ANZ and Bitcoin: A Strategic Management Analysis

This report analyzes the impact of Bitcoin on ANZ, one of the oldest banks in Australia, through PESTLE and Porter analysis. It also includes an analysis of Bitcoin and its potential as a digital currency.

Running Head: ANZ and Bitcoin
ANZ and Bitcoin
Strategic Management

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ANZ and Bitcoin
Contents
Introduction.................................................................................................................................................2
Background of ANZ with Bitcoin..................................................................................................................2
PESTLE Analysis of ANZ................................................................................................................................3
Porter Analysis.............................................................................................................................................4
Bitcoin Analysis............................................................................................................................................5
Conclusion...................................................................................................................................................6
References...................................................................................................................................................7

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ANZ and Bitcoin
Introduction
Australia and New Zealand Bank and short for ANZ is one of the oldest banks in Australia and is
known for becoming the fourth Largest banks in Australia. It operates in the field of retail and
commercial banking and is established since decades in these domains. It works in total 32
locations in the world and this is why it has become fourth largest bank (ANZ, 2018). It comes
under top 50 banks of the world and this reason itself brings honor to this bank. The major goal
of this bank is to lead in the business and become super national bank. The total number of
workers is 48,000 in the company all across world. As the market is developing for the Asia, its
desire is t o establish itself in Asia Pacific areas and invest approximately 30% of the profit
earned from American Areas into this establishment.
Background of ANZ with Bitcoin
Since the time when crypto currencies entered into the market, all the banks got the attention and
people started creating money for themselves by investing into these new crypto currencies and
doing the transactions. Today, these currencies are very famous in the world and it gained major
attention in the year 2016 to 2017. People started making money out of them since then. These
currencies works like swapping the use of cryptography for dealing safely with the money.
Decentralized electronic money system is used for the transaction purpose. This electronic
system works on the basis of the block chain and this block chain is a database of public and is
open for each and every person (Bhosale & Mavale, 2018). This is being used for making safer
transactions and different functions. The major reason for the success of the crypto currencies is
the safe transactions. When a person wants to be sure of the transaction that it is done to the
exact same person safely, then these block chain process is used. People find it as a great deal for
transferring the money safely. With the help of the block chain people can avail this process of
safer transactions. Out of many crypto currencies, one of the most famous and fluctuating is the
Bitcoin. This is also digitized and is handled electronically. The power cannot be transferred to
anyone else. Due to this, the usage of the software which solves the obstacles of mathematics has
risen up (Durden, 2017).

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ANZ and Bitcoin
The effects which are pessimistic stays in banking like sudden fluctuations in the currency,
falling buying power and regulatories of the public, the tax that is not seen for the public which
is supportive in the find wars and social welfare courses etc. This currency named Bitcoin was
one of the currencies which brought all the crashes down. In the year 2016, multiple people in
organizations and banking firm were frivolous of Bitcoin (Blanc, 2016).
In 2015, ANZ wished to know more about Bitcoin as a new currency as they felt that this
currency can take their group and the bank in danger as people are really attracted towards this
currency. Yet, they were also excited to know if this currency can impact their business in a
positive manner and support their industry and business to grow and develop further. Such mixed
emotions were very confusing and hence, Nigel Dobson who is the GM of the ANZ bank in
digital transformation domain, was all set to learn about crypto currencies and how do they work.
He eagerly learnt each and every little detail. They finally ended up having multiple evidences of
the same and also knew the procedure of the operations of these crypto currencies. The good part
about the whole crypto currencies and the transaction doe through them according to Dobson
was the resolution of the compromise. Hence, he in the end ended up having the proofs for the
other firms and banks about the processes. However, ANZ spoke to media and informed they are
not anti crypto currencies and also they will never stop their customers to stop the usage of the
crypto currencies (Berentsen & Schär, 2018).
PESTLE Analysis of ANZ
 Political Factors: Political are the factors in which the authorities such as Government
manipulates the finances or the economy and also the influence can be on the firm too.
The policies and any other norms can be imposed by such type of authorities. These
norms might relate with the tax or anything which benefits the people on the whole.
There also were some norms made for the crypto currencies by AUSTRAC. It decided
that the currencies which are digital will be put in practice in future. Due to this the
chances for the economic intelligence and currency data which works digitally with the
stakeholders in the firm rises up. This might work in both the ways, Assertive and also
pessimistic (Austrac, 2018).

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ANZ and Bitcoin
 Economic Factors: The economic factors always verifies about the firm and its
performance in terms of the finances if long term stability is taken seriously. When
crypto currencies did not come into picture, the monetary transfers were being allowed by
the banks. Then when Bitcoin came in the market, the fluctuations in the market finances
rose up and then the power went up to the block chains from the banks. If seen on the
whole then all this benefitted the economy so well and ANZ too (Bhosale & Mavale,
2018).
 Social Factors: Social factors involve the cultural trends and the demographics and such
factors are verified in this analysis. There are lots of such people who just do not know
anything much about the banking in United States. There is a lot of recognition which is
received to the banks and this procedure because of the currencies. There are some honest
concerns about the Bitcoin which included the problems in case if any or positivity if any.
 Technological Factors: When new interventions are taking place which may or may not
put any effects on the firm are studied, they come in the technological factors of the
PESTLE analysis. Digital currencies never are in need of any platform to work on. They
operate on the basis of the digital coding and software that gives the facility to transact
with none of the services and allows the guarantee of the money getting delivered to the
other user authentically and safely. All this is impacted by the technology (Gupta, 2013).
 Legal Factors: Legal factors always talks about the business atmosphere with respect to
the particular country in which there are norms and policies amended by all the
companies. AUSTRAC passed the laws for the crypto currencies too (Bech & Garratt,
2017).
 Environmental Factors: These factors have an impact on the firm which is related to the
environment in the surrounding or related to the climate. Bitcoin is also known as the
Virtual Gold as it was started in the concept of mining. The mining code was combined
online for them to become high powered and is used with the help of the PC. Hence,
much more power is needed. This leads to the global warming (Rastogi & Trivedi, 2016).
Porter Analysis

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ANZ and Bitcoin
 New Entrants: Due to Bitcoin’s attraction, the banks were getting lot of problems in order
of their stability in the market for the long term. Crypto currencies were easy to handle
and also understood by the people. Hence, this was a big threat to the ANZ group. There
was a constant threat to the banks about these currencies being accepted by the people.
 Supplier’s Power: There were many more firms who all desired to have a good
collaboration with the crypto currencies and especially with the Bitcoin as it was the most
fluctuating currency. The power of the suppliers was high due to the boom of these
currencies (Ven, 2017).
 Buyer’s Power: Very same to the power of the supplier, the power of the buyer was also a
good threat to the ANZ group. Earlier the company was never into these currencies but
when Dobson found out about these currencies, he was very excited about the whole idea
of these currencies. After some time, the collaboration was done with the big firms in
terms of the Bitcoin. Hence, the low buyer power existed.
 Rivalry: The causes which are discussed, all are the threats for ANZ group.
 Substitute’s threats: When the currencies came in into knowledge of everyone, the market
fluctuated a lot. At that time, the market was totally unpredictable for everyone. Normal
money was being used before such incidence and then later Bitcoin and different crypto
currencies became new threat to the ANZ group. Now people do not use the conventional
methods for the transactions (Gandal & Halaburda, 2014).
Bitcoin Analysis
Take any of the crypto currencies; they are all the same in terms of operation. As far as Bitcoin is
concerned, it came into picture in 2009 by team of Satoshi Nakamoto. None of the third party or
any platform kind of things is needed to make the transactions from one person to another. These
currencies benefits in the use of the sites like Expedia or in case of any furniture are to be booked
online etc. In the years 2016 and 2017, Bitcoin got so much attention from the people and at the
same time the prices of it went up in Dollars and the market started fluctuating more and more as
the people started investing in this currency.

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ANZ and Bitcoin
The internet commerce depends on the whole financial firms which serve as the external parties
as they allow the payment. Such schemes works for the transactions but there lies the obstacles
in the given model. The problems which are provoked cannot be stopped with the help of tis
model. There are transactions which are not reversed are not also made possible since economic
firms are not able to avoid the disruptions. Hence, the provoking cost increases and this stops
the transaction and also allows the chance which exists for the small firms transactions
(D’Alfonso et al., 2016).
To avoid with the issues in the transactions, there is need to develop an authority and one should
have faith on that authority that the transaction will be done safely sue to this. This authority
would evaluate each transaction if in case of any double coin spending is done. As the
transaction procedure completes, the coin should be able to return for the problem of coin and
they are issued by the authority should be the same ones and the remaining ones should not be
trusted. The process will look similarly like all the other banks in which the complete system
depends on the company being run by the authority because each amount is compulsory to go
through them. In this process, the payee is needed to verify the signature he did earlier to the
transaction or not (DeVries, 2016). This is t he model which is mint based and it gives the
authority for becoming conscious of all the transactions and to easily judge the primary
transaction which was done on the first place. For completing the process with no true party, all
the transactions should subsist by telling them to public.
Conclusion
The report is focused on the ANZ group of banks which never dealt with the crypto currencies
on the first place but later they were intrigues with the idea of these digital currencies. When
Bitcoin came in picture in 2016, the banks were feeling a threat from such type of currencies.
This is just similar to the disruptions that keep on happening in the business. The PESTLE and
Porter Analysis of ANZ banks related to the crypto currencies are being done (Srokosz &
Kopygciaeski, 2015). In the end, the study of the currency of “Bitcoin: A Peer-to-Peer Electronic
Cash System” was mentioned with some of the issues, that are discussed and some
recommendation based on the problems are shared in this report.

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ANZ and Bitcoin
References
ANZ, 2018. About ANZ. [Online] Available at: http://shareholder.anz.com/our-company/profile
[Accessed 17 May 2018].
Austrac, 2018. New Australian laws to regulate cryptocurrency providers. [Online] Available at:
http://www.austrac.gov.au/media/media-releases/new-australian-laws-regulate-cryptocurrency-
providers [Accessed 17 May 2018].
Bech, M. & Garratt, R., 2017. Central bank cryptocurrencies. [Online] Available at:
https://www.bis.org/publ/qtrpdf/r_qt1709f.pdf [Accessed 17 May 2018].
Berentsen, A. & Schär, F., 2018. A Short Introduction to the World of Cryptocurrencies. Federal
Reserve Bank of St. Louis REVIEW, 100(1), pp.1-16.
Bhosale, J. & Mavale, S., 2018. Volatility of select Crypto-currencies: A comparison of Bitcoin,
Ethereum and Litecoin. Annual Research Journal of SCMS, 6.
Blanc, G.L., 2016. The effects of crytocurrencies on the banking. [Online] Available at:
http://commons.emich.edu/cgi/viewcontent.cgi?article=1498&context=honors [Accessed 17
May 2018].
D’Alfonso, .A., Langer, P. & Vandelis, Z., 2016. The Future of Cryptocurrency. [Online]
Available at: https://www.economist.com/sites/default/files/the_future_of_cryptocurrency.pdf
[Accessed 17 May 2018].
DeVries, P.D., 2016. An Analysis of Cryptocurrency, Bitcoin, and the Future. International
Journal of Business Management and Commerce , 1(2).
Durden, T., 2017. Central Banks Are Driving Many To Cryptocurrencies. [Online] Available at:
https://www.zerohedge.com/news/2017-06-17/central-banks-are-driving-many-cryptocurrencies
[Accessed 17 May 2018].

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Gandal, N. & Halaburda, H., 2014. Competition in the Cryptocurrency Market. [Online]
Available at: https://www.econinfosec.org/archive/weis2014/papers/GandalHalaburda-
WEIS2014.pdf [Accessed 17 May 2018].
Gupta, A., 2013. Environment & PEST Analysis: An Approach to External. International
Journal of Modern Social Sciences, 2(1), pp.34-43.
Jain, Y., 2017. 5 Impacts of Bitcoin on Economy, Banking & Finance. [Online] Available at:
https://www.newgenapps.com/blog/impact-of-bitcoins-on-the-economy-banks-finance
[Accessed 17 May 2018].
Rastogi, N. & Trivedi, M.K., 2016. PESTLE TECHNIQUE – A TOOL TO IDENTIFY
EXTERNAL RISKS IN CONSTRUCTION PROJECTS. International Research Journal of
Engineering and Technology , 3(1).
Srokosz, W. & Kopygciaeski, T., 2015. LEGAL AND ECONOMIC ANALYSIS OF THE
CRYPTOCURRENCIES IMPACT ON THE FINANCIAL SYSTEM STABILITY. Journal of
Teaching and Education, 4(2), pp.619-27.
Ven, F.V.D., 2017. Blockchain & Porter’s 5 forces: disrupting the financial power balance.
[Online] Available at: https://medium.com/@frankvandeven/blockchain-porters-5-forces-
disrupting-the-financial-power-balance-ee5cb58354db [Accessed 17 May 2018].