Financial Practices of Commonwealth Bank of Australia

The Commonwealth Bank of Australia (CBA) is a leading financial service provider in Australia, with an organizational structure that covers all aspects of its operational business activities. The bank's financial practices include basic services such as dealing in financial products, advising on financial products, and providing custodial and depositary services. The CBA also focuses on anti-money laundering and counter-terrorism financing. Additionally, the bank offers a range of financial products and services to corporate entities and retail customers. The CBA's annual report for 2017 provides evidence of its vast range of financial business activities. Furthermore, the bank organizes financial graduate programs to develop strategic ideas and facilitate discussion.

Running head: CONTEMPORARY ORGANIZATIONAL ACTIVITIES
CONTEMPORARY ORGANIZATIONAL ACTIVITIES
Name of the Student
Name of the University
Author Note

1CONTEMPORARY ORGANIZATIONAL ACTIVITIES
Executive Summary:
The purpose of the report is to present an analytical synthesize on the contemporary
organization. The method of the report focuses on the Commonwealth Bank of Australia and
investigates the organizational activities in terms of the integration and impact of each activity on
each other. The result shows that the all the process of the bank is integrated with each other
delivers an effective business outcome.

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Table of Contents
Introduction:....................................................................................................................................3
Organizational structure of Common wealth Bank:........................................................................3
People management:........................................................................................................................5
Marketing:........................................................................................................................................6
Marketing Concepts of CBA:......................................................................................................6
Marketing Strategies:...................................................................................................................7
Market Segmentation, Target Market and marketing Mix:.........................................................7
Financial Practices:..........................................................................................................................8
Concept:.......................................................................................................................................8
Range:..........................................................................................................................................9
Additional Practice:.....................................................................................................................9
Conclusion:....................................................................................................................................10
Reference:......................................................................................................................................11

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Introduction:
The Commonwealth Bank of Australia is one of the leading financial service providers
and the most recognized brand in the finance industry of Australia. The bank is a multinational
bank that operates its business across Fiji, United Sates, New Zealand and United Kingdom. The
service provided by the bank includes retail, business, premium and institutional banking,
superannuation, investment, fund management and share-broking service and products. The
Commonwealth Bank of Australia (CBA) is also the largest company in the list of the Australian
Securities Exchange in Australia. The bank was founded in the year 1911 by the government of
Australia (Commbank.com.au 2017). The structure of the bank is designed in such a way that
helps the organization to manage the people, execute the marketing strategies effectively and
provide the financial service in a smooth and unhindered way. The following report focuses on
the every aspect of the organization in order to analyze the integrated operations of the same.
Organizational structure of Common wealth Bank:
The changes in the organizational structure of CBA are to create integrated business and
are structured for product development along with segmenting the customer services. The
organizational structure of the Commonwealth Bank is divided into four sections and those are
retail banking services, premium financial services, investment and insurance services and
lastly the institutional and business services (Macdonald, Burke and Stewart 2017). This
structure reflects the business mix alteration as well as the strategic positioning of the
commonwealth bank. The director of the common wealth bank has decided this particular
organization structure rather than only focusing on the wealth management it also helps the bank
to recognize the needs of the customers. The merging of the product and service development

4CONTEMPORARY ORGANIZATIONAL ACTIVITIES
helps the bank to afford customer segmentation with more clarity and the integration ensures the
bank with the decisions that reflect the responsible attitude of the bank.
The retail banking services sector recognizes the financial needs of the customers and
offers them accessible banking.
The premium financial services offer the back to come along with their existing wealth
management process and existing services for the customers who have complex needs.
The investment and insurance services brings out the funds and insurance business for
the brokers, agents and advisers as well.
The institutional and business service provides the financial needs of the institutions as
well as the customers having business and the commonwealth bank provides the risk and capital
management to the customers who are using a relationship management approach in the
business centres.
The corporate responsibility of this particular bank focuses on bringing positive change
by helping in education for children, innovation and managed business practice. This bank
empowers the customers for taking educational loans for their children and organizes literacy
programs. This bank helps the customers and communities to work by practicing balanced
decision making for their business in case of the financial part. This bank provides business
transparency to all the stakeholders and always has report on their performance towards the
customers (Weill and Woerner 2013).
This bank has marked them for providing the beneficial help to the customers and in the
present years they have marked themselves as one of the most famous banking institutions with

5CONTEMPORARY ORGANIZATIONAL ACTIVITIES
required all the facilities and has expanded their services in almost 11 countries throughout the
world (Bank 2015). The goal of the CBA is to excel the security by providing financial support
to the customers and they have always kept their commitment up to the mark. This bank is the
most famous financial service provider to the customers in almost whole Australia’s financial
service industry.
People management:
Improving their customer intimation is always a concern for the commonwealth bank.
According to the recent research report, the financial sector of this bank have increased the level
of scrutiny and though this is critical for the bank still they aim to deliver the best financial
services to the customers, shareholders. The bank always provides strong value to the
stakeholders in every situation. This bank has implemented some reforms as their own initiatives
and presently works in association with the Australian bankers association. The reforms include
background check of the existing customer from first of July 2017 and appointments of the
advocates of the customers. This bank manages its customers by involving in many sectors like
educations, business, social activities and they continue to provide support by building their
capabilities to deal with the customers who are having financial problems or facing any kind of
financial trouble.
This bank aims to positively influence the lives of the people by their engagement and
help (Lang 2017). Recently they have initiated some action plans to help the abused people with
financial independence. Having engagement with the stakeholders is very important for the bank
to recognize the response of the stakeholders in many factors. Recently they have created forms
that help in both internal and external engagement with the stakeholders. This helps them with

6CONTEMPORARY ORGANIZATIONAL ACTIVITIES
ensuring about the opportunities and issues that needs consideration for the future. The
Commonwealth Bank with all their initiatives and reforms aims to make the organization more
valuable and manageable (Southurst 2015). This bank is a well-known bank and they have
marked themselves as the most famous funding service of Australia that thinks about the
customers in an extent way. This bank plays a large role in the economy of Australia and they
support their financial wellbeing and maintain their commitment by investing on innovations.
They return 75% of the amount to the shareholders and reinvest the rest profit to provide more
services that are flexible to the customers. The CBA provides good customer experience,
diversity and transparency, support proper organizational culture, invests for the sake of the
customers and has security that assures the customers about the services (Vasardani et al 2013).
The bank initiates programs for helping the poor customers, providing better job facilities and
has proper financial regulations in order to maintain all the mega trends of this era.
Marketing:
Marketing Concepts of CBA:
Marketing of CBA is the central part of its business strategies. The marketing of the bank
includes the brand marketing, Corporate Social Responsibility and others, which add values to
the business of the organization (Lovelock and Patterson 2015). The division of retail banking
service of the organization offers market leading service and products to the wide range of
customers of CBA across Australia (Bryant 2012). The marketing team of the bank is the
responsible unit for the marketing, delivering advertising, sponsorship, events, public relations
and brand communication to the shareholders and retail customer (Commbank.com.au 2017).

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The company is constantly striving to find new and innovative ways in order to communicate by
the advantage of new channels and the creation of cutting-edge campaigns.
Marketing Strategies:
In order to meet the rapidly growing customers’ expectation the organization has focused
on the innovation of technologies and the communication with the customers (Balnaves 2012).
CBA is focusing on the launching of the product innovation and proper and effective marketing
for the adoption of the initiatives in the market (AANA 2017). The marketing strategies of CBA
tend to make the current and potential customers aware of the latest, new and innovative service
and products of CBA and the beneficial aspect of the same (Commonwealth-Bank-Strategy
2017). The organizational structure and the people management also come under the strategies of
successful marketing strategies. For example, the target market or the target customer
management by providing adequate service and products to them for the potential and current
competitive advantage is the one of the major marketing strategies by followed by the
organization (studymoose.com 2017).
Market Segmentation, Target Market and marketing Mix:
The market segmentation for a multinational bank like CBA is necessary to identify the
target market and plan the strategies for marketing accordingly. The business or corporate as
well as the retail market of the organization are divided into segments. The corporate market
includes the departmental stores, human resource management company, advertising, large-scale
companies and others (studymoose.com 2017). The retail market of the organization consists
professionals with certain annual income and the general people of Australia.

8CONTEMPORARY ORGANIZATIONAL ACTIVITIES
The target market of CBA is the said receiver of the service and products of CBA. The
marketing of the ban also focuses on the sustainability of CBA through the proper execution of
the marketing strategies. Following the marketing mix another criteria of CBA. Proper actions
regarding the product, price, promotion and place are taken by the marketing team of CBA. The
entire marketing team from the managerial level to the field worker of CBA is flexible and
constantly working on the marketing strategies and its execution (AANA 2017). However, the
CBA is projects an integration of its entire marketing process with the service and the
organizational structure.
Financial Practices:
Concept:
The financial practices of the CBA cover the entire financial services and anything
related to the same. As stated previously the bank provides the financial service to the corporate
entities as well as the retail customers. The financial practices of the bank are spread on a wide
range of activities related to the financial service and products provided by the bank (Chang et al.
2012). The position of the bank in the financial industry is almost in the center. The financial
practices by the bank include the basic financial services such as dealing in financial products,
advising in financial products, financial family planning, providing custodial and depositary
service and making a market in financial products. Apart from providing the basic financial
service, the financial practice of the bank also focuses on the anti-money laundering and counter
terrorism financing (Commbank.com.au 2017).

9CONTEMPORARY ORGANIZATIONAL ACTIVITIES
Range:
The financial practices and the profit from the same are evident in the annual report of
the bank for the financial year 2017 (annual_report 2017). The Financial Statements section in
the report provides data, facts, and details of the financial service and the accountability of the
organization for the financial practices. The financial practice of the bank cover a wide range of
products including transaction accounts, saving and investments accounts, finance, funds
transfer and payments, foreign exchange, general insurance, derivatives, equity and debt
securities including government bonds, money market instruments and margin lending
facilities (www.commbank.com.au_business. 2017).
Additional Practice:
Apart from the vast range of financial activities, the bank also organizes some financial
graduate programs for the benefits of the people. The graduate program in the financial practice
is structured in rotations of four and six months. The covered areas in the program are business
and private banking finance, group audit, group finance, group treasury, institutional banking and
market finance, retail banking service finance, wealth management finance
(www.commbank.com.au_business. 2017). The program helps in developing the strategic ideas
and facilitating discussion, identifying opportunities for the improvement of business,
communicating with all levels for influencing and analyzing business process.
The beneficial aspects of the program include the real work, training and development,
working with the key stakeholders, diverse experience, stability and support (Commbank.com.au
2017). Undoubtedly, this additional graduate program on the financial service and
conceptualization of the same in the practical field is one of the major practices of the

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organization in the financial context. However, the financial practices of the organization create
the identity of the same in the financial industry as well as in the market.
Conclusion:
This can be concluded from the above discourse that the Commonwealth Bank of
Australia is the major leading financial service provider in Australia. The organizational
structure of the bank covers all the aspect of the operational business activities of the bank.
Moreover, it helps the organization to execute their marketing strategies effectively for the
financial practices by CBA. Apart from focusing on the basic and primary service of the bank,
CBA is also involved in the practice of Corporate Social Activities for the customers of the
same. In addition, the management of the bank also focuses on the key stakeholders for the
effective business outcome and the marketing of the CBA. However, the report presents
evidence of the vase range of financial business activities of the organization that is integrated
and interconnected with each other.

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