Lloyds TSB Group (A): Business Portfolio Restructuring and Development SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Lloyds TSB Group (A): Business Portfolio Restructuring and Development
After the transformation of Lloyds Bank from an unfocused and underperforming group to a focused highly-performing bank under Brian Pitman (1983-1996), the incoming CEO takes on the challenge of redefining the bank's strategy and operations, facing difficult choices regarding the firm's scope and internationalization. Ultimately, Lloyds's board of directors end up facing significant corporate governance issues with long-term implications for the future of the company.
Authors :: Laurence Capron, Mark Hunter, Fares Boulos
Swot Analysis of "Lloyds TSB Group (A): Business Portfolio Restructuring and Development" written by Laurence Capron, Mark Hunter, Fares Boulos includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Lloyds Lloyds's facing as an external strategic factors. Some of the topics covered in Lloyds TSB Group (A): Business Portfolio Restructuring and Development case study are - Strategic Management Strategies, Corporate governance, Leadership and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Lloyds TSB Group (A): Business Portfolio Restructuring and Development casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, banking and financial system is disrupted by Bitcoin and other crypto currencies, central banks are concerned over increasing inflation, supply chains are disrupted by pandemic , increasing inequality as vast percentage of new income is going to the top 1%, digital marketing is dominated by two big players Facebook and Google, talent flight as more people leaving formal jobs,
wage bills are increasing, technology disruption, etc
Introduction to SWOT Analysis of Lloyds TSB Group (A): Business Portfolio Restructuring and Development
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Lloyds TSB Group (A): Business Portfolio Restructuring and Development case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Lloyds Lloyds's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Lloyds Lloyds's operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Lloyds TSB Group (A): Business Portfolio Restructuring and Development can be done for the following purposes –
1. Strategic planning using facts provided in Lloyds TSB Group (A): Business Portfolio Restructuring and Development case study
2. Improving business portfolio management of Lloyds Lloyds's
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Lloyds Lloyds's
Strengths Lloyds TSB Group (A): Business Portfolio Restructuring and Development | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Lloyds Lloyds's in Lloyds TSB Group (A): Business Portfolio Restructuring and Development Harvard Business Review case study are -
Diverse revenue streams
– Lloyds Lloyds's is present in almost all the verticals within the industry. This has provided firm in Lloyds TSB Group (A): Business Portfolio Restructuring and Development case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Strong track record of project management
– Lloyds Lloyds's is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Analytics focus
– Lloyds Lloyds's is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Laurence Capron, Mark Hunter, Fares Boulos can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Superior customer experience
– The customer experience strategy of Lloyds Lloyds's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Cross disciplinary teams
– Horizontal connected teams at the Lloyds Lloyds's are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Operational resilience
– The operational resilience strategy in the Lloyds TSB Group (A): Business Portfolio Restructuring and Development Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Ability to lead change in Strategy & Execution field
– Lloyds Lloyds's is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Lloyds Lloyds's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in Strategy & Execution industry
– Lloyds TSB Group (A): Business Portfolio Restructuring and Development firm has clearly differentiated products in the market place. This has enabled Lloyds Lloyds's to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Lloyds Lloyds's to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Lloyds Lloyds's has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Lloyds TSB Group (A): Business Portfolio Restructuring and Development - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Training and development
– Lloyds Lloyds's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Lloyds TSB Group (A): Business Portfolio Restructuring and Development Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Ability to recruit top talent
– Lloyds Lloyds's is one of the leading recruiters in the industry. Managers in the Lloyds TSB Group (A): Business Portfolio Restructuring and Development are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Innovation driven organization
– Lloyds Lloyds's is one of the most innovative firm in sector. Manager in Lloyds TSB Group (A): Business Portfolio Restructuring and Development Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Lloyds TSB Group (A): Business Portfolio Restructuring and Development | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Lloyds TSB Group (A): Business Portfolio Restructuring and Development are -
Slow to strategic competitive environment developments
– As Lloyds TSB Group (A): Business Portfolio Restructuring and Development HBR case study mentions - Lloyds Lloyds's takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Lloyds TSB Group (A): Business Portfolio Restructuring and Development, it seems that the employees of Lloyds Lloyds's don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Lloyds TSB Group (A): Business Portfolio Restructuring and Development HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Lloyds Lloyds's has relatively successful track record of launching new products.
High cash cycle compare to competitors
Lloyds Lloyds's has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Workers concerns about automation
– As automation is fast increasing in the segment, Lloyds Lloyds's needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Low market penetration in new markets
– Outside its home market of Lloyds Lloyds's, firm in the HBR case study Lloyds TSB Group (A): Business Portfolio Restructuring and Development needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Products dominated business model
– Even though Lloyds Lloyds's has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Lloyds TSB Group (A): Business Portfolio Restructuring and Development should strive to include more intangible value offerings along with its core products and services.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Lloyds Lloyds's is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Lloyds TSB Group (A): Business Portfolio Restructuring and Development can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Laurence Capron, Mark Hunter, Fares Boulos suggests that, Lloyds Lloyds's is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Interest costs
– Compare to the competition, Lloyds Lloyds's has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Capital Spending Reduction
– Even during the low interest decade, Lloyds Lloyds's has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Opportunities Lloyds TSB Group (A): Business Portfolio Restructuring and Development | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Lloyds TSB Group (A): Business Portfolio Restructuring and Development are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Lloyds Lloyds's to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Lloyds Lloyds's to hire the very best people irrespective of their geographical location.
Leveraging digital technologies
– Lloyds Lloyds's can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Using analytics as competitive advantage
– Lloyds Lloyds's has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Lloyds TSB Group (A): Business Portfolio Restructuring and Development - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Lloyds Lloyds's to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Lloyds Lloyds's can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Lloyds TSB Group (A): Business Portfolio Restructuring and Development, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Lloyds Lloyds's is facing challenges because of the dominance of functional experts in the organization. Lloyds TSB Group (A): Business Portfolio Restructuring and Development case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Building a culture of innovation
– managers at Lloyds Lloyds's can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Strategy & Execution segment.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Lloyds Lloyds's in the consumer business. Now Lloyds Lloyds's can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Lloyds Lloyds's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Lloyds TSB Group (A): Business Portfolio Restructuring and Development suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Loyalty marketing
– Lloyds Lloyds's has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Lloyds Lloyds's can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Lloyds Lloyds's can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Lloyds Lloyds's can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Lloyds Lloyds's can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Lloyds TSB Group (A): Business Portfolio Restructuring and Development External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Lloyds TSB Group (A): Business Portfolio Restructuring and Development are -
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Lloyds TSB Group (A): Business Portfolio Restructuring and Development, Lloyds Lloyds's may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
High dependence on third party suppliers
– Lloyds Lloyds's high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Lloyds Lloyds's.
Increasing wage structure of Lloyds Lloyds's
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Lloyds Lloyds's.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Lloyds Lloyds's can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Lloyds TSB Group (A): Business Portfolio Restructuring and Development .
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Shortening product life cycle
– it is one of the major threat that Lloyds Lloyds's is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Lloyds Lloyds's in the Strategy & Execution sector and impact the bottomline of the organization.
Consumer confidence and its impact on Lloyds Lloyds's demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Lloyds Lloyds's in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Regulatory challenges
– Lloyds Lloyds's needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Lloyds Lloyds's business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Lloyds TSB Group (A): Business Portfolio Restructuring and Development Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Lloyds TSB Group (A): Business Portfolio Restructuring and Development needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Lloyds TSB Group (A): Business Portfolio Restructuring and Development is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Lloyds TSB Group (A): Business Portfolio Restructuring and Development is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Lloyds TSB Group (A): Business Portfolio Restructuring and Development is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Lloyds Lloyds's needs to make to build a sustainable competitive advantage.
