Lloyds Tsb A Retail Bank In The Uk Marketing Essay

Lloyds Tsb A Retail Bank In The Uk Marketing EssayLloyds TSB is a retail entrust in the U Kingdom. It was started in year 1995 by the merger of Lloyds Bank. Lloyds TSB has an wide network of branches and cash machines across United Kingdom and offers 24-hour telephone and online cambering works. Now it has 16 million nodes, and fear accounts.Lloyds TSB VisionThe vision Lloyds TSB is to be the one of best financial operate bank in the UK. Lloyds TSB is well known for the guest relationships. Lloyds TSB is mainly foc employ on the customer satisfaction and their interests better than any revolutionary(prenominal) competitors.Lloyds TSB Mission StatementTo make Lloyds TSB the best company in the financial services industry a great place for staff to work and a great place for customers to do business. (Sir Win Bischoff, Chairman)Lloyds TSB GoalsGrowing Lloyds TSB as the Number one position in the banking orbit.Attracting the customers with untested policys.Increasing the customer of the bank.Lloyds TSB ObjectivesDeveloping a good customer relationship between the customers.Increase customer service in order to butt against customer needs.Improving services and quality according to the competitors.Lloyds TSB Strategies in year 2005Strategy is a broad based formula for how business is going to compete, what its goals should be and what polices will be needed to carry out those goals. The essence of formulating agonistic strategy is relating a company to its environment.In 2003 they developed customer relationship programmes to keep open higher revenues per customer in the retail market and according to their press releases this strategy retrievems to be working Our customer satisfaction scores hit magnetic disc highs in 2005, again reflecting the improvement programmes complete over the last couple of years, and we will continue to drive further improvements as we seek to contrastiveiate our service transaction against that of our Competitors. 1Lloyds TSB say they argon committed to achieving top performance in twain effectiveness and efficiency. Effectiveness is the ability to recruit, develop and retain loyal customers who entail of us first for their next financial services need. Efficiency is the ability to provide service and gross sales at a lower cost so that we throw out hand our customers better value. We believe that in order to achieve our goal we must be customer rather than product centric.2Target customer current account recruitment increased by 28 per cent, compared with 2004.3Producing new offers to the customers.Providing new services and jibeing quality to the subsisting products.In order to compete with the existing competitors Lloyds TSB providing internet banking service in order to become a high performance ecesisLloyds TSB uses Flawless execution that mainly develops relationships with customers.Identifying the customer needs and puzzle out their problems by victimization advanced technolog ies.Critical Evaluation Strategic abstractMelville, N. et al. (2004) defined the value of information technology in the organizations as the organizational performance impacts of information technology at both the intermediate process level and the organization-wide level, and comprising both efficiency impacts and competitive impacts. If the information 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 improving the quality of the services and products and so on.There are a lot of ways for the organizations to choose to add value for themselves but it seems that IT strategy has been widely used in the modern business environment.The strategy plan established for Lloyds TSB has been created after(prenominal) chthonictaking a through serious issues about the business and the environmental.The strategic plan that implemented by th e organisation can move send 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 consistent 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 making 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 specifies how the organisation will get back in to the market leadership. The vision of t he organisation will improve the innovation and dynamic approaches towards the market. All the strategies that are implemented by the Lloyds TSB are to tackle the complex situations. How ever all these strategies that developed by the Lloyds TSB are to remain the competition in the financial market.Appendix 1 get across 1 ROE and P/E of UK retail BanksRecent Return on Equity (ROE) and Price Earnings Ratio (P/E) figures comparing Lloyds against RBS and two of the another(prenominal) 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 Capital IQ, a naval division of Standard Poors. P/E reckons reported on a normalized floor to adjust for the impact of extraordinary items4Table 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%43.23bnAlliance 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 100 return.I hurt chosen to use the FTSE 100 rate of return because all 6 companies are listed as being in the top ten largest listed UK companies by justness market value and should therefore give a more accurate CAPM figure.Table 3 Earnings Per take (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 2Figure 1 FTSE 100 V Financial Services over one- snip(prenominal) 5 Years5Figure 2 unsanded companies by business sector6Figure 3 Kaplan and Nortons Balanced Scorecard7Appendix 3Figure 4 UK Premium and Packaged Accounts Market Share8Figure 5 UK Debit Card Market Share 20059Figure 6 UK Credit Card Market Share 200510Figure 7 U K top 5 Secured Personal Loan Providers 200511Figure 8 UK Top 9 Unsecured Personal Loan Providers 200512 knowledge system in Lloyds TSBInformation dodging in different departmentsTransaction Processing SystemIn both banking sector we need store the data , modify the data, and we commend the data of the transactions. For this we use TPS (Transaction processing System) it gene pass judgment and retrieve the transaction of organization .Customer IdentificationIn every banking sector we need the customer authentication (customer identification) ,in Lloyds TSB they use NADRA which is attached with viruses .when the enter the exposit of him it this instant enter into the NADRA to verify the customer ID. So that the Management will identify the original ID cards. By this we totally control the fake accounts live oners. When the client enter the details of the account it will directly send to the NADRA their the account details are checked with the bank details if it is correct then the account is opened other wise it is closed.Input(ID )VirusesManagementHUBNADRA(customer identification)Employees Record In Lloyds TSB the Management will concur exact 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 done only by tracing with their thumb impressions on biometric device.Employee Job LoginBiometric DeviceHUBEmployee Job LogoutReal condemnation BankingIn the present situation time plays a major role If any customer want to transfer the funds to another account immediately he should not be photocopy the time.For that the Lloyds TSB maintain real time banking with that real time banking the customer can transfer their funds to any other accounts with in s econds. Here the TCB maintains the LN . The new alteration is send to the LN. Through LN it will send to the HUB where the updates are made and the updates will done .In the present scenario no client is ready to waste their time so, the TSB offer 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 satisfied with the TSB, the TSB offering a privilege to the customer so that they can 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 conjugate with the Management their the management can identify the problem and it is send to concerned department their it is resolved.And the solution is send back to the customer. It all happen with massive using of information .Customer QueriesCustomer Service TPSIdentify ProblemSend to concer n Dept.AdvicesThe information system is very much used in the Lloyds TSB, TSB uses remember of all the customers in the host and it will send messages regularly to the customers when they had transactions .If any customer is short off balance then the system mechanically alert the massege to the customer and as well as management so that the management can take manual action like send garner 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, catch of birth etc.What ever the information given by the customer the information is send to viruses and Account department .so, that the details are send to the customer service TPS and HUB . then customer account is opened applicatorIdentifica tionVirusesA/C Dept.Customer Service TPSHUBNew A/C unfastenedOnline 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 amount 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 growATM 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 more ATM machines for easy access of the customer. It just asks the ATM card then after it we have 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 money 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 CEO,( 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 ManagersBranch ManagersBranch ManagersBranch ManagersBranch ManagersBranch ManagersBranch ManagersBusiness process modelsValue range of mountains ModelSecondary ActivitiesInbound logisticsServicesOperationsSalesOrganization value ChainComputerized Ordering SystemTechnology DevelopmentHRMWorkforce Planning SystemAdministration and ManagementR D SystemPrimary Activities outbound logisticsAnalysis of Lloyds TSB with Value chain We are considering bank se ctor as an organisation in this sector we commonly see the operations a lot 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 include the output of the bank. Here the bank sector include the their customer as their output .Sales every organisation want s 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 invest high capital investment, are some of the threatsWhen the market is good then there is a affirmable to enter the new entrants .As can be seen above, the entry barriers in place for the financial services industry 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)Bargaining Power of CustomerMissing the customer relationship.(Customers are seen to bank with several banks, hold different financial products with different financial service providers.)Customers can change their account depending on the banks what they offer interest rate. (Customers are no longer 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 character cards/reduced rate loans/competitive savings rates)The Customers can easily get the account details and the bank statements (Information technology has enabled this loan rates/ faith 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 announc ed 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 is every where in the financial services industryExamples of product differentiated can be seen belowIncreased number of Credit Unions in the form of credit cards/store cards.An usage 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 lift summary A SWOT analysis is used to analysis the internal and external environments 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 f orm the basis for developing missions, goals and strategies.Figure below highlights the SWOT MatrixSWOT AnalysisInternal FactorsStrengthsOpportunitiesWeaknessesOpportunitiesWeaknessesStrengthsThreatsThreatsExternal FactorsFigureSWOT MatrixStrengthsLloyds TSB is the Europes 4th 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 sucker recognitionLloyds TSB will Provide Mortgages, Insurances, 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 customers 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 remote Currency combination with Travel Insurance Mortgages combination with Life Insurance Home Insurance combination with Home UtilitiesWeaknessesNot maintaining stable Interest rates/this is due to inflation base rateCross publicity related to the Scottish Widows(Part of LTSB) PolicysDue to problems in security, privacy and reliability the internet banking updates every time.Threats entry the new banks specifying only internet banking(unconventional banks)The new retail marketing industries have 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 TSBT he 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 repair any weaknesses as suggested by (Robson 1997)CONCLUSIONA management information system is a system or process that providesthe information necessary 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 services to the customer..In the Online banking system security should be increased.