Impact of Innovation and Technology on Sales, Profit and Growth of Lloyds PLC

This report discusses the impact of innovation and technology on the sales, profit, and growth of Lloyds PLC, a major British financial institution. It also explores the significance of corporate social responsibility for the organization and applies Archie Carroll's model of CSR to the organization. The report provides insights into the business environment and the internal and external factors affecting the company's performance.

BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Assess the impact of innovation and technology that affects the sales, profit and growth of
following firms.............................................................................................................................3
Impact of technological advancement on banking sector and how it affects the sales, profits
and growth of Lloyds PLC- ........................................................................................................4
TASK 2............................................................................................................................................6
Significance of Corporate social responsibility for the organisation...........................................6
Application of Archie Carroll's model of CSR to organisation...................................................8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

Executive summary
The report would consist about the knowledge of the business environment and the
internal and external factors which are having the impact on the performance of company. The
impact of the innovation and the technology is also discussed in report. The corporate social
responsibility of the business is discussed in the report as well.
INTRODUCTION
The present report is based on business activities of Lloyds PLC, this is major British
financial institution that formed with acquisition of HBOS by Lloyds TSB within 2019.
Henceforth, report will cover following things as understanding of innovation, role of
techniques and changes in economic progress and this will also note about the innovation that
mainly impacts the sales, profit and growth of enterprise. In addition to it, CSR can be defined
with application of Archie Carroll's model.
TASK 1
Assess the impact of innovation and technology that affects the sales, profit and growth of
following firms.
Innovation and technology-
Technology change is one of the most fundamental and powerful forces that mainly
impacts the economy and society. In the banking sector, the need are enhancing on continual
basis, budgets are tights and enterprise are being pushed to make sure their information is secure.
Additionally, technology represents the great opportunity.
Thus, innovation in techniques can be defined as one of the crucial components that aids
to address the needs and better serve the families and individuals (Lindberg, 2019). The one of
the biggest revolution came in banking sector is digitalisation. With the use of the innovation in
the banking sector, the all process of the enterprise has become the more effective and reliable.
Additionally, this can be stated that banking software's effectively perform he customer’s
transaction with the use of centralized data record system. Henceforth, this can be stated that the
digital technological advancement has helped in reshaping the banking sector for undertaking the
better future growth.
Introduction of techniques is one of the faster and most reliable term that impacts the
business functions at high level. The role of technology within banking sector has embraced the

use of technical advancement to serve the client better and faster. Banks are highly encouraged to
promote the financial project to target the varied group of the customers.
Impact of technological advancement on banking sector and how it affects the sales, profits and
growth of Lloyds PLC-
Overview of Lloyds-
It is banking sector that is leading in UK based financial service group and this provides
wide range of banking and financial service. This is banking sector that has organised into three
division such as UK retail baking, insurance and investment. It is British retail industry that has
varied branches across the England and Wales (Yang, Sui and Zhou, 2019). This is one of the
largest banking sector within Britain and this has ab extensive network of branches. Henceforth,
this financial institution operates the number of office, brand headquarters and data centres in
Leeds, Halifax and Sheffield. In order to enhance the sales of the enterprise the entity needs to
take initiatives that highly use technological advancement that has huge impact on sales and
growth of the enterprise.
Impact of technological advancement on sales and growth of enterprise-
Banks play critical role in every economy. Thus, payment system defined as the major
source and this highly impacts the operation process of banking sector as Lloyds PLC.
Additionally, the main role of banking system in allocation resources and provide efficient
services to the customer’s. Innovation allows within the enterprise to stay relevant within the
competitive market. From the last few decades, innovation has become one of the significant
force that has combat the critical social risks and threats. Additionally, it can be stated that
innovation is crucial to bring the advance in the society as this solves problems within the
sustainable and efficient way.
Innovation in technological advancement highly impacts the different parts of the society.
Thus, fundamental outcomes of the innovations are as economic growth, enhanced well-being,
communication, environmental sustainability. Technological innovation termed out as major
source of economic growth. Enhancement in economic growth termed out as to have enhance the
inflation that adjust market value of the commodities and services. Technological advancement
allows better communication to residents and administrators alike, enhancement in security and
decision making of administrators etc. In order to bring improvement in the operational
efficiency, quality of customer service helps to conduct proper functioning within Lloyds PLC.

In the current scenario, E-banking is one of the crucial components within the retail
banking sector. It assist to reduce the cost with help of providing the cheaper and faster way to
deliver the commodities to customers. Henceforth, the E-banking system is driven by the two
engines such as client bank and pull & push. Financial innovation defined as the inclusion of the
new financial instruments within banking sector and market with the use of technological
advancement (Shukla and Pattnaik, 2019 ). This is inclusive of process, product and institutional
innovation. Therefore, the innovation process within the financial institution has taken varied
steps in introducing the discount broking firms, specialist credit card firms and internet banking
etc. Thus, efficient method of payment system defined as one that offers the instantaneous
settlement of financial transaction and also helps within exchange of good and service within the
protected, prompt and reliable manner. Financial innovation that employed by bank plays the
strategic tool to compete with competitors, assist to amend the financial performance by intensify
and maintains the efficiencies and effectiveness within the market (Impact of information
technology (it) on the banking sector, 2014.). So, financial innovation considered to be one of the
key components for running out better performance of Lloyds PLC as this has huge impact on
the customers by improving the efficiencies and profitability of the enterprise (Li, 2019). Thus,
the efficiencies of the banking sector can be measured out with the capabilities and abilities of
the banks to generate the optimum level of the profitability with the help of resources. In order to
run each things in proficient mode, the role of communication and information technology
cannot be ignored at time of considering the financial innovation products within the banking
sector.
Furthermore, technological advancement and innovation is considered to be one of
cheapest source for undertaking evaluation within the financial services with minimum
transaction cost and this also leads to save time within delivery of service. In the banking sector
as Lloyds PLC, the economic growth mainly driven with help of innovation and technological
improvements that reduce the cost of production that enables higher output. Innovation in the
banking industry playing the crucial role as this gradually changing the way of services that
needs to conducted by the banks. It drives the way that aids to accomplish the customer
satisfaction with help of introducing the innovative electronic activities within the banking
sector.

This type of innovative environment will motivate the employees to get continually
involved with team work and this impacts the profitability of the enterprise. Banking being the
largest financial sector termed out as to plays significant role within the economy of UK. Thus,
techniques has advanced the working of banking sector in terms to find the automated processes
that reduce the number of people that needed to be handle the varied number of transaction as
result of advent of new technological advancement in the banking service of Lloyds PLC. This
leads to save the time and money that allow people to conduct the banking effectively and
efficiently. In the current scenario, there are varied people that are slowly deleting the traditional
method that helps to utilise the financial service or money such as change from check to credit
cards/debit and automated payment. Thus, it can be stated that technology advancement has
created the better tools for evaluation credit worthy customer’s.
CONCLUSION
Hereby, it can be concluded that business environment termed out as external and internal
components that influence the working of the industry in the huge context. The present report is
based on the business activities of banking sector of the Lloyds PLC. The report would provide
the regarding the impact of the Innovative on the employees which are working in the company.
The use of innovative techniques and tools are having the impact on the business environment.
TASK 2
INTRODUCTION
Business environment termed out as sum total of external and internal that influence the
working condition of the enterprise (You, Dal Bianco, Lin, and Amankwah-Amoah, 2019).
There are number of external and internal factors such as needs of customer, expectation,
management, client, supplier, social trends and economic changes that affects the working of
enterprise. Corporate social responsibility is the is witnessing the environment in the other
country. These corporate social responsibility would change the business practices in the society
friendly manner. The csr activities are concentrating on the developmental within the banking
sector as well. Effective use of the csr activities would lend the business to achieve the success.
Significance of Corporate social responsibility for the organisation.
In the recent years, corporate social responsibility has played the effective role in
witnessed the tremendously enhance the awareness and control at the level of global arena. CSR
defined as those strategies that need to implement to conduct the business practices in ethical and

society friendly manner ( Crane, Matten, and Spence, 2019). The bank has taken the varied steps
and this mainly aimed towards addressing the financial inclusion and to render the financial
services within the untapped and unbanked areas of the country. Improvement in the productivity
and efficient has direct effect on the working of the enterprise. Thus, innovation in the banking
sector can helps to bring improvement in processes, solving issues and allows to get interact with
customer this also has advanced the sales growth of entity. Thus, banking culture has
tremendously changed after undertaking financial innovation and this also builds the culture of
continuous learning, personal development and growth (Brotspies and Weinstein, 2019).The one
of the better advancement of techniques is mobile banking as this aids to streamline the
functioning of the enterprise in effective and efficient mode. By use of mobile devices such as
smart phones effectively plays the great role within instigation, completion of transaction, ease in
payment transferring and endorsement instead of traditional methods of banking. All these kind
of the innovation assist to improve the payment system that used in borrowing and lending of
funds. Hence, technological innovation assist within conducting proper functioning of the
economy and the mode of payments plays the crucial role to have smooth functioning within
sectors of finance as well as real estate.
Implementation of CSR is crucial to as this leads to put the focus on activities like health
and medical care, poverty education, training about the financial literacy and to take the varied
steps in terms to undertake development within the banking sector. Therefore, execution of
corporate social responsibility is mainly designed to respond towards to huge unmet needs of the
society to have achievement as the long term and persistent business value. Thus, effective
implementation of CSR is crucial as this requires a built in, self regulating mechanisms in which
bank monitors and ensure the adherence of law, ethical standards that helps to conduct the
business practices in effective and efficient manner. Furthermore, the number of advancement
that can avail to banking sectors after implementing CSR as-
 To encourage sustainable behaviour by customer’s.
 To support development practices in terms to separate the business models for varied
segments.
 To take the number of the initiative in creating the higher employee motivation and also
leads to enhance the superior performance levels.

 This is one of the effective approach that creates more positive publicity and also helps to
enhance the brand recognition.
Hence, this can be stated that the transparent and effective commitment to adoption of CSR
practices helps to bring out the competitive advancement within the enterprise. The strategies of
CSR needs to merely adopted so that this can bring the ethical practices with underlying goals of
the maximise profitability and productivity within business enterprise ( Aguinis and Glavas,
2019). With help of it, the organisation can be capable enough to gain competitive advancement
within highly regulated industry. Additionally, corporate social responsibility mainly aims
towards to create the new businesses that allows firm to attract new investors and this also leads
them to have new growth opportunities. From the view of financial perspectives, the cost of
execution of CSR and sustainability will be defined in the following manner as are-
 Capital cost of CSR initiative- It is inclusive of the cost of new equipment and new
commodities etc.
 Recurrent cost- This is one of the effective tool that helps to undertake continue
monitoring of compliance, training and CSR practices.
 Communication cost- The CSR activities helps to facilitate better communication of the
ethical codes to all the stakeholders.
 Staff cost- This can helps to undertake effective recruitment of skilled employees and
creation of the dedicated team.
Henceforth, from the strategic perspective this can be true to said that adoption of new
policies and practices helps to build effective organisation structure. It is inclusive of the
retaining staff, adoption of risk management activities and also assist in being highly selective in
the investment portfolios (Al‐Hadi, Chatterjee and Monzur Hasan, 2019). Thus, integration of
CSR principles helps to operate the activities of business in crucial manner to ensure about the
sustainable development of the economy.
Application of Archie Carroll's model of CSR to organisation
The Carroll's CSR pyramid termed out as framework that assists to organisation to adopt
and implement the social responsibilities within the organisation to attend the high profitability
and productivity. Henceforth, the key features of Carroll's defined in following manner as are-
 Corporate social responsibility is built on foundation of the profitability.

 It is effective term that aids to ensures and also complies with all kind of laws and
regulations.
 This assist in order to meet out the ethical duties.
Additionally, the four responsibilities displayed with the help of the pyramid as are-
Economic-
 It is the responsibility of business to be more profitable and productive.
 This provides the one of the effective way to survive and benefit the society for the
longer term.
Legal-
It states that this is the responsibility to obey all kind of laws and other regulations. For
example- employment, competition and health and safety.
Ethical-
 It is the responsibility of the firm to act morally and in ethically manner.
 By following this kind of the responsibilities the firm can able to go beyond the narrow
requirements of the law.
Illustration 1: Four responsibilities of Carroll's CSR Pyramid
(Source:Carroll's CSR Pyramid, 2019)

Philanthropic-
 It defines the responsibilities to give back to the society.
 This aids to undertake the effective process in terms to discretionary.
CONCLUSION
Furthermore, report has laid emphasizes on activities as to determine the impact of
innovation and technology on growth and sales of the banking industry. Moreover, application of
CSR approaches has been undertaken with the use of model as Carroll's CSR Pyramid. Lastly,
report will examine the implementation of CSR in terms to develop the growth of business
activities.

REFERENCES
Aguinis, H. and Glavas, A., 2019. On corporate social responsibility, sensemaking, and the
search for meaningfulness through work. Journal of Management. 45(3). pp.1057-1086.
Al‐Hadi, A., Chatterjee, B. and Monzur Hasan, M., 2019. Corporate social responsibility
performance, financial distress and firm life cycle: evidence from Australia. Accounting &
Finance. 59(2). pp.961-989.
Books and journals
Brotspies, H. and Weinstein, A., 2019. Rethinking business segmentation: a conceptual model
and strategic insights. Journal of Strategic Marketing. 27(2). pp.164-176.
Crane, A., Matten, D. and Spence, L. eds., 2019. Corporate social responsibility: Readings and
cases in a global context. Routledge.
Li, X., 2019, October. Investigation and Analysis on the Standard of Prosecution for the Crime
of Violating Business Secrets from the Perspective of Optimizing Business Environment.
In 2nd International Conference on Contemporary Education, Social Sciences and
Ecological Studies (CESSES 2019). Atlantis Press.
Lindberg, M., 2019. Using machine learning for assessing customer suitability in business to
business environment.
Shukla, M.K. and Pattnaik, P.N., 2019. Managing Customer Relations in a Modern Business
Environment: Towards an Ecosystem-Based Sustainable CRM Model. Journal of
Relationship Marketing. 18(1). pp.17-33.
Yang, C.W., Sui, W.J. and Zhou, Y., 2019, July. Does Adverse Business Environment Influence
Corporate Innovation Performance?. In 5th Annual International Conference on
Management, Economics and Social Development (ICMESD 2019). Atlantis Press.
You, K., Dal Bianco, S., Lin, Z. and Amankwah-Amoah, J., 2019. Bridging technology divide to
improve business environment: Insights from African nations. Journal of Business
Research. 97. pp.268-280.
Online
Impact of information technology (it) on the banking sector. 2014. [Online]. Available through:
<https://journalijcar.org/issues/impact-information-technology-it-banking-sector>
Carroll's CSR Pyramid. 2019. [Online]. Available through:
<https://www.tutor2u.net/business/reference/carrolls-csr-pyramid>.

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