Business Strategy Analysis of Lloyds Bank

Running head: BUSINESS STRATEGY ANALYSIS OF LLOYDS BANK
BUSINESS STRATEGY ANALYSIS OF LLOYDS BANK
Name of the Student
Name of the University
Author Note

BUSINESS STRATEGY ANALYSIS OF LLOYDS BANK1
Table of Contents
Task 01 – Report writing (LO1, LO2 and LO3)..............................................................................2
Introduction......................................................................................................................................2
LO1..................................................................................................................................................2
P1 – Application of appropriate frameworks to analyze influence and impact of macro
environment of Lloyds Bank and its strategies................................................................................2
Stakeholder analysis of Lloyds Bank..........................................................................................4
PESTEL analysis of Lloyds Banking Group...............................................................................8
M1 – Critical analysis of macro environment to inform and determine the decisions related to
strategic management....................................................................................................................10
LO2................................................................................................................................................11
P2 – Analysis of internal environment and the capabilities of Lloyds Bank using the appropriate
strategies........................................................................................................................................11
M2 – Critical evaluation of internal environment to assess the strengths and weaknesses of the
internal capabilities, skill set and structure of Lloyds Bank..........................................................12
LO3................................................................................................................................................13
P3 – Application of Porter’s five forces model for evaluating competitive forces of financial
sector that influence Lloyds Bank.................................................................................................13
Porter’s five forces analysis of Lloyds Banking Group.............................................................13
M3 – Development of appropriate strategies for improving competitive edge and market position
based on the outcomes...................................................................................................................14
Task 02...........................................................................................................................................15
P4 – Application of concepts and theories and development of strategic plans for Lloyds Bank 15
M4 – Development of strategic management plan that is tangible and tactical strategic priorities
and objectives................................................................................................................................16
D1 – Critique and interpretation of data and information for applying the competitive and
environment analysis to produce the strategic directions, tactical actions and objectives............16
Conclusion.....................................................................................................................................17
References......................................................................................................................................18

BUSINESS STRATEGY ANALYSIS OF LLOYDS BANK2
Task 01 – Report writing (LO1, LO2 and LO3)
Introduction
Lloyds Bank Plc. is a commercial and retail banking organization of British origin with
the branches that are located in different parts of Wales and England. The bank has been able to
gain a key position among the “Big Four clearing banks”. The bank had been established in the
year 1765 in Birmingham. The organization had been able to expand its operations during
nineteenth and twentieth century and it has also taken over different smaller banking based
companies. In the year 1995 the organization had merged its operations with Trustee Savings
Bank and had also traded as the Lloyds TSB Bank Plc. between the years 1999 and 2013
(Lloydsbankinggroup.com, 2020). The report will be based on the macro environment study of
the organization and the internal capabilities of the firm will also be discussed in detail.
LO1
P1 – Application of appropriate frameworks to analyze influence and impact
of macro environment of Lloyds Bank and its strategies
Business strategy - The approach that has been applied by Lloyds Bank states that
“Transforming the Group for success in a digital world”. In the year 2018 the organization had
planned for the implementation of a three year based strategy and had invested 3 Billion Euros.
The four major strategic priorities that have been set by the organization include the following,
Leading the customer experience – Driving the strong customer relationship
through the high levels of propositions that can help in offering the brilliant levels

BUSINESS STRATEGY ANALYSIS OF LLOYDS BANK3
of services to the consumers and seamless experience is provided across different
channels (Barros, Hernangómez and Martin-Cruz 2016).
Maximizing capabilities of the Group – Aligning capabilities of the Group as a
sole provider of insurance and banking services in UK that can help in deepening
the customer relationships and growth will be ensured in the target segments.
Digitizing the Group – New technologies can be deployed in order to enhance the
levels of efficiency and banking process can be simple as well.
Transforming the methods of working – The processes and skills of the
employees have been improved as it is considered to be a key part of the
approaches that are applied by Lloyds Bank (Cath et al. 2018).
Strategic vision – The strategic vision that has been implemented by Lloyds Bank is
based three major values that include the following,
Putting the Customers First.
Keeping it Simple.
Making the Difference Together (Lloydsbankinggroup.com, 2020).
The mission statement of the Lloyds Bank Group state that “Our vision is of a society where
people dealing with complex social issues get the help they need to overcome them. But charities
that help people facing complex social issues are under-funded, under pressure and too often
ignored. That’s why our mission is to partner with small and local charities to help more people
overcome complex social issues and rebuild their lives (Lloydsbankinggroup.com, 2020).”
Strategy that has been applied by the Lloyds Bank Group is able to play a key part in
enhancing the profits gained by the firm and proper fulfillment of the objectives as well. The

BUSINESS STRATEGY ANALYSIS OF LLOYDS BANK4
major objectives of the Lloyds Bank Group have been based on the appropriate development of
sustainable relationships with the individuals who are a part of the local communities
(Lloydsbankinggroup.com, 2020). The growth of the organization has been supported in a huge
way by the sustainable operations and strategies that have been implemented as well. The
behaviors and values of the employees are able to play a key part in enhancing the culture of the
bank. The values are mainly related to the ways by which the organization aims at delivering the
strategy and also provide the best levels of services to the consumers (Daspit et al. 2017).
Stakeholder analysis of Lloyds Bank
Stakeholder matrix of Lloyds Bank –
Stakeholder Interests Influence
Managers
Hifgh
Employees
High Medium
High High

BUSINESS STRATEGY ANALYSIS OF LLOYDS BANK5
Investors
Board of Directors
Customers
Suppliers
High Medium
High Medium
Medium High
Medium Medium