bussines enviroment

2500 words need refrences to match

Business Environment

EXECUTIVE SUMMARY
As per the above report summarizes that business environment based internal as well as
external factor that impact on the management decision. In this report understand about the
technology and innovation that impact on the business operations and make decisions
appropriately. Along with corporate governance comprise with set of relationship between a
company management and other stakeholders. Corporate social responsibility plays essential role
in business and help to maintain sustainability for longer period of time. This report based on the
Lloyds bank which is conducting activities in financial sector.

Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
Innovation and Technology.....................................................................................................................3
Innovation and technology contributes in economic growth a country....................................................3
Business organizations use new technology in their operations...............................................................4
Brief overview of company.....................................................................................................................4
New technologies used by Lloyds Bank..................................................................................................4
Compare sales and profit.........................................................................................................................5
Comment on findings..............................................................................................................................6
TASK 2.......................................................................................................................................................7
Importance of corporate social responsibility..........................................................................................7
Importance of CSR for organisation........................................................................................................8
Archie Carroll’s Pyramid.........................................................................................................................8
CONCLUSION.........................................................................................................................................10
REFERENCES..........................................................................................................................................11

INTRODUCTION
Business environment includes the different influences that influence management
decisions. They could be economic, social, political, and technical influences. Such variables are
beyond business control. The company can do little to improve them. A business climate is a
collection of components which are closely involved in the operations of a company (Aithal,
2016). Those variables affect the output, efficiency and development of the business internally or
externally. To complete this report selected organisation Lloyds bank. It is a British retail and
commercial bank with different branches that established across England and Wales. It was
established in 1765 due to less number of banking companies. This report categorized into two
parts in first task mention about innovation and technology, contribution in economic growth and
business use new technology in business. The second task includes importance of corporate
social responsibility and apply Archie model in selected business.
TASK 1
Innovation and Technology
Innovation: The implementation of new and interesting concepts known as innovation.
Originality, the capacity to create new and unique concepts, is the kernel of progress and it's only
just an idea until it's implemented and scaled up. Invention is larger than a software suite or item.
Innovation includes the effectively use of knowledge, creativity and effort to extract larger or
equivalent principles from materials, and encompasses all processes by which new ideas are
created and transformed into useful goods.
Technology: Technology is the use of devices, materials and information to fix issues
and to expand individual development. It involves devices (such as machines) yet also methods
and systems (such as how we make computer chips). It may seem like all software is just digital,
but that's the most advanced technology.

Innovation and technology contributes in economic growth a country
One of the key advantages of innovation is their relation to sustainable development.
Simply put, invention will lead to increased efficiency, which provides bigger output is produced
by the same information. When wages increase, more products and services are produced-that is,
the economy is increasing. Oxford Economics has measured the importance of the invention,
science and development industry to the UK economy, taking into consideration not just the
direct, secondary (supply chain) and mediated (Worker spending) influences but also a number
of external or 'catalytic' impacts. The latter are extremely crucial for this business because of the
volume of research & innovation conducted by the organizations involved and because of
initiatives that enhance the level of R&D conducted by universities and research institutions (e.g.
by cooperation, communication and offering services like innovation labs).
Innovation describes the creation and implementation of ideas and innovations in financial
perspective that enhance products and services, or make their output more efficient. The
invention of the steam engine engineering in the 18th century is a perfect example of progress.
Steam engines could be used in manufacturing, making mass manufacturing, and transportation
through the railways was revolutionized. More importantly, IT has changed the manner in which
businesses manufacture and sell their products and services, thus setting new market
opportunities marketing strategies.
Business organizations use new technology in their operations
Use technology in systems integration has meant that companies can reduce costs,
enhance the ordering process, normalize and increase quality, and concentrate on innovation,
thus adding value for clients. The implementation of changes in technology to an enterprise
poses a distinct set of organizational problems than the work of the professional project
management. Moreover, the supervisors accountable for the courting of a technological
innovation into daily use are often much better qualified by experience and knowledge to direct
the creation of that technology than to oversee its application.
Brief overview of company
Lloyds Bank plc is a British commercial and retail bank, with departments along all
England and Wales. It has historically been considered one of the load and unload for the "Big
Four. The bank was established in Birmingham in 1765. It developed throughout the 19th and

20th centuries and taking around a variety of larger financial institutions. It combined with the
Trustee Savings Bank in 1995, and traded between 1999 and 2013 as Lloyds TSB Bank plc. This
offers finance and banking services. The Bank provides services such as savings accounts, credit
card statements, deposits, shares, share trading, leases, investments, auto financing, protection
and commercial banking. Lloyds Bank supports clients around the UK.
New technologies used by Lloyds Bank
On 10 October 2016, Lloyds Banking Group introduced new Selfie Apps. As part of
investing in digital technologies to enhance user satisfaction, Lloyds Banking Group has just
unveiled selfie technologies to encourage buyers at Bank of Scotland to easily access a bank
account digitally it’s name. Often customers who apply electronically via the latest streamlined
request form will be asked to include the ID. In order to open an existing account and take
photos of their UK driving driver's licence, they must be capable of completing an easy step-by -
step verification system together with selfie photos to verify their claims (Trkman, 2013).
As the ID authentication system is cloud-based consumers can use a web browser to
upload photos on their mobile device – without the need to install an external device. This
streamlines the current account implementation system for new clients considerably and provides
them the versatility to rapidly set up an account from the privacy of their homes.
Compare sales and profit
After implementation of new technology analysis the changes which were coming in
sales as well as profit. There are analyzing annual report of year 2016 & 2017 to identify the
changes in profit and sales. As per the income statement it is analyzed that total life and pension
sales enhanced by 12% and driven by 29% increase across workplace, planning retirement and
many others.

As per the statement it is analyzed that net income of bank increased by 6% because it is
easy way for people to open new account and save their money. Along with they are investing
any time and check their balance in digitally manner. Along with underlying profit has been
increased by 8% that presents good position of business in ethical manner. After deduct the tax
get profit for the year 3547 in 2017 and 2514 in 2016 that presents changes was coming about
41% in the bank. Thus, it is saying that the new technology helps to bank to get more sales and
profit in 2017 compare than of 2016.
Comment on findings
 As of the most recent annual from the Lloyds Banking Group, innovation expenditure
percentages about 17 percent of operational costs in North America, 15 percent in the
United Kingdom and 14 percent in Europe.
 In contrast, the bank's expenditure crosses the 19 per cent mark of operating expenses,
reflective of its robust digital development plan. Over 75 per cent of that quantity is
invested in building advanced features and improving current systems.

 The institution's opinion is that emerging innovations are helping to growing financial
industry efficiency gains and bring significant changes to customer satisfaction.
 Certainly, the transactions made by the bank produce good returns. For instance, from the
release in 2018 to the ending of last year, robots allowed the economy save a million
hours for workers who were motivated to focus it on providing an excellent customer
experience.
 The Bank's digital emphasis is a consequence of its own analysis of client patterns
behavior. Comparing consumer user activities over five years from 2014, it showed that
competition from broadcast platforms exploded in 2019—nearly tripling for items like
new bank account launches, and multiplying for home owners insurance and loan
requests.
TASK 2
Importance of corporate social responsibility
Corporate governance: Corporate governance is a set of rules, procedures, or
regulations that oversee, or command companies. The word covers internally and externally
factors affecting the desires of interested parties in a corporation, such as investors, clients,
distributors, regulatory agencies and management. Corporate governance is the framework of
principles, policies, processes, and properly stated roles and obligations employed by participants
to resolve the potential conflicts embedded in the corporate structure. This study found which
enables robust revenue growth and balances it.
Corporate social responsibility: Corporate Social Responsibility (CSR) is an auto-
regulating business plan that allows businesses to be publicly responsible — on itself, its
investors and the public. By exercising corporate social responsibility, also corporate social
performance citizenship, corporations may be mindful of the sort of effect they have on all facets
of society, namely economic, social and environmental.
History of corporate governance in the UK with examples: Corporate Governance
History in UK. Governance is a term that had scarcely been in existence 20 years ago. The
"Cadbury Code" was slowly embraced as a standard of good setup conduct by the City and the

Stock Exchange, targeted at publicly traded organizations and aiming in particular at principles
of corporate behavior and ethics.
1998 – The Unified Corporate Governance Code (re-named the UK Corporate Governance
Code, the new edition released in September 2012) 1999 – Turnbull Internal Management
Guidelines 2010 – Stewardship Code. 2013 – Businesses Act 2006 (Strategic Report and
Legislation for the Directors' Study)
Governance is a term that had scarcely been around 20 years ago. Currently, not only in
businesses, but also in hospitals, colleges, relevant councils and National Health Trusts, it is
widely used. It is now a standard on how an enterprise is managed, with special focus on
transparency, honesty, and risk assessment. In the early 1990's, the "revolution" began with the
Cadbury Report on the economic aspects of risk management, to which a script of professional
standards was connected. The "Cadbury Code" was slowly embraced as a standard of boardroom
conduct by the Town and the Stock market, targeted at companies listed and aiming in particular
at norms of corporate ethics and morality.
Importance of CSR for organisation
It's extremely necessary for the company to be working in a way that shows social
responsibility. Also if it's not a legal necessity, taking environmental and social problems into
consideration is seen as best practice. For business performance social responsibility and ethical
standards are important. The 2015 study of Cone Data collection/Ebiquity Global CSR showed
that a whopping 91 per cent of international customers anticipate corporations to behave
responsibly to tackle economic and environmental issues. In addition, 84 per cent state they are
searching for sustainable goods whenever practicable. Currently in this market economy, the
importance and value of Corporate Social Responsibility (CSR) is of major importance to make
sure the sustainable development of life and relationships in long term (Veit and et.al., 2014).
Mallen Baker describes CSR as, "It is about how businesses handle the business requirements to
have a generally positive effect on society." As per the United Nations, "Corporate Social
Responsibility is a management term wherein corporations incorporate social and environmental
issues into their business activities and relationships with their shareholders."

This is our first study on corporate responsibility as Lloyds Banking Company. It points
out how we meet our responsibilities to our investors, like our shareholders and the investor, our
clients, associates and societies. It's a honor and one that tends to come with significant
responsibilities.
Archie Carroll’s Pyramid
Carroll's CSR pyramid is a structure which describes how and why social conscience should
be assumed by institutions. The pyramid was created by Archie Carroll and illustrates the four
main styles of organizational accountability. These are:
 Economic responsibility
 Legal responsibility
 Ethical responsibility
 Philanthropic responsibility
The foundation of the pyramid is income. This framework is important for a firm to fulfill all
rules and regulations, and also investor requests. Until a corporation may and can then claim its
charitable duty or budgetary obligation, it still needs to perform its ethical duties.

These responsibility are defined in broad manner in respect of different organisation
Economic responsibility: Companies' economic duty is to manufacture value the customer
requires, and earn a living on them. Businesses have stakeholders who anticipate and seek a
good return on its expenditure, have workers who choose to do their job efficiently and
reasonably, and have consumers that desire of good items at affordable rates. That is the pyramid
basis on which these the other strands rest.
Legal responsibility: Companies' legal responsibility is to abide by the lowest possible
guidelines that have been set. Organizations are anticipated to act and perform inside those
regulations. The general principles are rules and regulations which reflect the values of
formalized morality in community. They evaluate how institutions, as characterized by
lawmakers at nationwide, regional, and local level, can perform their corporate practices fairly.
Ethical responsibility: Business ethical responsibility goes further than the prescriptive
perceptions of political system-laws and regulations. Furthermore, society requires companies to
operate and manage their businesses in an economic way. Seeking ethical obligation implies that

organizations adopt policies, principles, and procedures that have not been actually written
explicitly, but are still anticipated.
Philanthropic responsibility: The Company’s philanthropic obligation encompasses
compulsory or contractual programs and company behavior. Charity work is not a direct
obligation, but community presently requires company to participate more actively. The essence
and volume of these operations are optional, and are motivated by the willingness of businesses
to engage in physical activity that is not usually required in an objective sense from
organizations.
The Lloyds bank applies this model in order to set up all the responsibilities to get all the
effective results in certain period of time. This model helps to meet their social responsibility in
effective manner. It provides benefits to society for longer period of time and act morally as well
as ethically.
CONCLUSION
As per the above report it has been concluded that the environment of corporation
depends on the various activities which is related with the business in direct and indirect manner.
The technology as well as innovation both terms is essential for business that helps to improve
efficiency as well as financial health in proper manner. The bank apply Sefie technology that
impact on the business in positive manner and generate more income as compare than of
previous year. The corporate social responsibility also plays vital role to manage all the business
activities as per the requirements.

REFERENCES
Books and Journal
Aithal, P. S., 2016. Study on ABCD analysis technique for business models, business strategies,
operating concepts & business systems. International Journal in Management and
Social Science. 4(1).
Rose, L. M., Orrenius, U. E. and Neumann, W. P., 2013. Work environment and the bottom line:
Survey of tools relating work environment to business results. Human Factors and
Ergonomics in Manufacturing & Service Industries. 23(5). pp.368-381.
Veit, D. and et.al., 2014. Business models. Business & Information Systems Engineering. 6(1).
pp.45-53.
Trkman, P., 2013. Increasing process orientation with business process management: Critical
practices’. International journal of information management. 33(1). pp.48-60.
Online
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<https://www.oxfordeconomics.com/recent-releases/the-impact-of-the-innovation-research-and-
technology-sector-on-the-uk-economy>
Example of innovation. 2018. [Online]. Available through:
<https://www.ecb.europa.eu/explainers/tell-me-more/html/growth.en.html>
Tech adoption. 2020. [Online]. Available through: <https://techhq.com/2020/02/how-lloyds-
banking-group-is-really-doing-with-tech-adoption/>
New selfie technology. 2020. [Online]. Available through:
<https://www.comparethecloud.net/uncategorized/new-selfie-technology-launched-by-lloyds-banking-
group/>
Corporate Governance. 2020. [Online]. Available through:
<https://www.investopedia.com/terms/c/corporategovernance.asp>
Corporate social responsibility. 2020. [Online]. Available through:
<https://www.investopedia.com/terms/c/corp-social-responsibility.asp>
History of corporate governance. 2018. [Online]. Available through:
<https://allatiflaw.wordpress.com/2008/06/18/history-of-corporate-governance-in-the-uk/>
CSR pyramid. 2020. [Online]. Available through: < https://www.toolshero.com/strategy/carroll-
csr-pyramid/>