Analyze how the business environment is considered in strategy form...


Lloyds Banking Group, a leading UK based financial service group formed in January 2009 following the acquisition of HBOS and Lloyds Banking Group. It provides the financial and banking service primarily in UK. Their main businesses are retail, commercial and corporate banking. Other services they provide are general insurance, and life, pensions and investment provision. The Lloyds Banking Group also provides international banking business with a global footprint all over 30 countries.

Lloyds Banking Group is the largest group in UK. They have the large and diversified customer base. They have different brands as well. It includes Lloyds TSB, Halifax, Bank of Scotland, Scottish Windows, Clerical Medical and Cheltenham & Gloucester. They have the largest branch network in intermediary channels and mainly in UK. Lloyds banking Group took a vast place in London Stock Exchange as well as in New York Stock Exchange. It becomes one of the largest companies within the FTSE 100.

Purpose and Vision

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Long lasting customer relationship is the main purpose of Lloyds Banking Group. It purposes to a deep relationship with the customer. The customer is more important in this company. Therefore, the customer of the Lloyds banking Group achieves what's important to them. Moreover, its vision is to serve the best customer service to its shareholders, stakeholders, customers. This purpose and vision took this group in the way of success.

Stakeholders Analysis

For Lloyds Banking Group customers: the combination of both, organisations will help us by offering the best convenience, choice and expertise.

For Lloyds Banking Group colleagues: the scope and scale of Lloyds Banking Group new company will provide exciting opportunities to grow and develop their career to the Lloyds Banking Group people who are going to be vital to making Lloyds Banking Group new organisation as the best it can possibly be.

For Lloyds Banking Group shareholders: It seems beyond the near term, Lloyds Banking Group believes that the strength and size of the Group will offer significant opportunities.

The board receives regular reports from the group finance director and the director of investor relations to develop an understanding of the views of major shareholders.

The chairman who is the group chief executive and the group finance director also have meetings with representatives of major shareholders. The senior independent director also attends some of these meetings as well as all directors are invited to attend investment analysts' and stockbrokers' briefings on the financial results.

All shareholders are enc Lloyds Banking Group aged to attend and participate in the Group's annual general meeting.

Internal and External Audit

Internal Audit

(a) Monitoring and reviewing the effectiveness is the function of Group's internal audit in the context of the Group's overall risk management system;

(b) Approval the appointment or dismissal of the Group Audit Director;

(c) Reviewing the internal audit programme and ensuring that the internal audit function is adequately res Lloyds Banking Group and with in the group has appropriate access to information and standing, and

(d) Considering the major findings of any significant internal audit escalated to committee by the Group Audit Director, and considering management's response to Internal Audit's recommendations.

The Group's Relationship with its External Auditors

(a) Making recommendations to the Board, to be put to shareholders for approval at the Annual General Meeting, on the appointment, reappointment and removal of the external auditor. For selecting the external auditor the Audit Committee shall oversee the process.

(b) Oversee the relationship with the external auditor, are-

approving the terms of engagement of the external auditor such as the remuneration to be paid;

assessment the external auditor's effectiveness, independence and objectivity to ensure that key partners are rotated at appropriate intervals;

approve the provision of non-audit services by the external auditor which is related to remuneration;

agree with the Board a policy on the employment of former employees of the Group's auditor, as well as monitoring the implementation of this policy;

(c) Review and approve the annual audit plan for ensuring the consistent with the scope of the audit engagement, and co-ordinating with the activities of the Internal Audit function;

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(d) Before the audit commence, discuss with the external auditor about the nature and scope of the audit and review the auditor's quality control procedures and steps taken by the auditor to respond to changes in regulatory and other requirements;

(e) Reviewing the findings of the audit with the external auditor, considering the external auditor's management letter and management's response to the auditor's findings and recommendations; and

(f) Reviewing such reports prepared by the external auditor as the Audit Committee shall require and considering management's response to any major external audit recommendations.

SWOT Analysis


Some of Lloyds Banking Group highlights are: 

More than 3,000 branches across over the UK

A network of over 6,800 free to use UK cash machines

The largest provider of social banking accounts as well as a substantial supporter of the community finance sector.

Employ over 120,000 people in the UK and most of them live and work in the same community

One of the UK's largest community investors

£4.5 billion was spent on goods and services from an estimated 30,000 suppliers 



Lloyds Banking Group respects the traditions and cultures. They commit Lloyds Banking Group selves to obey the laws, rules and regulations, of every country where Lloyds Banking Group operate. Lloyds Banking Group takes into account the economic Lloyds Banking Group wellbeing and also social development of communities where Lloyds Banking Group conducts their business.

Lloyds Banking Group does not make donations to political parties as well.


In Lloyds Banking Group dealings with customers, Honesty and integrity are of paramount importance and make good business sense - they are prerequisites for a successful and sustained relationship.

Lloyds Banking Group will provide and promote a range of products and services which is responsive to customer needs and offers value for money and it will seek never to give inadequate or misleading descriptions of products or services. Lloyds Banking Group will maintain the confidentiality of customer information by a written consent and save where the law requires or permits disclosure.


Others competitors in the market such as Barclays, HSBC etc. are the threat of Lloyds Banking Group.

Task 2

Understand the process of strategic planning

Competencies and Skills

Lloyds Banking Group aims to set an example in the conduct of business on demand of honesty and integrity in everything they do, and will not do business if their standards are endangered. Lloyds Banking Group greatly value of its good reputation and High ethical standards are of crucial importance to us, and in the following statements Lloyds Banking Group set out Lloyds Banking Group core values which apply equally to all members of the Group.

Products and offerings

Over the past 12 months Lloyds Banking Group has won a wide range of awards for products and services based on the Lloyds Banking Group commitment to meeting Lloyds Banking Group customers' needs. From Lloyds TSB being voted Marketing magazine's most loved financial service brand and through Lloyds Banking Group Corporate Bank being recognised as Bank of the Year for excellence in service and customer understanding to Halifax's best overall lender in the Lloyds Banking Group Mortgage Awards.  Lloyds Banking Group brands featured in over 4,000 products which is 'best buy' league tables in 2008, more than any other bank.

Lloyds Banking Group always tries to break new ground in meeting the needs of Lloyds Banking Group customers. Firstly, by looking at more suitable ways for customers to do business. And secondly, by developing products and services that meet the needs of a wider range of audience.

As the first bank to develop a partnership with the UK Post Office, Lloyds Banking Group whose personal customers can bank at around 12,500 post offices.

Lloyds Banking Group have the largest free-to-use ATM network in the UK with over 6,800 ATMs

More than 3 million Lloyds Banking Group customers bank online and with thousands of new users registering every Lloyds Banking Group. 

Lloyds TSB has a range of mobile phone services with text alerts and instant account transfers;

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This year, Lloyds Banking Group has committed £4 million to a financial capability project working with the Treasury, Department for Business, Innovation & Skills and the Financial Services Authority and The intention is to reach many of the 12 million young people and adults engaged in the further education sector

Environment and Industry

Lloyds Banking Group is a signatory to the Equator Principles which are voluntary guidelines for the financial industry to manage social and environmental issues in project financing. The principles apply to all new Project Finance transactions above US$10m.

During 2009, Lloyds Banking Group implemented a harmonised group wide approach to monitoring and reported Equator Principles transactions, as well as training colleagues on the Equator Principles. An Equator Principles Review Group has been formed that comprising experts from both Risk and Project Finance teams, and supported by external environmental consultants. This Group is responsible for reviewing all new Equator Principle transactions, to ensure that each transaction is compliant and is consistent with the Group Environmental Risk Policy before it is sanctioned.

All Equator Principles projects are reviewed as a part of an annual review process. In 2009, 20 Projects Lloyds Banking Group reviewed. On behalf of this, 14 Lloyds Banking Group are completed with a total value of over £500 million. Nine of the projects took place in Europe, Lloyds Banking Group in the US and one in the Middle East.

Market and Customer

Corporate Markets comprises Corporate, Commercial, Corporate Real Estate, Specialist Finance and Wholesale Markets,among them Corporate, Commercial and Corporate Real Estate provide relationship-based banking, risk management and advisory services to corporate and commercial customers principally in the UK. Specialist Finance consist of the acquisition finance and private equity businesses. Wholesale Markets provides risk management solutions, specialised lending, and capital markets advisory and multi-product financing solutions to its customers, on the other hand, managing the Group's own portfolio of structured credit investments and treasury assets.

Suppliers and Buyers

Retail is one of the most valuable supplier of Lloyds Banking Group which has strong stable of brands including Lloyds TSB, Halifax, Bank of Scotland and Cheltenham & Gloucester, by which it serves over 30 million customers through one of the largest branch and fee free ATM networks in the UK.

Retail has approximately 22 million current account customers and it provides social banking to over 4 million people through basic banking or social banking accounts. It is also the largest provider of personal loans in the UK because Lloyds Banking Group is being the UK's leading credit card issuer. Retail provides one in Lloyds Banking Group residential mortgages making. it is leading UK mortgage lender as Lloyds Banking Group as being a major provider of home finance for the first time buyer.

Retail is the largest private sector savings provider in the UK having 21 million savers and also a major general insurance and distributor, selling a wide range of long-term savings, investment and general insurance products.

Task 3

Examine approaches to strategy evaluation and selection

Substantive Growth

Related diversification is "development beyond the present product market, but still within the broad confines of the industry... [It]... therefore builds on the assets or activities which the firm has developed" (Johnson and Scholes, 2002).

On and with effect from the relevant Customer Effective Date and Final Transfer Date each Customer Relationship shall be transferred by Bank of Scotland to and vest in Lloyds TSB in according to the terms of this Scheme.

On and with effect from the relevant Customer Effective Date or on and with effect from the Final Transfer Date each Customer Relationship shall be transferred by Bank of Scotland to and vest in Lloyds TSB in accordance with the terms of this Scheme.

In respect of each of the Customers and whether before or after the date of the Order Lloyds TSB shall enweave to agree with such Customer a Customer Effective Date which shall be no earlier than the date of the Order and no later than that business day which is 2 days before the Final Transfer Date. Where a Customer and Lloyds TSB shall agree a Customer Effective Date, Lloyds TSB shall by notice in writing despatched no less than 10 business days before such date, notify the Customer of such date and this Scheme shall take effect in respect of such Customer on that Customer Effective Date.

On and with effect from each Customer Effective Date, each Customer Relationship shall be transferred from Bank of Scotland to and vest in Lloyds TSB in accordance with, but subject to, the Scheme.

Where and for whatever reason any Customer Relationship shall not have been transferred to Lloyds TSB pursuant to a Customer Effective Date by close of business on that day which is 2 days before the Final Transfer Date, such Customer Relationship shall be transferred from Bank of Scotland to Lloyds TSB and the Scheme shall take effect in respect of such Customer Relationship at close of business on the Final Transfer Date. Even the most successful businesses can experience hard times. Lloyds Banking Group helped over 1,900 businesses in 2010, providing over £30bn of finance. Lloyds Banking Group locally based teams are committed to getting to know you and Lloyds Banking Group business and can offer their guidance and support to help find solutions to the difficulties you are facing.

By increasing the number of dedicated managers and business support managers, Lloyds Banking Group can give you support when you need it.

Lloyds Banking Group Economic Research Team provides you with the latest commentary every day on financial markets, and a monthly market update call.

Lloyds Banking Group is committed to supporting UK business and over the past two years they have helped businesses take advantage of growth opportunities.


Task 4

Analyze how strategy implementation is realized.

Strategy of Two Different Organizations

Strategy of TESCO

One of the most growing and developed organisation in UK is TESCO. They have the strategy of the expansion of the market. They maintain the strong developed and long term customer care and development of their product as well. They also provide the financial service, non food and telecoms- and new market abroad initially in central Europe and Asia. They most recently developed their service in UK.

The business strategy of TESCO was laid down mainly in the year 1997. They has benn succeeded in the recent years. The strategy they have followed in the last 12 years has been succeeded recent years and now they become the market leader not only in the UK but also in the other countries. Such as, their strategy of diversification has successful.

The strategy TESCO follows has five main elements that reflect the main areas which they focus, and also their long term commitments on community and environment. Even, in the economic downturn they followed their strategy and they succeeded.

The strategies are:

To become a successful international retailer

To grow up the total UK based business and internationally as well

To build up the long term relationships with the customer

To become a well known common brand within the customer

To make a common sense within the people in food products

Identification of Resources

Financial Resources

The financial resources of the Lloyds Banking group are vast. In the year 2011, March 31, the total number of issued shares was 68,074,854,137 at a price of 10p each. In this sense, no shares are held in the treasury.

The shareholders used this figure as the "denominator" for the calculation that where they need to interest in or required to change their interest later. The Lloyds Banking Group plc maintain under the Financial service Authority's disclosure and transparency rules.

Human Resources

The Lloyds banking Group is maintain the business for all about the people and their goals and money. It maintains the business sense however, the people's money is important to them as well. So, it makes sense for people. Lloyds Banking Group maintain an organizational attraction and develops the best talents in the industry.

Lloyds Banking Group offers the reward and performance appraisal package for the employees that refer more than just the pay. The Lloyds Banking Group also provides the rewards and achievement for the people who mostly like the career. This group offering the best train and development programme for the high achiever people. It provides proper training and recruiting as well. They also give the opportunity to the people who are able to lead the high position with their perfect skills and ability. In the other sense, the Lloyds banking group make the group people to achieve the social and corporate level responsibilities.

Lloyds Banking Group future Targets and Timescale

Lloyds banking Group commitments: Future Priorities in 2011-2012


The Lloyds banking Group's future target is to ensure the proper education for the young children. In this sense they provide the financial help.

Moreover, they wish to provide the financial awareness training and development to their employees as for the social development.

Suitable Products

The banking group is promoting new products day by day for the social baking.

Increased and More Targeted Transparency

Lloyds Banking group provides the more transparency in the targeted year in 2012.

Practical and Meaningful Access

They wish to maintain the proper ATM network and more branches.