Detailed Business Environment Analysis Report: Lloyds Bank

This report analyzes the business environment of Lloyds Bank, focusing on the impact of innovation and technology on the bank's operations, sales, and profits. It defines innovation and technology, providing examples of their contribution to economic growth, and illustrates how Lloyds Bank utilizes new technologies. The report further evaluates the importance of Corporate Social Responsibility (CSR) for Lloyds Bank, examining its impact on brand image, competitive advantage, and customer engagement. It also explains Archie Carroll's Pyramid of CSR, illustrating how the bank can implement CSR models. The report includes an introduction, task-based analysis, and conclusion, providing a comprehensive overview of the bank's business environment and its strategic considerations.

Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Demonstration of different types of innovation and technology and the way in which they
have impact upon economic progress of the country...................................................................1
2. Practical illustration of the way in which innovation and technology have impacts the
operations, sales and profits of the organisation..........................................................................3
TASK 2............................................................................................................................................4
1. Evaluation of Importance of Corporate Social Responsibility................................................4
2. Explanations of Archie Carroll's Pyramid of CSR..................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business Environment refers to all the elements and factors that surrounds an
organisation and have a prominent impact on the same. In addition to this, it is very important
that a business understands the environment to ensure that the strategies and functions adopted
by the firm are in alliance with the external and internal factors (Bocquet and et. al., 2017) . In
his relation, the report below is based on Lloyds Bank, which is one of the most prominent
commercial banking and retail companies within the United Kingdom. The assignment covers a
brief understanding of different types of innovation and technology and their impact on the
economic progress of the nation, as well as the company. In addition to this, the report also
undertakes practical illustrations of how innovation and technology have impacted the
operations, sales and profits of the Bank. Furthermore, the report also undertakes an effective
evaluation of importance of Corporate Social Responsibility for the organisation along with
appropriate application of several models related to CSR.
TASK 1
1. Demonstration of different types of innovation and technology and the way in which they have
impact upon economic progress of the country
Definition of innovation and technology:
The process which is followed by individuals or organisations for the purpose of making
modification in the existing products and services is known as innovation. In other words, it can
be defined as the uniqueness which is made in different items by business entities after alteration.
With the help of it higher profits could be generated by enterprises as it results in attraction of
customers. Innovation is focused by organisations for the purpose of satisfying needs of clients
and meeting their expectations (Dubickis and Gaile-Sarkane, 2015). In order to remain
competitive in the market it is very important for companies to make innovation so that value in
the market could be created and long term sustainability could be acquired. With the help of it,
business entities can report to all the internal and external factors appropriately and identify the
opportunity which can help to reach long term goals.
Technology can be defined as the process of using scientific knowledge for the purpose
of finding answers for critical issues that are affecting functionality of a business. It is used by
organisations for the purpose of accomplishing difficult tasks successfully in less time. In order
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to differentiate in the market it is very important for all the enterprises to make sure that they are
able to gather detailed information of technologies that are emerging in the market. It changes
frequently therefore companies are suggested to conduct market research on continuous basis so
that detailed information about the changes could be gathered.
Example of contribution of innovation in the economic growth:
The application of innovative ideas is known as innovation which improves the way in
which goods and services are delivered to the customers. With the help of it, business entities
contribute in the economic growth because it allows then to perform their operational activities
in unique manner (Mostaghel, 2016). In earlier years coal engines were used to run the trains but
with the changes in time steam engines were introduced which revolutionised the transport in the
railways. Due to this the economy in those years was boosted massively as it has enhanced
standard of living of all the individuals. In current era, information technology is the major
innovation which is leading countries towards growth. Innovation is considered as the key of
growth of UK's economy. One of the main example of the contribution of it in the growth of
economy is Perceptual robotics which is leading around 1.3 million projects in UK with
Autonomous surface vehicles. For the purpose of launching innovations in the market total
contribution which is made in research and development activities is increased by 2.4% of GDP
in year 2019 (Contribution of innovation in economic growth of UK, 2019).
The way in which organisations use new technologies in their operations:
Now a days most of the organisations are using new technologies for the purpose of
executing operational activities so that the time taken by them could be decreased, productivity
could be enhanced and competitive advantage in the industry could be increased (Phillips, 2018).
There are various types of technologies which are used by companies in different sectors such as
manufacturing, service etc. CAD (Computer Aided Design) is a latest technique which is used by
companies for the purpose of linking two difficult components of deign at higher level so that it
can help to deliver the higher level of productivity. For the purpose of ensuring the higher level
of accuracy in machines, Computerised Numerically Controlled Machines in CAM (Computer
Aided manufacturing system) are used as precision is very important in operating machines.
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2. Practical illustration of the way in which innovation and technology have impacts the
operations, sales and profits of the organisation
Overview of the company: Lloyd Bank Plc is retail & commercial bank which has
various branches across the England and Wales. It has traditional consider as Big Four clearing
banks which founded in 1765 by John Taylor and Sampson Lloyd. Bank's headquarter situated in
Gresham Street, London, United Kingdom. They provide banking or insurance solutions to the
citizens of England or Wales. There parent company is Lloyd Banking Group and it's subsidiary
company is Lloyd Bank International Limited. There are around 45,856 people employed in this
organization and they generate £17.5 billion operating income or net income around £16.6
billion (Annual report of Lloyd banking Group, 2019).
Comparison of sales and profit of the company before and after the new
technologies:
The banking group planned to use core banking technology from google inspired UK
fintech. The organisation have explored the use of a cloud based banking platform so that all the
IT services could be managed by it properly (Ritala, Kraus and Bouncken, 2016). The top level
executives of the organisation have announced it in year 2016 which means it will be
implemented by them in 2017. Total amount which was invested by the enterprise in it was
around 3 billion pounds. There are huge differences were analysed in the sales and profits of the
organisation between year 2016 and 2017. It shows that before applying the technology the
financial performance of the organisation was stable which was enhanced after using the new
innovation (Technology used by Lloyd Banking Group. 2019). Difference between its profits and
sales could be analysed with the help of following table:
Particulars
Amount (Before
using the
technology)
Amount (After
using the
technology)
Income from sales 9274 10912
Total profits 2514 3547
From the above table it has been analysed that before implementing the latest technology
profits for the organisation were 2514 million pounds and when technology was implemented
then an increment of 1033 pounds in the profits is analysed with the help of income statement.
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With the help of technology sales of the banking group is also increased from 9274 to 10912. It
shows that the use of innovation has helped the entity to reach its long term business goals. With
the help of the new technology the management of the organisation have formulated such
strategies which has led it towards long term success (Yu and et.al., 2014).
From the above discussion it has been analysed that by using latest technology an
organisation can contribute in the economic growth and enhance its sales and profits because it
results in ease of work and completion of it in less time. With the help of them, the complexities
for employees and customers could also be reduced as it guide them to deal with difficulties
properly.
TASK 2
1. Evaluation of Importance of Corporate Social Responsibility
Corporate Social Responsibility refers to an appropriate and necessary area of practice for
an organisation, which covers the responsibilities of the company in context of society and the
community. Furthermore, it could be defined as the practice adopted by the organisations to
satisfy several social expectations from the company in relation to several ethical, legal as well
as commercial aspects (Marin, Martín and Rubio, 2017).
CSR has become an integral part of the organisations within the UK. However it affects
each and every sector of the business environment, an appropriate and effective impact of the
same is witnessed within the Banking Sector. Moreover, a brief history is associated with
organisations implementing Corporate Social Responsibility within their practices. For instance,
during 1990s, there were not much use of Credit or Debit cards and most of the transactions
within the banks and the financial sector saw an active role of cash money. However, in
adherence to their safety, facilitation of credit cards, loans as well as other credible sources
became quite appropriately available for the ordinary people as part of the CSR. An active role
within the same was played by banks like Barclays PLC and Lloyds Bank. Due to such ethical
and necessary practices, purchasing power of the people took a big hit and it appropriately and
effectively responded towards the changing market conditions (Demirel and Kesidou, 2019).
In this context, Corporate Governance has a bigger role to play, which refers to the
practices, that companies engage in to appropriately satisfy the social expectations of each of the
stakeholders associated with the company. For instance, there are several responsibilities of
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Board of Directors of Lloyds Bank towards the stakeholders as part of their corporate
governance. Some of these responsibilities are briefly explained below: Risk Management: This is the responsibility of the Board towards the employees, which
requires the firm to appropriate apply strategies and contingency plans to protect their
employees against any sort of fraud or risk. Audits: This responsibility within the company is associated with the government. The
firm is required to ensure auditing of its operations and functions to ensure that the
infrastructure and functioning of the firm are very much ethical and upon effective
grounds.
 Protection of Stockholders: Another responsibility of the bank is associated with
representing the interests of stockholders. Hence, in relation to this, the board has the
responsibilities towards the people to provide them personal incentives so that their
interest is protected.
Furthermore, in today's era, where there is a high level of customer awareness and
importance of ethics in the business environment, it is crucial for the banks within the country to
understand the importance of CSR in their regular business practices. Hence, in this context, the
importance of CSR is reflected within Lloyds Bank through several pointers that are stated
below: Brand Image: This importance is related to appropriate and effective brand image. CSR
is an important aspect for business environment, which requires the companies to act
appropriately to satisfy the same. Hence, CSR is important for the bank to help them
build a stronger market image in the UK as well as the world (Li, Li and Chan, 2019). Competitive Advantage: Another aspect reflecting importance of CSR in the business is
related to the fact that it would help the firm in satisfying each and every stakeholder
associated with its operations and hence, this could help in enhancing the competitive
advantage within the marketplace.
 Customer Engagement: CSR would be helping the firm in building trust within the
company and hence, remaining associated with the firm and its operations for a longer
period of time.
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2. Explanations of Archie Carroll's Pyramid of CSR
There are several models and theories that have been developed and are associated with
Corporate Social Responsibility. These models help the companies in implementing this aspect
in an appropriate manner to fulfil the expectations of the company within the marketplace.
One such model for the organisation in this context is Archie Carroll's CSR Pyramid,
which contains several responsibilities that a firm must undertake in order to ensure
effectiveness. Hence, in context with Lloyds Bank, this model is appropriately implemented
below:
Illustration 1: Carroll's CSR Pyramid
(Source: Carroll's CSR Pyramid, 2019)
 Economic Responsibilities:
One of the most appropriate foundations of the company is associated with profit, which
should be the first consideration of the company. However, usually profit is not considered to be
a primal aspect within the CSR practices, still the firm requires to fulfil its responsibility, as its
only way which the company could appropriately and effectively sustain in the business
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environment. In terms of Lloyds Bank, the firm could satisfy this responsibility by ensuring
improvisation in its operations such as cash flow and interests schemes. Moreover, the firm could
also provide the customers with appropriate private incentives which would enhance their
engagement within the company (Kim, Chang and Kim, 2018).
 Legal Responsibilities:
Another parameter of this model is the legal responsibilities which a firm must adhere in
relation to fulfil their duties towards the law and regulatory environment of the market it operates
in. This aspect is also referred to as “codified ethics”, which articulates several fair practices
which the company must adhere to. There are several ways in which Lloyds Bank could achieve
these objectives. For instance, the firm must adhere to Equality Act, 2010, which ensures high
level of diversity within the organisation and promotion of equal practices. Another appropriate
act is related to Financial Services Act, 2016, which underlines several strategies and operations
that are associated with lawful provision of financial services. In addition, the firm must also
formulate policies in factor of these acts and must ensure compliance within the same through
aspects like audits.
 Ethical Responsibilities:
As the name suggests, this spectrum of the model is associated with working morally and
ethically. Adopting and adhering to such practices is very important to support the legal
responsibilities. Moreover, this is directly associated with the expectations of society from the
company, which enhances the scope of operations and practices as compared to the laws and
regulations. Lloyds Bank could undertake practices such as inclusion of moral and ethical norms
related to its practices such as wages, incentives and interests provided to customers.
Furthermore, they could also promote ethical considerations in terms of triple bottom line, which
supports practices in relation to social, environmental and financial aspects. This would promote
the practices of the firm associated with people, planet as well as profit, which would satisfy its
ethical responsibilities (Amos, 2017).
 Philanthropic Responsibilities:
This includes several forms in which the company voluntarily helps the society. This is a
way of contributing to the society to give something back as a gesture of gratitude. For this
purpose, the organisation could undertake several activities such as providing donations, gift
certain monetary resources and ensure high development of community.
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Hence, this factor appropriately explains the notion that the firm must abide by, in order
to appropriately and effectively enhance the business practices towards achieving higher
organisational goals and objectives (Haque, 2018).
CONCLUSION
From the above project report it has been concluded that innovation and technology are
two main elements which should be focused by all the business entities for the purpose of
reaching their long term business goals. With the help of them large number of customers could
be attracted by providing them innovative services. If a new technology is adopted by enterprises
then it may contribute in the enhancement of profits and sales of upcoming years. Corporate
social responsibility is also an element which should be focused by companies for the purpose of
establishing a positive market image and enhance employee engagement. In order to make sure
that all the responsibilities for the development of society are performed by the organisation or
not, Archie Carroll's Model could be implemented by them. There are various elements of it
which are Economic, Legal, Ethical and Philanthropic.
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REFERENCES
Books and Journals:
Amos, G. J., 2017. Corporate social responsibility, innovation and leadership: Exploring the
compatible territories. Journal of Developing Country Studies. 7(2). pp.149-160.
Bocquet, R. and et. al., 2019. Strategic CSR for innovation in SMEs: Does diversity
matter?. Long Range Planning, 52(6), p.101913.
Demirel, P. and Kesidou, E., 2019. Sustainability‐oriented capabilities for eco‐innovation:
Meeting the regulatory, technology, and market demands. Business Strategy and the
Environment.
Dubickis, M. and Gaile-Sarkane, E., 2015. Perspectives on innovation and technology
transfer. Procedia-Social and Behavioral Sciences. 213. pp.965-970.
Haque, H., 2018. Corporate Social Responsibility (CSR) Driven Innovation & Opportunities for
Sustainable International Business. International Journal of Business and Social
Research. 8(3). pp.12-18.
Kim, B. J., Chang, Y. K. and Kim, T. H., 2018. How does corporate social responsibility
promote innovation? The sequential mediating mechanism of employees’
meaningfulness of work and intrinsic motivation.
Li, L., Li, G. and Chan, S. F., 2019. Corporate responsibility for employees and service
innovation performance in manufacturing transformation. Career Development
International.
Marin, L., Martín, P. J. and Rubio, A., 2017. Doing good and different! The mediation effect of
innovation and investment on the influence of CSR on competitiveness. Corporate
Social Responsibility and Environmental Management. 24(2). pp.159-171.
Mostaghel, R., 2016. Innovation and technology for the elderly: Systematic literature
review. Journal of Business Research. 69(11). pp.4896-4900.
Phillips, G.O., 2018. Innovation and Technology Transfer in Japan and Europe: Industry-
Academic Interactions. Routledge.
Ritala, P., Kraus, S. and Bouncken, R.B., 2016. Introduction to coopetition and innovation:
contemporary topics and future research opportunities. International Journal of
Technology Management. 71(1-2). pp.1-9.
Yu, W. and et.al., 2014. Innovation and technology of women's intimate apparel. Woodhead
Publishing.
Online
Carroll's CSR Pyramid. 2019. [Online] Available Through:
<https://www.tutor2u.net/business/reference/carrolls-csr-pyramid>
Contribution of innovation in economic growth of UK. 2019. [Online]. Available through:
<https://quarterly.blog.gov.uk/2018/03/28/why-innovation-is-the-key-to-growing-the-
uk-economy/>
Technology used by Lloyd Banking Group. 2019. [Online]. Available through:
<https://www.computerweekly.com/news/252453692/Lloyds-to-use-core-banking-
technology-from-Google-inspired-UK-fintech>
Annual report of Lloyd banking Group. 2019. [Online]. Available through:
<https://www.lloydsbankinggroup.com/globalassets/documents/investors/
2017/2017_lbg_annual_report_v3.pdf>
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