Strategic Management of Lloyd Bank in Sri Lanka: A Comprehensive Analysis

This report provides a comprehensive analysis of the strategic management of Lloyd Bank in Sri Lanka. It examines the bank's strategic purposes, including its core values, vision, mission, goals, and objectives. The report also conducts an internal and external environmental analysis using PEST, Five Forces, BCG/GE, and value chain analysis to identify the bank's resources, competencies, and distinctive capabilities. Based on this analysis, the report presents the bank's SWOT and critically discusses its generic strategy. Furthermore, the report analyzes the growth strategies available to the bank, suggesting three opportunities for substantive growth with reasonable justifications. Finally, the report uses strategy evaluation criteria to select an appropriate future strategy for the bank and explains the strategy methods that can be used to execute the selected strategy.

STRATEGIC MANAGEMENT
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Table of Contents
1.0 Introduction..........................................................................................................................3
1.1 Explain the strategic purposes including core values, vision, mission, goals, and
objectives of the selected organization......................................................................................4
1.2 Identify, graphically present and analyze the concerns of stakeholders in relation to
strategic decisions......................................................................................................................5
1.3 Conduct an internal and external environmental analysis of the company. You may
perform PEST, Five forces, BCG/GE and value chain analysis to identify resources and
competences, distinctive capabilities of the business. Based on the analysis of above factors,
present the company’s SWOT...................................................................................................7
1.4 Critically discuss the generic strategy of the organization.................................................14
1.5 Analyze the growth strategies available to the organization. You may at least identify
three opportunities in which you could suggest the organization to grow with reasonable
justifications. These strategies may belong to substantive growth, limited growth or
retrenchment.............................................................................................................................16
1.6 Opportunities that would promote the substantive growth of the bank:............................20
1.7 Using strategy evaluation criteria, select an appropriate future strategy for the
organization form above alternative strategies. Explain briefly, the appropriate strategy
methods that can be used by the organization to execute the selected strategy.......................23
1.8 Conclusion..........................................................................................................................25
Reference list:...........................................................................................................................26
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1.0 Introduction
It is very important for a bank to create its strategies. This particular report based on the
strategic management of the bank named Lloyd bank. There are different strategic purposes,
which includes the mission goals, vision, values and specially manage the objectives at the
same time. This entire process of making a vision two things develop in most of the cases,
friendships and partnership worldwide basis. The existence of the bank depends on the
factors of its existence in the society according to the need of people. The financial
organization named Lloyd bank has what type of marginal commitment to achieve the role in
the significant time.
The objective factors such as the share of the market, the quality of the leadership in the
technologies and the innovation, the economical productivity and the quality of the product,
another important thing that one need to keep in mind that is the satisfaction of the customers.
The people who considered as the stakeholders they are the suppliers, current government,
shareholders and the union. Now each of the department of the stakeholders has their own
part to play to run the bank. While a company is there in the market and who is responsible
for the society, should have a contribution in the society. The suppliers unable to give the
supplies of those elements, which needed, to the bank, then the bank will face different kind
of problems while they will be serving the potential service users of the organization.
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1.1 Explain the strategic purposes including core values, vision, mission, goals, and
objectives of the selected organization
There are various strategic purposes, which includes the mission goals, vision, values and
specially manage the objectives at the same time. Each company have their own types of
strategies, here the selected bank is the Lloyd bank.
Vision
The vision of the Lloyd bank is to build an entire new model for the bases of those
independent investors and the general customers of the bank. This vision of the bank has its
own kind of improvements in terms of the development of the financial and accounts matters.
This entire process of making a vision two things develop in most of the cases, friendships
and partnership worldwide basis (Bryson, 2018). This will help to expand the business.
Mission
The existence of the business organization depends on the factors of its existence in the
society according to the need of people. It means that the organization (Lloyd Bank) plays
what kind of role in terms of providing them services and the kind of information, which they
need.
Objectives
It defines that the financial organization named Lloyd bank have what type of marginal
commitment to achieve the role in the significant time period which is allotted. It is the
ultimate result of the activity, which planned.
Values
There are few of the objectives of the objective factors such as the share of the market, the
quality of the leadership in the technologies and the new innovation, the economical
productivity and the quality of the product, another important thing which one need to keep in
mind that is the satisfaction of the customers, they must be satisfied. Otherwise, it is going to
effect the reputation of the company. While a company is there in the market and who is
responsible for the society, should have a contribution in the society. The time when they will
be able to make all this possible things, happen the Lloyd bank will be able to count them as
an important part of the economical growth (Keyes, 2016).
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1.2 Identify, graphically present and analyze the concerns of stakeholders in relation to
strategic decisions.
The contribution of the stakeholders is quite important as if the organization named Lloyd
bank. The people who considered as the stakeholders they are the suppliers, current
government, shareholders and the union. Now each of the department of the stakeholders has
their own part to play to run the bank. While following the policies of the bank, the
stakeholder can be legal people and individual or groups who have their own kind of
influence in the bank and the activities of the bank as well.
Meet their needs
(Suppliers)
Key Player
(Government and
shareholders)
Least Important
(Union)
Show Consideration
(Suppliers)
Figure 1: Matrix of strategic management
(Source: Created by the author)
 Meet their needs
The stakeholders considered as one of the most important people in term of running an
organization. Following the above model of strategic management matrix, it identified that in
order to meet the needs of the suppliers. When it suppliers be unable to give the supplies of
those elements which is needed to the bank, then the bank will face different kind of
problems while they will be serving the potential service users of the organization (Grant,
2016). Then the entire process of the organization is going to run in a bad condition.
 Key Player
The key player of the organization is the Government and shareholders. The current
government of Srilanka has their own kind of laws and legislation for all the banks of the
country, if they change any kind of laws and regulations in the terms of the sector of the
bank, then it is going to make problem in the entire process. For this reason, they are one of
the most important key players in the strategies of any organization. Another segment of
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Pow
er of
Stak
ehol
ders
Interest of Stakeholders

people who are the key players, they are shareholder. The bank named Lloyd Srilanka cannot
take any decision without these departments (Theaker, 2017).
 Least Important
Union of the bank considered as one of the less important department of the strategic matrix.
This particular department mostly handles the quarries and small decision of the employees
of the organization. The major reason after this is the basic aim of the organization is to fulfill
the needs of consumes, the organization should have the major concentration on that matter.
Anyway, the union kept in an organization to fulfill the few of the demands of the employees,
which is not that important every time.
 Show Consideration
There are departments of the stakeholders where the bank needs to show consideration. The
reason after this is, they fulfill most of the basic needs of the organizations. Once the
suppliers stop supplying the required materials then the entire organization will not be able to
run in a proper manner. This is why it is important to show some of the consideration to the
suppliers ((Macharis and Bernardini, 2015).
After having the code of the responsibility of the collective business, it decided by the bank
Lloyd that their approach should be able to make their stakeholders engaged and working, in
each of the segment. The groups and committees like the group board, the group of executive
committee and the leaders who are devotional decided that the relationship with the
stakeholders is very important if they want to run the business in a proper way. As an
example the relation with the employees of Lloyd bank, relation with the trade unions should
maintain their term with the suppliers of the bank. The business organization should always
engage the stakeholders and contact them on a regular basis for the sake of face-to-face
meetings and some of the regulation of few specific issues. This entire process is a part of the
bank’s agenda (Wheelen et al., 2017).
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1.3 Conduct an internal and external environmental analysis of the company. You may
perform PEST, Five forces, BCG/GE and value chain analysis to identify resources and
competences, distinctive capabilities of the business. Based on the analysis of above
factors, present the company’s SWOT.
External analysis
 PEST analysis
Political Analysis  The democratic socialist republic of
Srilanka
 The power of the legislation vested by
both the parliament and government
Economical analysis  The increasing staggering of the bank
standards from 9,382 Billion to 878.7
billion
 The raising growth of GDP is 2.6%
Social analysis  Cultural aspects of Srilanka
 Living standards of people
 Law changes affecting social factors
 Organizational culture of Srilanka
Technological analysis  Technological maturity
 Local to global communication
(Table 1: PEST analysis)
(Source: Lloydsbankinggroup.com, 2018)
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1. Political Analysis
The country Srilanka is going through a crisis phrase in terms of the political scenario. There
are three types of crisis. Those are the crisis of the governance, crisis of the process, the
regime level, either this process is avoidable or not. The regime crisis is the government of
Srilanka is unable to move forward. The governance crisis is each day manifests the collapses
culture of the municipality government. As the government is unable to resolve the entire
process of garbage cleaning, this is why there are various societies of the country, which is
facing rapid problem of flu.
2. Economical analysis
The political factor has a huge type of impact in the term of economical process. The system
of the political factor has converted to dictatorship, this is why the economical growth of the
fellow citizens has became really less. According to the central bank standards, the
development is strategizing as 9,382 Billion in the year of 2016, which is an increasing
amount than 2015.
3. Social analysis
The society of Srilanka has mixed crowed within them. 74% of the crowd belongs to the
segment of the crowd are the Sinhalese, 12% of the population are Tamilian Srilankan, 7% of
the crowd are the Muslim, apart from this there are few of the Indian Tamil, few
communities of the Burghers, Malays and some other communities are there as well. The two
languages, which are official in this country, those are Tamil and Singhala. At least 97% of
the population at has completed their primary school. However, the rate of education in this
country is not that high, but still the basic education to understand the in general factors is
there.
4. Technological analysis
There is some of the major factor the technological factors of the country Srilanka. The
technological sectors such as, equipments of the telecommunication and the computers are
equally upgraded. This country has a high scope of opportunities in the terms of the
technological factors. The telecommunication industry comes up with an international tender,
which released in the ending of 2017. They have also digitized the entire procedure of the
government (Lloydsbankinggroup.com, 2018).
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 Five force analysis
Figure 2: Five force analysis
(Source: Created by the author)
The basic five forces mentioned below.
 Market rivalry (high)
Every industry has its own kind of competition in the market. This is why the bank named
Lloyd has to research properly. Now this research is going too based on the factors of same
kind of competition happening in the market. The rivals who provide similar kind of services
to the services users, what kind of services are they, do those bank’s services have the
potential to beat Lloyd bank, if the rival company have the potential to beat the bank then
where Lloyd needs to focus more. Promotion and publicity is one of the major factors in the
term to affects the human mind. The bank needs to have a track on the factor whether they
are promoting their services properly or not. This is why the market rivalry is high in the
industry of banking.
• Bargaining power of the buyers (high)
In term of the banking, industry there is a huge amount of rivals in the market. Based on this
reason the customer’s o the bank always have the option of shifting to another banks. There is
always a probability that the buyers influenced by the attractive packages of the other banks.
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This is why the bank named Lloyd always gives their customers more reasons to stay in their
bank.
 Threat of Substitutes (High)
In a country, there are several other banks as well. This is why the threat of Substitutes
becomes high. The primary reason after this is if a service user does not satisfied by the
services of a bank in particular then they can immediately shift to another bank for the sake
of a better service.
 Bargaining power of the suppliers (moderate)
There are different suppliers in the market who serves the banks. Their rate of shifting to
another bank is quite moderate; the reason after this is, there business related to the banks
directly. This is why till the time some huge problem happens between them there is no point
to shift the bank.
 Threat of new entrants (low)
The business organization that comes new to the business of banking they have many threats
to face. First there are already so many banks existing in the market, this is why it becomes
very difficult to make the organization establish within a short span of time
(Lloydsbankinggroup.com, 2018)
.
Internal analysis
 BCG analysis
Question Mark
Lloyd bank
Stars
Poor dogs Cash Cows
Table 2: BCG analysis
(Source: Created by the author)
In the sector of banking, the marketing growth is quite impressive, because of the factor that
many people invest in the bank, in order to keep their money in a safe place. The BCG report
of this bank states that it got a lot of scope for improvement, but they have to notice the factor
of betterment of the market shares they have. The reason after this is they are holding lower
amount of market shares in the segment of those markets, which are growing in a deliberate
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manner. However the market of the has huge potential to convert it in a star, the will take the
shape of a cash cow in the future.
The major reason for which after which the investment the business organization faces
struggle to achieve the market share and through this they become the poor dogs. The
strategic choices of the BCG matrix are the penetration of the market, development of the
market, development of the product and divestiture as well. The suppliers unable to give the
supplies of those elements, which needed, to the bank, then the bank will face different kind
of problems while they will be serving the potential service users of the organization
(Lloydsbankinggroup.com, 2018)
.
 Value chain analysis
Figure 3: Value chain analysis
(Source: MacDonald and Brecht, 2018)
The value chain activities have two kinds of activities one is the primary activities and
another is the secondary activities.
Primary activities
The primary activities are market marketing, sales and productions. There are different kinds
of segments in the part of marketing, those are advertising, sales report, and branding. In the
segment of sales, the segments are offering services, acquisition, and multi segment of the
management. In the terms of products there are factors mentioned such as funding,
investment and services. In the sector of funding, there are factors of deposited, credits,
secularization. There are other products as well those are credits, security, financial products
payment, treading, clearing and settlement.
Secondary activities
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There are basic four factors of the secondary activities.
 Risk management
 Technological development
 Human resource
 Firm infrastructure.
In the terms of products there are factors mentioned such as funding, investment and services
(Lloydsbankinggroup.com, 2018).
 SWOT analysis
Strengths
 Lloyds bank takes macro challenges
under serious note
 Under PESTLE analysis the issues
like SME lending, Brexit
 High Capitalisation
 Lloyd leads in banking sector due to
low operating cost
 This model incurs less risk
 With the largest number of active
online customers of around 12
million
 Gives loan to home buyers at low
interest rates
Weakness
 This bank has less investment
on SME markets
 2008 financial recession Lloyd
has faced lawsuit case due to
purchase of HBOS
Opportunities
 It has invested in credit card based in
UK with a future plan of growth
 Lending in SME
 Innovative digital technology for
growth in serving customer
requirements
 The bank has changed economically
Threat
 EU leaving Brexit can bring financial
disaster
 Constant inclusion of new capital
investments
 UK government introduces 8%
surcharge for the profit that the bank
incurs.
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and overcoming the financial crisis
 Invest in mortgage lending business
Table 3: SWOT analysis
(Source: Created by the author)
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1.4 Critically discuss the generic strategy of the organization.
Generic strategy as defined by Michael Porter describes ways that helps the organisation
follow competitive advantage in the market. Generic strategies of the chosen organisation are
divided into three strategies, which are: Cost Leadership, Differentiation and Focus, which is
again sub-divided into cost focus and differentiation focus.
(Figure 4: Strategy of the organisations)
(Source: Prajogo, 2016 )
The above image provides a clear conception about the generic strategies of Lloyd’s bank in
Sri Lanka. The components of the generic strategies of the chosen bank are discussed below:
Cost leadership strategy:
The Cost leadership strategy used by the bank is to target the global market by having low
cost for services and the bank chooses the cost leadership strategies to attract the customers
who are susceptible towards price (Wicker et al., 2015). This strategy is dependent on the
industry structure and this also influences the organisation to be low cost producers so that
they can access every source of cost advantage. Cost leadership strategy includes
technological use and economy scale of the industry. Lloyds bank tries to sustain all the cost
leadership strategies so that they can be able to perform more in the industry and direct
industry prices. The generic strategies actually help the company gain competitive advantage.
Hence, it can be said that Cost leadership strategy helps the organisation to perform better
and get hold of the industry as well as lessen the hold of the competitors in the market (Bell
et al., 2017). By following the cost leadership strategy, the organisation is able to increase
their profit level as well as reduce the overall cost and focus more on industry prices. The
organisation is able to increase their market share by having low cost prices. This helps the
company to increase their overall profit but it does not have any link to the price the
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customers need to pay for the services. In other words, the Lloyd’s bank does not
compromise with the interest rate that the customer has to pay. However, sometimes the other
banks try and copy the cost leadership strategy of Lloyds bank due to which Lloyds bank
tries to change their cost reduction ways on a regular basis.
Differentiation strategy:
The differentiation strategy that Lloyds bank takes into consideration is incorporating the use
of digital platform that sheds light on the economical status of the bank. This helps Lloyds
bank to innovate their services and makes their services more reliable and trusted than their
competitors. Planning unique ways depends on the company but at the same time this
differentiation strategy takes into consideration the components like company functions and
brand value helps to determine the customer objectives (Ouma and Oloko, 2015). Lloyds
while using the differentiation strategy keeps few considerations in mind like performing a
proper research which will influence the development of the company. The organisation also
tries to deliver the best service, which eventually helps them to grab more customers. The
organisation plans effective marketing strategy that helps them to be agile in their
development plan.
Focus strategies:
Focus strategy consists of two variants which are, Cost focus, which relies on low cost price
and differentiation focus, which depends on the uniqueness that differentiates the company
from other competitors (Pulaj et al., 2015). The organisation uses this strategy to understand
the market dynamics as well as the requirements of the customers and after that plans to
implement the low cost strategy in the market. Due to the incorporation of the generic
strategies, the chosen organisation is able get hold over the market and increases their sales.
Focus strategy is not enough compatible for the company and hence the company decides
which strategy to choose because choosing one strategy will not always provide profit to the
company.
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1.5 Analyze the growth strategies available to the organization. You may at least
identify three opportunities in which you could suggest the organization to grow with
reasonable justifications. These strategies may belong to substantive growth, limited
growth or retrenchment.
In order to analyse the existing growth strategies of the bank, it is important to discuss it with
the help of Ansoff matrix model. This is because even if the company is economically sound
and is practising successful business they cannot keep maintaining the existing market status,
they require developing ways that will help the company increase their profit and attract more
customers. In order to identify the existing and future strategies of the company, Ansoff
matrix model will shed light on the risks that the company can faced and the planning that
will provide the company more accessibility in the market.
Ansoff Matrix model:
This model shed light on the present market status of the bank and highlights the risks that
they are facing or they will face in future. This model will also help in understanding how the
company will be able to increase their substantial growth in future.
(Figure 5: Ansoff matrix model)
(Source: Dawes, 2018)
The entire above-mentioned quadrant in the Ansoff’s matrix model sheds light on different
aspects of the bank.
Market penetration:
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This particular quadrant helps the bank to identify the present sales of the bank and highlights
ways that helps the organisation to increase their sales. Lloyds bank focuses on the market
position as well as the talent management of the employees so that they can identify the
future opportunity. Strategic management of a bank is basically dependant on the customer
needs. However due the market penetration it is identified that even if the bank is settled in
the market it cannot help the bank to gain substantive growth in the long run by itself. The
bank focuses on having risk control and serves the customer the best services. The bank
focuses on their strengths, which are identifying and increasing the growth, influence
innovations. Market penetration of the bank was to capture the market, increase their share
and even identify whether the services that the bank is providing are impactful or not (Dawes,
2018).
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Product development:
This focuses on the innovation and introduction of new services in any organisation (Dawes,
2018). As for Lloyd’s bank, they have brought development in their services by using
insurance banking. Insurance banking is helping the customers to get more attracted to their
services and hence the overall sales of the bank are increasing continuously. Insurance helps
the customers to protect the money that they are depositing in the bank and the customers
know that their money is taken care of; this factor influences to join the bank and avail its
services at a large. Insurance banking helps the organisation to compete with the banks that
does not provide insurance safety for the customers. Insurance banking covers the deposit
accounts of the customers. If the bank will be unable to pay the insurance amount to the
customers then the insurance corporation will be responsible to provide the money to the
customers. At first, Lloyds bank faced some risks and problems regarding customer belief.
This is because when the bank first started insurance banking, many customers were unable
to understand its impacts hence they did not prefer the product. However, with time the bank
became trust worthy for their services and the product attracted the customers.
Market development:
This is the stage where the bank expanded their business in other countries. The head office
of the bank is in UK, but the bank has already expanded their branches across the world,
which eventually helped the bank to develop their market and increase their profit. Lloyds
bank expanded their branches across the globe just by adding some unique features for the
customers which include, enquiry counters that help the customers resolve their queries. In
case of market development, the bank has thought of serving new range of customers which
will impact on increase in sales as well as increase the number of customers operating the
same bank (Dawes, 2018). For the market development, the bank had to go through proper
research on the market of the other countries they were willing to operate on and after the
research the bank had taken into consideration the market segmentation of the unexplored
market. Lloyds bank cannot just plan their market development without planning the steps
before. Lloyds bank also tries to have a look on the competitors who are present in the market
in order to differentiate their products from them.
Diversification:
Diversification on the other hand is introduction of something that is very new and it also
focuses on a completely different market. Diversification in Lloyd bank took place when they
planned to expand their branches, start insurance banking, and the other services that they
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started. Diversification helps in differentiating the services of the organisation to the suitable
market (Dawes, 2018). Presently the bank is not focusing on the diversification because it is
not possible to manage lump sum of activities altogether. In recent years the bank has not
undertaken any diversification, though in the present market context it has become very
important for them to diversify their services and bring out new ideas to compete in the
market.
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1.6 Opportunities that would promote the substantive growth of the bank:
Future market penetration
The bank needs to work on the competency gaps within the organisation in order to gain
more success and bring changes in the market position of the company. Competency gap is
the difference between the existing competency level of the bank and the required
competency level of the bank. Competency of an organisation depends on the skills of the
workers. Hence, it can be said that the bank needs to train and develop proper workforce,
which will help the company increase their success level. Working on the competency level
will also help the company to shed light on the capabilities of the workforce and generate
work force planning in a more effective way.
Mitigating the large skill gap will help the bank to identify the goals in a clearer way and
brings advancement in the process of workforce. Mitigation of the gaps will help the bank to
lessen the risk factors that will impact on their overall growth. Performing a gap analysis will
help the organisation get the opportunity to develop changes in the overall organisational
structure as well as its work force in order to promote successful productivity of the bank.
Identification of the large skill gap is very important for every business organisation because
this helps the organisation to choose a way that will bring impactful success. For improving
the overall success of the organisation, the bank needs to identify the skills that the
employees need to improve and discuss with the stakeholders regarding the required
measures that are needed to be undertaken. The analysis of the large skill gap will help the
bank to get the overview about the present condition of the market then set the priorities
according to the market position, the analysis will help the bank to reach the planned goals in
less time and effective work force, which will eventually boost the morale of the employees.
Future product development
Net banking is impactful products that will help the bank grab the attraction of most
customers and increase the overall profit of the company. Net banking is the process that
allows the customers to transact using one tap option. In the digitalised world, the customers
find it very useful to conduct transactions by their own. Net banking not only helps the
customers to transact as per their choice but it also allows them to transfer money to people
anywhere in the world within few minutes. In this fast developing world, it is very important
for Lloyds bank to start net banking which will eventually stop the existing customers to
switch banks and even attract new customers to join them (Bocken et al., 2016). Net banking
in Lloyds bank will help its customer to operate their account through internet. This can be an
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effective future product development for the bank and help the bank to reach out to more
customers. Net banking will help Lloyd bank to use digital media as a platform, which will
influence the global ranking of the company. Net banking is very convenient for the
customers in the present world and the customers also rely on net banking because net
banking is easily accessible and easy to handle. Net banking is a useful product that others
bank are successful at and if Lloyds bank wants to increase their market share then they need
to start net banking.
Future market development
Expanding its branches in other countries like India will help Lloyds bank to eventually bring
more profit and grab different market place. Lloyd needs to expand their branches in
countries which have proper regulations and legislations and have less risk in political fields.
Expansion of branch will eventually help Lloyd to increase their market share as well as
develop their market in other countries (McDONALD, 2016). If Lloyd is planning to reach
towards a position where they will be able to compete with the other banks then they need to
set up branches in a fully new market place with unique services so that the customers get
attracted towards the bank. Not only expanding branches will help the bank to develop its
market but the bank also needs to perform research about the market place of the countries
they are willing to expand in so that they can incorporate features that will attract the
customers of those countries. Expansion will also help the bank to extend their business
networks and connect to clients all over the world. However, there are many countries like
Colombia that does not allow foreign banks to set up branches. Hence, Lloyd has to keep a
record of the countries that they can expand in and then plan the expansion.
Diversification is a must for Lloyd bank because in this fast changing and evolving world it
is very important for the bank to start new developments which will help them to stay in the
market and continue gaining profit (Fil et al., 2016). Diversification will help the bank to
shed light on different services that they provide and help the customers to identify the
difference between Lloyd bank and the other banks. Diversification in the bank can be
regarding services the customers are getting from the bank and the bank starting different
features to stay in market competition. Diversification cannot be practised in countries that
have low growing level. The bank can bring diversification by presenting the existing
products in a new form. Diversification will help the bank to change their costing range and
bring out related products with new objectives. Diversification will help the bank to maintain
saturation among the existing products and shed light on the effectiveness of the new
products. However, there is a scope of horizontal diversification which happens due to
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introducing products that are not related to the market. Hence, Lloyd bank needs to be aware
about the fact that they cannot introduce any unrelated products in the market.
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1.7 Using strategy evaluation criteria, select an appropriate future strategy for the
organization form above alternative strategies. Explain briefly, the appropriate strategy
methods that can be used by the organization to execute the selected strategy.
Every organisation irrespective of the field they operate focuses on growth as its fixed
growth. Even for Lloyd bank, substantive growth is very important factor that will influence
the overall performance of the bank. The alternative strategies that will influence the
substantive growth in the long run of the bank are to work along with the clients, planning
goals keeping the target market in mind and executing products that the customers prefer
(Bresser-Pereira et al., 2014). For helping the bank to improve their substantive growth the
bank needs to focus on the market entry, growth strategy and the overall structure of the
organisation.
If the bank is planning to operate in long run then they need to perform a market entry that
will help the company to operate in a new market. The bank should identify the risk factors
and think about solutions that will lessen the impacts of the risks, then the bank needs to
identify features that will help the bank to grow and at last the company needs to incorporate
the features to ensure profit and get an overview of the bank’s present condition. On the other
hand, the bank needs to be more open towards digital platforms because in the present
business context of the world, digitisation has helped every business to grow rapidly (Koryak
et al., 2015). Starting net banking is a step that the bank will be taking that will lead towards
substantive growth. Digital platforms are not only influencing profit growth but also helping
the organisations to gain global fame. Hence, Lloyd bank should use digital platform as a step
that will help their organisation to keep up their profit and connect them to worldwide clients.
In order to help the bank to operate in the long run the bank needs to focus on the competition
because without having knowledge about the competitors the bank cannot be able to secure
them for long run.
In order to secure the substantive growth of the bank, the officials need to identify or shed
light on the strengths, marketing strategies and flaws of the competitors (Kumar, 2016). The
bank can be able to make the customers differentiate among the services is through providing
same services to the customers but through a new perspective.Another strategy that will help
the bank to influence substantial growth is over viewing the business from a social
perspective. Social perspective will help the company to shed light on the employee opinions
as well as the structure of the management (Hill et al., 2014). Helping the employees to get a
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better life will reduce the chances of employee attrition. Employees are a very important part
of every organisation and hence if they are not happy with the organisation then the
organisation will never have any substantive growth. This is the reason that understanding the
employee opinion is very important.
Another important step that will help the bank to grow for the long run is setting up of
priorities. The bank needs to focus on fulfilling of the priorities so that they can gain
substantive growth in future. Setting up of the priorities will help the bank understand the
need to cover those priorities within time but at first the bank needs to work on planning the
process which will eventually help them identify the priorities (Barney, 2014). Priority set up
will help the bank to work on the desired goals with more efficiency. The bank needs to
prioritize their goals and bring effectiveness in fulfilling those so that the bank can be able to
march towards substantive growth and compete with the other banks yet gain more profit.
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1.8 Conclusion
This report is based on the financial organization named Lloyd bank has what type of
marginal commitment to achieve the role in the significant time. The objective factors such as
the share of the market, the quality of the leadership in the technologies and the innovation,
the economical productivity and the quality of the product, another important thing that one
need to keep in mind that is the satisfaction of the customers. The people who considered as
the stakeholders they are the suppliers, current government, shareholders and the union. Now
each of the department of the stakeholders has their own part to play to run the bank. While a
company is there in the market and who is responsible for the society, should have a
contribution in the society.
The suppliers unable to give the supplies of those elements which is needed to the bank, then
the bank will face different kind of problems while they will be serving the potential service
users of the organization. The code of the responsibility of the collective business, it decided
by the bank Lloyd that their approach should be able to make their stakeholders engaged and
working, in each of the segment. The groups and committees like the group board, the group
of executive committee and the leaders who are devotional decided that the relationship with
the stakeholders is very important if they want to run the business. The current government of
Srilanka has their own kind of laws and legislation for all the banks of the country, if they
change any kind of laws and regulations in the terms of the sector of the bank, then it is going
to make problem in the entire process.
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