow’s Hierarchy of Needs: (low to high) Self-Actualization, Esteem Needs, Social Needs, Safety Needs, Physiological Needs. McClellands Theory of Needs: 3 NEEDS : states that workers are motivated by three needs: need for achievement, need for power, and need for affiliation. The most successful managers will have an appropriate fit between their job and their dominant need. Equity Theory: Individuals compare their job inputs and outcomes with those of others and then respond to eliminate any inequities. -a theory that attempts to explain relational satisfaction in terms of perceptions of fair/unfair distributions of resources within interpersonal relationships Goal Setting Theory: This theory states that goal setting is essentially linked to task performance. It states that specific and challenging goals along with appropriate feedback contribute to higher and better task performance. a theory that states that people will be motivated to the extent to which they accept specific, challenging goals and receive feedback that indicates their progress toward goal achievement. Self-efficiency and Goal commitment Specific and clear attainment of goal According to the goal-setting theory of motivation, goals should be difficult but attainable Five Stage Group Development- Forming Uncertainty stage Storming Intragroup conflict Norming Cohesiveness, relationships develop Performing Fully functional Adjourning Wrap up, prepare to disband Group Role: A set of expected behavior patterns attributed to someone occupying a given position in a social unit. Group Norm: Acceptable standards of behavior within a group that are shared by the groups members Role Identity: refers to the attitudes and behaviors that are consistent with a role Role expectations: describe how others believe you should act in a given situation.. common class of norms appearing in most work groups: Performance norms, Appearance, Arrangement. Define Work Group and identify how it interacts : A group that interacts primarily to share information and to make decisions to help each group member perform within his or her area of responsibility. summation of each group members individual contribution. Goal Share information Synergy -Neutral (sometimes negative) Accountability Individual Skills Random and varied Group cohesiveness can be increased by doing what? 1. make the group smaller 2. encourage agreement with group goals, 3. increase the time members spend together 4. increase the status of the group and the perceived 5. difficulty of attaining membership in the group 6. stimulate competition with other groups, 7. give rewards to the group rather than to individual members 8. physically isolate the group Formal Group: A designated work group defined by an organizations structure. a group in which the structure, goals, and activities of the group are clearly defined Informal Group: a group that managers or nonmanagerial employees form to help achieve their own goals or meet their own needs Problem –Solving Name the 4 most common types of teams in an organization. problem-solving teams- only make recommendations (5-12 team members) 2. self- managed work teams- solve problems but implement solutions and take responsibility for outcomes. (10-15 members) 3 cross-functional teams -employees from about the same hierarchical level but different work areas, who come together to accomplish a task. 4. virtual teams- use computer technology to unite physically dispersed members and achieve a common goal. Brainstorming: a group problem-solving technique in which members sit around a let fly with ideas and possible solutions to the problem Problem-Solving Teams: groups of 5 to 12 employees from the same department who meet for a few hours each week to discuss ways of improving quality, efficiency, and the work environment Cross-Functional Teams: Employees from about the same hierarchical level, but from different work areas, who come together to accomplish a task Virtual Teams: teams that use computer technology to tie together physically dispersed members in order to achieve a common goal Organizational demographythe degree to which members of a work unit share a common demographic attribute, such as age, sex, race, educational level, or length of service in an organization, and the impact of this attribute on turnover. What is the advantage of a non-cohesive group? When performance norms are low, productivity may be higher than a cohesive group. 4 Key Components of effective teams: 1 . Context -adequate resources, effective leadership, a climate of trust, and a performance evaluation and reward system 2. Composition -the ability and personality of team members, allocation of roles and diversity, size of the team, and members preference for teamwork. 3. Work Design autonomy, skill variety, task identity, task significance 4. Process member commitment to a common purpose, establishment of specific team goals, team efficacy, a managed level of conflict, and minimized social loafing. Social Loafing: The tendency for individuals to put forth less of an effort when working in a group than when working alone. the tendency for people in a group to exert less effort when pooling their efforts toward attaining a common goal than when individually accountable Group Think: occurs within a group of people, in which the desire for harmony or conformity in the group results in an incorrect or deviant decision-making outcome. Group members try to minimize conflict and reach a consensus decision without critical evaluation of alternative ideas or viewpoints, and by isolating themselves from outside influences. The act or practice of reasoning or decision-making by a group, especially when characterized by uncritical acceptance or conformity to prevailing points of view decision making by a group (especially in a manner that discourages creativity or individual responsibility) Work Team: a group of people with complementary skills who are committed to a common mission, performance goals, and approach for which they hold themselves mutually accountable. Self-Managed Work Teams: groups of 10 to 15 people who take on responsibilities of their former supervisors Define WORK TEAM and identify how it interacts. A group whose individual efforts result in performance that is greater than the sum of the individual inputs. potential for an organization to generate greater outputs with no increase in inputs. Goal Collective performance Synergy -Positive Accountability Individual and mutual Skills Complementary Synergy is an attribute of work teams which results in a level of performance that is greater than the sum of the individual inputs. A company switched from assembly lines to self-managed work teams. What can team members do to improve the synergy and success of their teams? Assign individual roles rather than mutual team roles Organizational Culture: Advantages of a Strong O. C. : 1. provides stability to an organization, 2. ees have the same opinions about the orgs mission and values as leaders, 3. the orgs core values are both intensely held and widely shared. 4. should reduce ee turnover because it demonstrates high agreement about what the org represents -unanimity of purpose builds cohesiveness, loyalty, and organizational commitment. 5. less of a need for mgmt to be concerned with developing formal rules and regs to guide ee behavior. What does a positive organizational culture emphasize? building on employee strengths, rewards more than it punishes, and emphasizes individual vitality and growth. 7 primary characteristics of an organizations culture: 1. Innovation and risk taking 2. Attention to detail 3. Outcome orientation. 4. People orientation 5. Team orientation 6. Aggressiveness 7. Stability Organizational culture is descriptive, whereas job satisfaction is evaluative. When does an organization experience culture creation success? the founders personality becomes embedded in the culture. How do organizations transmit their culture to their ees? 1. stories (history), 2. rituals (repetitive activities of key values), 3. material symbols (what is important), and 4. language ( acronyms and jargon)