Internal and External analysis of Australia and New Zealand Banking group

This report focuses on the internal and external analysis of Australia and New Zealand Banking group which has been undertaking banking and financial services in market. It emphasizes upon the competencies, values, core aspect and organizational structure of the organization. The main purpose of this assignment is to analysis the core competency and core values which Australian and New Zealand banking group limited could use to beat the competition in market.

Australia and New Zealand Banking group
Internal and External analysis
Name of Author

Executive Summary
With the ramified economic changes and complex business structure, each and every
organization needs to evaluate all the internal and external factors before making effective
strategic decision making. This report focuses on the internal and external analysis of
Australia and New Zealand Banking group which has been undertaking banking and financial
services in market. It emphasizes upon the competencies, values, core aspect and
organizational structure of the organization. The main purpose of this assignment is to
analysis the core competency and core values which Australian and New Zealand banking
group limited could use to beat the competition in market. The main recommendation of
company is to use the effective financial and banking services to local iwi and hapu in Maori
to strengthen the overall business outcomes on sustainable basis.. The main outcome for
company would be out of the well served financial products and services to local iwi and
hapu in Maori.

Table of Contents
Executive Summary...............................................................................................................................1
Introduction...........................................................................................................................................3
Background of the company..............................................................................................................3
Industry analysis................................................................................................................................3
Internal analysis of company.................................................................................................................4
External analysis of company................................................................................................................5
Future opportunities available for Australian and New Zealand banking group limited........................7
Treaty of the Waitangi...........................................................................................................................7
Concept of The concept of Treaty of Waitangi..................................................................................7
Counterparts setup for the bi-culture partnership............................................................................7
Basic overview of Maori customs and norms....................................................................................7
Basic concepts of Whanau, Hapu and Iwi..........................................................................................7
Outlining the key principles of bicultural partnership, participation and protection.........................8
Application of treaty principles to business activities and relationship.............................................8
Recommendation...................................................................................................................................9
Conclusion.............................................................................................................................................9
References...........................................................................................................................................10

Introduction
Organization is accompanied with the several complex set of factors and activities in
which various functions are performed to achieve the set objectives and goals in determined
approach. The main aim of this report is to make assessment of the internal and external
factors of The Australian and New Zealand banking group limited. In addition to this, other
emphasis have been made to analysis and evaluate the pervasive influence of global forces on
this company. Afterward, the treaty of Waitangi has been analyzed in context with the
application of the treaty in this company. Nonetheless, the report is prepared after analysing
the main stakeholders’ groups, including local iwi and hapu. The main scope is this project is
to assess the viability of the existing business of Australian and New Zealand banking group
limited and possible future opportunities available to company. The main limitation of
prepared report is based on the changing business factors and uncountable economic factors
which could influence business functioning of organization in long run.
Background of the company
The Australian and New Zealand banking group limited
This company is the third largest banking group in Australian market which has been
indulged in providing financial and banking services to clients on international level. The
present CEO of company is Shayne Elliott who has taken all the required actions and all the
employees are accustomed to act as per his direction. Currently stock price of The Australian
and New Zealand banking group limited is traded A$ 28.17 +0.18 (+0.64%) which divulges
positive growth of the company in long rum (Australia and New Zealand Bank, 2017).
Industry analysis
It is analyzed that banking and financial industry have been gaining momentum
banking services has witnessed growth of average 22% since last three years. This industry
has shown the increment of 15% as compared to last year turnover which is biggest
achievement for this industry. However, the major player of this market who are highly
influencing and getting influence are, Westpac, National Australian Bank and the
Commonwealth Bank of Australia. The overall market beta of this industry is .75 which

reflects the correlation of the business changes and market premium risk faced by these
companies due to the external factors in market (Australia and New Zealand Bank, 2017).
Internal analysis of company
This analysis focuses on the strength, weakness, opportunity and threats to organization.
However, the main strength of company is related to its established brand image and advance
technical features such as cyber computing system and online dashboard mechanism to
connect with the clients in its banking and financial services. The weakness of The Australian
and New Zealand banking group limited is based on its legal compliance program. Company
has faced high complexity and penalties in its process due to the less effective legal
compliance program. With the growth of the banking and financial industry, company could
easily penetrate the banking and finaincal market with its low value charged interest rate and
other valuable scriptures in market. The main threat to company is to maintain its consistent
brand image as several new comers and rivals are tapping this banking and financial market
with their advance technologies and attractive offers (Australia and New Zealand Bank,
2017).
The corporate values of Australian and New Zealand banking group limited is to
focus on strengthen integrity, collaboration, accountability, respect and excellence. The main
culture of company is to build creative and inclusive environment where idea, belief, attitude
and skills of the employees are valued. It has also established harmonization in the
stakeholder’s growth and organization development. Company has developed its core
competency in providing training and development to its employees so that they could deliver
better outcomes to organization (Brigham, Ehrhardt, Nason,. and Gessaroli, 2016). In
addition to this, company has been offering different customized financial products for clients
which assist them to create value on their invested capital in long run. The management and
leaders are the most influential person in organization who are following autocratic
leadership style. However, each and every process is designed in such a way that employees
up there will be accustomed to act as per the directions and instruction of appointed line
managers. The total number of employees is 66102 who are indulged in operating the total
assets of AUD $ 889.9 billion. Company had last year income of AUD $7.493 billion which
is 13% higher as compared to last three year data. Company has earned profit from its
business operations around AUD $ 7.933 billion throughout the time. The main strategy of
company to win over the competitors in financial and banking industry is related to follow

the product differentiation strategy in which all the financial products and services have been
designed as per the client’s needs and demand in market.
External analysis of company
The external analysis of company focuses on the analysing all the external factors which
might directly and indirectly impact the business functioning of organization (Kelsey, 2015).
Political legal and regulatory factors
It is analyzed that the political factors of New Zealand is stable and showing dynamic growth
for Australian and New Zealand banking group limited in New Zealand. The bureaucracy and
interference of government in this particular country is less which assist company to operate
its financial and banking services effectively. In addition to this, all the operations of the
company are surveillance and assessed by the reserve bank of New Zealand in the best
interest of New Zealand people. It is analyzed that New Zealand’s system of government is
strongly influenced by the treaty of Waitangi. Company created new position after head of
Maori business which eyes NZ$47 billion worth of Maori economy assets after following the
treaty of Waitangi claim settlements. The treaty of Waitangi has increased the flow of
investment of banks in Maori. However, local iwi and hapu could also benefit themselves by
using the capital invested by this Organizaiton for their personal and business development
(Tsingou, 2015).
Economic Environment
The macro environment factor such as interest rate, saving rate, foreign exchange rate and
other influencing economic condition of country is showing positive outcomes for Australian
and New Zealand banking group limited to grow in market. However, due to the increased
GDP rate of New Zealand, company could easily use the open market operations to penetrate
New Zealand market with its banking and financial products. The treaty of Waitangi designed
to benefit the entire lwi to support and their economic development. This could be used by
Australian and New Zealand banking group to support local iwi and hapu in Maori (Betz, &
Kerner, 2016).
Demographics, social and cultural factors

The social culture of Maori is accompanied with the values, belief, and culture of the
local iwi and hapu in Maori. It is analyzed that people in local iwi and hapu in Maori New
Zealand are more inclined towards buying the financial products which are offering high
return and help them to gain the proper outcomes from the invested capital. Company could
issue debt capital and other scriptures at high return offering commitment which will attract
more clients in New Zealand. However, culture of the people in New Zealand is more
inclined towards investing capital for on the systematic basis. Therefore, the scriptures
offered by company to local iwi and hapu in Maori will be biggest weapon to win over the
market (Katznelson, & Shefter, (2018).
Technological advancement
With the ramified technologies changes, Australian and New Zealand banking group limited
have installed the cyber computing enterprises resources planning in its business cycle to
communicate and handle local iwi and hapu issues and queries in market. However, by using
these technologies, company could easily strengthen visibility of its products in market for
local iwi and hapu in Maori (Harker, Taylor, & Knight-Lenihan, 2017).
Competitors
The major competitors of company are Westpac, National Australian Bank is the
international competitors and domestic rivals are ASB bank, Bank of India and Bank of New
Zealand and the Commonwealth Bank of Australia. These companies are using their strong
brand image and high quality financial and banking services to attract more clients. However,
these companies are focusing on using open market operations methods to increase their
overall revenue and strengthen its strong brand image (Etzioni, 2016).
Customers
People in New Zealand are inclined towards investing their capital in banks which offer high
interest rate. Australian and New Zealand banking group limited focused on issuing the
scriptures to clients in market for their better return and increased investment output. The
main clients for company are local iwi and hapu in Maori who could create value on the
invested capital (Orange, 2017).
Suppliers

The main supplier for Australian and New Zealand banking group limited are Reserve Bank
of New Zealand who provide funding and capital to company to invest in its business
operation.
Agencies and Interest group
The main supporting agencies and interest group of company is Federal banking agency and
Reserve bank of New Zealand.
Future opportunities available for Australian and New Zealand banking group limited
Treaty of the Waitangi
Concept of The concept of Treaty of Waitangi
The Treaty of Waitangi is the founding document which was signed on 6
February 1840. It reveals the principles on which the British and Māori made a political
compact which was used to found a nation state and build a government in New Zealand. The
Treaty of Waitangi is the biggest beneficial part for the Australian and New Zealand banking
group limited to grab British and Māori clients. People in British and Māori clients are
inclined towards long term borrowing (Harker, Taylor, & Knight-Lenihan, 2017). This treaty
was drafted for the identity the Maori ownership of the forests and other possessions in the
eyes of the British Governor. It was done to prevent the selling of the Maori Lands and
possessions by the government by keeping them distinguished form the alienated indigenous
people.
Counterparts setup for the bi-culture partnership
The bi-culture partnership was set up the relation between the the non-Maori people
and the Maori people. It was done to strengthen the relationship between the people from the
different culture.
Basic overview of Maori customs and norms
Maori people are around 7, 00,000 in numbers in New Zealand. They kiss on the
cheek as greating that is called Hongi. Powhiri is the also called as powhiri starting the
welcome ceremony of the Maori people for the visitors

Basic concepts of Whanau, Hapu and Iwi
It is considered that Whannu in Maori langue is accepted for the family community
members. On the other hand, Hapu is the division of the Maori community. It is the larger
part of the Iwi. The Iwi denotes the largest social units in Maori or as tribe. It showcases that
people have nexus with the original Polynesian migrants who arrived from the place name
Hawaki. The Happu is the division of Maori Community as it has membership by the
genealogical ddescent. Hapu is comprised of several number of the family group. In Maori
language, Iwi words is for the peopl
Outlining the key principles of bicultural partnership, participation and
protection
The key principle of treaty of the Waitangi is based on the bicultural partnership,
participation and protection which help in developing the open- partnership which could
reinforce the collaborative e of nation and could be translated as Tribe. Iwi People have their
link to the original Polynesian migrants which have come from Hawaki place. IN addition to
this, Waka is also called as larger group of the clustered Iwi.
sharing of ideas, experience and wisdom. In the principle of treaty of the Waitangi,
partnership is related to the meaning of working with the Maori communities like Hapu,
Whanau and Iwi to manage the work culture effectively. Another is related to the
participation which focuses on the innovation of Maori People at all level of the workplace
accompanied with the planning, execution and decision making process of the company.
Another principle of principle of treaty of the Waitangi is related to protection which requires
government involvement to ensure that Maori people have same level of the protection which
non-Maori people have in relation to the culture, practice and values. Australian and New
Zealand banking group limited needs to adopt the key principles of bicultural partnership,
participation and protection to make its busienss culture and policies as per the employees
need and culture. The main benefit of adopting key principles of Treaty of Waitangi is to
have possible participations from the Maori people in the process system of Australian and
New Zealand banking group limited.
Application of treaty principles to business activities and relationship
The Treaty of Waitangi was done to set up the nexus between the Pakeha and
Maori and keeping their rights protected from the the rights of the Maori Tribe. The The
Treaty of Waitangi gives chances of accepting the indigenous poepel in the banking

busienss and provide them equal rights under the law. Australian and New Zealand banking
group limited needs to penetrate market by keeping the low interest rate for clients and
offering scriptures which gives higher return to investors. The main opportunity for
Australian and New Zealand banking group limited is to enter into strategic alliance with the
insurance and investment banker who invest client’s capital in particular place to create value
on the investment. It is analyzed that New Zealand’s system of government is strongly
influenced by the treaty of Waitangi and increased flow of investment. Company will focus
on using the charge creation on the assets mortgage for the loans and advances to the British
and Māori people. However, local iwi and hapu could also benefit themselves for their
economic business development (Brigham, Ehrhardt, Nason, and Gessaroli, 2016).
Recommendation
 Local iwi and hapu could benefit themselves by investing their capital in the particular
projects to save themselves from the loss of capital arise due to the time value of money.
 Company needs to develop customize its financial services as per the needs and demand of
the local iwi and hapu in New Zealand.
 Treaty of Waitangi could also be beneficial for Australian and New Zealand banking group to
tap the Maori to create value on the investment and strengthen brand image.
 The treaty made designed to benefit the entire lwi to support and their economic
development. This could be used by Australian and New Zealand banking group to support
local iwi and hapu in Maori.
 Company needs to focus on customized its financial products and services for the betterment
of the support local iwi and hapu in Maori.
 Strengthen financial position on international level will assist company to create value on the
investment if it is done to support local iwi and hapu (Blackley, et al. (2015).
Conclusion
After analysing all the internal and external factors of company, it is inferred that
Australian and New Zealand banking group has strong financial position in international
market which could be used to create value on the investment. It needs to focus on investing
and supporting local iwi and hapu in Maori. Company should strengthen the quality of its
offered financial services by customized its products and services as per the local iwi and

hapu in Maori. Now in the end, it could be inferred that local iwi and hapu in Maori are the
loyal clients for company if they are served well then it could assist company to create value
on the invested capital.

References
Australia and New Zealand Bank, (2017). Annual report., retrieved from
https://www.commbank.com.au/content/dam/commbank/about-us/shareholders/pdfs/annual-
reports/annual_report_2017_14_aug_2017.pdf.m
Betz, T., & Kerner, A. (2016). The influence of interest: Real US interest rates and bilateral
investment treaties. The Review of International Organizations, 11(4), 419-448.
Blackley, R., Brown, M., Cooper, A., Hilliard, C., O’Malley, V., Meredith, P., ... & Wevers,
L. (2015). Michael Belgrave is Professor of History at Massey University, Albany, and was
previously research manager of the Waitangi Tribunal. Aspects of Treaty settlements with a
number of iwi., Journal of New Zealand Studies NS19, 140.
Brigham, E.F., Ehrhardt, M.C., Nason, R.R. and Gessaroli, J., 2016. Financial Managment:
Theory and Practice, Canadian Edition. Nelson Education.
Etzioni, A. (2016). The Asian Infrastructure Investment Bank: a case study of multifaceted
containment. Asian Perspective, 40(2), 173-196.
Harker, J., Taylor, P., & Knight-Lenihan, S. (2017). Multi-level governance and climate
change mitigation in New Zealand: Lost opportunities. Climate policy, 17(4), 485-500.
Katznelson, I., & Shefter, M. (Eds.). (2018). Shaped by war and trade: International
influences on American political development (Vol. 79). Princeton University Press.
Kelsey, J. (2015). The New Zealand experiment: A world model for structural adjustment?.
Bridget Williams Books.
Orange, C. (2017). Te Tiriti o Waitangi: The Treaty of Waitangi, 1840. Bridget Williams
Books.
Tsingou, E. (2015). Club governance and the making of global financial rules. Review of
International Political Economy, 22(2), 225-256.