Executive Summary: Strategic Management of Lloyds Bank Report

This report provides a comprehensive analysis of Lloyds Bank's strategic management, focusing on its position within the financial sector. The report begins with a company profile, outlining Lloyds Bank's operations and objectives. It then delves into an analysis of the organization's strategic position using key performance indicators (KPIs) and the Boston Consulting Group (BCG) matrix to assess market share and growth. The core of the report involves a critical evaluation of Lloyds Bank's strategies, including its business model, multi-channel approach, and investments in employee training. Porter's Five Forces model is applied to evaluate the competitive landscape, considering the threat of new entrants, bargaining power of suppliers and buyers, threat of substitutes, and rivalry among competitors. The report concludes with recommendations for enhancing Lloyds Bank's strategic approach, aiming to improve efficiency, customer service, and market leadership. The analysis highlights the impact of Brexit on the financial sector and emphasizes the importance of adapting to evolving customer needs and maintaining a strong competitive edge.

Strategic Management

EXECUTIVE Summary
The complete report is based on the concept of strategic management. In the present
report the several analytical tools such as porter five force model , key performance indicator
framework have been used just for identifying the strategic position of Lloyds Bank.
Assignment has focus on identifying the strategies used by an organisation in order to achieve
success and fostering growth. In present assignment critical evaluation of the organisation's
strategy has been done. Report will highlight the important strategies used by Lloyds Bank for
accomplishing business objectives.

Table of Contents
INTRODUCTION...........................................................................................................................4
Company Profile :......................................................................................................................4
Analysis of the organisation’s strategic position using relevant KPIs........................................7
Analysis of organisation's strategic direction..............................................................................8
Critical evaluation of the organisation's strategy........................................................................9
Conclusion.....................................................................................................................................10
Recommendations..........................................................................................................................10

INTRODUCTION
Strategic management is defined as the procedure which includes the development as
well as implementation of plan developed by the management team in an organisation. Strategic
plans provides the direction or path which drives firm towards accomplishment of business
objectives. Strategic management process also involves establishment of targets as well as goals
by top level management in an enterprise considering the availability of resources. The process
of strategic management is a continuous one that changes as the organizational goals and
objectives. It supports business entity in increasing effectiveness as well as efficiency.
The present report has focus on identifying the strategies adopted by the Lloyds Bank in
order to achieve success and foster growth in financial sector. It also emphasizes on identifying
the strategic position of a firm in an industry.
Company Profile :
Lloyds Bank is recognised as the retail and commercial financial institution which has its
branches in mainly in two location these are wale's and England. It is also popular as Big four
clearing banks. Lloyds Bank is the largest financial institution in Britain. An organisation has an
extensive branch which enables firm to deliver the services to the wide number of customers.
Business entity also provides 24-hour telephone and online banking services. Bank has wide
number of customer and some clients have small business accounts. Firm also operates many
offices, brand headquarters as well as data centres. Lloyds Bank provides wide numbers range of
banking as well as other financial services. An organisation also offers funds domestic , regional
and national charitable institutions working to tackle disadvantage across England and Wales.
The strategy of forming the partnership with charitable institution has allowed business entity to
gain popularity. It has also provided firm a chance to generate brand awareness. Company also
offers wide range of financial products as well as services such as savings, current account,
credit cards , mortgages and loans (Johnson,2017)
Objective of Lloyds Bank is to support Britain in developing prosperity. An organisation
also intends to operate more responsible business by catering or fulfilling the needs of wide
number of customers. Vision of Lloyds Bank is to become the leading institution in financial
sector. Business entity in order to accomplish its vision has focus on three values these are giving
priority to the needs of customers, simple business procedures and making different business
different from other competitors by providing additional services to customers.

Business model: Lloyds Bank have unique business model which has supported a firm in
gaining competitive advantage. It has also enabled business entity in continuing meeting their
customers’ evolving needs and deliver the best customer experience. In 2011, company has
adopted the strategy to transform business which has enables business entity to increase its
competitive strength. Another strategy adopted by an organisation is ow risk participation
choices and strong capital position which has supported business entity in maintaining the
financial stability. Simple business model plan has provided firm an opportunity to gain cost
advantage. Objective of an organisation is to provide high level of return as well as satisfaction
to stakeholders (Houdet,Trommetter and Weber, 2012)
Lloyds Bank has also adopted the strategy to sell their services or financial products
through various iconic brands. This plan has enabled business entity develop the understanding
about the needs as well as demands of customers in more effective manner.
The another important strategy which is utilised by Lloyds Bank is multi channel
approach. It has also supported firm in increasing sales as well as profitability Company has also
designed the strategy to make investment in providing training to the employees. As this strategy
will assist an organisation in increasing working efficiency and productivity. It will also help
firm in providing high level of satisfaction to customers.
Lloyds Bank has team of highly skilled and talented workforce which has supported firm
in expansion of business.
As an organisation is operating in big industry, business entity might have to face stiff
competitors as well as challenges in terms of maintaining its position in the market or industry.
Some big competitors are Nordea bank, DNB bank, OTP bank plc etc.
State of financial sector
The service industry such as financial sector is contributing approximately 79 percent to
GDP. There has been tremendous growth in financial sector since last few years. The financial
services' industry is particularly important as this sector makes significant contribution towards
economic development of nation. Financial institutions are supported by legal authority in terms
of managing as well as expanding business. Banking sector in United kingdom is considered to
be the largest in Europe. Government in the nation But the changes in political situation in UK
during the Brexit has significant as well as direct impact on the economic condition of the
country as well as on the growth of financial sector. There has been decline in the income of

people and economic crisis has lead to the decrease in the demand as well as supply of financial
products or services (Pollanen,Abdel-Maksoud and Mahama, 2017)
PORTERS Five force model
This is an appropriate model for analysing effectiveness of an industry in which the
Lloyds Bank is operating.
Threat of new entry: There is medium threat of new firm in the finance sector. As there are
already big giants companies have capture the wide market share and has able to gain the loyalty
of customers. It will be difficult for new organisation to achieve position in the market. But the
new enterprise can increase the threat for Lloyds Bank by entering into the market with
innovative product or new services. Lloyds Bank has low pricing and new value position
strategy which has provided firm an ease in entering into a financial sector. It is required by
management team in an organisation to utilised the suitable strategies for creating the barriers
for restricting the entry of new companies and safeguarding the competitiveness.
Bargaining power of suppliers: In UK , the bargaining power of suppliers is quite high and
this poses a threat to Lloyds Bank and other major financial operators. Most of companies in
financial or banking sector purchase raw material from numerous suppliers. Increase in demand
by suppliers have direct as well as significant impact on the profit margin of Lloyds Bank. Many
powerful suppliers in an industry utilises their negotiating skills for extract higher prices from
companies. High bargaining power of suppliers have direct effect on the profitability of Lloyds
Bank (Kernbach, Eppler and Bresciani, 2015)
It is required by management team in an enterprise to concentrate on developing the
strong supply chain network. Company has professional relationship with digital banks as well as
brand network. Multi channel approach has supported business entity in reaching to the wide
number of customers and providing them with services in professional manner. Another strategy
which can be adopted by business entity is that a firm can enter into contract with dedicated
suppliers whose business depends upon an organisation.
Bargaining Power of buyer: The bargaining power of customers is generally high. As buyer
wants best services at low or reasonable cost. Customers have high potential to force firm for
reducing the price of product or service. This factor has significant impact on the profitability of
an organisation. The smaller as well as more powerful the customer base of Lloyds Banking

Group Plc the higher the bargaining power of the customers and higher ability of client to
demand for discounts or offers.
Threat of substitute: There is little threat of substitute product or services in banking sector. As
the competitors in an industry might produce the substitute product with the intention to create
pressure on small firm in banking sector. This factor has significant impact on the profitability of
industry. The threat of a substitute product or service is high if it offers a value proposition that is
uniquely different from present offerings of the industry.
Management team in an organisation is also planning to increase its capabilities to
address customers’ evolving needs as the sole UK integrated banking and insurance provider,
and achieve growth in a number of targeted segments. It has also supported firm in increasing
sales as well as profitability. This strategy has also supported firm in reducing the threat of
substitute product (Montgomery,2017)
Rivalry among existing competitors: There is high level as well as intense competition in
banking sector. Due to increase in competition as well as continuous changing business
environment company is facing difficulty in concentrating on its objectives. This factor has
direct as well as major effect on the business performance.
It is required by Lloyds Bank to built sustainable differentiation and provide the
additional services to customers. As this strategy will assist business entity in maintaining
business performance , position in the market. It will also help business entity in gaining the
competitive advantage in an industry (Grant, 2016)
Analysis of the organisation’s strategic position using relevant KPIs
Establishing the key performance indicators is considered to be a significant part of
strategic planning procedure. Key performance indicators assist manager in identifying the
performance gap. It also allows management team to compare actual performance with standard.
Objectives Key performance indicators
Increasing efficiency and improving customer
service
Rise in ability to quickly deal with customers
requests and deal with them correctly has
helped business entity in generating the profit
margin that a firm intends to achieve.
Increase in sales There has been the tremendous increase in

sales of Lloyds Bank
To become market leader Strategy of providing value proposition tio
customer and stakeholder has allowed firm to
achieving leading position in an industry.
Gaining customer loyalty Creating the economical value has allowed
firm to gain the loyalty of customers and
influence them to buy services provided by
bank.
Analysis of organisation's strategic direction
Boston consultancy group matrix is considered to be as an effective tool which can be
utilised by Lloyds Bank for identifying its position in the market. It also assists business entity
in recognising the performance gap and analysing the appropriate methods or techniques for
improving the same. BCG matrix consist of four cells which help management team in
examining different businesses in its portfolio on the basis of their related market share and
industry growth (Wheelen and Hunger, 2017)
The several elements of BCG matrix are :
Stars : An organisation in this position generates high income because of their strong relative
market share. But these business entity also makes huge capital investment on promotional
activities with the intention of fostering market growth.
Question mark:This symbol represents that business entity has high growth rate. But also
consumes large amount of cash, therefore these companies have low market share. Such
organisation can increase their market share by adopting the suitable marketing strategies as well
as promotional techniques.
Cash cow : This sign indicates that an organisation has able to gain leadership position in a
mature market. Firm at this position generate more cash than they consume. Such companies sh
can be achieve maintain its position by extracting the profits and investing as little cash as
possible.

Dog: This position indicates that a company have low market share and a low growth rate. It also
means that in this position an organisation doest not have potential to generate or consume large
amount of cash. These firm are found to be in liquidity position due to burden of large amount
of debt.
Lloyds Bank stands at star position in Boston consultancy group matrix. An organisation
has high marker growth and wide market share. Business entity has wide scope of growth in
banking sector due to rise in disposable income of the people in the society as well as good
economic condition of nation. The other reason for growth in banking sector are volatility in
other markets and people in society has realised the importance of saving. This factor has
supported Lloyds Bank in increasing its sales as well as profitability. But it has been identified
by conducting the BCG analysis that Lloyds Bank need to utilise new strategies or technique
for increasing its market share and fostering growth (Wilson and Beard, 2014)
Critical evaluation of the organisation's strategy
Sustainability: It is considered to be as the most significant factor in the SAF strategy. The
several strategies such as differentiated multi brand, multi channel, customer value proposition ,
data driven customer experience has allowed the firm to increase its sustainability in the market
and achieve good position in an industry. These strategies have also supported business entity in
gaining the competitive advantage in the market.
Acceptability : The company has adopted the strategy to provide great value to stakeholders has
supported firm in seeking supports of employees in bringing positive change at workplace and
also enhancement of customer service. It is acceptable strategy , as this plan is accepted by all
the people in an organisation. Returns will be measured based on the benefits that stakeholders
expect from the strategy and could be financial as well as non-financial
Feasibility :It involves the analysis or consideration related to availability of resources which are
required for formulation as well as execution of strategy. Financial feasibility can be assessed by
forecasting as well as analysing cash-flows, performing break-even analysis and a number of
other financial tests. As Lloyds Bank has stable financial stability as well as valuable and
expensive resources., firm can easily implement several strategies. Business entity also have
skilled and talented workforce which will assist the company in implementing the plan in an
effective manner (Akter and Childe,2016)

Conclusion
The report has concluded that strategic management is important in terms of achieving
success as well as fostering growth. It has been concluded from the report that Lloyds Bank is
performing well in the market, but still there are some fields in which firm can make
improvement. Study has successfully identified the position of Lloyds Bank in the market. It has
been also concluded that strategies adopted by an organisation is effective which has helped
firm in accomplishing several business objectives.
Recommendations
It has been recommended to Lloyds Bank that a company is required to make
improvement in existing strategies , business plans as well as policies. As this activity will help
business entity in maintain good position in the market. The another advice to management team
in Lloyds Bank is that they should feasible , suitable and acceptable plans or stratergies.
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