Business Strategy and Its Impact

This assignment explores the complex interplay between business strategy, internal control over financial reporting, and audit reporting quality. It delves into how different business strategies influence firm performance and examines the role of effective internal controls in enhancing audit quality. Students are encouraged to analyze scholarly articles and research papers to gain a comprehensive understanding of this multifaceted topic.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
1. ......................................................................................................................................................1
Strategic planning in financial industry......................................................................................1
2........................................................................................................................................................2
Challenges in UK financial industry ..........................................................................................2
3........................................................................................................................................................4
Strategic implementation and differentiate in wholesale and retail business..............................4
4. ......................................................................................................................................................6
Effectiveness and application of strategic option model.............................................................6
CONCLUSION................................................................................................................................8
REFERENCES ...............................................................................................................................9

INTRODUCTION
Every business consist strategy to demonstrate outline towards the aims and goals. With
the help of well-defined business strategy, success make creative results that is essential for
sustainability in the market. In this way, every enterprise can compete with other organisation to
create their effective brand values. They can easily develop their target market in systematic way
to operate different activities (Dranove, Besanko and Fernández Sánchez, 2017). In this context,
present report based on Lloyds Banking Group which is the major British financial institution
formed through acquisition. The company operating different kinds of activities to increasing
brand value and attract maximum customers in it. For gaining insight information of the
company, present report covers strategic planning for the industry. Furthermore, it includes
challenges in UK which faced by the selected business. Furthermore, it includes strategic
implementation and differentiate within wholesale and retail sector businesses. At last it
discusses about effectiveness and application of strategic option model.
1.
Strategic planning in financial industry
Strategic planning improving efficiency and effectiveness of the business that assists to
create effectiveness at workplace. In this regard, Lloyds Banking Group can easily reduce their
expenses in systematic manner. In order to make strategic planning in the chosen business,
following components will be included in it:
 Create vision: In order to create effective strategic planning, Lloyds Banking Group
need to create their vision that helps to identify opportunities in the business. In this
regard, the organisation can involves their key stakeholders such as owners, directors,
leaders, managers, etc. All they take part to create vision so that effectiveness will be take
place. In this regard, the company has vision to increase their customers from different
countries. Hence, they need to enhance their business branches through goals and
objectives will be develop at workplace (Hart, Sharma and Halme, 2016).
 Create communication direction: In respect to create effective communication, Lloyds
Banking Group need to share their ideas with different members. In this aspect,
communication require in systematic manner so that aims and objectives of the company
will be develops. In addition to this, the company can also demonstrate roles to different
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members towards the activities. Therefore, effectiveness will be maintained and
responsibilities given on the basis of interest area and qualifications. Hence, it is the best
activity that assists to lead with financial services in the enterprise.
 Understand the customer and market: Further, strategic planning also requires
understanding towards the customers and market as well. In this context, Lloyds Banking
Group need to demonstrate that who are their customers and in which market they are
entering. Therefore, aims and objectives will be accomplish in that manner in systematic
perspective (Dranove, Besanko and Fernández Sánchez, 2017).
 Understand the internal capabilities: In addition to this, strategic planning of the
selected business categories understanding of the internal capabilities. In this way, Lloyds
Banking Group need to identify their own strength to operate different activities at
workplace.
 Effective link: In order to develop more profits and revenue, the company has
responsibilities to create link that helps to set the aims and objectives at workplace. It is
the systematic process in which targets could be accomplish in systematic manner
(Bentley-Goode, Newton and Thompson, 2017).
 Progress: Lloyds Banking Group continue progress so that it is the great opportunities
for them to set goals and objectives to cater effective information. In this regard,
development of the company will be ascertain in systematic way that helps to set the
structure in systematic way (Jayaram, Choon Tan and Laosirihongthong, 2014).
2.
Challenges in UK financial industry
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Challenges in UK financial industry
here are the four key challenges in UK financial sector :
Facing demand for better customer service-
Financial organisations are facing unfamiliar breakdown from public as well as
government. Most of them are involving in rising struggle to prove themselves again
economically. Because of the increased distance between customers and institutions they are
preferring the customer service as an important element for financial institution. The report of
data monitor 2012 says that 'service should be inventive and splendid' that is institutions are
differentiating themselves with very good delivery and solving of problems (Jayaram, Choon
Tan and Laosirihongthong, 2014).
Facing the tough demands to satisfy-
It has become very important for the UK businesses to tell the customers the cracked
security of data. Regulators have done the emphasis on these financial organisations. Most of
the organisations can not recover from the loss of data. Reputation of suppliers and their
customers can fully damaged and can not be repaired. Also the budget sheet of an
organisation can be damaged completely (Albeladi, Khan and Khan, 2014). The office of
information commissioner are willing to set high penalties to increase good levels for lost
information of clients by 300%. Also the field of regulation seems like a target for financial
organisations and is developing too.
Moving efficiency and cost reduction -
Doing more with little has become a new business mantra. But recent changes in
economy made their focus on financial sector. Companies have made the overall reviews of all
the business procedures now a days to watch where the efficiency lies. The management of
business information should not be overlooked in this Dranove, Besanko and Fernández
Sánchez, 2017).
The best use of new technology-
Competition of financial sector has been increased globally so much. The business
environment has been competing very forcefully for make profits and shares in market. Today,
the key of success for these companies is distinguishing the brands because the demand of
new products have been increased. The financial leaders should use the opportunities and
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challenges meeting success but for this, the solutions should been started (Jayaram, Choon
Tan and Laosirihongthong, 2014).
In the UK, there are several challenges exists that faced by business in their day to day
activities. With the help of strategies they are also creates solution so that they can easily
accomplish desires results at workplace (Albeladi, Khan and Khan, 2014). In Lloyds Banking
Group, mainly facing competition and customer services.
Customer service: High competition of the UK market is the issue which create impact
on their activities and performances. Nowadays, banks feelings that they are not safe in the
context to provide loan on interest. Therefore, they are concentrate to create effective customer
services through effectiveness will be develop (Jayaram, Choon Tan and Laosirihongthong,
2014). With unique customer services, Lloyds Banking Group able to deliver effective results at
workplace.
Competition: High competition of the financial industry create impact on the Lloyds
Banking Group which need to be solve in systematic manner. With the help of solving
competition issues, the company need to know about the customer demand and requirement.
Further, the chosen bank need to concentrate on unique services and products that can be provide
to customers so that they are attracted towards the goals and objectives of the company (Parnell,
2016).
3.
Strategic implementation and differentiate in wholesale and retail business
In respect to create strategic implementation in the wholesale and retail business, it is
important to assess that the company developing their operations and functions in systematic
manner. With the help of the strategic implementation, process consist in which different stages
will be framed that helps to concentrate on the business aims and objectives (Dranove, Besanko
and Fernández Sánchez, 2017). Hence, following differences will be implemented at workplace
of wholesale and retail business:
Basis Wholesale business Retail business
Infrastructure In the wholesale businesses,
infrastructure facilities very
high so that it create effective
However, in the retail sector
business infrastructure
elements determines in the less
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results to operate
effectiveness. In this kind, of
business high amount of
infrastructure will be develops
in systematic manner.
Company getting high profits
and revenue in systematic
manner. Therefore, it creates
effectiveness to determines
more profits and revenue
(Kellermanns, Dibrell and
Cruz, 2014).
amount so that they require
less amount which helps to
increasing their profits and
revenue (Shimizu and Tamura,
2015). In this way, fewer
profits and revenue will be
placed because the company
established in their operations.
Operations In the wholesale business,
operations are consisted in
wide manner and perspective.
Therefore, aims and objectives
need to be accomplish in
systematic manner. The
company need to concentrate
on the activities that are
performed to create
effectiveness. Wide area of the
operations consist in the
company that make
enhancement of the goals and
targets (Fiorino and Bhan,
2016).
In retail sector business, there
are fewer operations consist
that assists to create effective
functions in the business. The
company need to recruit less
number of people so that they
can easily ascertain profits and
revenue in the company. With
the help of creative operations,
unique features are also added
in the business that helps to
determine creative functioning
in it (Albeladi, Khan and
Khan, 2014).
Customer expectations Wholesale business never
considered customer
expectation. This is because,
In respect to this, retail
business also consist customer
expectation which assists to
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they are producing in the wide
variety which helps to
increasing sales. In addition to
this, they are generally adding
same features in the products
in order to concentrate on the
aims and objectives
(Maurborgne and Kim, 2015).
With the help of placing order,
business will able to show
creative functioning in the
business.
make effective functioning at
workplace (Hart, Sharma and
Halme, 2016). With the help of
adding unique features, retail
sector business attract
customers easily. In addition to
this, they are also concentrates
customer requirement and their
needs. Therefore, it is the
creative process which needed
to perform specific task and
goals at workplace.
4.
Effectiveness and application of strategic option model
In respect to determines the effective results, there are effective application of the
strategic model is needed. Therefore, it assists to carry several functions and operations to make
proper attention towards the long term solution. Furthermore, formulation of the issues and
alternatives requires that helps to create quality of preparatory staff work (Bentley-Goode,
Newton and Thompson, 2017). In order to create strategic option model in Lloyds Banking
Group, Porter Strategic option need to implemented that assists to create effectiveness at
workplace. It includes achieving cost leadership, differentiation in the niche markets in different
ways that are available to focus on the different competitive advantages at workplace. However,
it is also useful to create strategy model that provides common focus on the discussion point.
The Best strategies also implemented that apply in the strategy as the tool to demonstrate
effectiveness at workplace (Slack, 2015).
Strategic planning tools also end with the main objectives which includes following
strategies:
Generic strategies
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This approach has been used to concentrate on the products and services of the selected
industry (Jocovic, Melovic and Murgul, 2014). It helps to attain competitive advantages in the
business. Porter called it generic strategies:
 Cost leadership: In respect to implement this strategy, there are several ways included
that helps to gain competitive advantages. In this way, edge will be develop that helps to
compete with different competitors. There are mainly two ways exists that helps to
accomplish cost leadership strategy in Lloyds Banking Group. For example, increasing
profits through reducing cost and increasing market share through charge lower price
(Dahlberg, Hokkanen and Newman, 2016). With the help of the above strategy, the
company need to make themselves market leader. In this way, target will be accomplish
in systematic way.
 Differentiation: This strategy includes making products and services in the different
forms which create attractiveness as compare to competitors. It could be depends on the
nature of the industry to sell products and services. It also includes features, functioning,
support, brand image, etc. Success will be made when organisation consist good research,
development and innovation. It includes ability that deliver high quality of products and
services (Chen and Jermias, 2014). Differentiation of the products and services assists to
develop systematic work performance.
 Cost focus: It includes focus which mainly using by the company to concentrate on the
particular niche markets. In this way, the company also understanding dynamics of the
market with implementing unique needs of the customers in it. It helps to make particular
segment of the market to create attractiveness to competitors.
 Differentiation focus: in addition to this, in this context, Lloyds Banking Group need to
make their concentration on the focusing with differentiate their products and services. In
this regard, the company able to deliver effective results that make loyalty of the brand
amongst their customers (Favaro, 2015). It is very important to ascertain success of the
generic focus strategy that ensure adding something with unique features. With the help
of rising risk competing, better resourced implemented in the broad market to offers
effective results at workplace. With the help of the conducting good research,
development and innovation also implemented at workplace that is needed to perform
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several functions and operations at workplace (Jayaram, Choon Tan and
Laosirihongthong, 2014).
CONCLUSION
From the above report, it can be concluded that business strategy is the systematic
approach that assists to make proper solution at workplace. In this way, Lloyds Banking Group
operate as the financial industry. They are operating their effective functions that are carried to
create effectiveness at workplace. However, the company facing many issues and problems
because in UK market there are many difficulties take place in the financial industry. With the
help of the proper solution, the company can determines effective results at there business.
Furthermore, it summarized about the differences between wholesale and retail business that can
be develop to attain more effective results at workplace.
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REFERENCES
Book and journals
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Control Over Financial Reporting, and Audit Reporting Quality. Auditing: A Journal of
Practice and Theory.
Chen, Y. and Jermias, J., 2014. Business strategy, executive compensation and firm
performance. Accounting & Finance, 54(1), pp.113-134.
Dahlberg, T., Hokkanen, P. and Newman, M., 2016. How Business Strategy and Technology
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Jocovic, M., Melovic, B. and Murgul, V., 2014. Modern business strategy Customer
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Kellermanns, F.W., Dibrell, C. and Cruz, C., 2014. The role and impact of emotions in family
business strategy: New approaches and paradigms. Journal of Family Business Strategy.
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Maurborgne, R. and Kim, W.C., 2015. Business strategy: Red ocean traps. Harvard Business
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