Analyzation of Organizational Culture of Commonwealth Bank of Australia

This presentation provides an analysis of the organizational culture of Commonwealth Bank of Australia. It examines the internal and external factors of the company, conducts SWOT and PESTLE analysis, and identifies the competitive advantage. The presentation also explores strategic opportunities and risks.

Analyzation of Organizational Culture of
Commonwealth Bank of Australia
Name of the Student
Name of the University
Author Note

Introduction
• Overview of Commonwealth Bank of Australia
• Analyze the internal and external factors of the company
• Diagnosis of the internal and external economy of the company using
SWOT and PESTLE analysis
• Identification of competitive advantage
• Identifying strategic opportunities and risks

Overview
• Commonwealth Bank of Australia is a multinational bank
• Having presence in UK, USA, Asia, New Zealand apart from Australia
• Founded in as a Government Bank in the year 1911
• Changed to private bank in 1996
• Headquartered in Sydney
• Has over 1,100 branches and over 4,300 ATM
• Largest listed company in Australia
• Largest bank in Southern Hemisphere

• Supplies full range of commercial services like Capital Management,
Professional, Institutional, Premium and Retail Banking, Investments,
Insurances, Pension and Broking Services
• Catherine Livingstone is the Chairman
• Matt Comyn is the Managing Director and Chief Executive Officer
• Serves almost 16 million customers
• Employs almost 49,000 people
• Stakeholders presence of almost 800,000

SWOT Analysis of CBA
STRENGTHS
• Chief Bank in Australia according to the Main Financial Institution
(MFI) Rankings
• Well differentiated and superior quality credit portfolio
• Continuous importance on technology
• Strong wealth position and capital ratios
• Continuous improvement of the working environment
• Successful track record of product innovation
• Strong presence of free cash flow
• Reliability of the suppliers

SWOT Analysis of CBA
Weaknesses
• High dependency on borrowings from foreign banks, corporates and
institutions
• Increase of operational expenses globally
• Limitation of geographical variations
• Involvement in the scandal of money laundering
• Hugh attrition rate in workforce
• Limited success outside nucleus of the business
• Lack of product range

SWOT Analysis of CBA
Opportunities
• Expansion into other developing markets like that of Asia, North
America and Europe
• Indigenous Customer Assistance Line (ICAL)
• New customers base from the online channel
• New environmental policies
• Reduction in the transportation cost
• New policy in taxation
• Fresh use of technology
• Change in the behavior of the customers

SWOT Analysis of CBA
Threats
• Cancelling of the government agreements to banks
• Requirement of higher capital by APRA
• Delicate professional environment and slowdown in China
• Shift of consumer buying behavior from online platform
• Irregular supply of innovative products
• Liability laws in different countries
• Intense competition from the other market players
• New development of technologies by the competitors

PESTLE Analysis
Political Factors
• Warming relations with China and other Asian countries
• Regulations in Price and change in taxation
• Legal architecture and contract enforcement
Economical Factors
• Ageing population and expansion of economy
• Dark or cloudy macroeconomic outlook with rising risks
• Inflation and interest rates
• Economic growth and unemployment rate

PESTLE Analysis
Social Factors
• Cosmopolitan culture market variation
• Class and power structure in the society
• Attitude and culture of the people
Technological Factors
• Concern of Cybersecurity
• Investment in next-generation financial technology
• Impact of cost and value chain structure in Banking industry
• Rate of technological dispersion

PESTLE Analysis
Legal Factors
• Accusations of money laundering and other disputes against the bank
• Employment, Health and Safety and Discrimination law
• Protection of Data
Environmental Factors
• Regulations of land and water
• Weather conditions and climatic changes
• Regulation of laws in environmental pollution
• Recycling and waste management

Competitive Advantage
• Commonwealth Bank of Australia follows the Ansoff Matrix
• Market Penetration – CBA has penetrated the international market with its existing as well as
new and fresh services like CommBank app
• New schemes in Everyday Account Smart Access in Debit Cards, Personal loans and Savings
account and term deposits
• Premier and Private banking with dedicated Relationship Manager and International Money
Transfers
• Market Development – CBA is trying to penetrate into new untapped market, regionally and
globally through its wide range of services
• Range of insurance options like Home 7 Car Insurance, Travel Insurance, Home Loan Protection
and Life and Income Insurance
• Terrific Customer Services as well as Self Managed Super Fund schemes and Investment
Guaranteed Bonds as unique products for the customers

Competitive Advantage (contd.)
• Product Development – CBA is creating innovative services to attract
the global competitive market
• Unique Services like Essential Super to sustain CBA as market leader
• Provides financial planning to the customers, another unique service
from CBA to remain different from others
• Providing various EFTPOS options and flexible merchant solutions
• Diversification – Introduced a wide range of services in the existing
and new market to retain as well as increase customer base
• Various market leading and financial solutions for large corporations
and institutions
• Commonwealth Direct Investment Account, another Unique service
provided by CBA to remain the market leader

Diagnosis
• Always trying to launch new products and services continuously
• To retent the existing customers as well as attracting the new untapped
market
• Maintaining high rate of customer satisfaction level
• Requirement of high quality customer service
• Hamper in the brand image due to the money laundering scandal in
August 2017
• Have to manage the global wealth properly
• Huge scope to expand more globally
• Can tie-up with some indigenous and low-revenue generated financial
players of different countries

Conclusion
• Excellent scope of growth
• Huge customer base and scope of adding more
• Launch of new innovative products and services
• Bringing back the brand loyalty
• Proper allocation of resources
• Corporate social responsibilities

References
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Optimal Strategic Performance-positioning Matrix on Small Business
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• Ho, J.K.K., 2014. Formulation of a systemic PEST analysis for
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• Pavlyushchenko, D., 2017. Digitalization of Retail Financial Services:
Direct Banking in Europe.
• Perez, E., Com, B. and GU, B., 2014. Exploring Strategy and Strategic
Planning within Australian Commercial Fisher Micro-Businesses.
• Shi, X., 2016. The future of ASEAN energy mix: A SWOT
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