BM461 Global Business Environment: Lloyd's Bank PESTLE Analysis Report

This report presents a PESTLE analysis of Lloyd's Bank, a major UK retail and commercial bank. The analysis examines the political, economic, social, technological, legal, and environmental factors influencing the bank's operations. The political section discusses factors like political stability, trade regulations, and the impact of Brexit. The economic analysis covers economic growth, interest rates, and foreign investment. The social aspect considers customer behavior and preferences. Technological factors highlight the importance of adopting advanced technologies. Legal factors focus on compliance and regulations, while environmental factors address sustainability concerns. The report identifies opportunities and threats associated with each factor, providing insights into the bank's external environment and its strategic implications. The conclusion summarizes the impact of external factors on the bank's position in the marketplace.

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Global Business
Environment

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Table of Contents
INTRODUCTION...................................................................................................................... 3
MAIN BODY............................................................................................................................. 3
PESTLE ANALYSIS..................................................................................................................3
CONCLUSION.......................................................................................................................... 5
REFERENCES........................................................................................................................... 6

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INTRODUCTION
Every organization wants to expand their business in various locations and also
develop their business from one country to another country so that every firm can get more
profit advantages and create the effective brand image all around the world (Gaganis,
Pasiouras and Voulgari, 2019). To expand business international it is essential to understand
about the global business environment that mainly considers the various countries' influence
with the decision making of the company. The main motive of this report is to discuss the
global business environment about the Lloyd's bank that consider as the retail & commercial
bank that operates many branches in England and also Wales. This bank mainly established
in the year 1765 and headquarters of this bank situated in London. This report will conduct
the external environmental analysis with the help of PESTLE analysis so that bank easily
knows about the influence of external factors that affect the bank.
MAIN BODY
PESTLE ANALYSIS
This analysis is also known as macro external environmental factors analysis that helps to
identify the impact of external environmental factors on the business. Lloyd's bank conduct
this analysis which are explained below-
Political
This factor involved political stability, trade regulations, and tax rate and tax
policies. Bank constantly measures the influence of these factors on performance of the
business so that bank easily maintains this factor without any hurdle.
 Opportunities - LIoyd's bank comes under the largest bank & considers strong
balance sheet and bank also contains huge capitalization. This bank contains
large appearance on online platform and also mentions more than twelve million
users (Hacioglu and Sevgilioglu, 2019).
 Threats - Due to Brexit, bank experience pressure because of UK government
continue suggest me to evolve new capital requirements. From the huge
uncertainty of Brexit, all the market, selling and revenue affected negatively.

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Economic
It includes economical growth, recession, interest rate, foreign direct investment
and employment rate etc. Banks are responsible for the development of the country
economy and help to gain more profit advantages with the help of foreign money.
 Opportunities - Government provide various advantages to the bank because bank help to
make country economy strong. Bank analysis massive growth in the mortgage lending.
 Threats - Due to Brexit, bank interest rate declined from the rate of 0.5 % to 0.25 % and
that's why bank experienced loss. EU withdraws their financial regulation so that bank faced
unbalanced situation.
Social
This factor involved culture, life style of the people, customer buying behavior and
priority of the customers.
 Opportunities - Bank contain pension scheme and also maintain the lending of
SME that can help to provide fund to the small businesses.
 Threats - Huge level of competition in banking sector and mostly people frequently
shift towards investment & saving that mainly decline the cash flow.
Technological
This factor includes technological changes and modifications so it is important for the
bank to adopt advanced technologies which can help connect with more customers
(Hamilton and Webster, 2018).
 Opportunities- Bank contains their own website so that bank easily operations
through online media. Bank also uses biometric system to maintain the record of
their employees and their attendance.
 Threats - for the bank contacts some advanced technologies and digital
advancement hence more competition challenge for the bank.
Legal
This factor includes law rules and regulations and government interference so that it is
important for the bank to follow the legal procedure properly.

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 Opportunities -bank is concerned about to provide more security and privacy to their
customers and bank also follow equality act 2010 so that people will feel valuable.
 Threats - Bank ok also facing some issues with their shareholders and to
constantly follow the entire act that can lead the changes by the UK
government (Nam and Bao Tram, 2019).
Environmental
This factor includes various environmental elements live climate change, population
and pollution and also adopted steps which can help in environmental development.
 Opportunities - Band have a chance to carbon footprint with the maximum utilization
of natural resources and also engage with the CSR activities.
 Threats - Paperwork mainly used by bank that is not good for the environment.
CONCLUSION
As per this report it can be concluded that PESTLE analysis can help to measure the impact
of external environmental factor which can useful to determine the organization position at
the external marketplace. This study identified the opportunities and threats of these factors.

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REFERENCES
Books and Journals
Gaganis, C., Pasiouras, F. and Voulgari, F., 2019. Culture, business environment and SMEs'
profitability: Evidence from European Countries. Economic Modelling, 78, pp.275-
292.
Hacioglu, U. and Sevgilioglu, G., 2019. The evolving role of automated systems and its cyber-
security issue for global business operations in Industry 4.0. International Journal of
Business Ecosystem & Strategy (2687-2293), 1(1), pp.01-11.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Nam, V.H. and Bao Tram, H., 2019. Business environment and innovation persistence: the case
of small-and medium-sized enterprises in Vietnam. Economics of Innovation and New
Technology, pp.1-23.