Business Strategy for Lloyds Bank: PESTLE, SWOT, VRIO and Porter's Five Forces Analysis

Business Strategy

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Application of Pestle framework to know the influences of macro environment factors.3
M1. Critique the factors in macro business environment.......................................................5
TASK 2............................................................................................................................................5
P2. Application of SWOT and VRIO analysis.......................................................................5
M2. Review the internal environment factors and capabilities..............................................8
TASK 3............................................................................................................................................8
P3. Porter's five forces............................................................................................................8
M3. Contrive relevant plans and tactics to enhance competitive edge...................................9
TASK 4............................................................................................................................................9
P4. Application of different models and concepts..................................................................9
M4. Make suitable business strategic plan...........................................................................10
D1. Review and interpret the data........................................................................................12
CONCLUSION .............................................................................................................................12
REFERNCES:................................................................................................................................13
Books and Journals:..............................................................................................................13

INTRODUCTION
Business strategy is essential for any form of business entity as it helps in attaining
business goals and also beneficial in seeking growth and development strategically. Business
strategy represents as a clear and defined sets of plans, goals and actions that shows how a
company will position itself in the target market with its products and services. It contains
number of factors such as market competitors, macro and micro business environment,
organisational structure and many more. It is important that business strategy should be flexible
in nature so as to handle change (Liu and Kong, 2021). This report considers the company named
Lloyds Bank which is a retail and commercial bank in British Administration. It is considered as
the oldest and largest British retail bank and has an extended network of branches and ATMs in
United Kingdom. John Taylor and Sampson Lloyd were announced the company in 1765. It is
headquartered in London, United Kingdom. The key services are banking and insurance. The
current report outlines several concepts and frameworks such as PESTLE, SWOT, VRIO
analysis to analyse the macro and micro environment of business. Porter's five forces is a part of
this report so as to measure the competitive forces of specified market. At the end, there is range
of models, theories and approaches to understand and invent strategic planning for the certain
organisation.
TASK 1
P1. Application of Pestle framework to know the influences of macro environment factors.
PESTLE analysis is used to analyse the different factors including political, economic,
social, technological, environmental and legal factors. Lloyds Bank exploits this framework to
know the influences of each factor in identifying external opportunities and threats. The
analysation of all such factors in company's context are discussed below:
 Political factors: This element contains different influences such as political stabilities,
trade restrictions, labour laws, tariffs and many more. The government laws in UK may
affect the state of the banking sector. The UK government can interact in the matters of
the banking and insurance (Ricci and et.al., 2021). Brexit is one of the examples that
impacts the functioning of business in UK. Due to Brexit, there is an announcement of
some trade restrictions and change in import and export policies that affects the business

of Lloyds Banks. On the other side, the political conditions of UK are stable which
delivers positive impact on the business to grab growth and expansion opportunities.
 Economic factors: It contains labour market conditions, saving rates, inflation rates,
inflation rates, foreign exchange rates, saving rates and many more. The economic
growth and development highly influences the performance of businesses in any sector.
In addition to Lloyds, the company must analyse the labour market conditions in order to
know how to attract right candidates to the business (Gray and et.al., 2020). UK is one of
the countries where the population is highly educated and skilled to get a certain job or
work. Due to Covid-19, the business has lost many loyal and qualified employees in the
times of global pandemic due to which it suffered losses as well. Therefore, to retain and
attract new employees, a good research should be done by the experts.
 Social factors: This factor is based on the tastes and preferences, cultural beliefs,
religion, values and many other factors. In addition with Lloyds, due to Covid-19, many
people have lost their jobs and almost they income gets reduced due to which it impacts
on their savings and deposits (Del Giudice and et.al., 2021). Their spending patterns also
gets changed such as they use online modes of payments for any transactions. They
exploits debit or credit cards, net-banking, online payments and many more. They mould
themselves from classical modes of payments.
 Technological factors: It includes technological upgradation, advancement and
innovation in the business processes. Technologies has changed the way of handling
funds by the customers and clients (Thomas and et.al., 2021). Many banks such as Lloyds
Bank facilitates customers with their mobile banking system to witness accounts, pays
bills on smart phones, transfer and receive funds and many more.
 Legal factors: It is important for the banking companies to follow different laws and
legislations regarding trade structures, consumer laws, privacy laws and many more to
confirm frameworks within the sector. These laws have to be followed by the chosen
company in order to protect itself from any bad implications that affects its reputation and
goodwill.
 Environmental factors: This factor deals with the growing awareness with climatic
conditions and environmental consciousness. It involves several environmental laws,
regulations and standards vary throughout different markets. In case of chosen company,