Corporate Strategy of Commonwealth Bank

This article discusses the corporate strategy of Commonwealth Bank, including its dimensions and objectives. It also analyzes the SWOT analysis of the bank and provides recommendations for its improvement.

Running Head: COMMONWELATH BANK 0
Management

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Corporate strategy of Commonwealth bank
In the Commonwealth Bank of Australia, it has included the four dimensions in the corporate
strategy. It give emphasis on the four dimension including business banking, customer
service, operational excellence, technology and trust. Using such dimensions, it aims to
achieve the objectives. It has given the major emphasis on people, technology, productivity
and strength under its strategy.
Swot analysis of Commonwealth Bank
Strength: Firstly, it has done its investment in building the strong brand portfolio. Besides
this, it is also successful in its market strategies. It is also successful at the execution of new
projects that helps it in generating the good returns (Bakir, 2019).
Weaknesses: it still has product gaps in several ranges of its products. Besides this, it is also
not successful in doing the demand forecasting. The major weakness of the Commonwealth
Bank is that it is not able to tackle the challenges that are presented by the new entrants in the
market.
Opportunities: in the recent time, new trends are seen in the consumer behaviour that assists
in opening the new market for Commonwealth Bank (Austin & Slay, 2016). It will also help
in retaining its loyal customer. In the past several years, Commonwealth Bank has invested
huge amount in the online channel. Similarly, it can also get the several opportunities in the
next years by knowing its customer in a better way.
Threats: the changing behaviour of customers from the online channel can also prove to be
the threat for the Commonwealth Bank. Over the few years, company has also developed the
several products. Besides this, the supply of new products is also not regular that can lead to
the low and high swing in the number of sales. Competitors are also developing new
technologies that can lead to the serious threat to the Commonwealth bank. At last, it can also
face the lawsuits in the several markets.

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Recommendations for Commonwealth Bank
Firstly, it is recommended to the Commonwealth Bank for increasing the share of its
commission’s sales and income (Tidd & Bessant, 2018). It will help in overcoming the
profitability due to the current low rates of interest. It is also required by Commonwealth
Bank to acknowledge the customers that it is shifting to the online platforms. For example- it
can make improvement in its various distribution channel capacity.
Secondly, it should also adopt the contemporary and flexible tools. These tools will allow to
bring the regular changes in its banking system for long term (Scott & McGoldrick, 2018).
Thirdly, Commonwealth Bank should also invest in its IT infrastructure that will help it in
enhancing the customer base and product distribution. It will also lead to bring the cost
efficiency in its long run. In order to bring improvement in its operation, it can also ensure
the continuous check on the working of people.

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References
Austin, G., & Slay, J. (2016). Australia’s response to advanced technology threats: an agenda
for the next government. UNSW Canberra, Canberra, Australian Centre for Cyber
Security Discussion Paper, 3.
Bakir, C. (2019). How do mega-bank merger policy and regulations contribute to financial
stability? Evidence from Australia and Canada. Journal of Economic Policy
Reform, 22(1), 1-15.
Scott, B., & McGoldrick, M. (2018). Financial intelligence and financial investigation:
opportunities and challenges. Journal of Policing, Intelligence and Counter
Terrorism, 13(3), 301-315.
Tidd, J., & Bessant, J. R. (2018). Managing innovation: integrating technological, market
and organizational change. United States: John Wiley & Sons.