STRATEGY ANALYSIS

Lloyds Bank

Introduction1

Discussion and Analysis1

Overview of Lloyds Bank and Financial Industry of the UK1

Recent Strategic Development History (2002-2012)2

Company Trends2

Industry Trends5

Current Strategic Situation of the Company5

STEEPLE Analysis of the Current Situation6

Industry Analysis - Porter's Five Forces12

Resource Based View Theory (RBV)15

Summary of the Current Strategic Position17

Future Outlook of Lloyds Bank18

Available Package of Choices18

Recommendations19

Conclusion20

References21

Lloyds Bank

Introduction

The paper undertakes strategic financial analysis of the selected organization from the UK financial sector. The paper evaluates key strategic trends and developments in the company decisions with respect to the financial service industry over the span of the past ten years. Furthermore, the paper scrutinizes the current strategic position of the company using recommended set of evaluation measures.

In the light of identified trends and strategic changes in the recent past and present, the paper discusses the possible set of choices available to the company in the future ahead. Finally, the paper outlines recommendations and conclusion of the investigated information and strategic financial analysis of Lloyds Bank.

Discussion and Analysis

Overview of Lloyds Bank and Financial Industry of the UK

Lloyds Bank is a 300years old player of the financial services industry of the UK (Lloyds Bank, 2013, p. n.d.). Since then it has been keeping pace with the ever-changing market environment by offering substantial business knowledge and products to ensure sustainable growth, enhanced efficiency, and risk management of customers. The bank has made intensive investments in order to become a leading through the cycle bank for UK businesses and to support the UK economy. The bank offers financial services and varied products in corporate financing, risk management, banking, capital markets and international trade (Lloyds Bank, 2013, p. n.d.).

According to the recent research reports, 8.9% of the UK GDP is contributed by the financial services industry (Langston, 2012, p. n.d.). As of 2011, over one million people were employed by this industry with intensive hiring of 454,200 workers in the banking sector. Additionally, during 2010-11 firms from the financial services industry have generated an amount of £63 billion or 12% of tax receipts in the UK (Langston, 2012, p. n.d.).

Recent Strategic Development History (2002-2012)

Since its establishment, Lloyds Bank has been on a journey of strategic progress and organizational development. Major strategic decisions including M&A have transformed Lloyds bank into a leading business choice of 26,000 corporate customers (Lloyds Bank, 2013, p. n.d.). Analysis of the business history of strategic development states Lloyds bank as a customer oriented bank that is destined to earn sustainable business growth based on the extensive network of business clients and customers.

Company Trends

In the face of economic slowdown in the UK, the company reported strong market performance in key business divisions (Lloyds TSB Group, 2002, p. 8). During the defined period of operational performance, the company has established several brands and customized products to best serve the needs of the diversified customer base (Lloyds TSB Group, 2007, p. ii). The company has emphasized on developing strong customer proposition based on committed relationship with customers and delivering high quality of ...