The paper 'Lloyds Banking Group' is a great example of a Management Assignment. Lloyds Banking Group is considered one of the largest UK’ s retail banks with more than thirty million customers and a total asset of £ 1.1 trillion (Lloyds Banking Group 2008). It was established in 1995 and has numerous branches across the United Kingdom. In today’ s complex business environment, the bank is experiencing financial difficulty but it believes it can harbor the economic recession with its position in the market. Lloyds has a business model in place to propel into becoming the best bank in the industry (Lloyds Banking Group 2008).
This report will critically analyze the competitiveness of Lloyds Group Banking to determine its position in the market. It will also evaluate the concept of strategic alliance and mergers and acquisitions in the context of the company to determine whether its business model fits in the fast-changing business environment. In addition, the report will evaluate the ability of Lloyds’ to satisfy all its stakeholders in regard to corporate governance, corporate social responsibility, and leadership. Finally, it will reflect on the impact of the report on the understanding of the global financial service industry. Question 1Porter’ s Five Forces AnalysisBargaining Power of CustomersCustomers often bank with different banking institutions and possess different financial products.
Customers are not tied into agreements for a long time and can, therefore, change accounts depending on banks changing their interest rates (Berz 1997, p. 190). Customers are also considered money-minded due to their effort to bank with institutions with interest-free credit cards, minimal interest rates on loans as well as competitive savings rats. In addition, customers today can easily access account details and bank statements online and can compare different products offered by banks to determine their preferences (Klein 2005, p.
91). Therefore, their bargaining power is high. The threat of New EntrantsIn the Global Financial Service Industry, there is a low threat of new entrants. New entrants are faced with strict entry barriers from the Financial Service Authority as well as the British Bankers Association (Berz 1997, p. 190).
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