Lloyds Bank: Change Management, External Analysis & Strategy Report

This report provides a comprehensive analysis of change management within Lloyds Bank, examining the impact of external factors and strategic models on the bank's operations. It explores the bank's background, market size, and fintech adoption, particularly in the context of COVID-19 and net-zero sustainability targets. The report critically evaluates the strategy planning process using William's strategy management model and analyzes how the McKinsey 7S model is applied to manage strategic change. Furthermore, it includes a PESTEL and Porter's Five Forces analysis to assess the external environment, identifying key opportunities and threats, and discusses Porter's generic strategies. The report concludes with recommendations for enhancing productivity, profitability, and efficiency within Lloyds Bank, offering insights into improving its competitive advantage in the marketplace. Desklib offers similar solved assignments and past papers for students.

Change Management
CW2 – Assessment

Table of Contents
Executive Summary.........................................................................................................................3
INTRODUCTION...........................................................................................................................4
Background of company..................................................................................................................4
Section 1...........................................................................................................................................4
1.1 Market size of bank..........................................................................................................4
Fin tech use- apps the bank is using.......................................................................................5
The impact of covid 19...........................................................................................................5
Net zero target sustainability..................................................................................................5
1.2 Critically explore the strategy planning process using William’s strategy management
model......................................................................................................................................6
Section 2...........................................................................................................................................6
Critically analyse how McKinsey strategy change model is being applied by bank when
dealing with strategic change.................................................................................................6
Section 3...........................................................................................................................................8
Develop a PESTEL and porter’s 5 forces analysis to critically analyse the external
environment of the bank.........................................................................................................8
Identify opportunities and threats as key drivers for change................................................10
Porter’s generic strategies.....................................................................................................11
Section 4.........................................................................................................................................12
Recommendations................................................................................................................12
REFERENCES..............................................................................................................................13

Executive Summary
This report will cover different aspects of change management within an organisation that
impacts the functionality of the business. Within this report, different models that are concerned
with the change management will going to be discussed and some of these models and tools
include Pestle analysis, porter’s five forces, porter’s generic strategies, McKinsey 7s model and
many more. Additionally, this report will also cover the recommendations given to company for
enhancing the level of productivity, profitability and efficiency within the business.

INTRODUCTION
Business management refers to the arrangement as well as coordination of the multiple
operations of an organisation. Change management is considered as a systematic approach for
the purpose of dealing with the transformation or transition of the objectives, processes or
technologies of a business (Akbar and et.al., 2019). Within this report, Loyds Bank is taken into
consideration as an organisation for demonstrating different aspects of this report. There will
background information of respective bank and along with it, this report will also cover critical
exploration of strategy planning process by using William's strategy management model.
Additionally, this report will also cover discussion of McKinsey strategy change model along
with pestle analysis and porter's five forces to analyse external environment. Moreover,
recommendations will be given to bank in order to gain competitive advantage over competitors
in marketplace.
Background of company
Within this report, Lloyds Bank Plc is taken into account which is a British commercial
and retail bank having various branches throughout the world. The bank was founded in the
month of January in year 2009 and is considered as a Public Limited Company. It is the largest
retail bank within the Britain and also has a great network of the branches as well as ATMs in
the Wales and England. Lloyds Bank Plc offers 24-hour online and telephonic services of
banking. The retail division of the bank is a leading provider of a wide variety of services such as
mortgages, savings, loans, current accounts, credit cards, motor finance and insurance. In the
year 2012, the respective bank had 16 million small business accounts and personal customers
(Buschow and Suhr, 2022). Lloyds Bank Plc has traditionally been considered as one of “Big
Four” clearing banks. The bank has its operational headquarters in London and other multiple
offices in Scotland as well as Wales. This financial organisation also operates a large number of
complex offices, data centres, brand headquarters in Yorkshire, Birmingham and many more
places.
Section 1
1.1 Market size of bank
Market size is defined as the maximum overall number of sales operations or the
customers the business can see which are often measured over the course of a year. As of May

2022, Lloyds Bank Plc has a market capitalisation of $37.17 Billion and it makes the
organisation the world's 442th most valuable company by market capitalisation. The bank has
millions of commercial and retail market share which are making it one of the most famous
bank in Europe.
Fin tech use- apps the bank is using
Data Analytics: The app of data analytics or data mining facilitates in increasing the level of
performance of Lloyd Bank Plc through improving the process of segmenting, targeting,
acquiring and retaining the customers of the bank (Dzwigol and et.al., 2019). Improvements in
risk management, understanding of customer and fraud empower the bank for maintaining and
growing effective base of market share.
Cyber Security: Data Breaches can create difficulty for the bank like Lloyds Bank Plc in order
to trust the financial institutions. Such kind of Fin-tech app helps the respective bank in
preventing its data or information and financial losses from getting breached. Bank has
implemented such app for protecting its networks against all breach attempts and makes sure
financial security for its customers.
Specialist Relationship Management: This in another type of Fin-tech app that is used by
Lloyds Bank Plc as it enables the bank in getting deeper and more personalised customer
interactions. With this app, each department within bank can access identical information
throughout all customers profile while also setting up personnel triggers to offer extra services.
The impact of covid 19
The pandemic situation of COVID-19 has generated crucial instability as well as extreme
volatility in global capital markets. Lloyds Bank Plc has been one of the bank that get most
affected in an adverse manner as its economic activity has stopped (Galli, 2018). However, the
bank provides its services remotely and do not depend on direct customer contact, but the
interconnection of sector with real sector as provider of savings, payment, credits as well as risk
management services enlarge adverse effects of COVID-19 crisis to the bank. At this time, the
organisation also had lower incomes and revenues that has triggered significant policy actions by
government and financial supervisors.

Net zero target sustainability
On the basis of its own entire net-zero commitments, Lloyds Bank Plc set its client-level
emiossions-reduction targets by making use of GHG emissions data as well as tested
methodologies like Science Based Targets initiative. It also introduces client benchmarking that
helps the respective bank in maintaining sustainability of Net zero target.
1.2 Critically explore the strategy planning process using William’s strategy management model
Strategic planning process helps in analysing present state, defines future state, develops
strategies and objectives to attain vision and assessment as well as implementation of plan
(Kuzmanova and Ivanov, 2019). William’s strategy management model states that strategy as
well as implementation will meet the objectives of the organisation. As a major contribution to
strategic management process, William considered two components and these include enterprise
objectives and enterprise strategies. The personnel has also broke down the process of planning
into analysis and diagnosis, implementation, choice as well as evaluation functions. This model
also treats policy, leadership and organisational factors. However, William has omitted
significant medium and short-range planning activities of strategy implementation.
Section 2
Critically analyse how McKinsey strategy change model is being applied by bank when dealing
with strategic change
The model of McKinsey is considered as one of the change management models which was
introduced in the year 1980 by McKinsey as well as its consultant. There are various kinds of
difficulties that are faced by an organisation but the managers of Lloyd Bank Plc can solve the
causes of the problems through application of this model. Within this model, there are seven
elements and these components include structure, strategy, system, style, shared values, staff and
skills. There are multiple changes that occur within the business because of the pandemic
situation of COVID-19. In order to solve such problems, Lloyd Bank Plc is required to adopt
several technologies within business in an effective as well as efficient manner (Limna,
Siripipattanakul and Auttawechasakoon, 2022). By applying this model, business is able to
implement the changes within the workplace effectively. Such model will provide assistance to
the managers of the bank and its employees in gaining the understanding regarding the change in
an effective way. The model of McKinsey will also facilitate in understanding the roles of

change in bank. With the support of this change management model, administrators of Lloyd
Bank Plc can also motivate its subordinates for implementing the changes in workplace. For
applying such model within the business, superiors are required to adopt all of seven elements of
such model that are divided among category of soft as well as hard. The description of these
elements is given as follows in context to Lloyd Bank Plc:
 Structure: Organisational structure of a business should be set in an appropriate manner
for defining clear and well-defined roles and responsibilities of various people. It
comprises of different roles and responsibilities, departments and divisions within the
business (Maali and et.al., 2020). It is very significant for managers of Lloyd Bank Plc to
understand role of each individual for implementing changes in workplace. For
implementing strategy, bank is required to define all duties to subordinates for avoiding
confusion.
 Strategy: This kind of element works as foundation to implement change within
organisation and it is typical for managers of Lloyd Bank Plc to convince or persuade
their employees as well as stakeholders for it. But, clearly defined strategies will facilitate
administrators of bank to make such stakeholders for implementing change within the
business.
 Shared values: It is considered as one of the most significant element of the change
management model which is associated with organisational culture. Such element assist
manpower in understanding interacting process of one another. This becomes essential
for organisation to understand kind of values that are to be shared by business. For
achieving the core values of bank such as its mission, vision and objectives, managers of
bank are required to take appropriate initiatives which allow them in understanding
flexible schedules within the workplace.
 System: For implementing change within business, it is significant for organisation to
view workplace systems because it will help in assessing the project management and
workflow at workplace (Matthew and et.al., 2018). Such organisation system will impact
functioning of Lloyd Bank Plc as it is essential for managers of bank to make sure
influence of change management process not occur in existing business operations.
 Style: Administrators of Lloyd Bank Plc will analyse requirement of adopting change in
various departments of banks. For doing this, they are needed to follow effective

leadership style which will help them in creating a culture which is beneficial for them to
implement changes.
 Staff: Managers of Lloyd Bank Plc are needed to assign right employee at right position
and at right time for implementing the changes within the workplace. The bank is
required to hire the employees in an effective manner that enhances the productivity and
efficiency of the organisation (Nijkamp, 2019).
 Skill: The are different skills that are required for managing and implementing changes
within business and therefore, it is crucial for Lloyd Bank Plc to improve and develop
skills of its workforce for understanding changes and using technologies within bank.
Section 3
Develop a PESTEL and porter’s 5 forces analysis to critically analyse the external environment
of the bank
Pestle analysis is a tool that is used by an organisation in order to analyse the impact of
external environmental factors that are influencing the functioning of an industry. There are
different types of factors involved in Pestle analysis and these factors include political,
economic, social, technological, legal and environmental factors. The impact of these factors on
Lloyds Bank Plc is given as under:
 Political factors: Government of the United Kingdom has made different changes in its
policies and because of which, Lloyd Bank Plc has to face problems in marketplace.
Because of pandemic situation of COVID-19, the government of country also framed
certain guidelines which has created threats for business of bank in UK.
 Economic factors: The recession has faced by the economy of country during pandemic
situation and has created a loss for business of bank because people do not have enough
amount of money for investing in financial services of bank (Tale-Yazdi and et.al., 2018).
However, situation has become normal and government is providing assistance to bank to
overcome such situation which creates an opportunity for Lloyd Bank Plc.
 Social factors: The pandemic situation of COVID-19 has great influence on people in so
many contexts because of which habit of saving occur in the minds of people that
generate opportunities for Lloyd Bank Plc as people are making use of banking services
for saving money.

 Technological factors: UK has highly updated technological environment and Lloyd
Bank Plc has made use of highly updated technologies that gives the bank competitive
advantage within the market place. Such technologies facilitate it in permitting market
share for conducting banking transaction from other home. This enhances demand of
Apple Pay, Phonepe, Paytm and many other applications which permit customers to
make payments to other people in cashless mode.
 Legal factors: The legislative system of UK has made certain laws and legislations and
due to Brexit as well as pandemic situation of COVID-19, all such laws have to be
adhered by Lloyd Bank Plc for carrying out business operations smoothly.
 Environmental factors: It includes pollution, corporate social responsibility and
sustainability (Zheng, Chen and Shang, 2019). Lloyd Bank Plc is one of the bank that is
making attempts for minimising use of paper at time of conducting business operations
through following all environmental rules and regulations of business.
Porter’s Five Forces can be used by an organisation for analysing the competitive
environment in which the business is operating. This facilitates organisation in identifying
threat for business and permit them for developing strategy on time which is important for
decision making. There are some strategies that are adopted by Lloyd Bank Plc and the
explanation of such strategies is given as follows:
 Competitive rivalry: Business competition is one of the major threat for business
that is adversely impacting the profitability and productivity of the organisation. In
such way, it creates negative impact on its customers and business itself. There are
large number of competitors that are offering identical services in the banking
industry of UK. Thus, there is high threat of competitive rivalry for Lloyd Bank Plc.
 Threat of new entrants: The new entrants take entry into industry with new strategy
which attracts market share of current organisation. Lloyd Bank Plc is developed
bank within the banking industry of United Kingdom and there is less threat of new
entrant to the organisation. Hence, there is low threat of new entrants for this bank.
 Threat of bargaining power of customers: Lloyd Bank Plc is one of the major
multinational organisation having a large number of market share. The bank is also
maintaining customer loyalty through offering quality services and hence, there is low
threat of bargaining power of customers.

 Threat of bargaining power of suppliers: There are large number of suppliers of
Lloyd Bank Plc in the market place such as Central Bank of UK as well as other
major financial institutions. This has created low threat of bargaining power of
suppliers for the respective bank.
 Threat of substitutes: Financial services offered by Lloyd Bank Plc has a lot of
substitutes as different organisations offering identical services and therefore, it
creates a threat for respective organisation as its customers can easily switch to other
company’s services. This will bring negative impact on organisation and is a
moderate threat for bank.
Identify opportunities and threats as key drivers for change
Strengths Weaknesses
 Lloyd Bank Plc is well-established and
has string brand value within the
market place which helps the
organisation in maintaining good
relationships with its customers in the
banking sector.
 The respective banking organisation is
currently offering a wide variety of
business groups such as private
banking, financial services, investment
banking as well as commercial banking.
 It is considered as one of the largest
banking organisation because it is
offering its financial services
throughout the world.
 Lloyd Bank Plc has made different
segments of its customer-base for the
purpose of minimising risk that is
present in the market place.
 It is one of the major weakness of
Lloyd Bank Plc that the process of
retail banking of this bank is
comparatively low that can create a
major threat for organisation.
 The market of this respective banking
organisation gets reducing within the
United States and creating an issue for
the business.
Opportunities Threats

 It is a major opportunity for Lloyd
Bank Plc to expand its business in those
countries also in which it is not
currently available and providing its
services. It will help in enhancing its
market share and boosting the growth
and success of business.
 It is another opportunity for Lloyd
Bank Plc that it can also minimise its
interest rate which permit the respective
business organisation in enhancing its
base of customers.
 There are different challenges that are
concerned with the government
regulations. This creates a major threat
for organisation such as pandemic
situation of COVID-19.
 The increased competition level within
the international market can create a
problem for business of Lloyd Bank
Plc.
 Due to recession, there are different
types of financial crisis that can be
occurred within the economy of the
country and brings of negative impact
on it.
Porter’s generic strategies
There are different strategies within the model and these strategies facilitate a business in
chasing competitive benefits over competitors. The different strategies of this model include cost
leadership, differentiation and focus. These strategies are discussed as below in context to Lloyd
Bank Plc for its business expansion:
 Cost leadership: For chasing competitive benefits, Lloyd Bank Plc can adopt such
strategy as it will allow leaders to gain competitive advantages within marketplace
through minimising the cost to increase level of profits within business and also for
enhancing customers through charging lower prices.
 Differentiation: This strategy allows the organisation for differentiating its services of
banking from the services of its competitors. For adopting such strategy in business,
Lloyd Bank Plc can perform research and development which will help the bank in
delivering greater quality services and increasing effectiveness of sales volume.

 Focus: As per such strategy, Lloyd Bank Plc is required to focus on particular niche
market through understanding market dynamics and perceptions of customers. This can
be done through lowering the cost and delivering great quality services to customers.
Section 4
Recommendations
From above discussion, it can be recommended to managers of Lloyd Bank Plc for
analysing and monitoring external environment for identifying threats concerned with this so that
they can find out the solutions to overcome such threats. It is also recommended to business to
implement effective change management business and there is a way through which it can be
possible and this way is providing training and development sessions to the less skilled
employees within the business. In order to give training and development sessions, managers of
organisation are required to implement changes within the workplace effectively and efficiently.
Another recommendation for the managers of Lloyd Bank Plc is that they are required to adopt
effective leadership which will allow them in providing direction and guidance to the members
of the team in multiple manner. The administrators of Lloyd Bank Plc are recommended to adopt
several technological changes within the business because it will help the business in taking
competitive benefits over rivalries within the market place.