Strategic Management: Lloyds Bank Internal & External Analysis

This report provides a comprehensive strategic analysis of Lloyds Bank, beginning with an overview of its strategic purposes, including core values, vision, mission, goals, and objectives. It identifies and analyzes stakeholder concerns related to strategic decisions, presenting them graphically. The report conducts an internal and external environmental analysis using tools like PEST, Five Forces, BCG/GE matrix, and value chain analysis to pinpoint resources, competencies, and distinctive capabilities. Based on these analyses, a SWOT analysis is presented. The document critically discusses the generic strategy of Lloyds Bank and explores available growth strategies, identifying and justifying three potential opportunities for substantive growth, limited growth, or retrenchment. Finally, using strategy evaluation criteria, the report selects an appropriate future strategy for the organization and briefly explains the strategic methods for its execution, concluding with a summary of the key findings and recommendations. Desklib provides access to this and other solved assignments to aid students in their studies.

STRATEGIC MANAGEMENT
1

Table of Contents
1.0 Introduction..........................................................................................................................3
1.1 Explain the strategic purposes including core values, vision, mission, goals, and
objectives of the selected organization......................................................................................4
1.2 Identify, graphically present and analyze the concerns of stakeholders in relation to
strategic decisions......................................................................................................................5
1.3 Conduct an internal and external environmental analysis of the company. You may
perform PEST, Five forces, BCG/GE and value chain analysis to identify resources and
competences, distinctive capabilities of the business. Based on the analysis of above factors,
present the company’s SWOT...................................................................................................7
1.4 Critically discuss the generic strategy of the organization.................................................14
1.5 Analyze the growth strategies available to the organization. You may at least identify
three opportunities in which you could suggest the organization to grow with reasonable
justifications. These strategies may belong to substantive growth, limited growth or
retrenchment.............................................................................................................................16
1.6 Opportunities that would promote the substantive growth of the bank:............................20
1.7 Using strategy evaluation criteria, select an appropriate future strategy for the
organization form above alternative strategies. Explain briefly, the appropriate strategy
methods that can be used by the organization to execute the selected strategy.......................23
1.8 Conclusion..........................................................................................................................25
Reference list:...........................................................................................................................26
2

1.0 Introduction
It is very important for a bank to create its strategies. This particular report based on the
strategic management of the bank named Lloyd bank. There are different strategic purposes,
which includes the mission goals, vision, values and specially manage the objectives at the
same time. This entire process of making a vision two things develop in most of the cases,
friendships and partnership worldwide basis. The existence of the bank depends on the
factors of its existence in the society according to the need of people. The financial
organization named Lloyd bank has what type of marginal commitment to achieve the role in
the significant time.
The objective factors such as the share of the market, the quality of the leadership in the
technologies and the innovation, the economical productivity and the quality of the product,
another important thing that one need to keep in mind that is the satisfaction of the customers.
The people who considered as the stakeholders they are the suppliers, current government,
shareholders and the union. Now each of the department of the stakeholders has their own
part to play to run the bank. While a company is there in the market and who is responsible
for the society, should have a contribution in the society. The suppliers unable to give the
supplies of those elements, which needed, to the bank, then the bank will face different kind
of problems while they will be serving the potential service users of the organization.
3

1.1 Explain the strategic purposes including core values, vision, mission, goals, and
objectives of the selected organization
There are various strategic purposes, which includes the mission goals, vision, values and
specially manage the objectives at the same time. Each company have their own types of
strategies, here the selected bank is the Lloyd bank.
Vision
The vision of the Lloyd bank is to build an entire new model for the bases of those
independent investors and the general customers of the bank. This vision of the bank has its
own kind of improvements in terms of the development of the financial and accounts matters.
This entire process of making a vision two things develop in most of the cases, friendships
and partnership worldwide basis (Bryson, 2018). This will help to expand the business.
Mission
The existence of the business organization depends on the factors of its existence in the
society according to the need of people. It means that the organization (Lloyd Bank) plays
what kind of role in terms of providing them services and the kind of information, which they
need.
Objectives
It defines that the financial organization named Lloyd bank have what type of marginal
commitment to achieve the role in the significant time period which is allotted. It is the
ultimate result of the activity, which planned.
Values
There are few of the objectives of the objective factors such as the share of the market, the
quality of the leadership in the technologies and the new innovation, the economical
productivity and the quality of the product, another important thing which one need to keep in
mind that is the satisfaction of the customers, they must be satisfied. Otherwise, it is going to
effect the reputation of the company. While a company is there in the market and who is
responsible for the society, should have a contribution in the society. The time when they will
be able to make all this possible things, happen the Lloyd bank will be able to count them as
an important part of the economical growth (Keyes, 2016).
4

1.2 Identify, graphically present and analyze the concerns of stakeholders in relation to
strategic decisions.
The contribution of the stakeholders is quite important as if the organization named Lloyd
bank. The people who considered as the stakeholders they are the suppliers, current
government, shareholders and the union. Now each of the department of the stakeholders has
their own part to play to run the bank. While following the policies of the bank, the
stakeholder can be legal people and individual or groups who have their own kind of
influence in the bank and the activities of the bank as well.
Meet their needs
(Suppliers)
Key Player
(Government and
shareholders)
Least Important
(Union)
Show Consideration
(Suppliers)
Figure 1: Matrix of strategic management
(Source: Created by the author)
 Meet their needs
The stakeholders considered as one of the most important people in term of running an
organization. Following the above model of strategic management matrix, it identified that in
order to meet the needs of the suppliers. When it suppliers be unable to give the supplies of
those elements which is needed to the bank, then the bank will face different kind of
problems while they will be serving the potential service users of the organization (Grant,
2016). Then the entire process of the organization is going to run in a bad condition.
 Key Player
The key player of the organization is the Government and shareholders. The current
government of Srilanka has their own kind of laws and legislation for all the banks of the
country, if they change any kind of laws and regulations in the terms of the sector of the
bank, then it is going to make problem in the entire process. For this reason, they are one of
the most important key players in the strategies of any organization. Another segment of
5
Pow
er of
Stak
ehol
ders
Interest of Stakeholders

people who are the key players, they are shareholder. The bank named Lloyd Srilanka cannot
take any decision without these departments (Theaker, 2017).
 Least Important
Union of the bank considered as one of the less important department of the strategic matrix.
This particular department mostly handles the quarries and small decision of the employees
of the organization. The major reason after this is the basic aim of the organization is to fulfill
the needs of consumes, the organization should have the major concentration on that matter.
Anyway, the union kept in an organization to fulfill the few of the demands of the employees,
which is not that important every time.
 Show Consideration
There are departments of the stakeholders where the bank needs to show consideration. The
reason after this is, they fulfill most of the basic needs of the organizations. Once the
suppliers stop supplying the required materials then the entire organization will not be able to
run in a proper manner. This is why it is important to show some of the consideration to the
suppliers ((Macharis and Bernardini, 2015).
After having the code of the responsibility of the collective business, it decided by the bank
Lloyd that their approach should be able to make their stakeholders engaged and working, in
each of the segment. The groups and committees like the group board, the group of executive
committee and the leaders who are devotional decided that the relationship with the
stakeholders is very important if they want to run the business in a proper way. As an
example the relation with the employees of Lloyd bank, relation with the trade unions should
maintain their term with the suppliers of the bank. The business organization should always
engage the stakeholders and contact them on a regular basis for the sake of face-to-face
meetings and some of the regulation of few specific issues. This entire process is a part of the
bank’s agenda (Wheelen et al., 2017).
6

1.3 Conduct an internal and external environmental analysis of the company. You may
perform PEST, Five forces, BCG/GE and value chain analysis to identify resources and
competences, distinctive capabilities of the business. Based on the analysis of above
factors, present the company’s SWOT.
External analysis
 PEST analysis
Political Analysis  The democratic socialist republic of
Srilanka
 The power of the legislation vested by
both the parliament and government
Economical analysis  The increasing staggering of the bank
standards from 9,382 Billion to 878.7
billion
 The raising growth of GDP is 2.6%
Social analysis  Cultural aspects of Srilanka
 Living standards of people
 Law changes affecting social factors
 Organizational culture of Srilanka
Technological analysis  Technological maturity
 Local to global communication
(Table 1: PEST analysis)
(Source: Lloydsbankinggroup.com, 2018)
7

1. Political Analysis
The country Srilanka is going through a crisis phrase in terms of the political scenario. There
are three types of crisis. Those are the crisis of the governance, crisis of the process, the
regime level, either this process is avoidable or not. The regime crisis is the government of
Srilanka is unable to move forward. The governance crisis is each day manifests the collapses
culture of the municipality government. As the government is unable to resolve the entire
process of garbage cleaning, this is why there are various societies of the country, which is
facing rapid problem of flu.
2. Economical analysis
The political factor has a huge type of impact in the term of economical process. The system
of the political factor has converted to dictatorship, this is why the economical growth of the
fellow citizens has became really less. According to the central bank standards, the
development is strategizing as 9,382 Billion in the year of 2016, which is an increasing
amount than 2015.
3. Social analysis
The society of Srilanka has mixed crowed within them. 74% of the crowd belongs to the
segment of the crowd are the Sinhalese, 12% of the population are Tamilian Srilankan, 7% of
the crowd are the Muslim, apart from this there are few of the Indian Tamil, few
communities of the Burghers, Malays and some other communities are there as well. The two
languages, which are official in this country, those are Tamil and Singhala. At least 97% of
the population at has completed their primary school. However, the rate of education in this
country is not that high, but still the basic education to understand the in general factors is
there.
4. Technological analysis
There is some of the major factor the technological factors of the country Srilanka. The
technological sectors such as, equipments of the telecommunication and the computers are
equally upgraded. This country has a high scope of opportunities in the terms of the
technological factors. The telecommunication industry comes up with an international tender,
which released in the ending of 2017. They have also digitized the entire procedure of the
government (Lloydsbankinggroup.com, 2018).
8

 Five force analysis
Figure 2: Five force analysis
(Source: Created by the author)
The basic five forces mentioned below.
 Market rivalry (high)
Every industry has its own kind of competition in the market. This is why the bank named
Lloyd has to research properly. Now this research is going too based on the factors of same
kind of competition happening in the market. The rivals who provide similar kind of services
to the services users, what kind of services are they, do those bank’s services have the
potential to beat Lloyd bank, if the rival company have the potential to beat the bank then
where Lloyd needs to focus more. Promotion and publicity is one of the major factors in the
term to affects the human mind. The bank needs to have a track on the factor whether they
are promoting their services properly or not. This is why the market rivalry is high in the
industry of banking.
• Bargaining power of the buyers (high)
In term of the banking, industry there is a huge amount of rivals in the market. Based on this
reason the customer’s o the bank always have the option of shifting to another banks. There is
always a probability that the buyers influenced by the attractive packages of the other banks.
9

This is why the bank named Lloyd always gives their customers more reasons to stay in their
bank.
 Threat of Substitutes (High)
In a country, there are several other banks as well. This is why the threat of Substitutes
becomes high. The primary reason after this is if a service user does not satisfied by the
services of a bank in particular then they can immediately shift to another bank for the sake
of a better service.
 Bargaining power of the suppliers (moderate)
There are different suppliers in the market who serves the banks. Their rate of shifting to
another bank is quite moderate; the reason after this is, there business related to the banks
directly. This is why till the time some huge problem happens between them there is no point
to shift the bank.
 Threat of new entrants (low)
The business organization that comes new to the business of banking they have many threats
to face. First there are already so many banks existing in the market, this is why it becomes
very difficult to make the organization establish within a short span of time
(Lloydsbankinggroup.com, 2018)
.
Internal analysis
 BCG analysis
Question Mark
Lloyd bank
Stars
Poor dogs Cash Cows
Table 2: BCG analysis
(Source: Created by the author)
In the sector of banking, the marketing growth is quite impressive, because of the factor that
many people invest in the bank, in order to keep their money in a safe place. The BCG report
of this bank states that it got a lot of scope for improvement, but they have to notice the factor
of betterment of the market shares they have. The reason after this is they are holding lower
amount of market shares in the segment of those markets, which are growing in a deliberate
10

manner. However the market of the has huge potential to convert it in a star, the will take the
shape of a cash cow in the future.
The major reason for which after which the investment the business organization faces
struggle to achieve the market share and through this they become the poor dogs. The
strategic choices of the BCG matrix are the penetration of the market, development of the
market, development of the product and divestiture as well. The suppliers unable to give the
supplies of those elements, which needed, to the bank, then the bank will face different kind
of problems while they will be serving the potential service users of the organization
(Lloydsbankinggroup.com, 2018)
.
 Value chain analysis
Figure 3: Value chain analysis
(Source: MacDonald and Brecht, 2018)
The value chain activities have two kinds of activities one is the primary activities and
another is the secondary activities.
Primary activities
The primary activities are market marketing, sales and productions. There are different kinds
of segments in the part of marketing, those are advertising, sales report, and branding. In the
segment of sales, the segments are offering services, acquisition, and multi segment of the
management. In the terms of products there are factors mentioned such as funding,
investment and services. In the sector of funding, there are factors of deposited, credits,
secularization. There are other products as well those are credits, security, financial products
payment, treading, clearing and settlement.
Secondary activities
11

There are basic four factors of the secondary activities.
 Risk management
 Technological development
 Human resource
 Firm infrastructure.
In the terms of products there are factors mentioned such as funding, investment and services
(Lloydsbankinggroup.com, 2018).
 SWOT analysis
Strengths
 Lloyds bank takes macro challenges
under serious note
 Under PESTLE analysis the issues
like SME lending, Brexit
 High Capitalisation
 Lloyd leads in banking sector due to
low operating cost
 This model incurs less risk
 With the largest number of active
online customers of around 12
million
 Gives loan to home buyers at low
interest rates
Weakness
 This bank has less investment
on SME markets
 2008 financial recession Lloyd
has faced lawsuit case due to
purchase of HBOS
Opportunities
 It has invested in credit card based in
UK with a future plan of growth
 Lending in SME
 Innovative digital technology for
growth in serving customer
requirements
 The bank has changed economically
Threat
 EU leaving Brexit can bring financial
disaster
 Constant inclusion of new capital
investments
 UK government introduces 8%
surcharge for the profit that the bank
incurs.
12