MINOR PROJECT

MANISHA KASANA
PGDM (2022-2024)
SECTION-A
ROLL NO-2022052
MENTOR: DR. ANUSHA AGARWAL

1
 CERTIFICATE
This is to certify that Manisha Kasana, A student of PGDM (2022-2024) ITS
school of Management has undertaken the project on the companies (ITC,
LLOYD, HFFC) The project has been carried out by the student in partial
fulfilment of the requirements for the award of PGDM, under my guidance and
supervision.

I am satisfied with the work of Manisha Kasana.

_______________
Mentor:
Anusha Agarwal

2
 ACKNOWLEDGMENT
First and foremost, we would like to express our gratitude to our Mentor, Dr.
Anusha Agarwal, who was a continual source of inspiration. He pushed us to think
imaginatively and urged us to do this homework without hesitation. His vast
knowledge, extensive experience, and professional competence enabled us to
successfully accomplish this project. This endeavour would not have been possible
without his help and supervision. We could not have asked for a finer mentor in our
studies. This initiative would not have been a success without the contributions of
each and every individual. We were always there to cheer each other on, and that is
what kept us together until the end.
I’d like to thank I.T.S. for providing me with the opportunity to work on the minor
project. Last but not least, I would like to express my gratitude to my family, and
friends for their invaluable assistance, and I am deeply grateful to everyone who has
contributed to the successful completion of this project.

3
 Candidates Declaration
I hereby declare that the report on, “ITC”, “HFFC “and “LLOYD” Submitted by
me is original work completed under the guidance of Dr. Anusha Agarwal. This
project has been submitted in part or full for reward of Post Graduate Diploma in
Management.

Date_______________
Place_______________
Signature____________

4
ITC Limited is an Indian conglomerate company headquartered in Kolkata ITC has a diversified
presence across industries such as FMCG, hotels, software, packaging, paperboards, specialty
papers and agribusiness. The company has 13 businesses in 5 segments. It exports its products in
90 countries. Its products are available in 6 million retail outlets.
As of 2019–20, ITC had an annual turnover of US$10.74 billion and a market capitalisation of
US$35 billion. In December 2022, their market cap stood at Rs. 4,22,447.30 crore. It employs
36,500 people at more than 60 locations across India.

PEST Analysis

Political factor:
1.Taxation policies – Over the last two decades ITC has benefitted from lower taxation policies
throughout the western hemisphere.
2. Regulatory Practices – ITC has to manage diverse regulations in the various markets it is
present in. 
3. Government of India has come under increasing global pressures to adhere to World Trade
Organization’s regulations on Tobacco industry

5
Economic factor:
1.Exchange rate – The volatile exchange rate of India can impact ITC investment plans not only
in the short term but also in the long run.
2. Downward pressure on consumer spending – Even though the consumer disposable income
has remained stable, the growing inequality in the society will negatively impact consumer
sentiment and thus impact consumer spending behaviour.
3. Government intervention in the Consumer/Non-Cyclical sector and in particular Tobacco
industry can impact the fortunes of the ITC in the India.

Social factor:
1.Demographics – For the Consumer/Non-Cyclical products, ITC has demographics on its side.
India is a young country and growing. ITC can use this trend to cater to various segments of the
population.
2.Gender roles – The gender roles are evolving in India. ITC can test various concepts to cater to
and support these evolving gender roles in India society.
3.Media outlets play a critical role in influencing the public opinion India. Both traditional media
and social media are rapidly growing in India. ITC can leverage this trend to better market and
position its products.

Technological factor:
1.Maturity of technology – The technology in the Tobacco sector is still not reached maturity and
most players are vying for new innovations that can enable them to garner higher market share in
India.
2.Lowering cost of production –ITC has to restructure its supply chain to bring in more
flexibility to meet both customer needs and cost structures
3.Developments and dissemination of mobile technology has transformed customer expectations
in the Consumer/Non-Cyclical sector. ITC has to not only meet and manage these expectations
but also have to innovate to stay ahead of the competition.

6
 Competitive Environment

As a diversified conglomerate, ITC has certain unique pillars of competitive advantage it has
built over the years. Its diverse institutional strengths, skills and capabilities include capabilities
of product and brand development, deep consumer insights, cutting-edge R&D, innovation with
a digital focus, world-class manufacturing infrastructure, packaging excellence, extensive rural
linkages and a robust distribution network that stretches across the country.
The synergies residing across ITC's globally benchmarked businesses - FMCG, Hotels,
Paperboards, Packaging, Agri and IT - enable it to remain agile and competitive even in times of
extreme adversity. Its presence across the agriculture, manufacturing and services sector is
another enabler, letting it make a larger long-term contribution to the nation across economic,
social and environmental dimensions.
Powered by these synergies, ITC has been able to develop world-class Indian brands that anchor
inclusive value chains and retain larger value in the economy. Its 'Make in India'-inspired
investments in state-of-the-art manufacturing and iconic hospitality assets, even as it contributes
to the competitiveness of next generation, climate smart agriculture. Digitalisation across all
aspects of ITC's operations is yet another vector for enhancing internal synergies, supporting and
accelerating growth.
t is a multinational conglomerate company and thus they face huge competition in the market.
They have competition from all sides, we have shortlisted some of the main competitors in all
these distinct fields that it faces. Let us take a look here.
 
ITC Competitors In FMCG segment
1) HUL
2) P&G
3) Nestle
4) Godrej Consumer Products
5) Godfrey Phillips India Ltd

7
6) Danone
7) Coca-Cola
8) Colgate
9) Dabur
10) Marico
11) L’oreal
 
ITC Competitors In Hotels
1) Leela Hotels
2) Taj Group of Hotels
3) Oberoi Group of Hotels
4) Sarovar Group of Hotels
 
ITC Competitors in Cigarettes
1) Philip Morris International
2) Golden Tobacco Limited
3) Godfrey Phillips India Ltd
4) Raghunath Tobacco Company Ltd
5) Vazir Sultan Tobacco Company
As we see ITC has major competition in all segments of the market and thus they boost their
market share they come up with various marketing strategies.
 
The competitive advantage of ITC
 
1. Vast experience
As the company has a long market presence it has developed a strong base. This has allowed the
business to recognize the customer’s needs and expectations to make it financially strong and
competitive ahead of its peers.
 
2. The X- Factor
Through the social initiative, ITC’s E-Choupal initiative aimed at making the internet accessible
to Indian farmers and their families in the rural part of the country, thus increasing brand
presence to the business.
 
3. Big Conglomerate
Over the years, they have become a massive conglomerate providing a wide range of goods and
services in the FMCG market, IT solutions, from agri-products to food products. Experience in
such a diverse range of products and services has enabled the business to emerge in the market.
Thus, the competitive advantage of the company has been achieved by the consistent work of
ITC which helps them to stand out in the market.

SWOT Analysis

8
Strengths (Internal Factor )
 Portfolio of Business Units: ITC has 6 strong and diverse business units under its
name that drive its overall revenues and enable ITC to innovate and explore more
business opportunities.
 Effective Social Business Initiatives: ITC has developed a triple bottom line
strategy that focuses on developing the economic, social and environmental capital
of the nation. ITC has launched initiatives like E-Choupal, Choupal Pradarshan
Khet (CPK) that benefit the people at the grassroots level i.e. farmers. These
initiatives have also helped ITC improve its corporate image from a traditional
tobacco manufacturer.
 Synergy between and within business units: ITC has successfully leveraged the
strengths of its existing business to move into new products or categories. ITC used
the strong distribution system of cigarette brands to create a channel for its FMCG
products. In addition, ITC leveraged the food and bakery knowledge from its hotel
business to enter the packaged food category.
 Strong Brands Across Products: ITC is a strong branded company whose
products are leaders in most of the segments in which they operate. ITC owns some
of the most popular cigarette brands such as Gold Flake and Classic. ITC also owns
Sunfeast, which is one of the best selling biscuits in India. Similarly, Aashirvaad,
Yippee!, Engage, John Players and Bingo are among the market leaders in their
respective categories.
ITC’s hotel and real estate business is also performing well. With such a portfolio, ITC has
become one of the most powerful conglomerates in India and is admired all over the world.

Employees: ITC limited employees Just Over 25,000 people.

Strong Brand Image: Over 6500 E-Choupal CSR activities and sustainability
initiatives enhance ITC’s brand image reaching over 4 million farmers
Weaknesses (Internal Factor)
 Mostly Dependent On Tobacco: ITC has made continuous efforts to decouple its
FMCG business from over-dependence on tobacco products and has been
successful to some extent. However, tobacco products continue to be the major

9
 source of revenue, accounting for more than 60% of the total revenue from FMCG
business.
 Brand Image: ITC has made great efforts to improve its corporate image, but the
fact that ITC has many tobacco products in its portfolio affects its corporate image.
 Tax Increase: Increase in tax on tobacco products affects prices and hence revenue.
 Low Market Share in Hotel Industry: The hotel industry has not been able to
build an enormous market share.
Opportunities ( External Factor )
 Strategic Acquisitions: ITC should continue with strategic acquisitions as they
have done in the past with the acquisition of Savlon from Johnson & Johnson and B
Natural from Balan natural Foods. As the product fits into the existing distribution
network, ITC can look to expand its product portfolio and grow its non-tobacco
FMCG business, thereby strengthening its revenue base.
 Growth in Purchasing Power: ITC should take advantage of the growing
purchasing power and improvement in lifestyle of customers in India. This could
help increase revenues across all business segments.
 Food and Personal Care Products: ITC should leverage its distribution channels
in the personal care and food processing industries to benefit from the growth in
these categories to increase revenue.
 Rural Market: The growing rural market in India and other emerging markets
offers tremendous opportunities to improve the company’s bottom line.
 Influencer Marketing: More publicity of hotel chains to increase market share.
Threats ( External Factor ) 
 Intensified Competition in FMCG Sector: ITC faces intense competition in its
FMCG business from large multinationals like HUL and P&G and Indian FMCGs
like Patanjali and Dabur. This restricts ITC’s market share.
 Stringent regulations & Rise in Taxes in Cigarette Business: the tobacco and
cigarette industry in India continues to be threatened by stringent government
regulations and tax regimes. This poses a threat to ITC’s highly profitable cigarette
business.
 Growing Health Awareness: Health awareness has increased, leading to a decline
in demand for tobacco products in India. Anti-smoking campaigns across the
country are also impacting the sale of cigarettes.

7 Ps of
ITC

10
Product:
ITC is ranked at first position in terms of branded foods and some of its food brands
are Bingo, Sunfeast, Aashirvaad and Yippee. Its food business is related to confectionery, juice,
ready-to-eats, snack foods and staples
The company sells lifestyle apparel under John Players and Wills Lifestyle brands.
Price:
market its products in every nook and corner of India and hence has maintained both competitive
and penetration pricing policies to deal with competitors and to successfully spread
its product reach to remotest parts in India.
ITC for its luxurious products like hotel business has adopted a premium pricing policy but for
consumer products, it has adopted a reasonable pricing policy as it recognises that most Indians
belong to middle-class section of society and if the product prices are pocket friendly and
affordable, it will help in creating sales and ultimately will lead to better revenue figures.
Place:
ITC has spread its network to nearly sixty locations in most part of India. Its headquarters base is
at Kolkata in West Bengal.
Its products are available in many global countries. The company has set up tobacco business in
Nepal via a joint venture. Manufacturing plants of its printing and packaging division are in
Chennai and Haridwar. In order to move with changing times, it started online sales from the
year 2014. ITC has taken a very strong initiative titled e-Choupal model that has tackled several
challenges faced by farmers quite successfully.
Promotion:
ITC has a well-built brand presence because of the diversified and extended product portfolio. It
has taken help of several promotional activities to market its products and create positive brand
awareness. ITC has adopted an aggressive marketing strategy and taken help of every
promotional tool like electronic, print and social media at its disposal to market its products. It
has launched several ad campaigns which are shown via popular television channels, aired on

11
radio and displayed via hoardings. It has also roped in famous Personalities for better visibility
like Kareena Kapoor and Shahrukh Khan.
People:
 has people working under its sales team that play a vital role in its marketing efforts.
These people have been trained in persuasive techniques, but also to show respect to the
business customers taking into consideration their preferences.

 has people working in its customer service department. These are contacted by customers
in case of any issues within the product, and these people guide customers through the
process of getting the issues resolved. These people are trained to respect the customers
and try their best to get their issues resolved.
 has people working with suppliers to obtain raw materials. These people play a vital role
in maintaining or improving the quality of the final product produced.
 has people working at retail stores who help the customer on site, by answering any
questions or helping them decide the product that best suits their needs.

Process:
 to make sure that its products are always available at retail stores has systems installed
where retailers can notify when their inventory levels are low. provides them with more
products while ordering its productions to replenish its stock. This ensures that products
are always available to customers when needed.

 is actively involved in researching market opportunities in order to understand customer

needs. It also develops understanding regarding customer needs through feedback
collected at store, its helpline or social media pages.

Physical Evidence:
 sells its products in a distinct colour packaging that easily identifiable on retail shelves.
These are placed on special shelves provided by the company, which also have a distinct
colour and design. This makes it easier for customers to locate such shelves in busy retail
stores.

 has an online website that is user-friendly and allows customers to view its products in
high quality images taken from various angles.

12
 HFFC
Home First Finance Company India Limited is an Indian housing finance company in
the affordable housing segment based in Mumbai, which provides home loans, loan against
property and home construction loans. Its equity shares are listed on Bombay Stock
Exchange and National Stock Exchange.
Home First Finance was founded in 2010 by former chairman and co-founder of Mphasis, Jerry
Rao; former CEO and MD of Bank of Baroda, PS Jayakumar; and Manoj Viswanathan, who
previously worked with Citigroup India. It commenced operations in August 2010 after
registering with the National Housing Bank, the regulatory and licensing body for housing
finance companies in India. In 2011, Bessemer Venture Partners bought a minority stake in the
company for an undisclosed sum
13
 PEST Analysis

Political Factors that Impact HDFC Bank Limited

Political factors play a significant role in determining the factors that can impact HDFC Bank
Limited's long term profitability in a certain country or market. HDFC Bank Limited is operating
in Foreign Regional Banks in more than dozen countries and expose itself to different types of
political environment and political system risks. The achieve success in such a dynamic Foreign
Regional Banks industry across various countries is to diversify the systematic risks of political
environment. HDFC Bank Limited can closely analyze the following factors before entering or
investing in a certain market-

 Political stability and importance of Foreign Regional Banks sector in the country's
economy.
 Risk of military invasion
 Level of corruption - especially levels of regulation in Financial sector.
 Bureaucracy and interference in Foreign Regional Banks industry by government.
 Legal framework for contract enforcement
 Intellectual property protection
 Trade regulations & tariffs related to Financial
 Favoured trading partners

Economic Factors that Impact HDFC Bank Limited

The Macro environment factors such as – inflation rate, savings rate, interest rate, foreign
exchange rate and economic cycle determine the aggregate demand and aggregate investment in
an economy. While micro environment factors such as competition norms impact the
competitive advantage of the firm. HDFC Bank Limited can use country’s economic factor such
as growth rate, inflation & industry’s economic indicators such as Foreign Regional Banks
industry growth rate, consumer spending etc to forecast the growth trajectory of not only --
sectoryname-- sector but also that of the organization. Economic factors that HDFC Bank
Limited should consider while conducting PESTEL analysis are -

14
  Type of economic system in countries of operation – what type of economic system there
is and how stable it is.
 Government intervention in the free market and related Financial
 Exchange rates & stability of host country currency.
 Efficiency of financial markets – Does HDFC Bank Limited needs to raise capital in local
market?
 Infrastructure quality in Foreign Regional Banks industry
 Comparative advantages of host country and Financial sector in the particular country.  
 Skill level of workforce in Foreign Regional Banks industry.

Social Factors that Impact HDFC Bank Limited

Society’s culture and way of doing things impact the culture of an organization in an
environment. Shared beliefs and attitudes of the population play a great role in how marketers at
HDFC Bank Limited will understand the customers of a given market and how they design the
marketing message for Foreign Regional Banks industry consumers. Social factors that
leadership of HDFC Bank Limited should analyse for PESTEL analysis are -  

 Demographics and skill level of the population

 Class structure, hierarchy and power structure in the society.
 Education level as well as education standard in the HDFC Bank Limited ’s industry
 Culture (gender roles, social conventions etc.)
 Entrepreneurial spirit and broader nature of the society. Some societies encourage
entrepreneurship while some don’t.
 Attitudes (health, environmental consciousness, etc.)
 Leisure interests

Technological Factors that Impact HDFC Bank Limited

Technology is fast disrupting various industries across the board. Transportation industry is a
good case to illustrate this point. Over the last 5 years the industry has been transforming really
fast, not even giving chance to the established players to cope with the changes. Taxi industry is
now dominated by players like Uber and Lyft. Car industry is fast moving toward automation led
by technology firm such as Google & manufacturing is disrupted by Tesla, which has stated an
electronic car revolution.

A firm should not only do technological analysis of the industry but also the speed at which
technology disrupts that industry. Slow speed will give more time while fast speed of
technological disruption may give a firm little time to cope and be profitable. Technology
analysis involves understanding the following impacts -

15
  Recent technological developments by HDFC Bank Limited competitors
 Technology's impact on product offering
 Impact on cost structure in Foreign Regional Banks industry
 Impact on value chain structure in financial sector
 Rate of technological diffusion

Environmental Factors that Impact HDFC Bank Limited

Different markets have different norms or environmental standards which can impact the
profitability of an organization in those markets. Even within a country often states can have
different environmental laws and liability laws. For example, in United States – Texas and
Florida have different liability clauses in case of mishaps or environmental disaster. Similarly, a
lot of European countries give healthy tax breaks to companies that operate in the renewable
sector.

Before entering new markets or starting a new business in existing market the firm should
carefully evaluate the environmental standards that are required to operate in those markets.
Some of the environmental factors that a firm should consider beforehand are -

 Weather
 Climate change
 Laws regulating environment pollution
 Air and water pollution regulations in Foreign Regional Banks industry
 Recycling
 Waste management in Financial sector

Legal Factors that Impact HDFC Bank Limited

In number of countries, the legal framework and institutions are not robust enough to protect the
intellectual property rights of an organization. A firm should carefully evaluate before entering
such markets as it can lead to theft of organization’s secret sauce thus the overall competitive
edge. Some of the legal factors that HDFC Bank Limited leadership should consider while
entering a new market are -

 Anti-trust law in Foreign Regional Banks industry and overall in the country.
 Discrimination law
 Copyright, patents / Intellectual property law
 Consumer protection and e-commerce
 Employment law
 Health and safety law
 Data Protection

16
 COMPETITIVE ENVIRONMENT

Estimated Revenue & Valuation

 Home First Finance Company's estimated annual revenue is currently $110.7M per year.

(i)

 Home First Finance Company's estimated revenue per employee is $91,000

Employee Data

 Home First Finance Company has 1217 Employees.(i)

 Home First Finance Company grew their employee count by 24% last year.

Home First Finance Company Competitors & Alternatives

Number of
Competitor Name Revenue Employees Employee Growth Total Funding

#1 Merchant Strong... $0.9M 20 -17% N/A

#2 Razor pay $432.4M 2326 117% $741.6M

#3 Digit Insurance $246.5M 1326 49% $530.8M

#4 EngineerBabu $6.8M 105 -12% N/A

#5 Home First Fina... $110.7M 1217 24% N/A

#6 Paytm Payments ... $408.4M 4488 23% N/A

#7 Cover fox Insurance... $90.1M 546 5% $51.3M

#8 RedCarpetUp.com $23.6M 169 0% $6.6M

SWOT ANALYSIS

STRENGTHS:

17
Growth in Net Profit with increasing Profit Margin (QoQ)

Growth in Quarterly Net Profit with increasing Profit Margin (YoY)

Company with No Debt

Increasing Revenue every quarter for the past 2 quarters

Annual Net Profits improving for last 2 years

Book Value per share Improving for last 2 years

Company with Zero Promoter Pledge

FII / FPI or Institutions increasing their shareholding

WEAKNESS:

Negative Breakdown Third Support (LTP < S3)

Oversold by Money Flow Index (MFI)

Inefficient use of capital to generate profits - RoCE declining in the last 2 years

Inefficient use of shareholder funds - ROE declining in the last 2 years

Inefficient use of assets to generate profits - ROA declining in the last 2 years

OPPORTUNITIES:

Buy Zone: Stocks in the buy zone based on days traded at current PE and P/BV

Brokers upgraded recommendation or target price in the past three months

Insiders bought stocks

THREATS:

18
Red Flags: Weakening Technical and Share Price Decline

MARKETING MIX 7PS

Product:

HFFC offers a large array of products and services an insurance policy can be different every
time it is received. The service and the add-ons one get can be different for otherwise identical
products and the information a consumer gets is greatly influenced by the way in which an
insurance broker deals with a customer.
Digital technology has particularly aided the fast growth of insurance services in India.

Place:

The head office of HFFC is in Mumbai, India. However, the financial services company has
maintained, and extensive presence throughout India through its services

Price:

With regards to pricing, when seen in the context of banking and financial services, HFFC
strategy is competitive but compared to the competing providers in the public sector, its prices or
charges can be higher.

However, the company is working to make its services available to customers from all sections
across entire India including the populations in the rural and semi-urban areas of the country.

Promotion:

Apart from the traditional channels of marketing and promotions, HFFC also uses digital
technology and other modern tools and methods to promote its brand and services.

The company promotes its services including loans, and other services from its website. Over
time it has gained a large market share in India as a leading financial services company.

HFFC enjoys strong brand equity which is a result of consistent focus upon customer
convenience. It has been able to win in the customers’ trust through dedication to service.

People:

19
Apart from the other areas, HFFC excels in terms of HR too. The company places exclusive
focus on hiring and developing talent that can successfully help the company achieve its mission
of being ‘A World Class Company’.

There are five core values underlying the business philosophy of HFFC.

They are operational excellence, customer focus, product leadership, people and sustainability.
Apart from an important core value, its people’s happiness and satisfaction are also a strategic
priority for the company.

Processes:

The efficiency of banking processes is an important focus for HFFC in order to provide hassle-
free banking to all its customers. In recent years the company has heavily invested in digital
technology and AI to make banking safer and more accessible.

Physical Evidence:

It is the digital era and a very large number of customers are using their smartphones and
smartphone apps for their banking needs and to access their bank accounts online.

However, HFFC has an extensive physical network spread across India including its rural parts.

While customers can avail of most of the services online, they can still walk into a nearby branch

to see a representative face to face or to ask for information related to the services.

Lloyd ventures
PEST Analysis
Political Factors that Impact Lloyds Banking
- Political stability in the existing markets – Lloyds Banking operates in numerous countries so it
has to make policies each country based on the Regional Banks industry specific requirements.
Given the recent rise in populism across the world I believe that United Kingdom can see similar
trends and may lead to greater instability in the United Kingdom market.

- Importance of local governments in United Kingdom – Unlike in most other countries, local
governments play critical role in policy making and regulations in United Kingdom. Lloyds

20
Banking has to closely follow the states and territories it has presence in rather than devising
nation-wide policies in United Kingdom.

- Regulatory Practices – Lloyds Banking has to manage diverse regulations in the various
markets it is present in. Over the last few years United Kingdom and other emerging economies
have changed regulations regarding not only market entry but also how companies in Regional
Banks can operate in the local market.

- Changing policies with new government – Studying the current trends it seems that there can be
a transition of government in United Kingdom in next election. Lloyds Banking has to prepare
for this eventuality as it will lead to change in governance priorities of Financial sector.

- Governance System – The present governance system in United Kingdom has served its
purpose for the long time and I don’t think much will change in the process even though it may
throw up leaders that can lead divergent policy making from the historical norm. Lloyds Banking
has to keep a close eye on the industry wide government priorities to predict trends.

- Government resource allocation and time scale – The United Kingdom new government
policies can improve the investment sentiment in the Financial sector. Given the wider
acceptance of the suggested policies among population, it is safe to assume that the time scale of
these policies will be longer the mandated term of the present United Kingdom government.

Economic Factors that Impact Lloyds Banking

- Skill level of workforce in United Kingdom market – The skill level of human resources in
United Kingdom is moderate to high in the Financial sector. Lloyds Banking can leverage it to
not only improve services in United Kingdom but also can leverage the skilled workforce to
create global opportunities.

- Efficiency of financial markets in United Kingdom – Lloyds Banking can access vibrant
financial markets and easy availability of liquidity in the equity market of United Kingdom to
expand further globally.

- Inflation rate – The easy liquidity in the market post the great recession of 2018 will lead to
increasing inflation in the United Kingdom economy.

- Exchange rate – The volatile exchange rate of United Kingdom can impact Lloyds Banking
investment plans not only in the short term but also in the long run.

- Downward pressure on consumer spending – Even though the consumer disposable income has
remain stable, the growing inequality in the society will negatively impact consumer sentiment
and thus impact consumer spending behavior.

- Government intervention in the Financial sector and in particular Regional Banks industry can
impact the fortunes of the Lloyds Banking in the United Kingdom.

21
Social Factors that Impact Lloyds Banking
- Leisure interests – the customers in the United Kingdom are giving higher preferences to
experiential products rather than traditional value proposition in Financial sector. Lloyds
Banking can leverage this trend to build products that provide enhanced customer experience.

- Education level – The education level is high in United Kingdom especially in the Lloyds
Banking sector. Lloyds Banking can leverage it to expand its presence in United Kingdom.

- Access to essential services – By and large over the last decade and half the wider population in
getting access to essential services in United Kingdom. This has been a result of increasing
investment in public services.

- Societal norms and hierarchy – the society of United Kingdom is different from the home
market of Lloyds Banking. It should strive to build a local team that understands the societal
norms and attitudes better to serve the customers in United Kingdom.

- Power structure – There is an increasing trend of income inequality in United Kingdom. This
has altered the power structure that has been persistent in the society for over last 6-7 decades.

- Gender roles – The gender roles are evolving in United Kingdom. Lloyds Banking can test
various concepts to cater to and support these evolving gender roles in United Kingdom society.

Technological Factors that Impact Lloyds Banking

- Maturity of technology – The technology in the Regional Banks sector is still not reached
maturity and most players are vying for new innovations that can enable them to garner higher
market share in United Kingdom.

- Intellectual property rights and patents protection – If United Kingdom have higher safeguards
for IPR and other intellectual property rights then more and more players are likely to invest into
research and development.

- Technological innovation is fast disrupting the supply chain as it is providing greater access to
information to not only supply chain partners but also to wider players in the Financial industry.

- Empowerment of supply chain partners – Technology has shortened the product life cycle and
it has enabled suppliers to quickly develop new products. This has put pressure on Lloyds
Banking marketing department to keep the suppliers happy by promoting diverse range of
products. It has added to the cost of operations of the Lloyds Banking.

- Developments and dissemination of mobile technology has transformed customer expectations

in the Financial sector. Lloyds Banking has to not only meet and manage these expectations but
also have to innovate to stay ahead of the competition.

22
- Latest technology based innovations implemented by competitors of Lloyds Banking – This
can provide a good insight into what the competitors are thinking and where Regional Banks
business model future is.

Environmental Factors that Impact Lloyds Banking

- Extreme weather is also adding to the cost of operations of the Lloyds Banking as it has to
invest in making its supply chain more flexible.

- Environmental norms are also altering the priorities of product innovation. In many cases
products are designed based on environmental standards and expectations rather than catering to
traditional value propositions.

- Customer activism – Greater awareness among customers have also put environmental factors
at the center of Lloyds Banking strategy. Customers expects Lloyds Banking to adhere to not
only legal standards but also to exceed them to become responsible stakeholder in the
community.

- Paris Climate Agreement has put real targets for the national government of United Kingdom to
adhere to. This can result in greater scrutiny of environmental standards for Lloyds Banking in
United Kingdom.

- Renewable technology is also another interesting area for Lloyds Banking. It can leverage the
trends in this sector. United Kingdom is providing subsidies to invest in the renewable sector.

- Regular scrutiny by environmental agencies is also adding to the cost of operations of the
Lloyds Banking.

Legal Factors that Impact Lloyds Banking

- Health and safety norms in the United Kingdom and what Lloyds Banking needs to do to meet
those norms and what will be the cost of meeting those norms.

- Business Laws – The business laws procedure that United Kingdom follows. Are these norms
consistent with international institutions such as World Trading Organization, European Union
etc.

- Data protection laws – Over the last decade data protection has emerged as critical part of not
only privacy issues but also intellectual property rights. Lloyds Banking has to consider whether
United Kingdom have a robust mechanism to protect against data breaches or not.

- Time take for business cases in court – some countries even though follow international norms
but the time for resolution often run in years. Lloyds Banking has to carefully consider average
time of specific cases before entering an international market.

23
- Environment Laws and guides – The level of environmental laws in the United Kingdom and
what Lloyds Banking needs to do to meet those laws and regulations.

- Legal protection of intellectual property, patents, copyrights, and other IPR rights in United
Kingdom. How Lloyds Banking will be impacted if there are not enough protection.

Competitive Enviornment-
The impact of key competitors in the Lloyds Bank Porter Five Forces Analysis is as follows:
The companies operating in the financial services industry are very few, and the market share is
divided among the traditional players. Because of the close-knit nature of the industry, any move
to gain strategic advantage by any firm is
easily noticeable by other companies, which
can adapt their plans accordingly. Some key
competitors of Lloyds Bank are
Natwest, Barclays, HSBC etc. The
industry is growing rapidly, which
implies that firms don’t have to compete with
each other for market share if they have to
grow. The products produced by these
banking and financial services
companies are highly differentiated, and each
company has expertise in certain types of
products. This makes the environment
conducive for mutual growth. However, these
companies compete aggressively to offer
the best deals to their customers to attract maximum masses, which hampers overall profitability
of each firm.
Hence, we may conclude that the competitive rivalry is a moderate force to affect and define the
competitive landscape for Lloyds Bank.
To conclude, the above Lloyds Bank Porter Five Forces Analysis highlights the various elements
which impact its competitive environment. This understanding helps to evaluate the various
external business factors for any company.
Competitor comparison
HSBC Holdings PlcHeadquarters

United Kingdom

No. of employees

220,075

Revenue

24
$80.6B

Entity type

Public

Barclays PlcHeadquarters

United Kingdom

No. of employees

81,600

Revenue

$38.0B

Entity type

Public

Standard Chartered PlcHeadquarters

United Kingdom

No. of employees

81,904

Revenue

$19.1B

Entity type

25
Public

NatWest Group Plc Headquarters

United Kingdom

No. of employees

60,000

Revenue

$17.9B

Entity type

Public

SWOT Analysis

26
Strengths of Lloyds – Internal Strategic Factors

As one of the leading companies in its industry, Lloyds has numerous strengths that help it to
thrive in the market place. These strengths not only help it to protect the market share in existing
markets but also help in penetrating new markets. Based on Fern Fort University extensive
research – some of the strengths of Lloyds are –
 High level of customer satisfaction – the company with its dedicated customer
relationship management department has able to achieve a high level of customer
satisfaction among present customers and good brand equity among the potential
customers.
 Reliable suppliers – It has a strong base of reliable supplier of raw material thus enabling
the company to overcome any supply chain bottlenecks.
 Strong Free Cash Flow – Lloyds has strong free cash flows that provide resources in the
hand of the company to expand into new projects.
 Successful track record of developing new products – product innovation.
 Superb Performance in New Markets – Lloyds has built expertise at entering new
markets and making success of them. The expansion has helped the organization to build
new revenue stream and diversify the economic cycle risk in the markets it operates in.
 Strong dealer community – It has built a culture among distributor & dealers where the
dealers not only promote company’s products but also invest in training the sales team to
explain to the customer how he/she can extract the maximum benefits out of the products.
 Successful track record of integrating complimentary firms through mergers &
acquisition. It has successfully integrated number of technology companies in the past
few years to streamline its operations and to build a reliable supply chain.
 Strong distribution network – Over the years Lloyds has built a reliable distribution
network that can reach majority of its potential market.

Weakness of Lloyds – Internal Strategic Factors

Weakness are the areas where Lloyds can improve upon. Strategy is about making choices and
weakness are the areas where an organization can improve using SWOT analysis and build on its
competitive advantage and strategic positioning.

 Days inventory is high compare to the competitors – making the company raise more
capital to invest in the channel. This can impact the long term growth of Lloyds
 Financial planning is not done properly and efficiently. The current asset ratio and liquid
asset ratios suggest that the company can use the cash more efficiently than what it is
doing at present.
 Organization structure is only compatible with present business model thus limiting
expansion in adjacent product segments.
 The company has not being able to tackle the challenges present by the new entrants in
the segment and has lost small market share in the niche categories. Lloyds has to build
internal feedback mechanism directly from sales team on ground to counter these
challenges.
 There are gaps in the product range sold by the company. This lack of choice can give a
new competitor a foothold in the market.

27
  Not very good at product demand forecasting leading to higher rate of missed
opportunities compare to its competitors. One of the reason why the days inventory is
high compare to its competitors is that Lloyds is not very good at demand forecasting
thus end up keeping higher inventory both in-house and in channel.
 The marketing of the products left a lot to be desired. Even though the product is a
success in terms of sale but its positioning and unique selling proposition is not clearly
defined which can lead to the attacks in this segment from the competitors.

Opportunities for Lloyds – External Strategic Factors

 New trends in the consumer behaviour can open up new market for the Lloyds . It
provides a great opportunity for the organization to build new revenue streams and
diversify into new product categories too.
 New customers from online channel – Over the past few years the company has invested
vast sum of money into the online platform. This investment has opened new sales
channel for Lloyds. In the next few years the company can leverage this opportunity by
knowing its customer better and serving their needs using big data analytics.
 Economic uptick and increase in customer spending, after years of recession and slow
growth rate in the industry, is an opportunity for Lloyds to capture new customers and
increase its market share.
 The new taxation policy can significantly impact the way of doing business and can open
new opportunity for established players such as Lloyds to increase its profitability.
 The market development will lead to dilution of competitor’s advantage and enable
Lloyds to increase its competitiveness compare to the other competitors.
 Organization’s core competencies can be a success in similar other products field. A
comparative example could be - GE healthcare research helped it in developing better Oil
drilling machines.
 New environmental policies – The new opportunities will create a level playing field for
all the players in the industry. It represent a great opportunity for Lloyds to drive home its
advantage in new technology and gain market share in the new product category.
 The new technology provides an opportunity to Lloyds to practices differentiated pricing
strategy in the new market. It will enable the firm to maintain its loyal customers with
great service and lure new customers through other value oriented propositions.

Threats Lloyds Facing - External Strategic Factors

 Increasing trend toward isolationism in the American economy can lead to similar
reaction from other government thus negatively impacting the international sales.
 The demand of the highly profitable products is seasonal in nature and any unlikely event
during the peak season may impact the profitability of the company in short to medium
term.
 Changing consumer buying behavior from online channel could be a threat to the existing
physical infrastructure driven supply chain model.
 Liability laws in different countries are different and Lloyds may be exposed to various
liability claims given change in policies in those markets.
 Imitation of the counterfeit and low quality product is also a threat to Lloyds’s product
especially in the emerging markets and low income markets.

28
  Rising pay level especially movements such as $15 an hour and increasing prices in the
China can lead to serious pressure on profitability of Lloyds
 New technologies developed by the competitor or market disruptor could be a serious
threat to the industry in medium to long term future.
 Growing strengths of local distributors also presents a threat in some markets as the
competition is paying higher margins to the local distributors.

7 P's

Product

 sells its products under 5 broad categories, and each of these serves as separate product
lines. All of its products are sold under the brand name of.
 sells products with a lot of variety available, which allows customers to select the product
variety that best suits them.
 sells products that are highly differentiated, with various features offered to customers
that competitors don’t offer. Its products are therefore considered to be unique.
 Its products are perceived to be of higher quality than that of competitors. Therefore,
customers are willing to pay a higher price for these.
 sells products that are famous for its traditional design that is also practical for customers
to use.

29
Price

 The current pricing strategy to set the price level that follows is a competitive based
pricing strategy. This is because the data on competitors is easily available due to a large
number of competitors that exists within the industry.
 It also takes costs into consideration to set prices for a few products for which either
information is not available on competitors, or are costlier to make,
 sells its products at a higher price than competitors. This is because it offers more
features, and the high price makes up for these.
 It currently uses product bundle pricing as well, where products are bundled together and
sold at prices lower than the total of individual items.
 It also uses an optional product pricing strategy for certain products, where it offers a
price for the base product and separate prices for the accessories that come along with it.
 It charges a greater price for the products it sells online. This is because delivery costs
have been included in the price of the product.
 has fixed the prices of the final product. Channel members; retailers and wholesalers, buy
the product at a lower price and earn through their own margins.

Place

 sells its products through two marketing channels. The first is where it sells directly to its
customer through its online website. The second is where it sells to wholesalers who then
sell to different retailers located all over the country. These then sell to its customers.
 has its products present on over 500 retailers throughout the country. It follows an
intensive marketing strategy where it tries to include its products on as many retailers as
possible. This ensures that its products are available to customers easily in different parts
of the country.
 has a substantial amount of online sales with frequent traffic on its websites. In order to
run its online operations, has partnered with numerous delivery service providers in order
to provide timely deliveries.
 It follows an omni-channel distribution system where it has integrated its online and
offline stores to allow customers easy access to its products.

30
  has a network of over 500 suppliers that provide it with the raw materials needed for
production. It has developed a close working relationship with its suppliers allowing the
company to work with them to innovate and introduce new and attractive features on its
products.

Promotions

 uses multiple media channels to promote its products. It uses traditional media, which
includes an advertisement on television and radio. This is beneficial due to its large reach
and ability to attract a large number of people. It uses online and social media
advertising, which is cheaper and beneficial due to the increasing usage of the internet.
 It advertises on various social media platforms with a focus on YouTube, Facebook and
Twitter due to the high monthly usage of these. It has over one hundred thousand likes or
customer following on these pages, which are exposed to frequent content uploaded by.
 undergoes various sales promotion taking part in various trade exhibitions and events
around the year.
 undergoes personal selling, with a large sales force to increase its presence in retail
stores.
 uses a percentage of sales method to determine the promotions budget for the year.

People

 has people working under its sales team that play a vital role in its marketing efforts.
These people have been trained in persuasive techniques, but also to show respect to the
business customers taking into consideration their preferences.
 has people working in its customer service department. These are contacted by customers
in case of any issues within the product, and these people guide customers through the
process of getting the issues resolved. These people are trained to respect the customers
and try their best to get their issues resolved.
 has people working with suppliers to obtain raw materials. These people play a vital role
in maintaining or improving the quality of the final product produced.

31
  has people working at retail stores who help the customer on site, by answering any
questions or helping them decide the product that best suits their needs.

Process

 to make sure that its products are always available at retail stores has systems installed
where retailers can notify when their inventory levels are low. provides them with more
products while ordering its productions to replenish its stock. This ensures that products
are always available to customers when needed.
 has an online delivery process, where orders are received in the computer system and
based on these orders, the relevant product from the inventory is shipped to the delivery
service provider.
 is actively involved in researching market opportunities in order to understand customer
needs. It also develops understanding regarding customer needs through feedback
collected at store, its helpline or social media pages.

Physical Evidence

 sells its products in a distinct colour packaging that easily identifiable on retail shelves.
These are placed on special shelves provided by the company, which also have a distinct
colour and design. This makes it easier for customers to locate such shelves in busy retail
stores.
 has an online website that is user-friendly and allows customers to view its products in
high quality images taken from various angles.

32
 Bibliography
https://awsone.capitaline.com/
https://www.marketing91.com/swot-analysis-itc/

https://www.ebsco.com
https://www.coursehero.com/file/88105012/Pestel-Analysis-of-ITCdocx/
https://www.mbaskool.com/marketing-mix/products/17001-itc.html
https://trendlyne.com/equity/swot-buy-or-sell/407835/HOMEFIRST/home-first-finance-
company-india-ltd/weakness/
https://homefirstindia.com/about/
https://www.swotandpestle.com/lloyds-banking-group/
https://mailchimp.com/marketing-glossary/marketing-mix-7ps/

33