Challenges Faced by Banking Business in Australia in the Contemporary Global Business Environment

Running head: BUSINESS RESEARCH
Business Research
Name of the Student
Name of the University
Author Note

1BUSINESS RESEARCH
Table of Contents
Introduction................................................................................................................................2
Project Objective........................................................................................................................3
Project Scope..............................................................................................................................4
Literature Review.......................................................................................................................5
Global Business Environment................................................................................................5
Challenges in contemporary business environment...............................................................6
Banking in Australia: Structure, Nature and Issues...............................................................8
Challenges faced by banking business in Australia.............................................................10
Conclusion................................................................................................................................11
References................................................................................................................................12

2BUSINESS RESEARCH
Introduction
The global economy has experienced huge dynamics and modifications over the
years, with the economic conditions becoming more multidimensional and diversified, much
of which can be attributed to the international occurrences like Globalization and similar as
well as with other domestic and country specific phenomena like Industrial Revolution, Trade
Liberalizations and technological and infrastructural innovations across the globe. These
phenomena have made the global business environment more inclusive and integrated with
increasing number of businesses going global (Dunning 2014). This has also been facilitated
by the technological and infrastructural developments which in turn have made
communications and international business operations more convenient and time and cost
efficient.
However, with greater global integration and inclusiveness the global business
environment has also become more complex and competitive for almost all types of
industries and businesses. With more and more businesses going global and exploring new
and emerging markets in different regions, the number of supply as well as demand side
players in all the industries have been increasing considerably (Kayna and Ali 2012). The
increase in the number of supply side providers, both domestic as well as international, in
turn has led to an increase in the competitiveness in the industries, which have been
aggravated even more by the fast-changing demand patterns of the international clientele.
Thus, in the contemporary period, the multinational businesses in all countries face
considerable competitions as well as challenges in their operational frameworks, in terms of
gaining higher revenue, profitability, long term sustainability as well as in terms of gaining
competitive edge over their competitors (Ueda 2012).

3BUSINESS RESEARCH
Keeping this increasingly challenging global business environment into consideration,
the concerned project tries to analyse the challenges and hurdles which are faced, in the
contemporary multi-dimensional and highly dynamic global environment by one of the most
lucrative and dominating businesses in the economy of Australia, the banking business.
Given the fact that the banking industry of the country has been one of the most highly
developed and influencing industries in the economic framework of the country with the
businesses operating in a multi-national framework, the same has also been subjected to
considerable fluctuations and dynamics which can be attributed to the dynamics and abrupt
changes in the operational framework of the global business environment as a whole as well
as to the inherent weaknesses of the businesses of the country. Keeping this into
consideration, the project tries to analyse and interpret the challenges faced by the banking
businesses of Australia in the contemporary business environment.
Project Objective
As discussed in the above section, the banking industry of Australia has developed
over the years as one of the most influencing and dynamic industries in the country
contributing immensely to the growth of the economy of the country and its other industries
as well. The banking business in the country enjoys immense multinational expanse with
clients and stakeholders from all parts of the world and with robust relations with the global
financial activities, built over the decades. However, in the contemporary period, with
changes in the patterns of global business environment and with the preference traits of the
customers changing rapidly as well as with the inherent weaknesses of the major banks
cropping up in the economy of Australia, the banking business as a whole, in the country, has
been facing several crucial challenges in the global framework, which pose as credible threats
to the performance of the organizations and businesses in the banking sector.