Business Environment Analysis: Innovation, CSR, and Lloyds Bank

This report provides a detailed analysis of Lloyds Bank's business environment, focusing on the impact of innovation, technology, and corporate social responsibility (CSR). The introduction outlines the scope, covering internal and external factors influencing the bank. The executive summary highlights the report's objectives, which include assessing technology's effects on sales, growth, and profit, as well as the importance of CSR activities. Task 1 examines innovation and technology's impact on sales through customer relationship management (CRM) and digital marketing strategies such as SEO, SEM, and SMM. It also explores how innovation affects growth by reducing costs and improving efficiency, and profit through customer satisfaction and long-term focus. Task 2 emphasizes the significance of CSR, detailing its benefits such as increased brand awareness, cost savings, competitive advantages, customer engagement, and employee benefits. The report concludes by summarizing the key findings and emphasizing the importance of these factors for Lloyds Bank's sustainable business practices.

BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
EXECUTIVE SUMMARY.............................................................................................................3
TASK 1............................................................................................................................................3
Impact of innovation as well as Technology and affect of it over the sales, growth and profit. 3
TASK 2............................................................................................................................................7
Importance of CSR over the business.........................................................................................7
Carroll's CSR model (1991)........................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment means aggregate of all the external as well as internal factors that
influences the business. The internal as well as external factors can also influence each other
along with work. Lloyds bank is a British retail bank which deals in financial services. The bank
was founded in the year 1765. Founder of the bank is John Taylor, the bank is having head
quarter in Gresham street, London (You. and et.al., 2019). Net income of the company is around
17.5 billion pound. The study will cover impact of the innovation and technology and its impact
over the business including sales, profit as well as growth. What are the importance of the CSR
activities will be studied in detail. Archie Carroll's CSR model is explained in detail where four
factors affecting business will be studied in detail.
EXECUTIVE SUMMARY
The study will be conducted for the purpose of finding the technology over the business
operation, profits, sales as well as growth. CSR activities as well as importance of the activities
will be reflected for finding out whether the company should do investment in the CSR activities
or not.
TASK 1
Impact of innovation as well as Technology and affect of it over the sales, growth and profit.
Innovation and technology
Innovation means a new way of doing things, a creative idea for meeting the new
requirements in the market. Innovation is more practical and can be termed as practical
application of invention. Innovation will help Lloyds Bank by fast process in the work by
increasing the productivity in the work (Budhwar, Varma. and Kumar. eds., 2019). Technology
is practical application of knowledge of the science and includes the knowledge which will deal
with the engineering, machinery and also equipment have been developed by applying the
science of the engineering.
Innovation and technology impacts the Lloyds Bank, as per the requirements of the
company. If it is required for the communication then the communication will be cheaper as well
faster. If it is concerned with the internet, then the internet will become fast and also cheap due to
which processing will take less time and conversion of data from the internet will be faster.
Lloyds Bank innovation such as Artificial intelligence will help the customer responding fast in
which if the message is dropped in the site of the company then auto generated message will be

sent which will make feel that someone is there to answer the question. This will enhance the
goodwill of the company by quick resolution of the queries and higher customer satisfaction.
Impact of Innovation and technology over sales
Technology will impact the sales by CRM (Customer Relationship Management), in
which the management of the customer relationship is done. The system helps the Lloyds Bank
by stay connected via CRM by which better customer services can be provided for the purpose of
satisfaction of the internal as well external customers (Grenčíková, Kordoš. and Sokol, 2019).
CRM helps in storing the data as well as activities of the customers by which the similarity of the
product can be maintained when the customer visits again in the company. This will help the
Lloyds Bank to pinch the relevant products which will help the company in up selling of the
products. CRM model will help to have coordination as well cooperation among the marketing
and sales team. The marketing team will be able to deliver the information of needs as well as
wants of the customers and by knowing the needs as well as want of the customers the sales team
will react accordingly (Boone, Kurtz, Khan, M.H. and Canzer, 2019). Automated targets are
generated in the system on the basis of previous records of the sales team and then the product
they purchased interest of the customers will be analysed, after doing analysis product
differentiation will be done. Innovation will help in quick online services in which the customer
will be able to add products in the cart and the same can added to wish list. CRM will help the
company to make purchase the customers' membership in which customers will be allowed to
purchase products at the discount rate, but the sales will be increased due to it because there will
be regular purchase of the product from the membership customers.

Illustration 1: indicates the auto generation of the targets for Lloyds Bank which also includes
the deviation as well as Diversification in the sales. The analysis as per the CRM system also
generated the prediction in the sales of Lloyds Bank (Lu, Wang. and Xu, 2019). Using digital
marketing the company can reduce the cost of the marketing and target the audience from which
higher revenue can be generated. The same message can be delivered to the targeted audience in
more attractive way. There are various tools such as SEO which will help the company's website
to rank at the top. This will increase the traffic of the company and the customer will think it is
the most popular website and we should buy products from here only (Farr. and Bailey, 2019).
SEM is a paid advertisement in which ads for the product is generated and link of the product is
highly profitable will be shared, this will help the company in driving more sales to the
customers. SMM is social media marketing by which the audience of the Facebook, Instagram
and various other platforms can be used for the purpose of gathering the relevant audience. There
are various tools such in social media such as sharing stories to pinch the customers, running
campaign, videos and graphics (Quinlan. and et.al., 2019). For example if Lloyds Bank has to
deliver the product of Fixed Deposit then the company can target the audience from the old aged
group and can bring higher conversion of the customers. As per the Illustration 1: it is also
mentioned at the green area that using innovation what can be the sales of Lloyds Bank in 2015.
Impact of innovation and technology over growth
Illustration 1: Innovation impact over sales and target

There are three steps in innovation and growth and include innovation, productivity and
growth. Using innovation the growth of Lloyds Bank is possible by using advanced technology
and training of the same given to the employees. If the employees are better in performing the
task then it will lead to automatically increase the performance of the company and this will
reflect the growth of the company. The growth of Lloyds Bank is possible by reducing the cost
of the company and due to which the profit of the company will increase and the same can be
invested in the growth of Lloyds Bank (Hassanien. and Dale, 2019). Updated technology can
bring more production of goods as well as services, due to which the sales of the company will
increase because of the fast delivery of the products to the customers. Using the technology the
company will be able to minimise the wasteful activities and will focus on productive activities.
This will save a lot of time as well as money for the company. Technology will bring advance
featured infrastructure which will make the work easy and simple this will lead to increase in the
growth of the Lloyds Bank.
Innovation and technology impact over profit
Innovation will lead to save a lot of cost and also will help the Lloyds Bank in doing
work in much better way. Innovation will bring new technology which will increase the comfort
of the customers and this will give an advantage to the customers due to which more sales will be
possible and the same will bring profits to the company. Using innovation will bring minimum
faults and will help in bringing optimum results and the same will lead to bringing profits for the
company. The process of resolution of the queries of the customer will be reduced by innovation
and due to which the satisfaction level of the customers will increase and the same will reflect
profitability of the company (Aydiner. And et.al., 2019). Innovation is based on long term focus
so there are higher chances that Lloyds Bank will be able to achieve profits for longer period and
managing the cost of the products for long period. If there will be fast delivery of the product and
fast processing time of depositing cash then the same will bring in more cash and more business
which can be of having higher FD, RD and Mutual fund. This will allow the Lloyds Bank to
invest in various instruments in the market from which profitability of the company can be
increased. The cost of borrowing can be overcoming by the company to increase the profitability
of the firm using advanced technology.

TASK 2
Importance of CSR over the business
Corporate social responsibility plays a very important role in the brand value of the
company in which the value of the company will increase if the company do more CSR
activities. CSR activities involves activities for the betterment of the society. Importance of CSR
is explained by following points:
Brand awareness increase
If the Lloyds Bank is committed to the ethical practices this will increase the news among the
audience. More people will hear about the company and they will be ready to invest in a
company which has done better for the society (Ali. and Khan, 2019.). If the brand awareness
will increase the goodwill of the company will automatically increase.
Cost saving
CSR activities will save a lot of cost as the same activities will be driven by CSR activities which
are related to business. For example if the CSR activities is towards awareness of the people to
digital because till will promote less cutting of the tress and the same will lead to less
environment pollution as well as less global warming. Due to which the paper cost of the FD or
RD printing will be saved and this will lead to increase in the profitability of the company.
Advantage over the competition
People will prefer a company more who is more socially active rather than the company who had
done nothing for the society (Reisinger, 2019). If the products provided by Lloyds Bank are e co
friendly then the same can be promoted using CSR activities and this will work in two ways by
gaining competition advantage due to affective advertisement and helping the environment
protection.
Customer engagement increase
Sustainable systems is used in the company for the CSR activities by sharing over the social
media as well as over blogs and website of the CSR work done by the company will increase the
customer base. Even the good work done by Lloyds Bank can be shared with the news channel
which are local as well as international will involve more engagement of the customers.
Cost advantage
CSR activities will reduce the cost of the Lloyds Bank by gaining the subsidies of the
government in which the government will provide concession in the tax from which the

profitability of the company will increase (Klepac. and Berg, 2019). The profits then can be used
in the investment of the growth of the company.
Benefits to the employees
Employees will feel more comfortable with the company indulged in the CSR activities rather
than the one not indulged in the CSR activities. This will increase the public image in the mind
of the employees and this will bring positive impact of Lloyds Bank by creating positive
environment in the company (Dwyer. and Hopwood, 2019). The employees will also play active
roles in the participation of the CSR activities and this will give promotion of the CSR activities
and due to which betterment of the society as well as environment of the world will increase.
Increase in the sales as well as loyalty of the customers
Increase in the sales can be possible by CSR activities in which the company can increase its
budget for the sales relating with the CSR activities (You. and et.al., 2019). This will increase the
customer loyalty and due which the old customers can be retained in the company for the
purpose of driving more products and generation of more revenue from the customers.
Maintaining good relationship with the local body
CSR activities will make a good reputation in front of the local government and this will lead to
ease in doing business as the local government will quickly agree about the demands of the
Lloyds Bank (Budhwar, Varma. and Kumar. eds., 2019.). Maintaining good relationship with the
local body will allow Lloyds Bank to consistently grow in the market without any deviation. This
will bring consistent profits for the company and the same can be invested in the growth of the
company which will help the company investment in various required fields.
Carroll's CSR model (1991)
Dr. Archie B. Carroll identifies four areas that includes CSR activities in the form of pyramid
and the same are legal, economical, ethical and philanthropic (Grenčíková, Kordoš. and Sokol,
2019.). The focus is to lay down light over the business responsibilities over the stakeholders of
the company.
Legal factors
As per this factor Lloyds Bank should be absolutely legal and should not indulge the company in
dirty game playing. If the company follows the regulations of the law the same will bring image
of truthfulness of the company where the customer can trust the company and easily ready for
the investment in the company (Boone, Kurtz, Khan. and Canzer, 2019.). If the company is

indulged in illegal practices then the same can lead to shutting down of the company or creating
contingent liability for the company which can cause loss to the firm. If the company is
penalised or legally banned then jobs of thousand and millions of people will be affected
adversely and this will negatively impact the image of the Lloyds Bank.
Economical
The Lloyds Bank should also be economical responsible parallelly with the making of the
profits. Lloyds Bank should provide return on investment to its stakeholders as well as owner. To
help the economic development the company should focus on creating job opportunities,
innovative production process and effective marketing tools.
Ethical
Other than law following it is also important for Lloyds Bank to do ethical practices which
involves management of the waste, consumption, as well as recycling and reuse. Apart from all
these the company should do advertisement which are based on truth and fake advertisement
should be avoided (Reisinger, 2019.). Ethical workplace will lead to creation of the good image
in the minds of the employees where they can work and the same will help the employees work
more enthusiastically and with the satisfaction in mind they are working in a nice organization
which cares of the development of the society.
Philanthropic
There are various philanthropy activities such as donations, charity, running food campaign etc.
All these activities should be done by the Lloyds Bank in order to promote social welfare of the
society. Lloyds Bank should focus on donation as this will impact in two ways by reducing the
cost of the product by reduction in taxes along with improve brand image of the company.
CONCLUSION
As per the study it is concluded that CSR activities plays a major role in the development
of the company in which it creates a positive image in the minds of different stakeholders by
doing good to the society. CSR activities can be used for the purpose of advertisement and
boosting the image of the company. CSR activities help the company achieving higher sales,
higher profits and higher growth in the company. The theoretical model is also necessary to
apply for the purpose of relating the theoretical aspect with the practical aspect.

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