Global Business Environment

This report discusses the impact of global business environment on the operations of Lloyd's bank using Pestle analysis. It explores the opportunities and threats in political, economic, social, technological, legal, and environmental factors.

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
PESTLE ANALYSIS..................................................................................................................1
CONCLUSION ...............................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Global business environment is defined as the environment which are fluctuated in nature due to
which affecting the operations of business operations. The present report is based on Lloyd’s
bank which is located in Birmingham having headquartered in London, UK. It was established in
the year 1765 dealing in providing banking services in England and Wales. The report overviews
the impact of global business environment on the business operation using Pestle model.
MAIN BODY
PESTLE ANALYSIS
( Source: What is PESTLE analysis, 2018)
It is an analytical tool which is used to identify the influencing factors of macro environment
that can affect the decisions of business organisations either in positive or negative way (What is
PESTLE analysis, 2018).
Political: It is the factor consists of rules and regulations framed by government such
as taxation rate, service charge etc. that can affect the level of performance of an
organisation.
OPPORTUNITIES THREAT
 Lloyd’s bank has high capitalisation  After Brexit, UK government put more
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due to operating at large scale and
having a strong balance sheet (Buckley,
Enderwick and Cross, 2018).
 The bank has attained over 12 million
user due to which finding no
difficulties if government changes its
policies.
pressure over bank to raise capital
requirement.
 Brexit causes more contingent
situations which is difficult for
management to predict thus may causes
loss to the company (Akhtar and Sushil,
2018).
Economic: It is related with income of people which mainly depends on growth of
economy of a nation. These factors also includes inflation, foreign direct investment etc.
OPPORTUNITIES THREAT
 Growth in economy increases the
spending of customers due to which
make more investment in bank
(Hamilton and Webster, 2018).
 Changes in taxation policy can
significantly influences the way of
operating business and brings more
opportunity to increase its revenue.
 Brexit reduces the interest rate from
0.5% to 0.25% and it cause huge loss to
the bank.
 EU financial regulation has been
withdrawn that brings unbalanced
condition (Kasemsap, 2020).
Social: It is related with standard of living of people which hugely affects the revenue
of an organisation.
OPPORTUNITIES THREAT
 People are more rationale which
increase disposable income.
 Give loans to SME who provides
interest in return which brings
consistency in generating revenue.
Mostly peoples believes of making
investment and savings that minimises cash
flow.
Technological: It is related with technological advancement which captures the needs
and perceptions of large number of customers at short period of time.
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OPPORTUNITIES THREAT
 Have own website to connect with
large number of customer base. Using
social media platform to communicate
about the new policies of bank to the
customers is more economic.
 Introduce biometric to record the
attendance of employees. Using
biometric to maintain record of
employees’ attendance minimises the
absenteeism (Ronit, 2018).
 Technological advancements brings
more challenges for Lloyd bank.
 Lack of knowledge of employees to
utilise new technologies requires
training which increases cost of
company (Michael, 2018).
Legal: It is the laws of government that must be followed by all the business.
OPPORTUNITIES THREAT
 Data protection act, 1998 introduces by
UK government protects the
confidential data of customers.
 Government framed strict policies to
protect the funds of customers.
 Changes in government brings changes
in policies which is difficult to
understand and follow by banks.
 Bankruptcy brings huge loss to the
customers.
Environmental: It is related with the different steps taken to protect the environment
from pollution.
OPPORTUNITIES THREAT
 Engaging in corporate social
responsibilities makes strong market
image of bank.
 Minimising carbon footprints by
optimum utilisation of resources.
 Notes and currency also make from the
trees (Michael, 2018). Paper work is
used by bank which can harm the
environment.
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CONCLUSION
It is summarised from the above discussion that business organisations operated at global
level such as Lloyd’s bank can be affected by several factors of business environment due to
which it must be analysed by the management by conducting PESTLE Analysis. It directs Bank
to frame policies and plans which can deal with future fluctuations in market.
REFERENCES
Books and Journals
Akhtar, M. and Sushil, S., 2018. Strategic performance management system in uncertain
business environment. Business Process Management Journal.
Buckley, P.J., Enderwick, P. and Cross, A.R. Eds., 2018. International business. Oxford
University Press.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Kasemsap, K., 2020. The role of strategic outsourcing in global business. In Foreign Direct
Investments: Concepts, Methodologies, Tools, and Applications (pp. 236-268). IGI
Global.
Michael, P.D., 2018. Toward a global business standard for supply chain ethics. IEEE
Engineering Management Review. 46(4). pp.112-121.
Ronit, K., 2018. Global business associations. Routledge.
ONLINE
What is PESTLE analysis. 2018. [Online] Available through:
<http://academicessayguide.blogspot.com/2018/04/what-is-pestle-analysis.html>.
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