Assignment: Global Corporate Strategy

Global Corporate Strategy

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1 FIRM'S COMPETITIVENESS IN THE GLOBAL FINANCIAL SERVICESINDUSTRY.....................................................................................................................................1TASK 2 E-BANKING- THE ROLE OF ALLIANCES, MERGERS AND ACQUISITIONS......6TASK 3 CORPORATE GOVERNANCE, CSR, LEADERSHIP AND COMPETITIVENESS....8TASK 4 PERSONAL REFLECTIONS ON LEARNING AND OVERALL REPORTPRESENTATION..........................................................................................................................10CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................12

ILLUSTRATION INDEXIllustration 1: Most preferred methods of banking..........................................................................5

INTRODUCTIONIn the era of globalization, it is essential for businesses to obtain international expansionby adopting effectual strategy. However, if business is still focusing on local markets then it issignificant for them to target outside home market i.e. called global marketing. Moreover,international corporate strategy requires business to coordinate their product and pricingstrategies across international markets and thus achieve customer satisfaction. Also, business isrequired to focus on competitor’s marketing and sales strategy with the aim to overcome it andtarget both domestic and international clients (Hillier, Grinblatt and Titman, 2011). The purpose of the report is to develop knowledge and skills regarding understanding thekey strategic issues in regard to Global Financial Services Industry. Therefore, Lloyds BankingGroup had been undertaken which is a leading financial service provider to both individual andbusiness clients within UK (Peng, 2013). The main business activities of organization is retailand commercial banking, general insurance and long term savings etc.TASK 1 FIRM'S COMPETITIVENESS IN THE GLOBAL FINANCIALSERVICES INDUSTRYThrough reviewing the annual report of Lloyd Banking Group 2014 it can be assessedthat, main aim of business is to become the best bank for both individual and business customers.They are serving around 25 million customers in UK. However, business faces toughcompetition from other similar financial services providing industry such as Citigroup and ICBC.It can be ascertained that as compared to such industry business is heavily involved in providingretail and commercial finance and investments to individual and business customers. Byadopting effectual global corporate strategy, it assists Lloyd Banking Group to provide effectualfinancial services and satisfy requirements of clients. Businesses such as Lloyds (Park, 2014),Citigroup and ICBC faces serious competitiveness Globalization can be stated as the way through which businesses expand its operationswithin different countries together with the aim to only set the national identity but become thepart of the world as a whole (Altuntas and Turker, 2015). The advantages and disadvantages ofglobalization are as follows-Advantages1

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Global Corporate Strategy
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Global Corporate Strategy 1
Contents
Question 1........................................................................................................................................1
Question 2........................................................................................................................................3
Question 3........................................................................................................................................6
Question 4........................................................................................................................................8
References......................................................................................................................................10

Global Corporate Strategy 2
Question 1
Elon Reeve Musk is an investor and technology entrepreneur who was born in US in the year
1971. The entrepreneur believes in working with innovations and technology consistently so that
the organization can attain competitive advantage in the market without actually sustaining it for
a longer period of time. According to Musk, moat is something that reduces the competency of
an organization to earn more and grow. In fact, using innovative techniques and capabilities of
the organization will successfully help the companies present in the market to grow (Afonina
2015). Further, the below mentioned report evaluates details about the actions taken by Elon
Musk group in order to succeed in the target market. The report answers to four questions with
the help of various strategic tools and models studied in the module. Further, more details about
the group and their strategic actions are discussed below:
Disruptive innovation
Disruptive innovation refers to the innovation that creates new market and value networks by
eventually disrupting the existing business functions of the company and displacing various
activities in order to lead innovation. This type of innovation is the innovation that is majorly
produced by the entrepreneurs for their startups for the purpose of becoming different from the
herd. This type of innovation is not support by people as it can take away the scare resources
present in the sustaining or current innovation. Because of having high degree of risk in it, the
disruptive innovation factor tend to earn growth with higher penetration and higher degree of
impact on the established market segment as well (Frick 2018). Further, the ways in which
disruptive innovation factor is used by the Elon Musk Group is discussed below:
As Elon Musk is known for his nature of moulding things according to his own way so as to
earn growth by making disruptions in regular activities, so his group initiated this type of
innovation in many industries that are discussed below:
Tesla Group: There are many automobile companies present in the external market, but Tesla is
not recognized just as an automobile company that comes under the segment of automobile
industry. Disruptive innovation initiated in manufacturing the cars in the market has made the
company different. Elon Musk Group builds the best and first lowest cost electric vehicle in the

Global Corporate Strategy 3
target market that does not require dependence on the driver (Cameron, and Green 2015). The
company build a scalable clean energy group that helps in reducing the use of fossil fuels present
in the world. The Tesla group management adequately understood the need of the era that
automobile companies should minimize the use of fossil fuels so as to save it for the future
generation. Due to which the company invented electric vehicles. The company made use of
cutting-edge battery technology and electric powertrain. The company combined clean transport
and clean energy production with the automobile industry so as to provide accessible and
sustainable products to the customers in the target market.
SpaceX: Elon Musk Group found SpaceX that is regarded as the most innovative and ambitious
private aerospace company that was founded in the year 2002. Further, in the year 2017, the
company stepped into the field where no aerospace has gone. The company delivered 48
satellites into orbit and 22700 pounds of supplies to the international space station. The company
also launched reusable rocket system that helped them to make use of available resources
repeatedly, now NASA also relies on the company for the carriage and other aeronautical
services. The company is also planning to colonize Mars so as to save the humanity from some
eventual extinction events (Andersen, and Andersson 2017).
Hyperloop: It is a passenger and freight transportation design that was launched by Tesla and
SpaceX for the purpose of high speed transportation. This is a kind of technological disruptive
innovation that is hard to find in most of the companies. The concept of Hyperloop Alpha was
published by the group in the year 2013 to examine the route running from Los Angeles region
and San Francisco Bay Area. This system helped the passengers to travel 560 km route at a speed
of 1200 km/h and the preliminary cost of the above-mentioned route was expected to be $20
each way only.
So, above mentioned innovations clearly explains the disruptions made by the Elon Musk Group
to differentiate their business in the market and increase the advantage for the customer as well
as the company. Success and Failures for the group from the occurrence of such events are
discussed below:
Success Failure
PayPal Success: The time when PayPal was Tesla Autopilot System Fatal Crash: Tesla’s