Business Environment Analysis: Lloyds Bank and Corporate Governance

This report provides a comprehensive analysis of Lloyds Bank's business environment, examining the impact of both internal and external factors on the bank's operations and goals. The report begins with a background of Lloyds Bank, detailing its history, market position, and the role of innovation and technology in its operations. It explores how new technologies, such as internet banking, data collection, and ATMs, have influenced the bank's sales and profitability. The report then delves into corporate governance, tracing its evolution in the UK and highlighting the importance of Corporate Social Responsibility (CSR). It discusses the four areas of CSR as defined by Archie Carroll and their relevance to Lloyds Bank. The analysis highlights the importance of technology, corporate governance, and CSR for the bank's success. The report concludes by emphasizing the significance of these factors for the future of Lloyds Bank in a dynamic business environment.

Business Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Background of Llyods Bank........................................................................................................3
Innovation and Technology.........................................................................................................3
Contribution of Innovation and Technology................................................................................3
Business organizations use new technologies in their operations...............................................4
Overview of the Lloyds Bank plc................................................................................................5
New Technologies and Lloyds Bank...........................................................................................5
Comparison of sales and profit....................................................................................................6
TASK 2............................................................................................................................................6
Corporate Governance.................................................................................................................6
History of the corporate governance in the UK...........................................................................6
Corporate Social Responsibility (CSR).......................................................................................7
Importance of CSR......................................................................................................................7
Four Areas of CSR by Archie Carroll..........................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment is basically collection or sum of that all internal and external
factors which are impact the business goals in the both terms; positively or positively. For
Example; customers, employees, politics, supply and demand, climate change etc. Management
of the any organization is the authorized body which operates all operations and activities of the
business environment. This is also includes all strategies which management use in their business
environment for achieve decided goals. There are included business environment terms of the
Lloyds Bank plc below.
TASK 1
Background of Llyods Bank
Lloyds Bank plc is a British commercial and retail banking company, headquartered in
London, United Kingdom. It was founded in year 1765 in Birmingham, and currently it has
branches across England and Wales. Lloyds banking group is primarily focussed on commercial
and retail banking in the United Kingdom. In Britain, this bank is the largest retail bank in the
current time (Zhang, Zhao and Xu, 2016). Today the market capitalization (or market value) of
the Lloyds banking group is $56.03B. Currently 75000 employees are working in this banking
company, and this is the symbol of company expansion. Bank's market location includes
headquarter of the company is situated in 25, Gresham Street, London, UK, and company has
many other branches too, which are situated in the different places like; England, Wales,
Birmingham and Scotland. Data centres of the Lloyd banks is in Yorkshire including Sheffield,
Halifax, Leeds. In 2017, bank profits was increased 24% with the pound 5.3 billion before tax.
Next year in 2018 bank profits is 23% higher than 2017 with the pound 1.6 billion. The Lloyd
Banks plc is still on the progressive stage.
Innovation and Technology
Innovation and technology both are different terms. Innovation refers to adding or
attaching additional steps of developing new products and services in the market (De Massis,
2015). Innovators are doing deep study and research for innovation of something new products
and services. In other hand the technology is the application of scientific knowledge which
provide convenience to the all sector industries. Technological innovation refers developing new
version of the previous technological products or services.

Contribution of Innovation and Technology
There are various roles of innovation and technology in the country. These are giving
high contribution in the country's economic growth which are discusses below;
1. Decrease Unemployment : Every country face issue on unemployment. In that case
innovation and technology are giving great job opportunities to the people. For example;
the information technology sector of the country, this is completely comes under the
innovation and technology aspect. So, with the help of this people are able to start work
in the information technology sector. This is put UK on the path of modernization, and at
the final result it is help in the economic growth of country.
2. Weapon Benefits : Innovation and technology are also helping in development of the
new generation weapons. These are too necessary for the country to face such negative
elements. In other hand these are also providing the business opportunity to the country
to start weapon making industry, because many under-developing countries are still not
able to produce their own weapons (Ravichandran, Han and Mithas, 2017). So, they buy
from other countries for defence purposes. These are too productive for the GDP of the
UK. This is also another contribution of the innovation and technology in the economic
growth.
3. Emergence of New Industries and Services : Currently those countries are more
progressive which has extra ordinary technology and innovation terms in the national
boundaries. Innovation and technology is helping in the start new industries and services
which are provides high foreign exchange to the country. Suppose currently smart phones
demand is so higher in the whole world, in that case many mobile and smart phone
manufactures are start produce this technological gadgets for fulfil market demand. So,
this is good opportunity to the United Kingdom too for start these type of the industries
and services to gain high customer base from the different areas of the world. This is also
a part of the innovation and technology contribution to the economic growth of the
country.
Business organizations use new technologies in their operations
Business organizations use new technologies in their operations in many ways. There are
various types of the businesses, and they use these new technologies according to their needs and

convenience. It includes how business organizations use new technologies in their operations
below;
1. Faster Communication : Businesses organizations are use new technologies for make
their communication aspect smoother in the market. Value of good communication is
very high in the businesses in that case new technology are providing such innovative
tools of communication which really impact positively to the other party. Many
successful businesses in the world are try to use the latest version of the communication
tools in the technological term (Kittner, Lill and Kammen, 2017). New and the latest
technology help to the all type of the businesses to faster their communication aspect in
the business environment.
2. Resource Management : Organizations are use new technologies for the resource
management purposes as well. Technology gives some effective tools to the businesses
which calculate the resources of the organization and help in manage them. Resource
management is too necessary for the businesses for reduce the waste of the company. So,
this is also another use of the new technology in the business organizations.
Overview of the Lloyds Bank plc
Llyods Banks plc is a British commercial and retail bank which established in 1975 in
Birmingham. Currently headquarter of the company is situated in the London, United Kingdom.
This bank is expended in the 19th and 20th centuries, and now running their bank branches across
the England and Wales. The Lloyds bank is on the largest banks in the UK. Profitability index is
also in the progressive mode of the bank, and currently work as trusted banking brand with large
customer base.
New Technologies and Lloyds Bank
There are many new technologies are coming in the banking sector, and making all
banking services easier and effective (Löfsten, 2016). The Lloyds bank is using these new
technologies in their business environment for getting productive results. It includes some major
technologies below;
1. Internet Banking : Internet banking is one major term of the new technology which uses
by the Lloyd bank. With the help of internet banking company is able to provide banking
facilities to their customers at any place, in any time. This is really made banks services
easier to customers.

2. Data Collection : With the use of data collection programme in the computers, company
is able get faster market researches (Brown, Gregson and Mason, 2016). This is also part
of new technology which provide facility to the company to collect market data, and also
data saving facility. This is very necessary for the bank to save data for implement any
marketing strategies.
3. ATMs : New technology also provide ATM to the bank which uses for cash withdrawal.
With this tool of the technology the Lloyds bank is able provide 27*7 cash withdrawal
facility to the customers. Many other terms of the new technology also uses by the
company, and that is so productive to the company.
Comparison of sales and profit
In the year 2010 the Lloyds banks not used high technologies in their business
environment, and depends on the traditional baking system. On that time the company's sales and
profits/annual revenue is $71,473 (Millions of US $). But in the 2013, when company started to
using some new technologies in the business then company's annual revenue is $81,072
(Millions of US $). so, these are the difference between when company use new technology, and
when company not use. In 2013 many new banking technologies was introduced which makes
banking sector activities easier in comparison of previous years (Pharmacista, 2019). So, there
are huge difference in the sales and profits of the Lloyds bank before, and after the new
technologies were introduced.
Implementation of the new technologies in the business environment is truly helpful for
the any business. There are some data available above which differentiate the importance of the
new technologies in the business. Any company is able to gain more profits with the help of
technological terms. Currently in the banking sector, those banking companies are gaining more
customers attention which using new and latest technologies in the business environment. The
Lloyds bank also need maintain these technological terms in the business operations
continuously for put business on the progressive mode.
TASK 2
Corporate Governance
Corporate governance refers rules, operations, processes and practices which operate and
controlled by the management of the company (Gardenghi, 2016). It includes making decision,

strategies implementation, handle external and internal factors in the business environment. This
is also refers to flow of the direction in the corporate.
History of the corporate governance in the UK
The governance term is currently not only uses by the companies. This uses in the other
areas too, like; universities, food organizations, charities and local authorities etc. The revolution
started of the corporate governance in year 1990s with the Cadbury report. It was includes the
best practice code. The aimed behind corporate governance is to analyse the corporate behaviour
of the companies. The ethical terms also analyse in the corporate governance. Firstly the City
and Stock exchange was gradually taken the Cadbury Code for the purpose of effective
boardroom practices (Yen, Lin and Sun, 2015). In 1998, two more city grandees reports was
comes which concluded into the Combined Code on the corporate governance. After few years
UK faced baking crises in the national boundaries, and then the government of the UK ask Sir
David Walker to make such corporate strategies which favour of banks and financial institutions
of the United Kingdom. The Walker Report presents an Out-Law guide, and that was established
by the UK government. The report includes many major terms like; risk management
improvement, right management of the skills and experiences etc. in the 2009, for good
governance the walker Report develop 39 recommendations which are help to manage banks,
financial institutions etc. They all corporate companies are mention in the FRC's (Foreign Report
Council) UK Corporate Governance Code. These are made for purpose of good and effective
corporate governance in the United Kindom.
Corporate Social Responsibility (CSR)
Corporate social responsibility is generally a self-regulating business model which helps
to the company to fulfil social responsibility towards stakeholders, public and also itself. It also
included that the companies steps towards supporting to the society, national economy,
environment etc. with the help of CSR programmes companies can benefits the society during
expend their brands. CSR decries the useful attempts of the companies which are taken for the
purpose of supporting social elements.
Importance of CSR
There are various importance of CSR for organizations and also for the Lloyds Banks;
1. Improve Goodwill : CSR help to the organizations to improve their goodwill in the
market (Reverte, 2016). This help to the Lloyds banks too in improvement of the business

image in the banking sector, because with the help of this business able to conduct social
activities without earnings objective.
2. Improve Customer Base : This is also important in improve customer base of the
company, and give opportunity to make loyal customers in the market. CSR includes
such terms which company need to follow for the social fulfil responsibilities. So, this is
help to gain more customers in the market of high competition.
3. Improve Employees Productivity : CSR is also helpful in improve productivity of
employees in the company. According to the CSR activities, employees are also felt good
about the company, and then they try to put more efforts at the workplace. This is really
improving the skills and ability of the employees.
4. Improve Work Culture : This is very important in the improvement of work culture,
because CSR terminology make a healthy environment in the business which motivates
to the staff to work hard in the business operations (Sholihah, 2015). It is maintaining the
good work culture in the organization. So, its role is too necessary for the Lloyds bank
company and also for other organizations.
Four Areas of CSR by Archie Carroll
Dr. Archie B. Carroll (a Business management professor and author) identifies these four
areas of Corporate Social Responsibility, which mentioned below;
1. Economic Responsibilities : These responsibilities include Lloyds bank need to be
profitable for the purpose of provide good return on investment to the owner and
shareholder. There are company has also responsibility for create job opportunities to the
communities. At the final stage of business operations, bank is responsible to give their
support in country's economic growth.
2. Legal Responsibilities : The legal responsibilities include the bank need to follow all
guidelines and regulatory standards while their business operations. This is one of the
major responsibilities of the company (Bhasin, 2019). These are indicates the major rules
and regulations also in the banking sector which this bank compulsorily need to follow
for make clean business environment.
3. Ethical Responsibilities : In the Ethical responsibilities the bank need to implement such
strategies in the business which help in avoid unethical elements in the business. These
include the bank is responsible to run their all business operation in the ethical way.

4. Philanthropic Responsibilities : The bank is also needs to be philanthropic and
humanitarian by the nature, because many time management need to take decision on the
basis of humanity not business mind. Such situations are comes in the business
environment in any time. So, the Llyods banks need to follow philanthropic
responsibilities terms as well.
CONCLUSION
It can be concluded that there are various importance of the innovation and technology in
the economic growth of the country. These are helpful for the Lloyds bank too, because with the
help of new technology, bank is able to provide effective services to the customers. It also
includes huge difference in the sales and profits of the bank before, and after the new
technologies were introduced. The corporate governance and corporate social responsibility are
also playing great role in the achievement of the targeted business goals of the Lloyds Bank plc.

REFERENCES
Books and Journals
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De Massis, A., 2015. 15 Family Business and Innovation. In Concise guide to entrepreneurship,
technology and innovation. Edward Elgar Publishing Limited.
Ravichandran, T., Han, S. and Mithas, S., 2017. Mitigating diminishing returns to R&D: The
role of information technology in innovation. Information Systems Research. 28(4). pp.812-827.
Kittner, N., Lill, F. and Kammen, D. M., 2017. Energy storage deployment and innovation for
the clean energy transition. Nature Energy. 2(9). p.17125.
Löfsten, H., 2016. Business and innovation resources: Determinants for the survival of new
technology-based firms. Management Decision. 54(1). pp.88-106.
Brown, R., Gregson, G. and Mason, C., 2016. A post-mortem of regional innovation policy
failure: Scotland's Intermediate Technology Initiative (ITI). Regional Studies. 50(7). pp.1260-
1272.
Pharmacista, G., 2019. Pemberdayaan Komunitas Desa Tradisional Cireundeu Melalui
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Gardenghi, F., 2016. CSR Disclosure And Corporate Reputation: An Empirical Analysis Of Best
Reputations Performing Firms.
Yen, M. F., Lin, J. H. and Sun, Y. T., 2015. Does Corporate Social Responsibility Deliver Alpha.
Journal of Economics and Management. 11(1). pp.23-45.
Reverte, C., 2016. Corporate social responsibility disclosure and market valuation: evidence
from Spanish listed firms. Review of Managerial Science. 10(2). pp.411-435.
Sholihah, H. S. A., 2015. Peran Pemerintah Kabupaten Tuban Dalam Memfasilitasi Program
Corporate Social Responbillity (CSR) PT Semen Indonesia Tahun 2013. Journal of Governance
and Policy. 1(2).
Online
Bhasin, H. 2019. What is Carroll’s Pyramid of Corporate Social Responsibility?. [Online].
Available Through: <https://www.marketing91.com/what-is-carrolls-pyramid-of-corporate-
social-responsibility/>