Impact of Innovation and Technology on Lloyds Bank PLC
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Added on  2023/01/11
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This report discusses the impact of innovation and technology on the sales, profit, operations, and growth of Lloyds Bank PLC. It also explores the significance of corporate social responsibility and Archie Carroll's CSR model.
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Bussiness Environment - The impact of innovation and technology and how it has affected the operations sales profits and growth of Lloyds Bank Plc Eva
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TABLE OF CONTENTS INTRODUCTION...........................................................................................................................2 TASK 1............................................................................................................................................2 1. Impact of technology and innovation on sales, profit, operations and growth........................2 TASK 2............................................................................................................................................5 3. Significance of CSR................................................................................................................5 4. Archie Carroll’s CSR model....................................................................................................6 CONCLUSION................................................................................................................................8 REFERENCES................................................................................................................................9
INTRODUCTION It is very essential for businesses to understand the internal and external factors of the organization so that there is a better functioning. There are a lot of changes which are taking place in industry due to technology and innovation in market which is a very essential factor so that the organization can follow the trends of customers. Lloyds bank PLC is a public company which is in the financial service sector. The headquarters of the organization is in London and was founded in the year 1765. The report would consist of the impact of technologies and innovation on the sales, profit, operations and growth of the organization and corporate social responsibilities. With the help of Archie Carroll’s CSR model the importance is going to be shown in the chosen organization. TASK 1 1. Impact of technology and innovation on sales, profit, operations and growth There is a lot of improvement which can be seen in Lloyd bank in the industry of financial sources which is attracting a lot of clients in the market. The expectation of the clients has changed from the methods which were being used in the past and there has to be a change in the business which can take place through adding innovation and technologies which can help those innovations come into satisfactory of the client which is a great factor(Tomiuk and Srivastava, 2019). Operations This also helps the company to understand d all the factors which is very essential to understand the impact of innovation and technology on sales. Due to increase in the demand of technology in the banking sector it is very important for Lloyd bank to analyse the innovative in the competitors as it can reduce the efficiency of company. There is a rapid change in the technology which has impacted the cost of company to performing its activities to achieve its objectives. Rapid change in technology also reduces the market share of Lloyd bank and reduced the profitability to compete in the market(Akinsoyinu, 2017). Technology has provided better stability in the market to understand and gather their information about the entire customer to
develop better marketing strategies and techniques which can increase the potential of company to attain core competency effectively. Due to advancement of technology it has also opened the global completion if the financial sector as many banks are selling their financial products on digital platform around the world which has reduces the sales of Lloyd bank. As Lloyds bank is also providing different types of product which helps them to survive in the market and attain more customer base. The main focus of the company is to increase the customer satisfaction and use the digital platform to attract more customers with effective marketing campaigns with low cost effectively. Sales Innovation and technology has also impacted the operation of banking industry as well. It has reduces the cost of operation of Lloyd bank to increase its profit margins which helps the company to compete in the market effectively. With the help of technology blank also increases the potential of employees to increase the overall performance of company and promote it as a brand in the market to gain more popularity. Information technology is also used by the Lloyd bank which increases the data to develop better decisions to increase the efficiency of the internal factors which also helps to reduce the cost of the company. Innovation has also increase the leadership of the bank to compete in the market and increase core competency effectively. Innovation in the financial industry is also integrated with digital technology also helps to increasethecostandincreasethemotivationofthebankeffectively(Micheler,2019). Technology also helps the reduce the cost to reduce all the wastage and increase the potential to make decision and increase the efficiency to improve the quality of products and increase customer satisfaction effectively. Profits There is a lot of cash flow in the organization because of the technologies and innovations which are being used in the organization which is a great factor. Lloyds bank is using the latest technologies in the organization so that the customers of the organization can get a best from the industry(Obeng-Krampah, 2018). There have been a lot of changes in the technological aspect of this industry which has raised the net income profit£4.3 bn as of 2019which is a great growth
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for the business. There is a lot of digitalization which has taken place in the industry which has to be followed so that there is a better growth in the market. There is a requirement of investment in the technological aspect of the organization so that there is a better functioning. The quality of the services and the products of the bank have to be clear with the customers which is going to satisfy them more and the standards must be matched by Lloyds bank which is going to help the organization to have a better reputation for them in the market. A lot of events are being held by Lloyds bank so that they can improve the services, aware customers and the quality which is going to make the customers have a better experience. There is a requirement of a lot of knowledge and skills to use the right technology in the right innovation only then the customers can be satisfied and get what they expect from this industry and achieve their objectives for the customers(Fioramonti, 2017). It is very important that the objectives and aims of the bank can be reached which would make the customers have the best experience which is going to make the organization have a standard for themselves which is well maintained in the market. There are a lot of challenges which the organization has to face to get the kind of profit which the organization decides for them. The social need have to be fulfilled only then the customers will come in to get financial services so that the organization can have higher profit margins which can be invested for further technological changes because in this industry there are a lot of changes which are taking place. ï‚·Growth There is a lot of improvement in meeting the demands of the customers with the help of technology. There is a use of information communication technology in the industry so that there is a faster growth in the organization which is going to help the organization to grow in the future as well. There are online services which are being provided so that the customers so not have to travel to the bank and can get their requirements online which is a very good factor for the bank (Spash, 2020). There is a class which needs to be maintained in the financial industry which is being provided to the customers by the organization so that there is a better functioning. For a growth in this industry there is a requirement of technology because the customers need more online services so that they can get their details of the bank accounts whenever they ned and can feel satisfied with the organization which is a very secure information and gaining the trust of the customers. There are a lot of people dependent on this industry for the wages so that they can
improve their lifestyles which are why there has to be innovation and right technological use in the organization so that they can have a better market for themselves and get more customers to get financial services what they need to grow in business. The competition is huge which is why it is very important for the organization to have a better functioning which is going to help the business be able to grow effectively. TASK 2 3. Significance of CSR Corporate social responsibility (CSR) is defined as the legal, ethical, moral as well as economic expectations of society towards organisations (Liang and Renneboog, 2017). With changing era of globalisation and digitisation CSR is becoming one of the integral elements of business processes. For Lloyd Bank it is essential that organisation must build a strong brand value and perception among its customers. It is possible when organisation is able to demonstrate that its activities and operations consist of social responsibility. For retaining the success and gaining competitive advantage it is vital for the organisation that people have a positive image for the bank. It will be beneficial as with small efforts towards society communities are able to develop emotional bonding and trust with organisation. Thus for enhancing brand awareness it is necessary for Lloyd Bank to follow and retain ethical practices. Contrary to this if business emphasis on only profit gain irrespective of ethical and social responsibility then people may not recognise organisation for long term with positive perspective. It has been also observed that CSR practices are valuable in terms of reducing operational expenses and making operations more efficient. For instance when Lloyd Bank follow sustainability practices like waste reduction or resource reusability then it lowers the unnecessary wastage of resources or expenditure burden on organisation. The adaptation to CSR practices also encourages organisation to bring innovation in practices which reduces operational costs and improves productivity. There are a lot of employment which is being provided to the population of the country which is a great advantage for the development of the country and the GDP level. There is a lot of motivation which is spread through corporate social responsibilities which is going to
Economic:LloydBankunderstandstheeconomicsustainabilityanddevelopsinnovative practices to achieve its financial targets. For this purpose organisation hire talented human resources and formulate effective marketing and operational strategies as per market and business needs. The economic responsibility is essential to survive for long term and thus Lloyd Bank also takes its operational decisions on the basis of its economic targets. Legal:Another sustainability aspect which is followed by Lloyd Bank is legal considerations. Thebankfollowsseveralregulationstoensurethatitscustomers,employeesandother stakeholders are delivered a safe and qualitative work environment. For instance legislations such as occupational health and safety, equality laws, equal wages act and other human resources act ensure that all employees are treated with respect in organisation (Grayson and Hodges, 2017). Similarly as Lloyd Bank also uses advanced technology to deliver financial services bank is responsible to follow privacy regulations and other banking regulations to secure the finances of its customers. When organisation obeys these regulations then it helps to avoid legal conflicts and penalties. It also helps to build trustworthy and renowned brand image necessary for gaining support of the customers. Ethical:Apart from the legal and economic compliance Lloyd Bank must also act ethically and morally which are not limited to only legislations. For instance bank initiates several welfare programs for its employees and suppliers. These programs are accomplished by organisation to fulfil the ethical duties or bank towards the individuals who are part of the business. The ethical duties and efforts such as health insurance and welfare programs for stakeholders improve the trust of these individuals towards bank. It also play key role in motivating individuals to work with more positivity and efforts. Philanthropic:Lloyd Bank receives immense support from society thus to pay towards society organisation also take efforts to pay back to society. Though this aspect is discretionary but it is critical part of the CSR of Lloyd Bank. For instance bank organises charitable events and also support people with financial needs. The flexible working policies and internship programs for the society is also one of the way followed by organisation to make contribution in the social development (Crane, Matten and Spence, 2019).
CSR policies of Lloyd Bank are greatly influential to attract and connect with majority of the customers and social communities. These attempts are vital for the bank to build customer and social support for long term. CONCLUSION From the above report it can be concluded that there have been a lot of improvement in the industry of the chosen organization due to technology and innovation. There are a lot of ideas which are being generated in the market which can make the organization have a stronger run for them in the market. CSR also has to be strong in the business so that they can have a strong workflow in the organization which is going to help the organization have high profit margins.