Business Environment: Innovation, CSR, and Lloyds Bank Analysis

This report provides an in-depth analysis of the business environment, focusing on innovation, technology, and corporate social responsibility (CSR) within Lloyds Bank plc. The report begins with an introduction to the business environment and then delves into the concepts of innovation and technology, illustrating their impact on business growth and customer satisfaction. It then examines Lloyds Bank's operations, highlighting its use of new technologies, digital marketing, and its financial performance including profit and sales figures. The report further discusses corporate governance and CSR, including Archie Carroll's pyramid, and how Lloyds Bank incorporates these elements into its business practices. The report concludes with a reflection on the importance of technology adoption, employee management, and the strategic value of CSR in the financial sector. This analysis provides insights into how Lloyds Bank manages its operations and adapts to the dynamic changes in the business environment.

BUSINESS
ENVIRONMENT
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TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Innovation and technology..........................................................................................................3
Overview......................................................................................................................................4
New technologies.........................................................................................................................5
TASK 2............................................................................................................................................6
1 Corporate Governance and CSR..............................................................................................6
2 Archie Carroll’s pyramid..........................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Business environment explains the various parameters of growth and high innovation in
companies around world where the customers sale responsibilities are highly performed with
creative development, new technology up gradation and usage of latest technology frames. This
report explains various paradigms of innovation, technology integration which has developed
global business framework and leveraged success of new preferences among consumers. Lloyds
Bank plc is one of the most repudiated banking company in dynamic business world, where
regulation are done with high focus on CSR activities and the various ethical responsibility are
performed towards customers with high focus on creative enhancement , research facts. The
report explains how the profits, sales are progressively developed within company when there is
high focus in building innovation models. There is detailed explanation on elements of CSR as
explained by Archie Carroll , its implications in Lloyds Bank company where regulations are
performed with high focus on reaching high end global goodwill and benchmarks of strong
success (Macey, 2019).
TASK 1
Innovation and technology
Innovation refers to advancement in the already invented platforms of products and
services in company with high usage of technology standards, modern machinery and
researching the best optimistic view which will enable in reaching high end success in bringing
overall progression of country. Innovation is accompanied with technology where it regulates
overall advancement of production, legally brings large efficiency within company operations in
serving customers with high dynamic width and latest trends. Technology brings all over
development in country as per capita income of individual is enhanced and research within
various sectors is developed with high economic growth, productivity is developed and
functional efficiency within economy is uplifted (Lloyd, 2020). The economic growth of country
with evolution of technology can be understood with the wide parameters of progress in all
sectors, industry and companies providing high employment to all people around world. The
various examples of innovation and technology can be explained by the wide success of UK,
USA and China who are highly developed countries among world where companies are highly
technologically advanced, research abilities are highly advanced which serves the purpose of
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strong customer satisfaction among all over world. Business organizations around the world have
used technology in their operations with large efficiency, and have developed strong parameters
of innovation with large diversity among man force which are highly skilled and talented in
reaching optimum levels of success. Apple, Microsoft are the big companies operating their
business structures in industry with coming up of advanced technology integrated products to
serve customers around world with high efficiency. Not only business scenario is developed by
leveraging technology standards, but goodwill of company is maintained, long term profitability
among consumers and the functional abilities is highly developed relatively (Hazari, North and
Moreland, 2019).
Companies working scenario is enhanced with the advance breakthrough, product
development with internet technology and gathering deep insights on various horizons.
Employees training and commitment towards technology savvy production not only motivates
them and keeps them retained in company for longer periods, but there is working productivity
developed which functionally increases customer segments around the world. Globalization, the
expansion of business into various international markets have given huge platforms of
technology advanced products, services which determine future growth and leverage of goodwill
globally. There is high demand of technology and advanced machinery with latest research
segments which enable companies to deliver high quality standards products, latest innovative
services and production quality with keen involvement of ethical business practices (Rajola, F.,
2019).
Overview
Lloyds Bank plc is Commerical Company which is situated in London, UK. The
company was established in 1765 and provides different insurance products for personal and
corporate use. This helps top provide protection to individual who is insured by the company
(Clarke, 2017). Company is operated in many different countries and provides its services all
over the world to increase the customer satisfaction and increase the brand value in the market to
gain higher profit margins effectively. Lloyd syndicate which is A rated and also has effective
fund supply for the insurance company effectively. The main aim of Lloyds Bank is to increase
customer services and increase market share to improve profit margins and attain core
competency effectively. Company creates insurance books for their customers around the world
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which helps them to manage risk in their activities and gain higher performance to achieve their
objectives effectively.
New technologies
Lloyds Bank is very large organisation which has large human resource to increase their
performance and it is also very essential for business to determine the effective system to
manage them and maintain their efficiency to achieve future goals effectively (Brophy, 2017).
As the company is using the digital technologies due to increase in the globalisation and higher
demand of insurance products in the market. With the implementation of social media marketing
Lloyds Bank increases the customer engagement in the company and increase the sales and profit
margins effectively. It is also very essential for business to develop better information which
helps to improve the opportunity of business to gain higher quality of services and satisfy
customer effectively. There are many competitors in the market and Beazley uses digital
customer mapping and offline agents to analyse the behaviour of customers and modify their
products and services which helps to attract more customers and increase their satisfaction
effectively (Eggers and Picken, 2017). there are many factors which has to be analysed due to
rapid changes in the market trends it is also very essential for company to invest in research and
develop and adopt innovative information system which helps to attain core competency in the
market and increase profit margins effectively.
Comparison between sales and profits
In the financial year 2018 the profit of Lloyds Bank company before tax deduction were
76.4 million Dollars. Total rate of return in 2018 financial year was 5% and with the total annual
net profits of 13c and the gross premium of the company was 2615 million Dollars which helped
the company to grow and increase the market share. However, the company was not able to
increase their efficiency due to lack of proper technology. Lloyds used effective technologies to
increase the training of their existing employees which provides them exponential growth of
15% rate of return if financial year 2019. The gross profits increased to 267 million dollars
which is more than three times the previous year. This also help company to increase the sales to
3003 million dollars which has grown from the previous years and improves the quality of
opportunity for the company to gain net profits of 44.6c in 2019. This increases the efficiency of
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the company to compete in the market and also achieve market competition effectively. There
are many technological advancements which is done ion the company to reduce the cost of
activities and increase their efficiency to gain higher productivity. Lloyds bank is also very
effective in promoting their products with effective technology and increase satisfaction level of
the customers effectively.
Reflection
It is analysed that Lloyds Bank plc is very effective in understanding the importance of
technology and improving their internal activities. As company has adopted effective
management system which uses the data to record the performance of their employees and also
motivate them to increase their efficiency to achieve objectives effectively (Blunden, 2017). This
also helps the company to increase the organization culture to reduce dispute and support core
competencies effectively. There are also many factors which help company to grow as the
change in preference of customers about the insurance products due to increase in the health risk
helped company to design and produce effective marketing strategies and policies to increase
profit margins and market share to compete in the market effectively. Lloyds bank also focused
on the potential of the employees and retain them by providing them healthy working
environment and proper support to achieve their objectives effectively. This also helps the
company to increase core competency and generate higher revenues effectively.
TASK 2
1 Corporate Governance and CSR
Corporate governance refers to combination of professional rules, laws and the business
operations controlling which enables companies to enforce ethical practices of working within
company. The term influences stakeholders, shareholders and customers management with large
focus on building corporate governance and determinants of following various scenarios which
enable companies to deliver high quality products, scenarios. CSR is the formal conduct of all
duties towards society operations, regulations of functional efficiency and gathering the various
insights with which brands can establish high ethical practices (Black, Khanna and Yurtoglu,
2019). There are various examples in CSR among management companies which can be
understood as partnerships with various charitable organizations, advancing policies to
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contribute socially towards sales partnerships to customers and relatively acknowledging the
various rights towards the company ethics. UK companies have established form place among
the world industries where CSR activities are highly governed ethically, partnerships with
charitable companies have keenly acknowledged various leverage points. Tesco company for
example is one of the most innovative company who is also responsive towards social duties,
with partnerships with various social campaigns it has uplifted the various social strands and
legal compliance have highly brought goodwill to grand among world. M&S is another retail
company who uses eco friendly ways to manage their extra productions, targets are maintained
with high factors of recyclable goods and the various research formats are conducted to bring
high quality outputs with least natural resource usage. These factors highly bring forward the
various principles of CSR, its importance among companies and how the various regulations
help in positioning among the dynamic business world.
Lloyds Bank company is one of most developed banking company operating business in
collaboration with Europe, Asia and middle east countries. There is high importance for CSR in
company where there is high ethical responsibility in governance of all duties, customer’s
information are maintained with secrecy and there is strong functional ethic left behind it which
represent high evolvements of CSR activities within internal management. The company is also
utmost present in delivering the various societal aspects around world and bringing high
innovation, creativity in the funnel to serve customers around world. Lloyds Bank company
company has successfully delivered its company goals among business and has maintained legal
operations among customers who are highly involved among company decisions, there is strong
emphasis given in clarity and viable delivery of all duties (Aggarwal,Schloetzer and Williamson,
2019). Lloyds Bank company operates strong functions to perform all CSR activities towards
customers and social working standards, which evolves the overall working functions nad
dynamically impacts it positive image globally.
2 Archie Carroll’s pyramid
Archie Carroll’s pyramid of corporate social responsibilities is used by Lloyds Bank PLC to
take various crucial steps for growth and development of society and effective utilisation of
available resources. Corporate social responsibility is plays an important role in increasing
company brand image and customers satisfaction (Cahan and et.al., 2016). The idea of CSR is
classified into four main areas that are explained in pyramid made by Archie Carroll. Therefore
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pyramid stated that corporate has to fulfil its responsibilities in four main areas such as legal,
economic, ethical and Philanthropic. Archie Carroll model used by Lloyds Bank PLC in order to
perform corporate social responsibilities such as:
Economic Responsibilities: Company first and foremost responsibilities to earn large number of
profit margin so that it can pay salary and wages to number of worker and employees that are
working within firm. Firm long term growth and survival depend upon its profit margin and sales
at the same time high profit margin state that firm can invest fund for CSR. Lloyds Bank PLC is
a large organisation that operates its business across various nations with large number of
employees to render qualitative services (Eding and Scholtens, 2017). Therefore company earn
high profit margin to pay appropriate and attractive compensation to employees. It also provides
various different types of insurance policies at affordable premium in order to attract large
number of customers and increase its profit margin. Thus, high profit margin stated that company
has taken first step of CSR to provide equal and attractive compensation to employees and
affordable services to people.
Legal responsibility: It is responsibilities of company to abide to all legal laws made by
government of country while operating various function. Legal responsibility is one of the
important functions from all of the four areas as it explains about the manner in which business
need to perform various activities (Glavas, 2016). Lloyds Bank PLC has abided to all legal laws
of government to avoid penalty and fines and for effective operation of business. Company has
provided equal opportunity and wages to all employees on the basis of qualification and
knowledge. Various health and safety laws are also implemented to motivate and influence
employees to work hard so that organisation can achieve its objectives. Lloyds Bank PLC has
also maintained standardisation of various insurance services provide to its customers to protect
them from different threats and satisfy their needs. Effective implementation of legal laws in
company helped in increasing brand image and customers satisfaction of firm.
Ethical responsibility: It is third stage in pyramid that describe about various method that
company used to provide services and increase its profit margin. Company has to perform its
function in ethical manner that means fair in all situation and avoid activities or step that are
harmful for people. Lloyds Bank PLC motive is to provide fair and qualitative services to people
for long term growth and survival of business (Jo, Song and Tsang, 2016). Firm clearly state all
its policy and rules and regulation, insurance to be claimed to insured person before agreement
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get signed. Employees of Lloyds Bank PLC are high skilled, experienced and provided
appropriate environment and training so that they can provide qualitative services to customers
and helps in achievement of goals. Therefore firm by following ethical practice is able to gained
customers trust, loyalty and brand image in the market.
Philanthropic Responsibilities: As we all know that business have adversely impact on
environment and natural resources so it is responsibility of company to take steps to give back to
community. Lloyds Bank PLC has donated its fund for enhance living standard and development
of society that helps in increasing profit margin and sales volume of firm. It has taken various
steps to reduce wastage and effective utilise available resources in order to protect environment
and ensure better health of people (Hildebrand and et.al., 2017). Company also devotes its lot of
time and effort to plan various ways that it can use for health and safety of people. Therefore it
can be illustrated that philanthropic responsibilities is also essential part of CSR and company
need to invest some of the part of profit for social responsibilities for long term growth and
survival.
CONCLUSION
From the above report it can be concluded that innovation and continuous development in
technology promote organisational as well as economic growth and development of country.
Innovation in technology helps in increasing sales volume and profitability of firm by satisfied
need of customers effectively. It can also be concluded from above analysis that corporate social
responsibilities is important for firm as it helps in increasing brand image, customers loyalty and
profitability. At last it can be explained from above report that there are four main areas of CSR
that are used by Lloyds Bank PLC in order to gain competitive advantages.
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REFERENCES
Books and Journals
Aggarwal, R., Schloetzer, J. D. and Williamson, R., 2019. Do corporate governance mandates
impact long-term firm value and governance culture?. Journal of Corporate
Finance. 59. pp.202-217.
Black, B. S., Khanna, V. S., and Yurtoglu, B. B., 2019. Which aspects of corporate governance
do and do not matter in emerging markets. Northwestern Law & Econ Research
Paper, (14-22).
Blunden, G., 2017. Beazley plc–2018 Annual General Meeting Results.
Brophy, R., 2017. Will Brexit affect the insurance industry? An Irish study. Local
Economy. 32(3). pp.156-163.
Cahan, S. F and et.al., 2016. Are CSR disclosures value relevant? Cross-country
evidence. European Accounting Review, 25(3). pp.579-611.
Clarke, M. A., 2017. The law of liability insurance. Taylor & Francis.
Eding, E. and Scholtens, B., 2017. Corporate social responsibility and shareholder
proposals. Corporate Social Responsibility and Environmental Management, 24(6).
pp.648-660.
Eggers, P. M. and Picken, S., 2017. Good faith and insurance contracts. Taylor & Francis.
Glavas, A., 2016. Corporate social responsibility and employee engagement: Enabling
employees to employ more of their whole selves at work. Frontiers in psychology, 7.
p.796.
Hazari, S., North, A. and Moreland, D., 2019. Investigating pedagogical value of wiki
technology. Journal of Information Systems Education. 20(2). p.8.
Hildebrand, D and et.al., 2017. Consumer responses to corporate social responsibility (CSR)
contribution type. Journal of Consumer Research, 44(4). pp.738-758.
Jo, H., Song, M. H. and Tsang, A., 2016. Corporate social responsibility and stakeholder
governance around the world. Global Finance Journal, 29. pp.42-69.
Lloyd, I., 2020. Information technology law. Oxford University Press.
Macey, J. R., 2019. Agency Costs, Corporate Governance and the American Labor
Union. Corporate Governance and the American Labor Union (November 21, 2019).
Rajola, F., 2019. Customer Relationship Management in the Financial Industry Organizational
Processes and Technology Innovation. Springer-Verlag.
Online
Annual report and accounts., 2019 [online]. Available Through: <
https://reports.beazley.com/2019/>.
Annual report and accounts., 2018. [online]. Available Through: <
https://reports.beazley.com/2018/ >.
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