Contemporary issues in business Essay Example | Topics and Well Written Essays - 2500 words

Contemporary issues in business - Essay Example Being headquartered in United Kingdom, it serves the customers in the market of United Kingdom efficiently. As a result of which, the brand image and profitability of the financial organization of Lloyd's bank enhanced with a significant extent thereby amplifying its popularity. Along with this, due to the presence of varied types of products such as insurance schemes, deposit schemes and many others, its range of customers and brand value enhanced thereby amplifying its popularity and reputation in the market of United Kingdom among many other rival players. And so, the demand and total revenue of the financial organization of Lloyd's bank enhanced by ?19,673 million resulting in reduction of the threat of new entrants. Apart from this, due to the presence of value-added services, it expanded in more than 30 countries, from Argentina to United States of America, comprising of approximately 16 million employees. This acted as the prime cause that helped the organization of Lloyd's ba nk to amplify its profitability by ?2,803 million and market size by 6% in the market of United Kingdom among others (Lloyds Bank, 2013). Therefore, in-spite of tough competition and stiff economic downturn, the organization of Lloyd's bank maintained its sustainability in the market of United Kingdom among many other rival players. This essay is mainly divided into five parts highlighting the importance and background of Lloyd’s bank in the market of United Kingdom. Along with this, it also discusses the impacts of contemporary issues over the image and popularity of the organization of Lloyd's bank. Moreover, it also discusses the negative effects of the contemporary issue of unethical use of labor or staffs within the financial organization of Lloyd are thereby enhancing the rate of switchover costs. 2. Discussion 2.0 Drivers of Change (PESTLE) In order to analyze the external environment, competitors and market opportunities of Lloyd’s bank, the most popular analyt ical tool named PESTLE is used. 2.1 Political- As, the political scenario within the regions of United Kingdom, Europe and America is extremely stable, so it proved quite beneficial for the organization of Lloyd’s bank among others rival players. As a result of which, the profitability and brand value of the organization of Lloyd’s bank enhanced thereby amplifying its range of customers. It is extremely essential for any organization to retain its portfolio in the market, in-spite of numerous existing contenders ( Xu, 2005, pp. 478-536). 2.2 Economic- Global inflation acted as a curse for the organization of Lloyd’s bank thereby reducing its effectiveness to a significant extent. This is mainly because; inflation enhanced the level of unemployment and poverty thereby reducing the preference for depositing huge-amount of revenues within the financial institutions. Along with this, the consumer price index (CPI) also reduced by 3.5% that proved extremely worse for the country of United Kingdom. As a result of which, the living standard and life style of the citizens of United Kingdo