Case Study:

Global Corporate Strategy

Lloyds Banking Group: Becoming the Best Bank in the Global Financial Services Industry

 

Introduction:

 

This individual assignment will be assessed by means of a 3,000 maximum words report. The assignment has been designed to allow you to develop and use your knowledge and skills in understanding key strategic issues relating to the Global Financial Services Industry. You will be required to apply the strategic concepts and analytical techniques studied in this module. All the learning outcomes below will be assessed:

 

1. Demonstrate critical understanding and application of relevant theories associated with global corporate policies and strategies.

 

2. Understand the holistic nature of strategy and apply analytical techniques to solve complex problems in real life organizations.

 

3. Demonstrate knowledge of the strategic decision making process through critical analysis of how strategic decision making enables an organisation to relate to its global business environment.

 

4. Critically evaluate and monitor the business mission, objectives and policies of international organisations.

 

5. Use critical reflective skills to reflect on the impact of their understanding on the problem solving process.

 

Task

 

Your task is to carry out a critical analysis and evaluation of the strategies adopted by global financial service providers, using the information provided and other materials researched. You will be expected to select and apply appropriate theories, techniques and models studied during the module whilst having regard to the practical aspects of strategy development.

 

Your assignment should be presented in a business report format and should be within the range 3,000 maximum words (excluding executive summary/abstract, references and relevant appendices). The report should include a title page and abstract and be fully and consistently referenced, using Harvard Referencing style. The title page should be clearly labelled with your name, your course and the name of the case study.

 

It is recommended that you research information additional to the case study to support your arguments. This may be obtained from a diverse range of sources and you are encouraged to research the issues in whichever way you deem appropriate.

 

 

Assessment Criteria

 

In the event of failing this individual assignment, normal referral / deferral procedures will apply. This assignment carries a weighting of 100%. The assessment will focus on the level of ANALYSIS carried out. That is, the application of THEORETICAL CONCEPTS studied in the module to the ‘practical’ case study presented. In other words, you should proceed beyond a DESCRIPTION of the company and its actions. You should be analysing ‘why’ rather then describing ‘what’. The assignment will be assessed and moderated by two members of staff in accordance with the marks allocated to each of the questions detailed below. 10% of the marks are set aside for the ‘presentation’ criteria.

 

Academic Rigour

• your ability to isolate the key strategic issues
• the coherence and depth of the analysis of those issues
• the ability to analyse the strategy context within which companies operates
• the ability to critically review and evaluate strategic decisions made by companies

 

Methodology

• the use of relevant evidence, from material provided and personal research to support any statements made
• the appropriateness of the methods used and theoretical models and frameworks applied
• the breadth and depth of research undertaken

 

Evaluation of data

• the ability to make sound recommendations or conclusions arising from the analysis
• the soundness of arguments put forward

 

Presentation

• the summary of arguments
• report layout and format
• use of illustrative material and evidence to support arguments
• the appropriateness of length
• the quantity and accuracy of referencing

 

 

 

 

The Global Financial Services Industry:

business activities are retail and commercial banking, general insurance, and long-term savings, protection and investment. It provides services under a number of well recognised brands including Lloyds Bank, Halifax, Bank of Scotland and Scottish Widows and through a range of distribution channels including the largest branch network in the UK and a comprehensive digital proposition. The Group is quoted on the London Stock Exchange and the New York Stock Exchange and is one of the largest companies in the FTSE 100 index of leading UK companies.

http://www.lloydsbankinggroup.com/our-group/

 

Read the 2014 Annual Report of Lloyd Banking Group entitled “Becoming the best bank for customers” available online [http://www.lloydsbankinggroup.com/Investors/financial-performance/lloyds-banking-group/], and carry out appropriate analyses of the global corporate strategies adopted by Lloyds Banking Group and other leading financial service providers such as Barclays (UK), Citigroup (USA), ICBC (China) and Standard Chartered (UK), answer the questions below. You are encouraged to use relevant data/information from company websites.

 

Question One: Firms’ competitiveness in the global financial services industry

Using information from the 2014 Annual Report of Lloyds Banking Group, relevant data/information from Citigroup and ICBC company websites ( ; ), critically evaluate the nature of the global financial services industry competition facing the Lloyds Banking Group. Your are expected to use Porter’s Five Forces framework in your analysis of the financial services industry.

http://www.citigroup.com/citi/

http://www.icbc.com.cn/icbc/sy/default.htm

[25 % marks]

 

Question Two: Strategic alliances, M&As and global competitiveness

Using relevant literature, carry out a critical assessment of the terms ‘strategic alliances’ (SAs) and ‘mergers and acquisitions’ (M&As) in the context of Lloyd’s ambition to become the best bank for customers in the insurance, customer finance, retail and commercial banking markets. In your opinion is Lloyds ‘business model’ fit for purpose in a fast and dynamic 21 st Century global business environment? And why?

[30 % marks]

 

Question Three: Corporate governance, CSR, leadership and competitiveness

“Doing business fairly and responsibly is the best way to rebuild trust with Britain’s households, businesses and communities. It also rebuilds our colleagues’ pride in our Group. Our business model puts customers at the heart; based on traditional attributes such as prudence and a long-term view, whilst making the most of emerging digital channels. The best of the past combined with the best of the present and the future.” Lord Blackwell, Chairman of Lloyds Banking Group (Lloyds Bank, 2014, page 8).

 

Using your understanding of corporate governance, corporate social responsibility (CSR) and relevant management and leadership concepts, critique the above statement and evaluate the ability of Lloyd’s Chairman and senior management team to make Lloyds the best bank for all stakeholders.

[30 % marks]

 

 

Question Four: Personal reflections on learning

In 350-400 words reflect on the impact of this assessment on your understanding of the Global Financial services industry competition, highlighting the key role of strategic alliances and corporate leadership in sustaining growth through responsible banking.

[15 % marks]

 

 

 

Suggested Reading:

 

De Wit, B. and Meyer, R. (2014) Strategy, An International Perspective, 5th Edition, Cengage Learning.

 

De Wit, B. and Meyer, R. (2010) Strategy Process, Content, and Context International Perspective, 4th Edition, Cengage Learning.

 

Johnson, G., Scholes, K. and Whittington, R. (2005) Exploring Corporate Strategy: Text and Cases, 7 Edition, Financial Times Prentice Hall.

 

Lynch, R. (2006) Corporate Strategy, Fourth Edition, Financial Times Prentice Hall.

 

Mintzberg, H., Ahlstrand, B. and Lampel, J. (1998) Strategy Safari, Financial Times Prentice Hall

 

 

 

Websites & PDF documents:

 

http://www.lloydsbankinggroup.com/our-group/ Llyods Banking Group, UK

http://www.citigroup.com/citi/ Citigroup, USA

http://www.icbc.com.cn/ ICBC, China

www.economist.com The Economist

www.ft.com The Financial Times