Case Study: Barclays Bank of Uganda Limited
The ecosystem that Barclays has embarked on is based on the development of the people and business development ease in the nation that makes the investments as well free flow of skilled labour available to ensure long term durability. Without the fixed business development agenda a bank can’t survive. Bank of Uganda which is the Central bank has created a great system of its internal ecosystem development which would enable it for a longer time to stay and play in the market. Therefore, new businesses have to be brought in along with a boost of the local businesses which would make the long-term business financial needs stay for the bank to be sustainable in the long term. This means that the clients depositing the money have to increase for the banks to generate the industrial loan amounts based on which the clients would be given interest on their deposits. However, the development of the long-term idea for sustainability is yet to be surely reached. The business has incorporated a pan-African venture solution which is to make the business have a strong hold in other markets as well even if the business at Uganda fails (Bank of Uganda, 2016).
Barclays Bank of Uganda needs to develop its internal capability to generate the local funds to generate funding for Small and medium sized businesses at home while also draw Foreign direct investments for the business to create large corporate stay and continue the business in the nation for the smaller enterprise to thrive and sustain. The future of the Ugandan economy is very much interlinked with Barclay’s business. The more the business grows in volume and number the more the opportunity for the futuristic action preparation for the business. The future is in the hands of the larger businesses being set and run out of Uganda where the Barclay’s can be the financer with the confidence of getting a great return for better profitability. The Natural resources of Uganda along with its cheap labour is the most attractive attribute that it may show to the global business forum to generate greater business attraction for the nation. More the businesses come in to generate low-cost products in the economy for exports outside for greater margins it would help the internal economy of the nation to see rapid growth. The limitations would stay till the economy doesn’t create the right workforce and business environment to attract businesses from outside. So the future strategies of the business have to be well calculated and well designed. The pan-African presence means that the business can recruit from various places for the right candidate. Further, the nation speaks and understands English which may be an advantage for the English speaking workforce to further develop the business. The target market of the bank has to expand making people of all strata and geographical locations come and join the business stream herein (Barclays, 2017).
The competitive forces are there as well which threats in Uganda, and its African ventures are. This can be met if the business plans and directs its activities with efficiency and making certain leverage from the government to keep the competition in check. Nevertheless, the competition determines the best market positioning and strengths. Therefore, a joint effort by the multiple financial organizations to develop the needful education, skill development as well as resource identification can be made to send it to the interested people or investors all across the globe to find the genuine scope in a market not yet exploited properly. Investors learning program along with the development of skills through government partnership would be the justified way for the businesses ahead (Dyer, 2005).
A good bunch of competitive force attraction also means that the business has succeeded in its agenda to draw investors and investments from fresh fronts. The gathering of other such financial institutes means that the market attractively has reached the target audience who are well prepared to do what is needed to be done. The need for such creation of demand is to bring in the needed velocity of the systems in the business activities. This would, in the long run, help the business growth and targeted business margins. The aid of the people in the job or business has made the application successful to bring in new ventures which would help the business along with its competitors in the long run. The creation of wealth by the consumers would help the bank to grow and sustain (Stanbic Bank Uganda Limited, 2013).
Reference
Bank of Uganda, (2016). ‘Annual Supervision Report December 2015. Kampala: Bank of Uganda.’
Barclays Bank of Uganda Ltd. (2017). ‘Archive.barclays.com.’ Available at: https://www.archive.barclays.com/items/show/5358 (Accessed 20/02/2017).
Dyer, G. (2005). The Importance of Vision and Sustainability at Ford…. [online] Strategiesforsustainability.blogspot.in. Available at: http://strategiesforsustainability.blogspot.in/2005/11/importance-of-vision-and.html (Accessed 19/03/).
Stanbic Bank Uganda Limited, (2013). Let us show you Uganda. Annual report For the year ended 31 December 2012. Stanbic Bank Uganda Limited.
POST TWO
Adidas Group – Sports Industry External Environment & Stakeholders Analysis
In this shared activity I will attempt to define the forces shaping the sport industry in which AG operates. The formulation of a strategy needs to stem from an attentive and comprehensive analysis of the environment or industry in which the company exists (Porter, 2008). The inherent complexity of the macro environment is the fundamental reason companies find difficult to determine the relevance of the variables that might directly or indirectly affect the company strategy. Therefore, organizations must assess the microenvironments with a selective approach to establish impact levels, and the likelihood of the events identified and for which the selection of the right framework is critical (Pitt & Koufopoulos, 2012). The general ecosystem is dynamic and therefore scanning the external environment needs continuous review: new elements might emerge whose relevance might require reconsidering new risks and opportunities.
The framework I will adopt for this analysis is the Scanstep (Pitt & Koufopoulos, 2012) to account for and capture the main ecosystem issues and drivers. Each element of the Scanstep framework is linked to each other, and at times overlapping or blurred lines among them are possible. The stakeholder analysis will also be part the scanstep matrix to be able to appreciate the relevance and relationship of the factors identified. In turn, this approach will help to target specific actions to reduce exposure and better manage expectations and relationships.
Social
Some of the social aspects I believe being more relevant to the sport industry are related to customers main indicators: disposable income, lifestyles and demographics. Macquarie Research (2016) has observed how growing wealth over the last few years and growing middle class in emerging countries are contributing to the revenue growth of sports manufacturers. More awareness of health and fitness is another element that can affect customer choices and behaviors. However, two contrasting elements are emerging in modern societies that can impact an organization like AG. A survey carried out by PWC (2016) highlights that while there is growing engagement and participation in sporting activities, at the same time sedentary habits and unhealthy eating are contributing to increasing obesity levels. Demographics are of particular relevance because sport activities require physical dynamism. PWC (2016) reveals that while an aging population raises some concerns for the future profitability sportswear companies, there is no full agreement on what the impact might be.
Cultural
Unethical conduct and integrity are of particular relevance to AG business partners. These issues can arise when the sensitivity of a particular cultural group is hurt by unacceptable behavior displayed by athletes, clubs, and federations associated with AG through a formalized business relationship. Cultural friction caused by business partners can have a negative reputational impact for AG and what its brand stands for. The wider sport ecosystem has suffered some setbacks over the last few years due to doping scandals and corruption affecting various sport disciplines and governing bodies. According to PWC (2016) those events are eroding trust in the sport industry amongst customers thus potentially negatively impacting AG as a business operating in this environment.
Authority
Customs and taxation can translate in financial fines but also in reputational damage that can have greater cost than the one associated with direct penalties: negative media coverage and the perception of adverse practice might require significant company resources to be counteracted. Environmental Regulation, Industry Specific Legislation Labor Laws/Regulation can also lead the company temporary or permanent ban to operate in certain jurisdictions. National Governments are the general ecosystem active agent in reason of their ability to can affect the regulatory environment and shape the industry as a consequence. Suppliers are affected by government regulations as they need to adjust to comply. Employees can benefit from some regulations aimed at enforcing mandatory minimum working standards thus determining improved safety criteria, limiting the working hours, guaranteeing minimum rights and wage conditions.
Natural Environment
Adidas Group (2017) recognizes that declining levels of non-renewables resources can impact sourcing, production and manufacturing costs. Suppliers are the stakeholders directly affected by environmental voluntary and legislative regulations. Ethical groups with a strong environmental purpose can also tarnish AG brand image should the company be found out to be lacking attention to minimizing pollution, waste and resources utilization. AG strives to implement and embed sustainability practices across the whole value chain by setting stringent targets and continuous performance reviews and voluntary disclosure and participation by adhering to international recognized standards, institutions and programs (Adidas Group, 2017).
Security
Main foreseeable security risks can be related to the theft of company-wide data, leakage of sensitive information and breach of the IT systems that have the potential of compromising the company operations or damage the company reputation. Deloitte (2016) research points out that cyber security risks are going to be one of the major issues companies are going to be faced with in the foreseeable future in reason of the ongoing growing digital transformation that is extending IT vulnerability in many business areas. Employees, shareholders, and suppliers are the stakeholders that are most exposed to the cyber security threats.
Technology
Technology developments can be disruptive as businesses are scrambling to identify and embed innovation across the whole value chain to stay relevant. Automation in the manufacturing processes can help to cut down costs, improve speed to market, and stimulate demand through innovative design (Macquaire Research, 2016) In that suppliers can benefit from improved manufacturing processes; customers can enjoy better products. However, the factories workforce might suffer as a consequence of automation taking over existing manual tasks.
Economic
A positive Economy outlook plays a significant in the sport industry in boosting consumer confidence and spending. The global economy of the last few years has been characterized by general uncertainty, and this has made the profitability in the sport industry more challenging. Interest rates can impact an organization liabilities. AG strategy is to pursue surplus cash flow to reduce financial exposure to the possible interest rates variability (Adidas Group, 2017). This strategy needs to compound with the general macroeconomic situation of the last few years that has seen low-interest rates in the main AG markets: North America and Europe. Exchange rates assume a particular significant for companies operating on a global scale. In AG sales are denominated in euros while sourcing and distribution in dollars. The main Implication of this difference is the significant loss of revenue in light of the stronger dollar thus directly affecting shareholders’ interests.
Political
Governments play a pivotal role in influencing the political landscape shaping the sport industry. The political orientation of countries can positively contribute to the sports industry by promoting sports events and investments in sport facilities and infrastructures. This is the case in emerging countries like China, Saudi Arabia and Qatar where the sport sector is growing rapidly because sport has been incorporated in the government’s strategic plan (RSR Partners, 2014). Conversely, countries can adversely impact global sports businesses by advocating nationalization policies that might create regulatory uncertainty, create an unfair competitive advantage in favor of local businesses and raise trade barriers.
Future Strategic actions and recommendations.
The useful insights emerged from the Scanstep analysis describes that Adidas future strategic direction needs to focus beyond the product and revenues. AG strategy needs to integrate key elements in its activities to reduce risks and leverage opportunities existing within the wider ecosystem in which the company operates. Innovation needs to be accelerated through a comprehensive digital transformation to offer more customer engagement and more relevant products through increased speed to market and new technology capabilities. A sustainability and compliance framework (Eccles and Serafeim, 2013) is paramount to support innovation and to ensure cultural, social, political and environmental aspects are embedded in the company DNA and mindset. This strategic approach should be designed to satisfy shareholders long term interests, meet ethical groups and national government expectations, improve employee’s well-being and maintain people emphasis to attract talents and expertise. It is only then that AG can prove resiliency across economic cycles and the dynamics taking place in the industry landscape to ultimately sustain long-term growth and profitability.
References
Adidas Group (2017) Adidas 2016 Annual Report. Available at: http://www.adidas-group.com/media/filer_public/a3/fb/a3fb7068-c556-4a24-8eea-cc00951a1061/2016_eng_gb.pdf (Accessed: 23/03/17)
Adidas Group (2017) 2015 Sustainability Progress Report. Available at: http://www.adidas-group.com/media/filer_public/9c/f3/9cf3db44-b703-4cd0-98c5-28413f272aac/2015_sustainability_progress_report.pdf (Accessed: 23/03/17)
Deloitte (2016) Deloitte’s sports industry starting lineup. Available at: https://www2.deloitte.com/content/dam/Deloitte/us/Documents/consumer-business/us-cb-deloittes_sports_industry_starting_lineup_2017_final.pdf (Accessed: 23/03/17)
Eccles, R. G., & Serafeim G. (2013) The Performance Frontier: Innovating for a Sustainable Strategy. Harvard Business Review, Available at: https://cb.hbsp.harvard.edu/cb/pl/22461329/22685708/5e426b61506d6979573f8c0377148b19, (accessed: 24/03/17)
Macquarie Research (2016) Faster, richer, healthier: the growth of sporting goods. Available at: http://www.macquarie.com/ch/corporate/expertise/healthy-lifestyle-growth-of-revenue (Accessed: 23/03/17)
Pitt, M., & Koufopoulos, D. N. (2012) Essentials of Strategic Management, London: Sage
Porter, M. (2008) The Five Competitive Forces That Shape Strategy. Harvard Business Review, Available at: https://cb.hbsp.harvard.edu/cb/pl/22461329/22461607/0c6a0bd2cc0d082446d2cd90de5e50b3, (accessed: 24/03/17)
PWC (2016) PwC’s Sport Survey 2016. Available at: https://www.pwc.ch/en/publications/2016/PwC_Sports_Survey_Aug%202016.pdf (Accessed: 23/03/17)
RSR Partners (2014) The Global Sport Ecosystem. Available at: http://www.rsrpartners.com/wp-content/uploads/2013/02/RSR-Partners-Global-Sport-Ecosystem.pdf (Accessed: 23/03/17)


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