Abhishek Strategic Management

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PART A & PART B STRATEGIC MANGEMENT RESEARCH Lloyd’s Banking Group

Contents PART A: Strategic Analysis of a chosen organisation ................................................................ 1 Introduction ............................................................................................................................ 1 About Company .................................................................................................................. 1 Purpose of the report ........................................................................................................... 1 Mission and Vision ............................................................................................................. 1 Key issues ............................................................................................................................... 2 Dynamic preferences of customers ..................................................................................... 2 Cyber security ..................................................................................................................... 3 Competition ........................................................................................................................ 5 Strategic options ..................................................................................................................... 7 Value-creating Capability Framework ................................................................................ 7 Mathur’s Strategy Framework ............................................................................................ 9 Conclusion ............................................................................................................................ 10 References ............................................................................................................................ 11 Appendices ........................................................................................................................... 15 PESTEL Analysis .............................................................................................................. 15 VRIO Analysis .................................................................................................................. 17 Conclusion ............................................................................................................................ 19 PART 2: Individual Reflection ................................................................................................. 20

PART A: Strategic Analysis of a chosen organisation. Introduction About Company In 2009, Lloyds TSB acquired HBOS, forming the Lloyds Banking Group, a British financial giant. It has 30 million customers and employs 65,000 people, making it one of the largest financial services companies in the UK. While Lloyds Bank didn't come into existence until 1765, the Group as a whole can trace its roots back to 1695, when the Parliament of Scotland established the Bank of Scotland (Valls et al., 2020). The Group's primary operations centre is situated at 25 Gresham Street in London's financial district, while its official headquarters may be found at The Mound in Edinburgh (Dayson et al., 2018). Lloyds Banking Group is a member of the FTSE 100 Index and trades on the London Stock Exchange (LSE). As of 1 August 2022, its market capitalization was roughly £30.65 billion, making it the 19th-largest business listed on the London Stock Exchange (Ozili et al., 2022). It is also listed on the New York Stock Exchange through American depositary receipts. Purpose of the report This report's goal is to examine the company's internal and external environments by situation analysis. After doing an in-depth investigation of the surrounding environment, a few obstacles must be singled out and subsequently targeted in order to formulate an effective plan of action. Mission and Vision Mission Lloyds' mission is to "Help Britain Prosper" by making the financial system more productively useful to individuals and businesses (Valls et al., 2020). Vision The Lloyd's vision include: - In order to meet the daily needs of millions of customers, both large and small. That puts the firm in a unique position to use its financial resources for good by being a responsible steward of shareholder capital.

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- To set the standard through the innovative choices it makes as a company, be it in terms of where and how it invests, the goods and services it provides, or the culture it fosters within its workforce. - Finding novel approaches to meeting the requirements of customers, communities, and enterprises is a constant goal. And to keep working on new ways to make the environmentally friendly and morally uplifting options the default ones - The organisation has an insatiable desire for improvement, and its goal is to reform Britain's financial system so that it benefits future generations (Valls et al., 2020). Key issues According to Appendix 1 and Appendix 2, following issues in Lloyd’s bank can be identified: Dynamic preferences of customers Customers affected by the pandemic want their banks to be nimbler and more responsive to shifting customer preferences and needs. Lloyds will be unable to keep up with the rapid rate of change if it continues to rely on its ageing infrastructure, which is not only too slow to adapt to the demands of today's businesses but also too difficult and expensive to maintain and redesign ( Saravanan and Kaur, 2022). Lloyds Bank needs to update their antiquated systems in order to keep up with the increasing diversity, velocity, and amount of data. These older systems were developed in an era when there were many fewer variables (Lee and Lee, 2020). In addition to resolving current issues, modernization initiatives like these can support the incorporation of novel data types like weblogs, audio, and video files and make them available for continuous analysis, allowing financial institutions to better handle the ever-increasing volumes of data they generate. Lloyd’s bank has a hard time keeping up with the ever-changing interests and habits of their customers. Since the pandemic hit, there has been a dramatic shift, compelling the bank to take this into account and include a number of novel digitization initiatives into their operating strategy ( Forcadell et al., 2019). Lloyds bank in the modern digital era can only humanise digital encounters by reimagining banking with new technology while preserving the human element customers have come to expect ( Saravanan and Kaur, 2022). Following are the changes in customers which Lloyd’s bank need to address: 1. Consumers' willingness to take risks has diminished significantly as a result of income reduction and ongoing job security concerns. Post-pandemic, the possibility of

late or missing payments on mortgages, loans, credit cards, and overdrafts is changing the attitudes of many consumers who were previously willing to take risks, including investments in high-risk, high-return financial instruments ( Famiyeh et al., 2018), Lloyds bank may reduce payment defaults and build long-term trust with their customers by continuously analysing customer data, consolidating this data, and visualising it in portfolio monitoring reports and dashboards (Bilan et al., 2019). 2. Customers have been migrating away from traditional bank branches and toward digital channels as digital banking has been available for some years. However, the epidemic has made this transition from analogue to digital a pervasive and long- lasting one (Frost et al., 2019). In response to the imposition of lockdowns, banks have been forced to close their branches and redirect all of their customers to online services. Banks rely on AI and RPA to automate back-end activities as they shift previously in-person, process-driven engagements to digital channels without jeopardising human relationships with customers ( Pakurár et al., 2019). To provide the kind of intuitive and cutting-edge digital experiences that customers expect from their bank, Lloyds needs to do a better job of leveraging technologies like big data analytics to learn about those customers' preferences in a timely and open manner (Raza et al., 2020). 3. The post-pandemic age has seen a significant shift in consumer behaviour, and financial institutions must adapt accordingly. Customers in the modern day aren't hesitant about completing a single transaction over several different channels ( Yip and Bocken, 2018). They can learn about available loan options on their desktop browser, see how they'll affect their savings using a mobile app, and finally apply for a loan using their online banking (Frost et al., 2019). Banks must be able to provide consistent and dependable service across all channels since customers want to have access to their accounts whenever they choose and use a variety of devices to do it. Cyber security The banking industry has gone digital as a response to the spread of COVID. The front and back ends of businesses are both going fully digital now. Cyber-attacks, which target the private information of banks and financial institutions, have been on the rise alongside the development of similarly sophisticated technologies. that affect the industry ( Alzoubi et al., 2022).

Due to the bank's heavy reliance on online banking, cyber criminals are increasingly targeting Lloyds Bank's mobile and web services, both of which have a notoriously flimsy security infrastructure (Ghelani et al., 2022). Criminals frequently go after the financial sector in an effort to gain access to sensitive customer and staff data that may be used to steal money and other assets. Some threats to banks' online safety include: 1. Phishing Attacks Phishing attacks are a common cybersecurity issue in the banking firm like Lloyd bank. They can be used to break into a bank's network and launch a devastating attack, such as an advanced persistent threat (Advanced Persistent Threat) (Uddin et al., 2020). An APT allows an unauthorised user to gain access to and remain active on a system for an extended period of time without raising suspicion. This could lead to serious losses in money, information, and credibility. The report found that phishing attacks against banks reached their peak in Q1 of 2021 ( Thach et al., 2021). 2. The Trojans When referring to malicious hacking techniques, the term "Trojan" is often used to denote a wide range of threats. No Banker will use it till it is installed on a computer. Trojan appears to be a legitimate programme ( Joveda et al., 2019). On the other hand, it is a malicious piece of software designed to break into online banking systems and steal sensitive information. A computer with this kind of software installed can be accessed from the outside through a "backdoor." 3. Ransomware Ransomware is a form of cybercrime that encrypts users' data and demands a fee to decrypt it. Considering that 90% of financial institutions have been hit by ransomware in the past year, it is clear that this is a major problem (Ghelani et al., 2022). Ransomware is a problem for cryptocurrency security just as much as it is for financial institutions' systems ( Alzoubi et al., 2022). Cryptocurrencies' decentralised nature makes them vulnerable to hacking by con artists looking to steal funds from trading platforms. - Creating a Fake Website (Spoofing)

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In this cyberattack, hackers create a replica of the target website. They faked being an official banking website so that they could - Creating a new domain by slightly altering the spelling or extension. With the help of a third-party messaging tool, like SMS or email, the user is provided access to this mirror site. When a user isn't looking, hackers can steal their credentials. Many of these concerns can be resolved by implementing seamless multi-factor authentication (Ghelani et al., 2022). Competition Companies that provide financial services through the use of software are typically classified as being part of the "financial technology" (FinTech) industry. The increasingly widespread use of financial technology businesses is causing traditional banking practises to undergo significant change ( Elsaid, 2021). Traditional banks such as Lloyds confront a significant obstacle as a result of this situation since they are unable to adapt rapidly to changes in the industry, not just in terms of technology but also in terms of operations, culture, and other aspects of the business ( Zveryakov et al., 2019). To better serve the wishes of customers who want to interact with businesses on their own terms, fintech firms have been able to increase their market share. The proliferation of smartphones has altered the ways in which customers engage with banks and other financial institutions ( Vovk et al., 2021). Consumers nowadays anticipate that taking care of their money is as simple and instantaneous as using social media or online marketplaces. Customers count on being able to fill out loan applications, check the status of their deposits, and make trades all from the convenience of their smartphones. Banking services like deposits, loans, payments, investments, and wealth management are all areas in which fintech companies can interact with customers directly ( Temelkov, 2018). Although traditional distribution channels, such as banks like Lloyds Bank, have shrunk in importance, fintech have grown in prominence. These three areas are particularly vulnerable to fintech competition, and Lloyds Bank should be aware of this. - Customer Acquisition and Retention

Financial technology firms undermine the bonds between banks and their clients. People can already handle their finances with minimum contact to financial institutions like banks and credit unions ( Elsaid, 2021). Traditional financial institutions have been weakened by newer, more innovative forms of financing including crowdfunding, peer-to-peer lending, and advisory services powered by artificial intelligence. The customer service that businesses can provide to their clients is considerably enhanced by fintech because of the way they streamline the supply of products and services. Customers of internet lenders, for instance, don't have to deal with their bank to get a loan. Customers are being lured away by fintech companies because they promise a more convenient approach to handle financial matters ( Zveryakov et al., 2019). - Erosion of Traditional Revenue Sources The stability of traditional revenue streams is being challenged. Services like Venmo, Square, and PayPal are posing a threat to traditional payment processing businesses. Loan money is being lost to unusual sources like Amazon, which offers loans to small and medium-sized businesses, while interchange fees and ATM transaction income are also at risk ( Vovk et al., 2021). - Diminished Brand Power Lloyds Bank is struggling to stand out in the face of widespread online financial product comparison (from multiple providers). Companies in the financial technology industry employ data mining and other technologies to facilitate direct interactions between lenders and borrowers. If there is no longer a need for banks to arbitrate between lenders and borrowers, it might have a profound impact on the established banking industry ( Elsaid, 2021).

Strategic options Value-creating Capability Framework Figure 1: Value Creating Capability ( Zagurskiy et al., 2019). 1. Reputation A crucial tactic in the battle against fintech businesses is for banks to maintain their reputations. Consumers no longer have faith in Lloyds as a result of the numerous scandals that have rocked the sector. Data privacy concerns, lack of clarity on charges and interest rates, and unsatisfactory customer service are just a few of the issues that have damaged Lloyds' reputation among its clientele ( Keshta et al., 2020). As the prevalence of social media and internet feedback platforms grows, a bank's great reputation can quickly convert into a negative one. Reputation management and repair for Lloyds are not without their difficulties, but they are not impossible. Even Lloyds Bank, with the appropriate plan and some assistance from reputation management professionals, may boost their internet long-term reputation ( Zagurskiy et al., 2019). 2. Innovativeness Value Creating Capability Reputation Innovative Internal Organisation External Relationships

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Lloyds Bank should use cutting-edge artificial intelligence and machine learning features to improve customer safety. The usage of AI and ML will enable the company to boost their cybersecurity and anti-money laundering activities. Lloyds Bank will benefit from these technological advancements because they will aid in the detection of any anomalous or questionable financial activity that may be the result of money laundering. It is projected that the application of AI and ML technologies would dramatically rise in the future years (Valls et al., 2020). The consolidation of these systems will reduce costs and improve efficiency. More than that, it will assist in fortifying the safety measures used by financial institutions, companies, and consumers to shield themselves from online threats like hacking. Thousands of data points may be processed by ML algorithms, allowing them to spot fraud. It enhances the accuracy of real-time inspections while minimising the number of incorrect rejections. If there is any suspect behaviour by certain bank accounts, it will detect them in real-time rather than recognizing them after the offense (Ozili et al., 2022). For every $1 that Lloyds bank can loss owing to frauds, the remediation expenses are at least $2.92. Artificial intelligence and machine learning have the potential to significantly impact the business in this area (Valls et al., 2020). Lloyds do have surveillance mechanisms in place; however, they are often based on historical payment information. The machine learning–powered programme employs massive credit card transaction databases, and it readily classifies occurrences as either fraudulent or legitimate (Ozili et al., 2022). 3. Internal organisation (enterprise architecture) Each division's training requirements are unique and must take into account their specific skill set, set of demands, and set of expectations. In Lloyds bank, one person from each department should be trained on the new technology, and then they should personalise and oversee the training of the personnel in their department (Ozili et al., 2022). Educating and training the staff is one strategy for fostering a culture of openness to new technologies within the organisation. Lloyds should implement IT training programmes that provide workers the chance to try out new software and learn how to use all of its functions. Employees can be encouraged to adopt the new technology by providing them with opportunities to learn while on the job. Technology is less intimidating when people understand its benefits and how to apply the. Furthermore, employees should also be trained for customer relationship management so that the employees can efficiently handle queries of customers and maximize the satisfaction of customers

4. External relationships (contextual architecture) Lloyds should make the client feel like they are the company's first priority by listening to their needs and treating them with respect. If a bank continuously provides for its clients' needs, it can earn their trust and establish a long-term relationship in which the customers feel comfortable keeping their banking business with the bank rather than looking elsewhere. Lloyds must comprehend an individual's requirements by observing the shopper's actions and reacting accordingly. Value may be generated through every interaction. Trust and long- lasting relationships are built when the entire customer journey is integrated, when online and offline encounters are merged, and when the focus is on consistently giving value to customers. Mathur’s Strategy Framework Figure 2: Mathur's Strategy Framework ( Vovk et al., 2021). Lloyd’s bank needs to adopt the strategy which is service-centred and differentiated from other competitors. Following are the ways to do this:

- Lloyds needs to launch its own personal finance education initiative. One great method for banks to better serve their customers is to implement a financial education programme ( Vovk et al., 2021). - The customer service strategy of Lloyds should incorporate contextual data as a central pillar. The organisation can use the information gleaned from the user's context to better understand their needs and provide them with a more personalised service. Customers' ever-changing wants and needs are a major challenge for banks, but contextual data can help Llyod's solve this problem by allowing it to create individualised products and services ( Saravanan and Kaur, 2022). - Lloyds should give their customers the option of self-service. 74% of customers have used a self-service support site in the past, and another 81% have sought to address difficulties by themselves without approaching a live service professional, indicating that consumer self-service has emerged as a flourishing phenomenon throughout all industries. This strategy is clearly massive competitive differentiator ( Vovk et al., 2021). Conclusion From the above analysis, it can be concluded that Lloyds bank is facing some serious issues which they need to mitigate immediately. These issues include: Changing preferences of customers: Due to this trend of dynamic expectations of the customers. Lloyd’s bank is unable to satisfy the demand of customers. This issue can be resolved by listening to the issues of the customers and adopting service-centred strategy which will help to maximise customer satisfaction Cyber security: Cyber crimes in banking industry is increasing rapidly. This is one of the biggest treats for Lloyd’s bank. This problem can be resolved by adopting Artificial Intelligence and Machine Learning. These technologies help to detect fraud. Competition: Competition is another issue faced by the Lloyds especially from fintech companies which are capturing a huge market share putting behind the banks like Lloyds. To fight against the competitors, Lloyds need to tailor its services according to individual needs of customers by utilising contextual data. Moreover, Lloyd’s bank should strengthen its reputation in the market with the help of Reputation management team.

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References Alzoubi, H.M., Ghazal, T.M., Hasan, M.K., Alketbi, A., Kamran, R., Al-Dmour, N.A. and Islam, S., 2022, May. Cyber Security Threats on Digital Banking. In 2022 1st International Conference on AI in Cybersecurity (ICAIC) (pp. 1-4). IEEE. Bilan, Y., Brychko, M.M., Buriak, A.V. and Vasylieva, T.A., 2019. Financial, business and trust cycles: the issues of synchronization. Dayson, C., Baker, L., Rees, J., Batty, E., Bennett, E., Damm, C., Coule, T., Garforth, H., Hennessy, C., Turner, K. and Jacklin-Jarvis, C., 2018. The value of small. London: Lloyds Bank Foundation . Elsaid, H.M., 2021. A review of literature directions regarding the impact of fintech firms on the banking industry. Qualitative Research in Financial Markets . Famiyeh, S., Asante-Darko, D. and Kwarteng, A., 2018. Service quality, customer satisfaction, and loyalty in the banking sector: The moderating role of organizational culture. International Journal of Quality & Reliability Management . Forcadell, F.J., Aracil, E. and Úbeda, F., 2019. The influence of innovation on corporate sustainability in the international banking industry. Sustainability , 11 (11), p.3210. Frost, J., Gambacorta, L., Huang, Y., Shin, H.S. and Zbinden, P., 2019. BigTech and the changing structure of financial intermediation. Economic Policy , 34 (100), pp.761-799. Ghelani, D., Hua, T.K. and Koduru, S.K.R., 2022. Cyber Security Threats, Vulnerabilities, and Security Solutions Models in Banking. Authorea Preprints . Joveda, N., Khan, M.T., Pathak, A. and Chattogram, B., 2019. Cyber laundering: a threat to banking industries in bangladesh: in quest of effective legal framework and cyber security of financial information. International Journal of Economics and Finance , 11 (10), pp.54-65. Keshta, M.S., El Talla, S.A., Al Shobaki, M.J. and Abu-Naser, S.S., 2020. Strategic Creativity and Influence in Enhancing the Perceived Organizational Reputation in Islamic Banks. Lee, S.M. and Lee, D., 2020. “Untact”: a new customer service strategy in the digital age. Service Business , 14 (1), pp.1-22.

Ozili, P.K., 2022. Bank income smoothing during the COVID-19 pandemic: Evidence from UK Banks. In The New Digital Era: Other Emerging Risks and Opportunities (Vol. 109, pp. 127-139). Emerald Publishing Limited. Pakurár, M., Haddad, H., Nagy, J., Popp, J. and Oláh, J., 2019. The service quality dimensions that affect customer satisfaction in the Jordanian banking sector. Sustainability , 11 (4), p.1113. Raza, A., Saeed, A., Iqbal, M.K., Saeed, U., Sadiq, I. and Faraz, N.A., 2020. Linking corporate social responsibility to customer loyalty through co-creation and customer company identification: Exploring sequential mediation mechanism. Sustainability , 12 (6), p.2525. Saravanan, D. and Kaur, P., 2022. Customer Relationship Management in Banking in the UK Industry: Case of Lloyds Bank. ECS Transactions , 107 (1), p.14325. Thach, N.N., Hanh, H.T., Huy, D.T.N. and Vu, Q.N., 2021. technology quality management of the industry 4.0 and cybersecurity risk management on current banking activities in emerging markets-the case in Vietnam. International Journal for Quality Research , 15 (3), p.845. Temelkov, Z., 2018. Fintech firms opportunity or threat for banks?. International journal of information, Business and Management , 10 (1), pp.137-143. Uddin, M., Ali, M. and Hassan, M.K., 2020. Cybersecurity hazards and financial system vulnerability: a synthesis of literature. Risk Management , 22 (4), pp.239-309. Valls Martínez, M.D.C., Cruz Rambaud, S. and Parra Oller, I.M., 2020. Sustainable and conventional banking in Europe. PloS one , 15 (2), p.e0229420. Vovk, V., Denysova, A., Rudoi, K. and Kyrychenko, T., 2021. Management and legal aspects of the symbiosis of banking institutions and fintech companies in the credit services market in the context of digitization. Studies of Applied Economics , 39 (7). Yip, A.W. and Bocken, N.M., 2018. Sustainable business model archetypes for the banking industry. Journal of cleaner production , 174 , pp.150-169. Zagurskiy, О., Yukhymenko, P., Sokolska, T., Paska, I., Lobunets, V., Zhytnyk, T. and Zharikova, O., 2019. Management Models and Evaluation of Reputation Risks.

Zveryakov, M., Kovalenko, V., Sheludko, S. and Sharah, E., 2019. FinTech sector and banking business: competition or symbiosis?. Economic annals-XXI , 175 Appendices PESTEL Analysis Political Factors

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Lloyds may need to entirely revamp its approach to revenue generation or operational procedures if the government imposes a new tax or regulation, therefore political considerations are crucial for banks. It may be too big to pass muster with the Monopolies and Mergers Commission, one of the most important political considerations. If a small number of enterprises control the vast majority of sales in a certain industry, consumers have fewer options to choose from ( Saravanan and Kaur, 2022). Lloyds will also take in mind other political considerations, such as the fact that the government can provide assistance to a bank. A bank like Lloyds would be reasonably capital-safe following a bail out, but it would need to plan forward since the government would have some say in how the business operates (Ghelani et al., 2022). Economic Factors Despite a GDP increase of nearly 7% in 2021, the United Kingdom was still unable to fully recover from the 9% decrease caused by the epidemic in 2020. Although 'lockdown' measures instituted at the beginning of 2021 were mostly lifted by midyear, consumer spending has only barely recovered to pre-pandemic levels Lloyds Bank's longer-term economic outlook is now more uncertain than it was before the epidemic, due to a mix of factors including the pandemic, new business procedures and costs as a consequence of Brexit. As a result of the COVID-19 recession and the current time of excessive inflation, significant changes to taxation and benefit policy may be necessary to address the widening disparities in economic fortunes. Social Factors Changing consumer preferences in how they spend their money are driving a greater need for financial services. The growing prevalence of remote employees all over the world is among the most substantial social shifts that the banking industry must accommodate. Many individuals in both developed and developing countries will join the workforce and create bank accounts for the first time as the global economy recovers from the recent problems. The information they take in and the relationships they develop through social media will have a significant impact on their worldview. People naturally seek to their social networks for advice and recommendations when making major life decisions like establishing a bank account, purchasing a property, beginning a family, or planning for retirement. This can have a huge impact on Lloyd’s bank. The preference of customers is shifting towards fintech companies (Frost et al., 2019).

Technological Factors Discussion on technology is a crucial feature of this PESTEL analysis of the banking industry. As consumers have grown more accustomed to using modern technologies, they have shifted their banking preferences to digital channels like the web and smartphone apps. The ease of a mobile banking app allows customers to monitor their account balance and make transfers anywhere they wish. Financial advice and direction are often sought on social media ( Saravanan and Kaur, 2022). Technological aspects are related to the convergence of technologies and the ability of banks to use new technology. Data collection and analysis, product development, and operational management are also among these skills (Frost et al., 2019). The advent of big data analytics, for instance, has pressed Lloyds to provide more specific offerings. As online banking is increasing, cybercrime is becoming a concern for Lloyds Bank ( Alzoubi et al., 2022). Environmental factors The natural environment of a country is related to environmental elements. Lloyds Bank services could be interrupted occasionally due to environmental factors. If electricity and the internet are interrupted due to natural disaster, customers can't bank online or at a branch. While traditional banking methods have a negative effect on the environment, online banking has a few advantages (Dayson et al., 2018). Banks now use less paper because to online banking. It's also good for the planet because people don't have to make a special trip to the bank. Mobile apps and internet banking have made it possible to solve many problems. Customers can now apply for credit cards online, purchase checks digitally, and get answers to numerous banking-related inquiries over the internet or telephone. The effects on the environment are lessened. Legal Factors The banking sector's PESTEL analysis concludes with a discussion of the legal environment. Lloyds Bank's ability to conduct business in a country, and its customers' use of services and goods, are both subject to the country's legal framework. It may also hinder Lloyds' expansion into untapped markets. For instance, Lloyds Bank may be banned from operating in several nations ( Saravanan and Kaur, 2022).

VRIO Analysis Resources Valuable Rare Inimitable Organized Competitive Advantage Technology Yes Yes Yes Yes Highly Competitive Human Resource Yes Yes No Yes Competitive Culture Yes Yes No No Highly Competitive Product Development Yes No No Yes Highly Competitive Valuable Evidently, Lloyd’s bank considers technology to be a vital strategic resource, given the company's massive investment in the sector. Its cash management, worldwide custody, investment banking, and plethora of new product offerings, as well as its process as a global securities trader, have all been enabled by technological advancements (Rogers, 1992). Our framework's "Valuable" criterion would have been met in this case (Dayson et al., 2018). Lloyd’s achievements would not have been possible without the HR policies in place. It went out of its way to hire the most ambitious and skilled professionals it could find, and its efforts were recognised for their excellence. The bankers of Lloyd’s were consistently praised as some of the best in the industry by consultants and executive recruiters. This makes them valuable resource of the company ( Alzoubi et al., 2022). Lloyds has institutionalised a culture of rapid innovation which is another valuable resource of company, which has served the corporation well in adapting to the inevitable disruptions brought on by shifting market conditions. Lloyds from its rivals and allows Citigroup to introduce new products more quickly than its rivals, who are unable to predict consumer demand. Not only in terms of technology advances, but also in terms of the products we provide. The business is enhancing its product

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mix and introducing new products to meet customer needs. In 2019, the innovation pace was so remarkable that 50% of the company's revenues came from services that did not exist five years before. The resource is "Valuable" in this respect (Ghelani et al., 2022). Rare For a resource to be considered "Rare," it can be controlled by just a small number of companies. It's possible that Lloyd's is the sole bank that has a separate internal technological product development business, and given the size of Lloyd's annual investment, this capability would have been extremely unusual in the past. Lloyds actively seeks out candidates from a wide range of backgrounds, in contrast to many other companies. It's unusual for competitors in the banking field to go to other banks, therefore the behaviour stands out. However, Lloyd's has a large number of managers who originated from the consumer products industry, which is unusual for a bank. This is a key reason why the resource is so rare ( Alzoubi et al., 2022). Lloyd's culture is one that encourages new ideas, rewards hard work, and questions established practises. Most rivals do share this mentality to some level, but certainly not to Lloyds's extremes. A society like that would have been quite rare to find. Inimitable It would appear in retrospect that Lloyd's rivals have the ability to replicate his technological advantage. Since Lloyd's has been using technology as a competitive weapon for over three decades now (beginning in the 1970s), any potential rival would have to make significant investments to catch up technologically, putting them at a significant disadvantage in terms of cost (as described by Barney, 1991), and thus Lloyd's would meet the "Inimitable" criteria. Organized The creation of new initiatives is a continual process that aids the company in becoming more productive and efficient. The company places a premium on maximising efficiency through the strategic application of technology, therefore it comes as no surprise that their infrastructure is based around this asset from the ground up (Dayson et al., 2018). As a global firm with a wide range of operations, Lloyds must ensure that its employees take full advantage of the opportunities presented by technology advancements.

The group is set up to successfully utilise the company's products. As was mentioned before, the company uses this platform to provide a full range of worldwide services to its customers, with technology being a key component of this success. It might portray itself as a worldwide marketplace to attract customers with an interest in international trade. Having this in place would have made the cut for "Organized" technology ( Alzoubi et al., 2022). The company actively seeks out and invests in top-tier talent. High achievers are singled out early on in their careers and given additional support to help them reach their full potential. This, however, does not lead to the emergence of a class system that distinguishes the blue- eyed lads from the rest of society. Instead, anyone who is motivated enough can carve out a special niche for himself in the world of work. The bank's recruitment practises are influenced by its guiding principle of promoting independent initiative. Lloyds often recruits more people than are strictly necessary (Ghelani et al., 2022). The bank anticipates that by bringing together so many high-achievers, it may generate new opportunities for both itself and its employees. People are encouraged to carve out their own specialties in the workforce, which contributes to the widespread acceptance of job hopping and horizontal promotions across ranks. Lloyds thus meets the "Organized" criteria for its personnel as a strategic resource (Frost et al., 2019). Conclusion The preceding internal and external environment analyses make it abundantly clear that technology is a significant competitive advantage for Lloyds due to the growing prevalence of digitalization. Despite this, there are a few obstacles to overcome in terms of technology, such as the rise of cybercrime and the speed with which customers' expectations are shifting. The company also has other characteristics, such as a robust culture, effective human resources, and a broad range of services, all of which attract customers from both the local and the international market. Both internal and external environment is significant for the success of the company. PART 2: Individual Reflection After finishing this section of the Strategic Management Research course, I was able to have a greater understanding of how an organisation should be managed in an environment that is dynamic. Both the VRIO Analysis and the Pestle and Mortar Analysis are two models that I am now familiar with. These are two models that may be used to examine the internal environment as well as the exterior environment. This module will also investigate a number

of different strategic frameworks, each of which makes a unique contribution to the process of formulating an effective strategy for the companies. These models include Product/Service Differentiation Strategies, Multi-dimensional Strategy Frameworks, and Vector Strategy Frameworks, as well as Types of Strategy Framework, Archetype Frameworks, Business Model Frameworks, Matrix Frameworks, and Mathur's Strategy Framework. Two of these frameworks, namely Value Creating Capability and Mathur's Strategy Framework, have been utilised in this assignment to develop some potential strategic options for Llyods Banking Group. At the beginning of the academic semester that was devoted to research on strategic management, both the breadth and depth of my capabilities were fairly limited, and my knowledge was quite limited as well. I am not going to lie to you; when I first started working there, I did not have a great understanding of many of the concepts and procedures that are applied in management inside an organisation. I will be honest with you about this. I am thankful that I was able to obtain a significant amount of information that I will be able to put to good use throughout the course of this session. When I first started the semester, I was doing a decent job of managing my time effectively, maintaining my focus, and avoiding distractions. I was progressing along rather nicely. As a direct result of taking the final exam for the class, I was able to significantly improve my ability to plan and accomplish goals, organise and prioritise chores, deal with distractions, and avoid putting things off until later. In addition, I was able to deal more effectively with distractions. During the course of this semester, I came to the realisation that I had a significant amount of space for development. At the same time, I believe that I was able to manage my time more effectively than I had in prior terms. There is not a shred of doubt in my mind that a significant portion of what I've learnt in this class will prove to be useful in the years to come. I am entirely committed to integrating the strategies for effective time management and organisation into the activities and routines that I carry out on a day-to-day basis. When everything in my life is well- organized and planned out, that's when I get the most done. This is something I've realised about myself, and it's one of the things that's helped me become more productive. As a direct result of this, in the future, when it comes to the organisation of my life, I will unquestionably make use of the techniques that are linked with effective time management. In addition, I will maintain a time record to ensure that I am making productive use of my time and to identify areas in which I may enhance the quality of my work performance. I will do this both to

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identify the areas in which I can improve and to verify that I am, in fact, improving in those areas. My ability to make decisions was a particularly challenging task given the nature of the requirements for this particular assignment, which required us to select a topic from a predetermined list. Assignments have been an essential component of this module because they have enabled me to improve not only my communication skills but also other skills, such as my ability to make decisions. This module has helped me improve not only my communication skills but also other skills. In addition, I was able to improve my analytical skills throughout the course of this semester, which is yet another facet of my communication skill set. When I first started working on this task, I found that managing my time effectively was a difficulty for me. In general, I had a really positive experience and was able to pick up a lot of useful information from this course that I intend to put to use in both my professional and personal life in the future. My ability to make decisions is one of the areas in which I need to improve because I had a lot of trouble deciding what to call the company for this particular task. In addition, one of the challenges I faced was deciding which model would be most suitable for the creation of the plan.

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Abhishek Strategic Management

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