Identification of Functional Areas Report 2022

BUSINESS ENVIRONMENT

Executive Summary
Commonwealth bank of Australia has its own internal as well as external stakeholders due to
which they knew that the company classify its internal and external stakeholders. Internal
shareholders include senior management, employees, and board members. Whereas, external
stakeholders includes lenders, suppliers, government, and local community. The stakeholder
matrix is a project management technique that can be used to examine project stakeholders
while determining central actions, which are necessary to align goals. This matrix indicates
the influence through power and interest, which helps to develop communication plan
aligning to stakeholder concerns and focus. Stakeholder analysis is a project skill
management where it is a process identifying the person, which are being affected by the
proposed action as being sorted as per their impact on the business actions.

Contents
Executive Summary...............................................................................................................................1
Introduction...........................................................................................................................................3
Identification of functional areas...........................................................................................................3
Internal and external stakeholders and their related roles...................................................................4
Identification of level of influence of main stakeholders.......................................................................6
Conflicting interests...............................................................................................................................7
Level of influence in regards to the stakeholders..................................................................................8
Stakeholder`s matrix.............................................................................................................................8
Comparison industry in which the business operates in the same industry........................................10
Conclusion...........................................................................................................................................11
References...........................................................................................................................................12
Appendix.............................................................................................................................................14

Introduction
The commonwealth bank of Australia is an Australian bank operating in certain business
(banking) across US, UK, Asia, and New Zealand. It avails large variety of the financial
services inclusive of retail, institutional business, superannuation, investment, insurance, and
broking services. The bank is an largest Australian listed organisation on ASX (Australian
securities Exchange) with its brands inclusive of ASB bank, colonial First investments,
commonwealth securities and commonwealth insurance (Haigh, Brubaker, and Whiteside,
2013).
Identification of functional areas
The structure operates a typical bank that consists of ten departments. Every functional area
plays an important role in operations of the company but they are categorised on the basis of
their way of working such as-
Determination of the financial needs of the customers and the businesses
Financial analysis and their equal interpretation
Calculation related to capital budgeting and working capital (Finance department)
Wire transferring operations
Marketing and sales
Human resources management
Standard documentation and its training
Electronic banking mortgage banking and commercial banking
Cash management department (Vogel, Shanahan, and Signorielli, 2018).
Wealth management, loan servicing, and investment banking

Comparison of industries as per difference in stakeholder`s perception and analysis
Internal and external stakeholders and their related
roles
After the bank has been established, the bank has attempted to renowned organisation
towards the stakeholders that would finally cater the local communities, customers, business
partners, employees, and shareholders. The company undertakes to understand the main
expectations of the stakeholders. The internal stakeholders are those who operates within the
organisation and influence organisation (Vogel, Shanahan, and Signorielli, 2018). The
internal stakeholders are-
Employees- The role of stakeholders being an employee is related to reviews of the
employee`s engagement and related feedback culture and strategy. This would lead to group
wide surveys, adhoc surveys, team meetings, exercises, digital, social platforms, CEO,
employees’ halls, and events. The bank aims to avail considerable workplace where
employees will participate and satisfaction for work. The organisation creates an environment
by considering human rights. It undertakes protection and safety of employees with the
consideration safety and privacy (Vogel, Shanahan, and Signorielli, 2018).
Investor community- The role of investors highlights the conduction of performance
meetings through briefings, meetings, financial reporting, non-financial reporting, surveys,
and annual general meetings. Investors have underpinned the bank’s operation when they
fund the companies (Vogel, Shanahan, and Signorielli, 2018). While responding to trust of
shareholders where the company’s emphasis is on its management system as it is very
transparent where it communicate the duty and fulfil its accountability as per its disclosures.
The organisation attempts to the conduction of the annual meetings of the shareholders and
inform with the assistance of organisational newsletter. The owners will opt innovation

strategy while embedding huge level of competence with lost costing where it can create
huge market share (Vogel, Shanahan, and Signorielli, 2018).
External stakeholders
Suppliers- the main role of suppliers in relation to standards and certain issues includes
regulation which includes suppliers, workshops, briefings, meetings, risk assessments,
innovation programs, supplier`s code of conduct and its related sustainability. It also includes
the role related to collaborating with the customer surveys (Wang, Lin, & Tsai, 2018).
Customers- This review of satisfaction, and complaints that are related to products and
services. This stakeholder group is the most influencing as they deal in social media,
engagement with the customers and their representatives, and meeting with the relationship
manager. Customer plays an important role, as the main aim of the bank is to cater and
provide quality services to the customers by maintenance, loyalty, and retention (Wang, Lin,
& Tsai, 2018).
Government regulations- There are many relevant regulations related to financial service
industry with the reformation of meetings, commission, financial institution, inquiries, and
proposals (Wang, Lin, & Tsai, 2018).
Media- this covers the discussion when it is related to interest with the help of dedicated
phone line and the email inbox, digital social channels and media releases.
Charities and community organisation- This group underwent a discussion on topic of interest
with the help of phone calls, meetings, dedicated phone lines and the email box, and emails.
Ongoing discussion are related to education, diversity, charity partnership, and customer
assistance.

Service providers- These stakeholders undertakes to discuss wide variety of topics related to
interest with research partnership. It includes meetings, phone calls, and email.
Nature and degree of stakeholders, interests and their related implication of the conflicting
interests
The degree of interest is determined by nature and related implication is decided by the
conflicting nature and interest of the stakeholders-
Community organisations and non-governmental organisations- it covers the participation on
the range of external advisory panels, industry membership, ongoing membership with
collaborating and non-partnership companies. This type of actions influence decision making
related to sponsorships, participation, summits, forum, and the events.
Identification of level of influence of main stakeholders
Suppliers- The extent and degree is quite low especially in terms of interruption in taking
business strategy and decision. This nature of interest lie in the increase of production of the
company relating to the increase in sales. Whereas, the lenders are the suppliers of the bank
who generally huge interest in the liquidity of the stakeholders (Shankar, Thaiprasert,
Gheewala, & Smith, 2017).
Government agencies- the particular interest of the government agencies is quite high where
it is interested how the companies work to confirm whether it has been working ethically or
not. It works where companies work as per rules and regulations in regards to legislations
compliances (Almeida, Marimon, Casani, & Pomeda, 2015).
Community and engagement- bank faces pressure from the communities where it becomes
necessary to perform CSR activities. It is seen as engagement where it is a two-way
engagement focusing on mutual learning. Their relationship is an ongoing interaction, which
is based on mutual trust where it exists outside the specific projects. This pressure and

commitment towards the society leads to customer charter, $5 Access to accounts,
community banking, and debt referral services. Their interest is high as the bank is
responsible towards the liability of the community, impact on the employment and also its
social contribution (Almeida, Marimon, Casani, & Pomeda, 2015).
Customers- A certain level of interest is the customers is low in the operations of the
business. This group enforces the bank to remain loyal towards its bank services and other
financial products. The main interest lies in high quality with low services charges,
convenient needs, and fulfilment of the basic needs. Customers would like to foresee the
improvement in the offerings to the product portfolio with the quality where it can get good
quality for being money paid.
Employees- it is seen that workforce show considerable interest in the company. With the
level of power and autonomy accomplished with development, job appraisal, training
sessions and growth. It will include a lower level and middle level managers as being guided
by business level strategy as per the senior managers (Almeida, Marimon, Casani, & Pomeda,
2015).
Conflicting interests
This refers to the stakeholders interest differs as per their roles and the responsibilities while
undertaking decision. With a difference in disputes and interests occurring. Conflicts refers to
the difference in interest of the stakeholders as it is quite common in regards to the internal
stakeholders considering the owners, shareholders, employees and the top level management.
For instance- if organisations decide to cut off jobs as country is suffering from recession. At
the same time¸, employee and local community will suffer (Mindtools, 2018). Another
relevant example can be increase in the shift timing where they can increase the productivity
in regards to suppliers, customers, and the investors (Business case study, 2018). Whereas,
the investors will support the decision as the company will need more raw material enhancing

the profits of the company. Introduction to new machinery will always aim to replace the
employees and workforce as machinery cost will be less as compared to the salary paid to the
employees. On the other hand, shareholders will enjoy greater profits, which will lead to
reduction in the cost of company (Business case study, 2018). Increase in sales will generate
maximum profits where there is caused huge unemployment. Increase in sales by lowering
the quality of the products that can benefit shareholders when customers will not accept it. In
recent era when the employees are considered properly by exploiting the customers and their
choice (Mindtools, 2018). Greater ignorance of basic needs and neglecting the employee’s
interest will lead to increase labour turnover due to dissatisfaction. The effect of conflicting
interest related to the top-level management with the shareholders will be decrease in the
distributable profits. Whereas, the top-level management will have to consider customer
satisfaction that can fulfil the wants of the customers where the shareholders were interested
in making huge profits (Mindtools, 2018).
Level of influence in regards to the stakeholders
Some of the important stakeholders of bank has been exerting pressure on the organisation in
regards to the crucial business actions. This pressure will finally lead to conduction of
business as per the will. Pressure is defined in the stakeholder’s matrix (Mindtools, 2018).
These stakeholders will be as per the competitiveness as and threat and their potential to
cooperate. For example- regulators, government, customers, local communities, senior
executive, government agencies, and finally the investors who exert pressure because of huge
interest and high power, which affect the organisational ability and the profitability. Whereas,
suppliers, receptionist, trainers, testers, counsellors, employees and auditors exerts greater
pressure that does not ultimately create any sort of competitive threat (Mindtools, 2018).
Stakeholder`s matrix

A.Minimum Effort B.Keep informed
C. Keep Satisfied D.Key Players
Stakeholders might be different in its nature as the organisation is followed by considering
the competitive threat and the potential threat in commonwealth bank of Australia. This will
certainly depend on to what level and extent each stakeholder in the company will access its
power and potential (Kolkowska, Nöu, Sjölinder, & Scandurra, 2017). The main stakeholders
of the commonwealth bank of Australia will have different interest as per their sense of
belongingness and their degree of influence they can exert-
From the above map, it is seen that suppliers, local community and the employees will have
high degree of interest as they do not have much power and influence which they can show
while making company`s decision. The company informs then directly in regards to the
diversification, increase in the profitability, increasing the diversification of portfolio,
decision made, taken and the business strategy (Torelli, Balluchi, and Furlotti, 2019).
Community exerts low pressure as it leads to community development finance,
commonwealth community fund, money minded, savers plus, and community giving. It is
well known in the earlier part of this report that conflicts arise among employees and the
other stakeholders because they will take interest in the business companies but at the same
time, it do not have the power and potential to exert which can create dissatisfaction
(Heslinga, Groote, & Vanclay, 2019).
Board of directors- this group of stakeholder exerts huge pressure, as they are interested in
making of strategic business concerns of the organisation. This will certainly access the huge

and high power of influencing of the business decision especially when it is related to quality
of the decision of the top-level management in regards to the business decision (Torelli,
Balluchi, and Furlotti, 2019). On the other hand, consumers was not very much interested in
the quality of customers and its related marketing decision for which any manager should
have unique talent of sustaining a competitive advantage (Heslinga, Groote, & Vanclay,
2019). Board of directors do have the highest power to affect the business decision but at the
same time, they do not have any interest in the business operations. The situation of conflicts
is among the senior management and the shareholders, which is because of high power to
both stakeholders named as board of directors and the customers (Heslinga, Groote, &
Vanclay, 2019).
Government- This indicates the level of interest and the power of degree is generally high for
government agencies as well as the institutional investors. It will also reflect high influence
over the operations of the company where they are also the main players of the company.
Distributors and agents- associated business partners will help to provide the goods to the
customers at convenient stores where these stakeholders will have minimal interest in the
operations of the business when they do not possess power while masking any decision. The
effect of distributors and agents (Torelli, Balluchi, and Furlotti, 2019).
Comparison industry in which the business operates in
the same industry
While comparing banking industry and construction industry, it is seen that banking
stakeholders are local community, suppliers, lenders, borrowers, and employees. This has
been illustrated with the help of banking example (commonwealth bank of Australia)
contracting with suppliers of money, technological advancement, and agents. Whereas, the
external stakeholder of construction industry including labour unions, long term lenders,
interest groups, debentures and licensing organisation (Paletto, Hamunen, & Meo, 2015).

After differentiating it from the group of stakeholder for both industries, it seems that there
are different internal and external stakeholders, which can affect the operations. After
differentiating the stakeholder, it is seen that that a person has to comply with the activities
and CSR features (Torelli, Balluchi, and Furlotti, 2019).
Conclusion
From the above discussion, it can be seen that stakeholders can affect the actions of the
company or be affected by the company`s objectives, policies, and actions of the company.
With the discussion, it is visible that there is a comparative analysis on the commonwealth
bank of Australia, which affect the operations of the construction companies. After being
analysed from the stakeholder`s matrix, it is seen that high competitive power with the
cooperative potential where investors and customers is a threat on the organisation strategy.
Stakeholders with power can impose high power that affect the staff in relation to the retail
sector. After taking into consideration, person with high competiveness and high potential.
Some of the important suggestion to deal with stakeholders while complying with rules and
regulations. As per the changes in the laws, implementation policies as per the services.
While accomplishing with the CSR activities, the bank has opened free bank accounts for
poor people. It is important to know that government agencies and other SEC where these
stakeholders can impose severe penalties on company where they do not actually have
potential in regards to the profitability but at last, it will affect company to a large extent.

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Appendix