Global Business Environment Report: PESTLE Analysis of Lloyd's Bank

This report presents a PESTLE analysis of Lloyd's Bank, a British retail and commercial bank. The analysis examines the macro-environmental factors influencing the bank's performance, including political, economic, social, technological, legal, and environmental factors. The political factors include government regulations, tax policies, and trade tariffs. Economic factors encompass foreign direct investment and inflation. Social factors consider lifestyle and living standards. Technological factors address advancements and changes in technology. Legal factors involve government laws and regulations, while environmental factors reflect steps taken to control pollution. The report identifies opportunities and threats associated with each factor, providing insights into the bank's strategic considerations. The report concludes that the PESTLE analysis helps the bank measure growth and development effectively.

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
PESTLE ANALYSIS..................................................................................................................1
CONCLUSION ...............................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Global business environment defines the environment in which different countries affects
and influences the decision-making process of the company (Akhtar, 2018). This report is based
on Lloyd's bank that is the British retail and commercial bank with branches in England and
Wales. It was founded in 1765 by Sampson Lloyd and John Taylor in Birmingham with
headquarter in London, UK. This report includes the PESTLE analysis on bank that is performed
to know about the different external factor that affects the performance of the bank.
MAIN BODY
PESTLE ANALYSIS
It is an analysis that defines the macro-environmental factors that has the direct impact on
the performance of the bank (Mikurak, 2018). that is as described below as:
( Source: What is PESTLE analysis, 2018)
Political: It includes rules and regulation of the government that affects the rate of
performance of each business (Berman, 2018). It include different factors as like tax rate, service
charge, duty rate, tax policies, trade tariffs and many others too.
OPPORTUNITIES THREAT
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 Lloyd's bank is the largest bank and
have strong balance sheet thus bank has
high capitalisation.
 Lloyd's is one of the most widest digital
platform and have 12 million user
(Buckley, 2018).
 After the Brexit bank faces continuous
pressure from the UK government to
develop new capital requirement
(Ronit, 2018).
 Brexit lead more uncertainties in the
market and it has huge negative impact
on the profit generation of bank.
Economic: It affects the economic value of the country and have different factors as like
foreign direct investment, inflation rate etc.
OPPORTUNITIES THREAT
 The divestiture of government gave
advantage to bank over their rivals.
 Lloyd's bank measure growth in
mortgage lending.
 Brexit reduces the interest rate from
0.5% to 0.25% and it cause huge loss to
the bank.
 EU financial regulation has been
withdrawn that brings unbalanced
condition (Dinçer, 2018).
Social: It includes the life style and living standard of people it affects the bank as
follow:
OPPORTUNITIES THREAT
 Ageing population like pension
scheme, it increases disposal income.
 Lending of SME that provide small
funds only (Hamilton, 2018).
 Most of people shift towards
investment and savings that reduces
cash flow.

Technological: It is the advancement and change in technologies on continuous basis
and has affect on bank.
OPPORTUNITIES THREAT
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 Have own website to connect with
large number of customer base.
 Introduce biometric to record the
attendance of employees.
 Digital advancement brings more
challenges for the Lloyd's bank.
 More costly to train the employees on
continuous basis (Kasemsap, 2020).
Legal: It is the laws of government that must be followed by all the business.
OPPORTUNITIES THREAT
 More focus to provide security and
safety to the funds of customers
(Liébana-Cabanillas, 2018).
 there are different act that is followed
by bank one is Equality act 2010.
 Lloyd's have issue with shareholders
HBOS of £400 million after financial
crisis.
 To follow all the banking act that is
develop and changes by the UK
government.
Environmental: It reflects the different steps that is taken to control the environment
from pollution.
OPPORTUNITIES THREAT
 Reduces the carbon footprints by
maximum utilisation of resources.
 Performing Corporate social
responsibility
 Paper work has been used by bank that
is generated through the bank.
 Notes and currency also make from the
trees (Michael, 2018).
CONCLUSION
It has been concluded that PESTLE analysis helps the bank to know about the different
factors by which performance will be enhanced. It provides the support to the bank measure the
growth and development in an effective manner.
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REFERENCES
Books and Journals
Akhtar, M. and Sushil, S., 2018. Strategic performance management system in uncertain
business environment. Business Process Management Journal.
Berman, S. and Dalzell-Payne, P., 2018. The interaction of strategy and technology in an era of
business re-invention. Strategy & Leadership.
Buckley, P.J., Enderwick, P. and Cross, A.R. Eds., 2018. International business. Oxford
University Press.
Dinçer, H. and Yüksel, S. eds., 2018. Handbook of research on managerial thinking in global
business economics. IGI Global.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Kasemsap, K., 2020. The role of strategic outsourcing in global business. In Foreign Direct
Investments: Concepts, Methodologies, Tools, and Applications (pp. 236-268). IGI
Global.
Liébana-Cabanillas, F. and et. al., 2018. A global approach to the analysis of user behavior in
mobile payment systems in the new electronic environment. Service Business. 12(1).
pp.25-64.
Michael, P.D., 2018. Toward a global business standard for supply chain ethics. IEEE
Engineering Management Review. 46(4). pp.112-121.
Mikurak, M.G., Accenture Global Services Ltd, 2018. Increased visibility during order
management in a network-based supply chain environment. U.S. Patent 9,922,345.
Ronit, K., 2018. Global business associations. Routledge.
ONLINE
What is PESTLE analysis. 2018. [Online] Available through:
<http://academicessayguide.blogspot.com/2018/04/what-is-pestle-analysis.html>.
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