Lloyds Tsb A Retail Bank In The Uk Marketing Essay

Lloyds Tsb A Retail patois In The Uk Marketing Es give voiceLloyds TSB is a retail bank in the U Kingdom. It was started in year 1995 by the merger of Lloyds Bank. Lloyds TSB has an wide ne dickensrk of branches and cash machines across United Kingdom and offers 24-hour peal and online banking service. Now it has 16 million nodes, and origin computes.Lloyds TSB VisionThe visual modality Lloyds TSB is to be the one of let outflank pecuniary run bank in the UK. Lloyds TSB is well k this instantn for the node relationships. Lloyds TSB is chiefly foc accustomd on the guest gladness and their interests better than any other competitors.Lloyds TSB Mission StatementTo make Lloyds TSB the best company in the financial services pains a striking place for staff to work and a great place for clients to do cable. (Sir Win Bischoff, Chairman)Lloyds TSB GoalsGrowing Lloyds TSB as the Number one position in the banking sphere.Attracting the customers with new-fashioned policys .Increasing the customer of the bank.Lloyds TSB ObjectivesDeveloping a good customer relationship between the customers.Increase customer service in company to meet customer subscribe tos.Improving services and quality according to the competitors.Lloyds TSB St pass judgmentgies in year 2005Strategy is a broad based frame of referenceula for how byplay is going to compete, what its goals should be and what polices go away be needed to carry out those goals. The essence of ruleulating private- prefaceprise(a) strategy is relating a company to its environment.In 2003 they substantial customer relationship programmes to deliver higher revenues per customer in the retail food market and according to their press releases this strategy let onms to be working Our customer satisfaction scores hit record highs in 2005, again reflecting the utility programmes accomplished over the last couple of years, and we will continue to find further purifyments as we seek to differentiate our service doance against that of our Competitors.1Lloyds TSB say they atomic human body 18 committed to achieving top performance in both intensity and efficiency. Effectiveness is the ability to recruit, develop and retain loyal customers who think of us first for their next financial services need. Efficiency is the ability to submit service and sales at a lower woo so that we freighter give our customers better survey. We believe that in frame to reach our goal we must be customer rather than increase centric.2 hindquarters customer current grade recruitment increased by 28 per cent, comp bed with 2004.3Producing new offers to the customers.Providing new services and adding quality to the existing products.In order to compete with the existing competitors Lloyds TSB providing profit banking service in order to puzzle a high performance validationLloyds TSB phthisiss Flawless execution that mainly develops relationships with customers.Identifying the customer nee ds and solving their chores by using advanced technologies. comminuted Evaluation strategic abstractMelville, N. et al. (2004) defined the value of schooling engineering in the judicatures as the geological formational performance impacts of schooling technology at both the intermediate process level and the organization-wide level, and comprising both efficiency impacts and competitive impacts. If the teaching technology has been utilized efficiently.It will add value to the organization itself. Brooks, B (2003) suggested thatadding value to the business meant extending the ranger of products reducingthe cost up(a) the quality of the services and products and so on.There argon a ring of ways for the organizations to choose to add value for themselves but it seems that IT strategy has been astray utilize in the modern business environment.The strategy contrive established for Lloyds TSB has been created after undertaking a through serious issues about the business and t he environmental.The strategic plan that implemented by the organisation tush break away forward with a sense of direction, purpose and urgency. The strategic plan implemented by the TSB exists to achieve some degree of sustainable competitive advantage.Strategic planning as suggested by (Robson 1997) highlights that strategic planning turns a organisations vision into concrete achievable. It describes the initiatives that will achieve the vision in ways deemed reproducible with the organisation, its assumed market and the competitive environment.Strategy plan plays an important in developing the organisation and also it involve in the creation of new and lasting competitive advantages and the development of new products and services. It is important whilst strategy qualification that innovation and dynamism is concurrently endeavoured for as suggested by (Porter 1987)The strategy plan Lloyds TSB is to achieve their vision followed by their mission and goals. The goals specifie s how the organisation will dumbfound back in to the market leadership. The vision of the organisation will improve the innovation and dynamic approaches towards the market. All the strategies that atomic number 18 implemented by the Lloyds TSB are to tackle the complex situations. How ever tout ensemble these strategies that developed by the Lloyds TSB are to remain the competition in the financial market.Appendix 1 board 1 ROE and P/E of UK retail BanksRecent devote on Equity (ROE) and Price Earnings Ratio (P/E) figures comparing Lloyds against RBS and two of the other top 4 UK retail banks showsU.K. Bank TTM RatiosROEP/E*Lloyds TSB Group plc22.113.9HSBC Holdings plc (NYSE HBC)15.916.9Barclays plc (NYSE BCS)18.814.6Royal Bank of Scotland13.012.4*Data provided by detonating device IQ, a division of Standard Poors. P/E numbers inform on a normalized basis to adjust for the impact of exceptionalordinary items4 slacken 2 CAPM of top 5 UK Retail BanksBankBetaRfRmCAPMEquity Market ValueHBOS0.93554.43%7.5%7.30%38.88bnHSBC0.64854.43%7.5%6.42%111.82bnLloyds TSB0.96944.43%7.5%7.40%30.14bnBarclays1.15254.43%7.5%7.97%43.23bn bail bond Leicester0.65564.43%7.5%6.44%4.92bnRBS0.86694.43%7.5%7.09%59.07bnRf = 4.43% currently for treasury Bills, Rm = 7.5% currently for FTSE one C return.I feel chosen to use the FTSE 100 rate of return because both 6 companies are listed as cosmos in the top ten largest listed UK companies by equity market value and should therefore give a more accurate CAPM figure.Table 3 Earnings Per Share (EPS) in penceBank2004200320022001% ChangeHBOS78.163.650.646.468.3%HSBC0.840.670.590.7610.53%Lloyds TSB43.358.33245.24.39%Barclays51.242.333.736.839.13%Alliance Leicester95.879685768.07%RBS1387968.467.6104.14%Appendix 2 conception 1 FTSE 100 V Financial portions over bygone 5 Years5Figure 2 virgin companies by business sector6Figure 3 Kaplan and Nortons Balanced lineup7Appendix 3Figure 4 UK Premium and encase Accounts Market Sha re8Figure 5 UK Debit carte Market Share 20059Figure 6 UK Credit vizor Market Share 200510Figure 7 UK top 5 Secured Personal Loan Providers 200511Figure 8 UK Top 9 Unsecured Personal Loan Providers 200512Information ashes in Lloyds TSBInformation governing body in different departmentsTransaction Processing SystemIn e actually banking sector we need store the data , veer the data, and we retrieve the data of the transactions. For this we use TPS (Transaction processing System) it gene evaluate and retrieve the transaction of organization .client IdentificationIn e real banking sector we need the customer au whencetication (customer identification) ,in Lloyds TSB they use NADRA which is attached with viruses .when the place down the expound of him it directly enter into the NADRA to verify the customer ID. So that the caution will identify the passe-partout ID observations. By this we totally control the fake accounts jibeers. When the client enter the expand of the ac count it will directly propagate to the NADRA their the account detail are checked with the bank details if it is correct whence the account is undetermined other wise it is closed.Input(ID )VirusesManagementHUBNADRA(customer identification)Employees Record In Lloyds TSB the Management will admit accept details of the employees .they use information system in every where they introduced BIO-metric system in every banks to maintain the exact details of the employee this will increase the efficiency of an employee.Every Lloyds TSB employee should login with the biometric device so that the details of the employee is stored HUB. And logout on leaving this should be do only by touch with their thumb impressions on biometric device.Employee Job LoginBiometric DeviceHUBEmployee Job LogoutReal while BankingIn the present situation quantify plays a major exercise If any customer want to transfer the cash in hand to another account immediately he should not be waste the time.For that the Lloyds TSB maintain truly time banking with that real time banking the customer washstand transfer their funds to any other accounts with in seconds. Here the TCB maintains the LN . The new transition is throw to the LN. Through LN it will send to the HUB where the updates are make and the updates will done .In the present scenario no client is ready to waste their time so, the TSB offering a fast real time online banking system.New Transactions,UpdatesLNHUBUpdatedOnline ComplainsCustomers are the main visitors of the banking sector. Lloyds TSB allows the customer to send their complains online. If any customer is not fit with the TSB, the TSB offering a privilege to the customer so that they croupe send online complains. what the customer need to do is he has to fill the online complain form which is send to the TPS, that is linked with the Management their the management can identify the problem and it is send to concerned department their it is resolved.And the solu tion is send back to the customer. It all happen with massive using of information .Customer QueriesCustomer portion TPSIdentify Problem displace to Concerned Dept.AdvicesThe information system is very lots used in the Lloyds TSB, TSB uses record of all the customers in the legion and it will send messages regularly to the customers when they had transactions .If any customer is concisely off balance then the system automatically alert the massege to the customer and as well as management so that the management can take manual action like send letter or mail to the customer.Customer Service TPSAccountAlertManagementHUBAdvices Send to CustomerAccount OpeningTo open the account the Lloyds TSB maintain the TPS which maintain the hub contains of all the data of an account holder and the information about the account holder.Customer has to give his personal details such as passport number, NI number, Date of birth etceteraWhat ever the information given by the customer the informatio n is send to viruses and Account department .so, that the details are send to the customer service TPS and HUB . then customer account is subjectApplicantIdentificationVirusesA/C Dept.Customer Service TPSHUBNew A/C OpenedOnline ActivityOnline banking is done with in the same bank or different organization. Suppose a customer need to transfer the funds to another customer then the customer as to enter branch code, sort code and account number and the descend you need to transfer. Then this information is send to the server (HUB), Then the information is checked in the server then the fund is transferred to the branchCustomerCustomer Service TPSHUBA/C DeptFund Trnsfr to Concerned split upATM CardAfter registering in to the account the customer details are stored in the hub. When the customer requested for the ATM the details of customer is checked in the HUB and then the card is issued. Lloyds TSB will provide many another(prenominal) ATM machines for easy access of the customer. It just asks the ATM card then after it we exhaust to enter the Pin number the pin number is send to the HUB their the pin is checked with the card and the details then cash is taken from the machine.ApplicantIdentificationVirsesA/C Dept.Customer Service TPSHUBNew A/C OpenedATM IssuedMANGEMENT OVERVIEWHow the Management In Lloyds TSB is divided we can seeFirstly we have an chief executive officer,( Sir Win Bischoff, Chairman) and to the CEO we have an executive directors and all the executive directors are maintains regional managers, all these regional managers will maintains the branch managers under the branch managers we can see the field offecersCEOExecutive DirectorsField officer employeesregional ManagersRegional ManagersRegional Managers severalise ManagersBranch ManagersBranch ManagersBranch ManagersBranch ManagersBranch ManagersBusiness process modelsValue Chain stumperSecondary Activities inbound logisticsServicesOperationsSalesOrganization value ChainComputerized s ociety SystemTechnology DevelopmentHRMWorkforce Planning System political science and ManagementR D SystemPrimary ActivitiesOutbound logisticsAnalysis of Lloyds TSB with Value chain We are considering bank sector as an organisation in this sector we commonly see the operations a spread because this is banking sector we need more consideration on the operations .We have less inbound logistics. We mainly use software operations more. The information system is used more in the banking sector. The banking sector uses Online banking, ATM machines which we use information system .Inbound logistics The inbound logistics specify the building area, where the business going to start? what are the safety measures we have to take? What is cost of the area we selected? These all come under Inbound Logistics.Operations The banking sector has to do much part with the operations. Information system is highly used in the operation part. Everything the data of the customer has to enter in the HUB. so, the IS is much used in the operation partOutbound Logistics the outbound logistics admit the output of the bank. Here the bank sector include the their customer as their output .Sales every organisation wants to improve their sales. The Lloyds TSB increases their sales by adding the customers to them. For that the TSB follows many strategies , With using the advanced technologys the Lloyds TSB is good at attracting their customers.Services The services is the part of every organisation .Lloyds TSB give more benefits TSB maintain a good relation ship between the customers .It will give extra benefits to the customer It offers different card s like silver, gold, platinum etc . It also give incurrence like mobile incurrence, car break down etc.Porters Five Force ModelAnalysis of Lloyds TSB with Porters 5 force Model Threat of New EntrantsOrders from the Government(Financial Services Authority The British Bankers Association)The organisations that which direct high capital invest ment, are some of the threatsWhen the market is good then there is a possible to enter the new entrants .As can be seen above, the entry barriers in place for the financial services application are low. When entry barriers are low, new firms can freely enter the industry, which increase rivalry and depletes profits as suggested by (Robson, 1997) bargain source of CustomerMissing the customer relationship.(Customers are seen to bank with several banks, hold different financial products with different financial service providers.)Customers can alteration their account depending on the banks what they offer interest rate. (Customers are no semipermanent tied into accounts or agreements for a long period of time)Maximum of the customers are very Money minded.(This is through the availability of interest free credit cards/reduced rate loans/competitive savings range)The Customers can comfortably get the account details and the bank statements (Information technology has enabled thi s loan rates/ credit cards can be searched and compared online offering the best product to the customer with little effort)Customers want to get more service from the bank.Bargaining Power of SupplierThe interest rate is announced by the Bank Of England Monetary Policy Committee (MPC) present moment the interest rates are on hold at 4%.The final rate influence financial services products.Substitute ProductsWe see Product differential gear is every where in the financial services industryExamples of product severalise can be seen belowIncreased number of Credit Unions in the form of credit cards/store cards.An example is here, Marks Spencer who now offer a store card and a credit card to customers along with reduced personal loan rate.The above model, as suggested by (Porter, 1985) largely determined the type and level of competition within the financial services industry.Analysis of Lloyds TSB with deck up summary A SWOT analysis is used to analysis the internal and external en vironments of the organisation. In case of Lloyds TSB. Com. We can identify the Lloyds TSB strengths, weaknesses, opportunities and threats.It is suggested by (Harrison, St John 1998) that the results from this situation analysis may form the basis for developing missions, goals and strategies.Figure below highlights the SWOT MatrixSWOT AnalysisInternal FactorsStrengthsOpportunitiesWeaknessesOpportunitiesWeaknessesStrengthsThreatsThreatsExternal FactorsFigureSWOT MatrixStrengthsLloyds TSB is the Europes quaternary largest retail bankLloyds TSB is Britains 8th largest banking sector based on market capitalisationLloyds TSB has very strong branch network of 2300Lloyds TSB had more than 16 million customersLloyds TSB has good brand recognitionLloyds TSB will Provide Mortgages, damagess, investments and it provides a full range of financial serviceLloyds TSB will Provide a full functional internet banking for both personal customers and business customersLloyds TSB will update the cust omers with new schemes through telephony/internetLloyds TSB New changes has been made in the online banking, that as been expected by customers rapidly.OpportunitiesWe can increase the online banking customersWe can increase the number of premier customersBy increasing the amount of wholesale marketIncreasing the brand recognition .Managing more number of customers in the financial affairsCross sell (As a range of products exist therefore take advantage of the strong brand name)Example unknown Currency combination with Travel Insurance Mortgages combination with Life Insurance Home Insurance combination with Home UtilitiesWeaknessesNot maintaining stable refer rates/this is due to inflation base rateCross forwarding related to the Scottish Widows(Part of LTSB) PolicysDue to problems in security, privacy and reliability the internet banking updates every time.ThreatsEntering the new banks specifying only internet banking(unconventional banks)The new retail marketing industries h ave entering in to the banking sector such as Sainsburys supermarket, Marks Spencer, Tesco Supermarket.Missing the customer loyaltyFinancial banking sector industry is too slow down for the next two years, this will have effect on Lloyds TSBThe significance of the SWOT analysis undertaken above is to use the existing business strengths to exploit opportunities, to create new opportunities, to counteract threats and cover any weaknesses as suggested by (Robson 1997)CONCLUSIONA management information system is a system or process that providesthe information prerequisite to manage an organization effectively(Richard 1895).This eassy discuses all the activities that the Management Information System perform in our selected organization Lloyds TSB Bank.SUGGESTIONLloyds TSB is using the Information System very efficiently and increasing , but still there are many things that should be improved.With increase of technology, the bank should update the IS up-to-date for providing best ser vices to the customer..In the Online banking system security should be increased.