STRATEGIC MANAGEMENT

Strategic Management



Strategic Management

LLOYDS TSB

Lloyds TSB bank is a financial service provider established in UK in 1995 as a retail banking service institution.  Like other banks, it has wide rage of products and services and these makes the financial statement complex. Here is the analysis of Lloyds TBS bank financial annual reports for the financial year 2007. The bank had a total asset base of 353,346 million pounds up from 343, 598 million pounds in the year 2006. The highest asset came from loan and advances to customers of 209, 814 million pounds, which was more than half of the total assets value.  The bank held 4,330 million pound in the central bank reserves as part of its assets. A substantive amount of assets came from trading and disposal of assets at fair value and from the loans the bank extended to other commercial banks (Guimaraes, 2009,, 110).

The total value of resources that the bank owned outsiders was 340,921 million pounds in the year 2007 as compared to 332,091 in the year 2006. Approximate half of this amount came from deposits by customer under the custody of the bank.  The proprietors and the shareholders claimed a total amount of 12, 425 million pounds from the bank as total equity (Guimaraes, 2009,, 110).

PESTEL analysis of the external business environment

ECONOMICAL

Since the merger between the two in 1996, through joint efforts, they were able to achieve twice as much profit which helped them achieve a significant market share. More than 4 years ago, their post-tax return on average decreased to 27% which was a big improvement. This shows that the steady improvement these have been achieving over the years even though the economical situation intensified in the U.K due to the impact of ever increasing regulation and

price controls (Ward, 2011,, 300).

The Lloyd TSB believes in being the best financial services company in the whole of U.K and be the first one to cross borders. Their CSR (corporate social responsibility) is to support their vision by helping people by building them a place to work, a great place for customers to do business and generate great returns for their shareholders. The group believes in creating value for their stake holders through effective risk management, by enhancing their brand recognition, also by engaging the employment and achieving constant customer satisfaction (Ward, 2011,, 300).

ENVIRONMENTAL

The group believes in giving back to the nature in form of creating awareness regarding the on going environmental crisis. They have joined hands with the U.K government in order to combact climatic changes which are the greatest long-term challenge being faced by the world today. These climate changed impact the regulations on taxation and public policy around the world and further carry risk and opportunities for the companies and the public.

Porter's 5-Forces: The five forces

The threat of the entry of new competitors

In theory, any firm should be able to enter and exit a market, and if free entry and exit exists, then profits always should be ...