Lloyds TSB is one of the united kingdom financial services teams providing a superior quality of banking and financial services in the united kingdom and other continents. Lloyds TSB Group and their high position on the London Stock Exchange (FTSE 100), closed by the end of yr 2007 with market capitalisation of £26. 7 billion. Total income at the end of 31 December 2007 was £18 billion with income before duty totalling £4 billion which is two times compared to 2002. Those numbers evidently show the strong but still growing position of the business on the competitive market. Also an individual and commercial customer's service has received strong support among shareholders for the strategy and fast- growing market's opportunities (Lloyds TSB Group plc).
Lloyds TSB has designed to become a top global bank with a proper refresh of its Online business, and home loans, taking the best technology that your world provides to provide improvement to their position on the market, customer satisfaction, and sales quantities. The lender has optimized decision making and cut their risk for the new investments to the very least in new areas but also shows that they understand the marketplace (Lloyds TSB).
Introduction
A significant area of the talk in this paper is based on the Lloyds TSB current commercial, procedures and marketing management targets and strategies. An company that wants to achieve success in the competitive business environment must build a good strategy (Porter, 1990). A good strategy is a problem for many companies with development, development and improvement to provide business targets. Banking markets may offer an chance to develop and achieve great results but also provides lots of hazards and obstacles (Dibb, 2007). Differences of cultures, currencies, regulations can make the marketplace conditions dissimilar but at the same time, if research will see all the diversity factors and build a good strategy, this process can bring advantages to traders and companies like Lloyds TSB. Many businesses are unsuccessful because they don't really have a definite strategy to go into the market. Previous documents briefly illustrate the relevant procedures management ideas and rules and then present the organization strategy to achieve the company objectives in terms of operation and marketing details.
This paper is structured as follows. The next section has been divided into five smaller sections in which each of them deeply explain the aims and strategies of Lloyds TSB. Those sections highlight aspects and methods which need to be taken into concern in professional management decisions if organisations want to improve in a financial service market.
Lloyds TSB
Every organisation attempting to accomplish has to ask and answer for questions like: What organisations want to achieve? Which way will be the best to go? What needs to change? What are our goals? Any organisation needs to set up their goals which are the essence of business. Those targets need to be backed, have clear targets and descriptions for future steps at all time if the company wants to have success.
2. 1 Objectives
Corporate aims are setup by the business targets for sale, growth, profit, how the company becomes more competitive on the market and dividends on purchases or other financial actions (Appendix 1). A high priority aim for Lloyds TSB is to provide successful changes into the business to be able to better understand customers needs, achieve well-defined performances measured by client satisfaction. The main purpose is to provide excellent service quality, delivery of products and improve the shareholder's value and revenue through dividends and show price appreciation.
Nowadays, it is important to identify numerous components of operation which can help assess Lloyd's corporate objectives. High performance benchmarks means being able to select the right market and customers then offer better product prices and improved upon service. Lloyd's problem in California was no competitive advantages and negligibility with giants like the lender of America. They were struggling to meet their financial goal because they thought that didn't work hard enough to get visitors to change their beliefs. As Pitman said, only by creating changes and significant business ideas, a corporation will achieve better results (Lloyds TSB, p 664). The emphasis of the Lloyds TSB should be on moving above goals into day by day different tasks, management behaviors and employee workout sessions. Operations management is in charge of providing good services a company offers in its markets and then evaluate how production and accurate the procedure has been improved. Management needs to oversee present and future duties (inputs) that may add or change and achieve better results and satisfaction service in the end. A strategy which really is a sizing to management's responsibilities is based on control and development main duties. Results (outputs) can be extraordinary so long as management make persuade personnel that changes are right (Appendix 1). To be able to support or improve corporate prosperity it's important to achieve the level of effectiveness required to remain competitive successfully on the market environment. California (Lloyds TSB, p 664) had not been the best market goal for Lloyds TSB because they battle to provide distribution programs and delivery to customers, more lucrative mortgage loans, insurance and investment options in comparison to other competitors. Also customers' relationship had not been that strong enough to trust the Lloyds TSB which means that not only businesses but also public changes were needed. Understanding market, result in strategic task, research; development strategy and execution are the center steps of corporate aims which management should take into matter in their decisions. Hayes and Wheelwright construed a four- stage model of operation efforts (Slack, 2007, p. 38) which can be examples of how to increase functions capabilities and make a strategic impact of the company which could be one of the options for Lloyds TSB in California (Appendix 2). The sizes were too large to meet targets upon this market by the Lloyds TSB. Companies create aims which will qualify and quantify internal sources all the time to stay on customer's shortlists and complete targets over the typical required.
2. 2 Strategy
Strategy marketing plan can be explained as "a systematic process of assessing marketing opportunities and resources, deciding marketing objectives and creating a thorough arrange for execution and control". (Pettigrew, Thomas and Whittington, 2002, p. 6).
Robert (1993) remarks that decisions about which products and services to offer, the clients to be dished up, the market sections in which to operate, and the geographic regions of operations should be made on the basis of an individual "driving pressure". He says that several possible driving forces exist but only one can be the basis for strategy. You can find 10 driving forces (Appendix 3). Lloyds TSB is an excellent example of a firm which should provide those aspect- causes in their strategy and goals. Each business has their own proportions which clarify how a service or product will be provided. A technique grows existing service and products, attempts to find ways the way the service will get into the market and customer's shortlists to complete business financial goals in the competitive market segments. Each future step should be well- organised and researched to ensure that the copy of new technology and knowledge in to the service and products will work in Lloyds TSB's future development aims. Companies need to create bank's conditions, attitudes and expectations in order to get above aims and organisation profits. It means that Lloyds TSB needs to provide a large amount of changes in the services industry. The business enterprise competition is targeted more on the UK financial services market (Lloyds TSB, p 665) and it is facing up to the improvement of ways of achieve increasing success and price settings.
Corporate strategy.
Corporate strategy refers to decisions of which products to enter, the particular Lloyds TSB should specifically lead attention for and what commercial issues can add to the design and delivery of the businesses potential products and services to be more competitive (Hill, 2005).
Market is a huge chance of many bank services like Lloyds TSB and is dependant on marketing and corporate operations which will be the basic activity within organisations but also strong electricity with formulating strategies. Offering good products and services at the right price are supported by a relentless pursuit and ease of access for customers (Krishnan, Rishikesha, T. , 2005) Lloyds corporate strategy issues are based on a range of services directed at customers by complementary organization's strategy decision that are raised above the market share, customer and shareholders satisfaction. Lloyds TSB launched a number of new products and services like: credit cards, insurances, home loans, a Lloyds TSB top quality gas, electricity and home telephone products.
Those products developed and created better associations between cost and quality and value (Lloyds TSB, p 667). Priorities in terms of sales, development minimize the impact of underperformers (which includes happened in California) are invested into resources which will ensure Lloyds TSB a profitable future (Lloyds TSB, p 665). Nowadays, there is certainly importance to quickly improve technology and changes inside of organizations within corporate strategies which have the hyperlink with marketing and functions strategies. Lloyds TSB new products which proven so successful "product/service life routine" (Appendix 4) on the UK market built their trust in their own brand and existing romantic relationship with customers. The speed of the Lloyd's products benefits and evaluation increased because they sold their products through the Lloyds systems which make Lloyds more adjustable, relatively adaptable and competitive on the market. That strategy worked well well for Lloyds TSB success because the business doubled their revenue and built significant market segments over the UK (Lloyds TSB, p 665, p. 669).
2. 2. 3 Procedures strategy.
Operation strategy is thought as, a primary organizational action which helps to endure and prosper within its environment within the long-term by business (Hill, 2005). Decisions and strategy which were taken up to achieve corporate aims have a primary impact on the basis on which an organization can do but at the same time secure competitive advantages. Slack (2004) argues that there are five operations performance goals like: cost, quality, acceleration, flexibility and dependability (Appendix 5) which provide and develop operation strategy and business performance on the marketplace.
Lloyds TSB procedure strategy means choosing the right markets and then designing their composition of the service predicated on the customer research to be better provided and developed, They are important decisions about resources and capabilities of Lloyds TSB deciding their potential future result. Pitman's team could undertake whole research to choose a profitable market and slowly but surely improve changes which were needed within the organisation (Lloyds TSB). The planning and controlling functions of the Lloyds TSB provided the new delivery system; developed new areas such as call centres, internet bank, card services, insurances and more money machines over the UK. Also, Cheltenham & Gloucester are a loan company that has other branches in a few countries and have options which show that quality and versatility of the service is a huge problem for the Lloyds TSB (Lloyds TSB, p 667-668). Those resources are progressively important and significant to allocate Lloyds capital in the most profitable surroundings for the company.
They want in their operation strategies of organisation structures where individuals' values each employee and their knowledge, commitment to the service are the key issue in management's strategy. Pitman shows, that personnel need to comprehend, admit and stay nearer with the company to boost existing and added services (Lloyds TSB, p 666). Learning and training techniques which will be the Lloyds TSB goals become more practical and attractive for employees and businesses which want to boost in the future. Globally more and more banking institutions put pressure on everything that Lloyds TSB does to become more challenging to ensure that their costs are supervised effectively whilst also permitting to purchase the business to drive further progress and customer trust.
2. 2. 4 Marketing strategy.
One of the primary targets of any company is to reach a position where they could catch the attention of more customers than other competitors (Porter, 1990). A competitive benefits which focuses on operation and corporate and business strategies are tips to being able to identify the firm's marketing goals, and show how they will be achieved by taking into concern a mentioned timeframe. Marketing strategy clarifies the organisation's fundamental targets and practices to designed company positions in the manner where they could load their market needs and reach marketing aims (Porter, 1990). Making entire Lloyds bank sector with new services a great place for his or her customers about the world is Lloyds TSB number 1 priority. During the financial crunch, the Lloyds TSB has recently used a competitive charges strategy, offering high interest levels and attractive just offshore banking services for those ready to open a fresh accounts with them. They think that the new selection of products and their customisation are an advisable opportunity (Lloyds TSB, p. 667- 668). Also they decided to go with high levels of innovation to improve ability and delivery faster customers' must clients by by using a customer's research and the new approach of training their staff.
Brian Pitman (the CEO at that time) of Lloyds TSB Lender showed that they should be able to act in response quicker and even more appropriately to marketing developments and consumer lifestyle changes, ultimately getting the Lloyds TSB nearer to customers. Growth sales are the main task in marketing and procedures strategies (Lloyds TSB). These new technology and valuable products gives usage of information trends across the banking sector to attain future better credit risk management and growing Lloyds TSB sales income. They declared to provide a far more 'personal and modern' banking service to build up a new visible identity for his or her brand repositioning and also to come up with awe inspiring creative expressions as results of customer research (Lloyds TSB Group plc).
Lloyds TSB is a new player in the financial services industry and has shown its dedication to marketing decisions to concentrate on the UK financial market which is the most significant part of their future goals. Lloyds TSB has earned the trust of customers within the last few years for their development solutions and standardisations of the products (Bretherton, 2004).
Conclusion
This paper clarifies objectives and strategies through which the Lloyds TSB can be grasped from different perspectives. Those targets and strategies not only brings images of what sort of bank sector should prosper but also helps better understand how important each of those approaches is good for financial organisations. Lloyds as a global business and multinational management company needs to learn how to identify the profitable investment in their development brand and methods to be able to develop strategies, maximalist client satisfaction to boost business and employees performance (Everett, 2009). Professionals need to understand that a strategy can improve organizational efficiency and creativeness.
This paper has outlined Lloyds TSB's initiatives on different levels and clarifies the companies' main corporate and business, functions and marketing strategies.
The paper in addition has argued that organisations still have to improve in their constructions, strategy and management knowledge about new product and services. Improvement and understanding is required to become better employers, professionals or market leaders of financial industries like Lloyds TSB.
The implications of the paper is the fact that Lloyds TSB needs to do more than simply manage people and find new markets and changes, they need to take into account the above aims and strategies buy also make an effort to "do the right things" (Druckers, 2001) because controlling people and business is a obstacle but also a bargain.
Recommendations
Nowadays, there is many areas whose have many different problems. Banking companies struggle with their financial problems, unqualified employees or unsatisfied customer support. The new Lloyds TSB brand strategy with specific help with the brand appearance and a set of practical production guidelines also has some problems. Lloyds has few issues with customer support and their respondent to clients' needs. The Individual (2001) confirmed how above Lloyds TSB goals achieved problems in true to life. While other banking institutions have their problems, especially with call centres, Lloyds TSB is bearing the brunt of current criticism. Declaration problems, unavailable information for customers or traditional style management called no esteem to that brand. Lloyds needs to be sure that problems like that won't be happen in future because the market and customers should get the highest level of satisfaction. Lloyds TSB have the ability to help to raise their earnings and position in their own areas, also to achieve local's people and businesses works with.
Furthermore, if Lloyds TSB is going to leave those problems with no respond, they'll meet a lot of problems and on the end will eventually lose their competitive position in the financial sector. Above objectives and strategies should be cases in terms of above criticism to implement and improve Lloyds TSB banking branch.
Appendix
Appendix 1
CORPORATE OBJECTIVES
Directional objectives
Market leadership
Market spread
Customer services
Performance objectives
Growth
Profitability
Internal objectives
Efficiency
Personnel
External Objectives
Social responsibility
Appendix 2
Figure 2 - The four-stage model of operations contribution (Source: Slack et al. , 2007 p. 38).
Appendix 3
Product-service
Sales-marketing method
User-customer
Distribution method
Market type
Natural resources
Production capacity-capability
Size/growth
Technology
Return/profit
Appendix 4
Figure - The product/ service life routine (Source: Reynolds, W. , Savage, W. , Williams, A. , Your Own Business, 2nd edn, ITP Nelson, Melboume, 2000, p. 318).
Appendix 5
Cost: The ability to produce at low priced.
Quality: The capability to produce in accordance with specification and without problem.
Speed: The capability to do things quickly in response to customer demands and therefore offer short lead times between when a customer orders a product or service so when they receive it.
Dependability: The ability to deliver products and services relative to promises designed to customers (e. g. in a quotation or other published information).
Flexibility: The ability to change operations. Flexibility can include up to four aspects:
i. The ability to change the volume of development.
ii. The ability to change enough time taken up to produce.
iii. The capability to change the mix of different products or services produced.
iv. The ability to innovate and introduce services and services.
