This report explores the global business environment and its impact on Lloyd's bank performance. It includes a PESTLE analysis to identify the external factors affecting the bank. The analysis covers political, economic, social, technological, legal, and environmental factors.
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Global Business Environment
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Table of Contents INTRODUCTION...........................................................................................................................1 MAIN BODY...................................................................................................................................1 PESTLE ANALYSIS..................................................................................................................1 CONCLUSION...............................................................................................................................3 REFERENCES................................................................................................................................4
INTRODUCTION Global business environment defines the environment in which different countries affects and influences the decision-making process of the company(Akhtar, 2018). This report is based on Lloyd's bank that is the British retail and commercial bank with branches in England and Wales. It was founded in 1765 by Sampson Lloyd and John Taylor in Birmingham with headquarter in London, UK. This report includes the PESTLE analysis on bank that is performed to know about the different external factor that affects the performance of the bank. MAIN BODY PESTLE ANALYSIS It is an analysis that defines the macro-environmental factors that has the direct impact on the performance of the bank(Mikurak, 2018). that is as described below as: ( Source:What is PESTLE analysis, 2018) Political:It includes rules and regulation of the government that affects the rate of performance of each business(Berman, 2018). It include different factors as like tax rate, service charge, duty rate, tax policies, trade tariffs and many others too. OPPORTUNITIESTHREAT 1
Lloyd's bank is the largest bank and have strong balance sheet thus bank has high capitalisation. Lloyd's is one of the most widest digital platformandhave12millionuser (Buckley, 2018). After the Brexit bank faces continuous pressure from the UK government to developnewcapitalrequirement (Ronit, 2018). Brexit lead more uncertainties in the market and it has huge negative impact on the profit generation of bank. Economic:It affects the economic value of the country and have different factors as like foreign direct investment, inflation rate etc. OPPORTUNITIESTHREAT Thedivestitureofgovernmentgave advantage to bank over their rivals. Lloyd'sbankmeasuregrowthin mortgage lending. Brexit reduces the interest rate from 0.5% to 0.25% and it cause huge loss to the bank. EUfinancialregulationhasbeen withdrawnthatbringsunbalanced condition(Dinçer, 2018). Social:It includes the life style and living standard of people it affects the bank as follow: OPPORTUNITIESTHREAT Ageingpopulationlikepension scheme, it increases disposal income. LendingofSMEthatprovidesmall funds only(Hamilton, 2018). Mostofpeopleshifttowards investmentandsavingsthatreduces cash flow. Technological:It is the advancement and change in technologies on continuous basis and has affect on bank. OPPORTUNITIESTHREAT 2
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Haveownwebsitetoconnectwith large number of customer base. Introducebiometrictorecordthe attendance of employees. Digitaladvancementbringsmore challenges for the Lloyd's bank. More costly to train the employees on continuous basis(Kasemsap, 2020). Legal:It is the laws of government that must be followed by all the business. OPPORTUNITIESTHREAT Morefocustoprovidesecurityand safetytothefundsofcustomers (Liébana-Cabanillas, 2018). there are different act that is followed by bank one is Equality act 2010. Lloyd's have issue with shareholders HBOS of £400 million after financial crisis. To follow all the banking act that is developandchangesbytheUK government. Environmental:It reflects the different steps that is taken to control the environment from pollution. OPPORTUNITIESTHREAT Reducesthecarbonfootprintsby maximum utilisation of resources. PerformingCorporatesocial responsibility Paper work has been used by bank that is generated through the bank. Notes and currency also make from the trees(Michael, 2018). CONCLUSION It has been concluded that PESTLE analysis helps the bank to know about the different factors by which performance will be enhanced. It provides the support to the bank measure the growth and development in an effective manner. 3
REFERENCES Books and Journals Akhtar, M. and Sushil, S., 2018. Strategic performance management system in uncertain business environment.Business Process Management Journal. Berman, S. and Dalzell-Payne, P., 2018. The interaction of strategy and technology in an era of business re-invention.Strategy & Leadership. Buckley, P.J., Enderwick, P. and Cross, A.R. Eds., 2018.International business. Oxford University Press. Dinçer, H. and Yüksel, S. eds., 2018.Handbook of research on managerial thinking in global business economics. IGI Global. Hamilton, L. and Webster, P., 2018.The international business environment. Oxford University Press. Kasemsap, K., 2020. The role of strategic outsourcing in global business. InForeign Direct Investments: Concepts, Methodologies, Tools, and Applications(pp. 236-268). IGI Global. Liébana-Cabanillas, F. and et. al., 2018. A global approach to the analysis of user behavior in mobile payment systems in the new electronic environment.Service Business.12(1). pp.25-64. Michael,P.D.,2018.Towardaglobalbusinessstandardforsupplychainethics.IEEE Engineering Management Review.46(4). pp.112-121. Mikurak,M.G.,AccentureGlobalServicesLtd,2018.Increasedvisibilityduringorder management in a network-based supply chain environment. U.S. Patent 9,922,345. Ronit, K., 2018.Global business associations. Routledge. ONLINE WhatisPESTLEanalysis.2018.[Online]Availablethrough: <http://academicessayguide.blogspot.com/2018/04/what-is-pestle-analysis.html>. 4