Business Environment Strategy Analysis

Running head: BUSINESS ENVIRONMENT
Business Environment: Lloyds Bank PLC
Name of the Student
Name of the University
Author’s Note:

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Table of Contents
Task 1...............................................................................................................................................2
Task 2...............................................................................................................................................7
References......................................................................................................................................12

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Task 1
1.1 Demonstration of an Understanding of Different Types of Innovation and Technology
and Process to Impact the economic progress of the Country for Business Organizations
1.1.1 Defining Innovation and Technology
Innovation can be referred to as new idea or creative thought that can be viewed as the
major application of better and effective solutions, which fulfill the new requirements and
existing market needs. This type of innovation occurs through the subsequent provision of an
effective product, process, service, technology or even business model, which is available to the
markets, society and government (Georgescu and Popescul 2015). Technology could be referred
to as the major application of distinct scientific knowledge. It is the summation of different
techniques, methods, procedures and skills that are being utilized for the successful production of
goods as well as services. Both innovation and technologies are responsible for ensuring that the
respective organization is gaining competitive advantages.
1.1.2 Practical Examples of Innovation as well as Technology contributing to the Economic
Development of the United Kingdom
The United Kingdom has always been one of the most effective and efficient countries in
the entire world that has been responsible for providing maximum success and competitive
advantages to their businesses and citizens (Bah and Fang 2015). They have included major
techniques and methods for innovation and technology for ensuring that major popularity and
proper impact is gained with respect to the direct, induced and indirect effects with a range of
additional resources. There are several types of innovation are present, which include product
innovation, process innovation and organizational innovation.

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The entire United Kingdom has always focused on these three types of innovation by
including technology in the businesses. As a result, there had been a major growth in the
economy of the country. Product innovation refers to the initiation of a new technology product
in the existing market for improving the products or services (Prajogo 2016). Process innovation
refers to the implementation of the new methodologies for production for improving it. It is
being utilized for producing or delivering the technologically new and improved products with
proper improvement in the processes to ensure high efficiency. The final type of innovation is
organizational innovation, which would be the initiation of major changes within the methods of
management of establishment.
The most popular and distinct practical examples of innovation in the United Kingdom
are provided below:
i) ReTrack: It is a wearable, which helps to track the rider while riding. It is responsible
for tracking all the twists and turns of the ride; hence creating a 3D animation of the journey for
the rider for proper analysis, storage and comparison with any other performance or competitor
(Hamilton and Webster 2018). The rider can relive every ride on his or her smart phone,
computer or tablet from every possible angle and as a result, opening up to a completely new
world of analysis for smart ride.
ii) ARM: The second distinct tech innovation is ARM. This particular technology in the
mobile phone is responsible for making significant involvement to the mobility world. It is the
most productive provider of microprocessor IP and has been shaping the linked world for more
than eighty six billion ARM based chips to the world. The technology behind chips for every
device that is needed to be interacted properly.

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1.1.3 Description of Business Organizations using new Technologies in their Operations
The businesses of different sizes in the United Kingdom have been using new
technologies and innovation within their operations to ensure that better effectiveness and
efficiency is being gained without any type of complexity or issue (Needle 2015). One of the
most distinct and important organization that has been using technology in their regular activities
and processes is ESP Group. The term Oyster refers to something that is different for the
citizens. 8.5 million London residents as well as countless commuters are present within the
business. This specific organization has started Oyster Card System and since they are involved
in the travel aspects, related to information, social media, delay repayments, payments, ticketing,
customer support and many more (Boddy 2016). Onfido has also initiated innovation in their
business processes and operations for ensuring that they are using proper technology in the
organization. The identities of potential staff are being verified with the help of machine learning
in Onfido.
1.2 Practical Illustration of process of Innovation as well as Technology to have impact on
the Operation, Sales and Profit of the Selected Company
1.2.1 Brief Overview of the Lloyds Bank PLC
Lloyds Bank PLC is referred to as one of the most popular and significant retail or
commercial banking sector within the UK that has branches across entire Wales and England. It
has traditionally been considered as one of the big 4 popular banks. It was initiated in the year of
1765 by John Taylor and Sampson Lloyd. The organization has its headquarters in London,
United Kingdom and the current chairman in Lord Norman Blackwell (Lloyds Bank. 2020). The
operating income has been quite significant for the bank and they have earned 17.5 billion

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pounds in the year of 2016 and that of the net income has been 16.6 billion pounds. The total
assets include 436 billion pounds and presently almost 46000 employees are working in the
banking sector. It is the largest retailed banking sector within Britain and comprises of an
extended network of branches in the entire country. They have to deal with almost 20 million
personal clients and smaller business accounts.
1.2.2 Description of New Technology and process of these being used by Lloyds Bank PLC
Lloyds Bank PLC has been using different new technologies and ideas for their business
to ensure that maximum advantages are gained without much complexity. This particular
banking company is exploring the complete utilization of a cloud based main banking platform
from the United Kingdom fintech. They have using Thought Machine via the main information
technology services relationship with the organization of IBM (Morrison 2017). Thought
Machine was being built on a cloud computing based banking structure, called the Vault in the
year of 2016. It offered a real time and higher volume architecture, which could eventually
handle numerous transactions in one day with proper cryptographic safety through private
centralized ledger as well as smart contracts for enabling banks to start off the newer products
promptly.
1.2.3 Comparison of the Sales and Profits of Lloyds Bank before and after the New
Technology being introduced
Lloyds Bank PLC has implemented the technology of Thought Machine in their business
in the year of 2016 for ensuring that better effectiveness and efficiency is being gained under
every circumstance. Before implementation of this particular technology, the following sales and
profits were noted in the year of 2015:

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Table 1: Income Statement of 2015 for Lloyds Bank
(Source: Annual Report and Accounts. 2015)
However, after implementing Thought Machine in their business, there was an increase in
the income statement and sales and profits of the company. In the year of 2017, the total income
of this particular bank was 448 million pounds and that of operating costs of 135 million pounds
and the profit was increased by 9% (Annual Report and Accounts. 2017).
1.2.4 Findings of the Report
After analysis of the banking reports for the year of 2015 and 2017, it is evident that the
organization of Lloyds Bank PLC has increased their sales and profit to a high level and ensuring
that the business is able to use the new technology of Thought Machine in the most effective
manner (Annual Report and Accounts. 2017). There had been a sharp increment in the profit by
9% and the net interest income has increased to 8%. Hence, the organization has got major profit
from the technology.

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Task 2
2.1 Evaluation of the Importance of Corporate Social Responsibility or CSR for the
Selected Company
2.1.1 Defining Corporate Governance
Corporate governance can be referred to as the major amalgamation of different laws,
processes as well as rules, by which various businesses are being functioned, controlled as well
as regulated. It majorly incorporates different external or internal factors, which impact the
overall interests of the organizational stakeholders like shareholders, suppliers, management,
customers and government regulators (Khan and Quaddus 2015). It is responsible to create the
framework for this corporate governance, which can be best aligned for business conduction with
the objectives and goals. Specified processes, which could be outlined within corporate
governance involve action plans, disclosure practice and performance measurement as well as
executive compensation decisions.
2.1.2 Definition of Corporate Social Responsibility
CSR can be defined as the kind of international private business made self regulations. It
has the objective in contributing to the societal objectives of a philanthropic as well as charitable
nature only by engaging into several ethically oriented practices (Georgescu and Popescul 2015).
It is an internal policy of the business or corporate ethics based strategy for better analysis of
corporate self regulation. It helps a company for being socially accountable with the involvement
of stakeholders as well as public. The organization could be conscious of the effect of society
like economic, environmental and social. CSR is the broader concept, which could take several
forms on the basis of industry and company.

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2.1.3 Brief History of the Corporate Governance within the United Kingdom with
Examples
Lloyds Bank PLC is referred to as one of the most significant and popular banking
organizations in the world that has been achieving long term success for being the best bank for
clients as well as generating sustainable returns for different shareholders. The organization has
been following corporate governance in their business for stabilized returns (Corporate
Governance. 2020). Fundamental for the strategy of the board, they have been able to set high
standards for corporate governance, majorly in the Financial Reporting Council’s UK Corporate
Governance Code. The specific group has the objective to comply with every vital principle of
the respective UK corporate governance code.
The respective Board of Directors of Lloyds Bank consists of a Non Executive Chairman,
Executive Director and independent Non Executive Director. It is mainly responsible for the
organizational long term success. It eventually achieves such governance by setting the strategy
and then overseeing delivery against it for successful establishment of the standards, values and
culture for setting risk issues. Moreover, this corporate governance helps in ensuring that
appropriate succession planning arrangement is present (Corporate Governance. 2020). As a
result, maximum effectiveness and efficiency is being achieved by the organization and proper
maintenance of corporate governance under every significance. It has also helped them in
managing the business processes and operations successfully in the business.
2.1.4 Importance of Corporate Social Responsibility for Organization of Lloyds Bank PLC
Apart from corporate governance, Lloyds Bank PLC is also maintaining corporate social
responsibility in their business for ensuring that maximum effectiveness is being gained majorly.

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They have implemented practices of corporate social responsibility for ensuring that it is the
main strategic driver of business success (Corporate Social Responsibility Report. 2009). The
best interests of the stakeholders are being considered on top priority and it helps to make a
sustained positive influence to the society and to the economy of the United Kingdom. The
responsibilities of the bank are being fulfilled properly for the stakeholders in the most effective
manner. There are four distinct aspects of the bank, such as customer, colleague, community and
climate as well as environment.
For the customers, they focus on long lasting relations for helping the customers in
achieving importance to a high level. The second vital and significant aspect is the colleague.
The success of the business is solely dependent on the motivated and engaged colleagues and as
a result, the potential of the colleague is maximized for ensuring that major success is gained
without much complexity (Corporate Social Responsibility Report. 2009). The third vital aspect
is community that reports on the objectives of engagement, participant and investment in the
community for identifying the main factors of business. Another distinct and important aspect of
CSR in Lloyds Bank is climate and environment. It has a main role in addressing the change in
climate after having major commitment towards management of the environmental impacts.
2.2 Explanation of Archie Carroll’s Pyramid of CSR
2.2.1 Understanding of the 4 Areas of Corporate Social Responsibility identified by Archie
Carroll
The CSR pyramid of Archie Carroll is a simplified framework, which helps to argue the
process and reason of company meeting the social responsibilities. There are some of the major
and the most significant features of this particular pyramid of corporate social responsibility

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(Boddy 2016). The first and the foremost feature of this particular pyramid of CSR for Archie
Carroll is that CSR is being built on the overall foundation of business profit. The second distinct
and important feature of the pyramid of CSR for Archie Carroll is that it is being utilized for
understanding the requirement of a business for ensuring that it complies with each and every
law and regulation. As a result, the respective business is safe and secured from all types of
complex situations without much issue (Georgescu and Popescul 2015). The next vital and
distinct feature of this specific pyramid of CSR for Archie Carroll is that even before a business
considers its philanthropic options, it even requires to fulfil the ethical duties and responsibilities.
There are four responsibilities or key areas of the specific pyramid of CSR for Archie
Carroll. The first and the foremost responsibility area is economic, which is the core
responsibility for ensuring that the business is becoming profitable and it is the only way towards
surviving and providing advantages to the society in long term (Hamilton and Webster 2018).
The second important and significant responsibility area of the specific pyramid of CSR for
Archie Carroll is legal. It is the core responsibility for obeying different laws as well as other
regulations and the major examples include employment, competition and health and safety.
The third distinct and important responsibility area of the specific pyramid of CSR for
Archie Carroll is ethical, which is the main duty for acting morally as well as ethically. The
business should go beyond poor requirements for the law. As a result, it becomes quite effective
and efficient for the respective organization to maintain ethical approach in the business easily
and promptly. The final important and significant responsibility area of the specific pyramid of
CSR for Archie Carroll is philanthropic (Georgescu and Popescul 2015). It is the major
responsibility for giving back to the respective society and ensuring that every vital aspect
towards maintenance of discretionary responsibility is being followed.

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2.2.2 Application of Model of Archie Carroll to Lloyds Bank PLC
The organization of Lloyds Bank PLC is responsible for providing some of the most
distinct banking services to their customers by following CSR approach. The CSR model of
Archie Carroll can be applied in the bank as it is a simple approach and ethical approach is being
followed eventually (Boddy 2016). The organization would be able to get knowledge about
philanthropic and ethical duties and also focuses on importance of profit in the business. Since it
is extremely easy to understand and hence the long term success is being obtained without any
complexity. Laws and regulations are followed in their business. As a result, Archie Carroll
model can be applied successfully.

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References
Annual Report and Accounts. (2015). [online]. Accessed from
http://www.annualreports.com/HostedData/AnnualReportArchive/L/LSE_LLOY_2015.pdf
[Accessed on 5th April 2020].
Annual Report and Accounts. (2017). [online]. Accessed from
http://www.annualreports.com/HostedData/AnnualReportArchive/L/LSE_LLOY_2017.pdf
[Accessed on 5th April 2020].
Bah, E. H., and Fang, L. (2015). Impact of the business environment on output and productivity
in Africa. Journal of Development Economics, 114, 159-171.
Boddy, D. (2016) Management An Introduction (7th edition), Pearson Press.
Corporate Governance. (2020). [online]. Accessed from
https://www.lloydsbankinggroup.com/our-group/corporate-governance/ [Accessed on 5th April
2020].
Corporate Social Responsibility Report. (2009). [online]. Accessed from
https://www.lloydsbankinggroup.com/globalassets/documents/our-group/responsibility/reports/
corporate_responsibility_report_2009.pdf [Accessed on 5th April 2020].
Georgescu, M., and Popescul, D. (2015). Social Media–the new paradigm of collaboration and
communication for business environment. Procedia Economics and Finance, 20(1), 277-282.
Hamilton, L., and Webster, P. (2018). The international business environment. Oxford
University Press.

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Khan, E. A., and Quaddus, M. (2015). Examining the influence of business environment on
socio-economic performance of informal microenterprises. International Journal of Sociology
and Social Policy.
Lloyds Bank. (2020). [online]. Accessed from https://www.lloydsbank.com/ [Accessed on 5th
April 2020].
Morrison, J. (2017) The Global Business Environment. (4th edition), Palgrave.
Needle, D. (2015) Business in Context. An Introduction to Business and Its Environment (6th
edition). Cengage Learning.
Prajogo, D. I. (2016). The strategic fit between innovation strategies and business environment in
delivering business performance. International journal of production Economics, 171, 241-249.