ANZ Develops Principles Australia Report 2022

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Full Name
School
date
Executive summary
The Australia and New Zealand bank group is a large financial institution with branches
in various countries such as the US and various countries in Asia. In the report, the focus will be
on the services of corporate social responsibility that the bank engages in. Additionally, the
report will discuss how ANZ develops principles of code of conduct that ensure the employees
and contractors professionally practice ethical business. The focus will also be on the external
environmental factors affecting the operating environment of ANZ. This will be done through
PESTLE and Porter’s five forces analysis. The internal environment will also be discussed using
the VRIO framework of the resource-based view model. Finally, the report will address the
leadership strategy of the CEO of the bank and how this has impacted the success of the bank.

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Table of Contents
Executive summary.....................................................................................................................................1
Introduction.................................................................................................................................................3
Corporate social responsibility and Business ethics....................................................................................3
Corporate social responsibility of ANZ.....................................................................................................3
Business ethics........................................................................................................................................4
Environmental analysis of ANZ Bank...........................................................................................................5
PESTLE analysis........................................................................................................................................5
Porter’s five forces of ANZ.......................................................................................................................7
Main opportunities and threats..................................................................................................................8
Internal environment..................................................................................................................................9
Resource-based view model....................................................................................................................9
Strength and weakness.............................................................................................................................10
Strategic leadership of ANZ bank..............................................................................................................10
Conclusion.................................................................................................................................................11
References.................................................................................................................................................12

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Introduction
Australia and New Zealand Banking Group or commonly known as ANZ is among the
five largest company in Australia and also a renown international banking and financial services
group. The bank also holds the top financial institution position in New Zealand, after it acquired
The National bank of New Zealand in the year 2003. ANZ employs over 30,000 people and has
over 1.190 branches worldwide, in countries such as Australia, New Zealand, United Kingdom,
Asia, and the USA. The bank has a customer base of about five million customers and boasts of
259 Australian dollars in assets. This report will focus on certain elements regarding ANZ bank
such as its participation in Corporate Social Responsibility programs and the ethical practices
that are associated with the bank. Additionally, the report will investigate the external
environmental factors affecting ANZ by carrying out a comprehensive PESTLE analysis and
Porter’s five forces analysis to determine the opportunities and threats of this external
environment. Furthermore, the report will investigate the strength and weakness of the bank
through the resource-based Model. Finally, there will be an outlook on the strategic leadership
framework of the bank by analyzing how the bank CEO(s) have carried out their leadership and
how this has affected the operations of the bank and contributed to its success.
Corporate social responsibility and Business ethics.
Corporate social responsibility of ANZ
Among the common Corporate Social Responsibility (CSR) practices that are engaged by
ANZ bank include supporting the communities in Australia during tough times. The bank
engages in relief measures that aim at assisting farmers and the communities that are most
affected by drought. In the 2019 financial year, the bank donated about five hundred thousand
Australian dollars to the Financial counseling Australia and a similar amount of money to the
Foundation for Rural and regional renewal (FRRR) 4. Most of the stakeholders and beneficiaries

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of these programs are the farmers who get grants through the program known as Seeds of
Renewal Grants. Another program that is in partnership with ANZ bank is the Tackling Tough
Times Together that assist in supporting leadership development, building capacity and
capabilities in the communities, and stimulating cash flow and economic activities within the
communities 4. Additionally, there is a back to School program that supports the marginalized
communities in Australia by providing 50 Australian Dollars to the needy student to help with
the purchasing of essential school supplies 12. However, the main focus of ANZ bank is on the
agriculture sector with the bank dedicating its resources in assisting the farmers in the drought-
stricken part of Australia. Some of the packages that the bank offers to the farmers are; giving
the farmers discounted loans and suspending loan repayments for three months for the farmers.
Business ethics
The business ethic of ANZ is best captured in the organization’s Code of Conduct that
highlights how the bank engages with its employees as well as its customers. The code of
conduct requires that all the employees and the contractors engage in training annually, to gain
requisite skills in handling of customers. Each of the employees has the mandate to prevent,
detect and report conduct that intervenes in the stipulated principles of ANZ bank. This includes
a policy under the Whistleblower that mandate the employees, contractors, and auditors, both
internal and external, to raise an alarm concerning suspected contraventions of the legal and
ethical standards that are set by ANZ group 6. The whistleblowers should feel free to report such
matters without harboring any fear of repercussions. ANZ banks ensure it thoroughly
investigates any such allegations and takes the necessary disciplinary action in situations
whereby the allegations have been substantiated.

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Environmental analysis of ANZ Bank
PESTLE analysis
Political factors
Majority of the banks operating today have become increasingly global and have
branches in more than one country. ANZ bank is one of such banks with its operations spreading
across different countries. Political instability is largely experienced in many parts of the world
including the ongoing war in Iran and Afghanistan, the defiance of North Korea and the increase
in terrorism worldwide. This impact hugely the growth of economies and consequently affects
the growth and creditworthiness of such banks like ANZ.
Economic factors
The economy of a regional or the globe shape the revenue and profit generation
capabilities of banks. ANZ has largely enjoyed a positive economic situation coupled with the
continuous growth of economic situations world over. The world economy grew by a record of
5.4 percent in the year 2018, making it the fastest expansion rate. The reason for these positive
changes has been the growth of the economy in developing nations and an increase in ties
between trading blocs 13. Additionally, the Australian economy as over the last 15 years made a
continuous tremendous expansion. This worldwide growth gives ANZ bank a good prospect in
investments and acquisition of assets to boosts its revenue and profit generation.
Socio-cultural factors
Socio-cultural factors entail the perspectives of the stakeholders concerning the banking
sector. The culture also influences the buying behavior of the customers and shapes how the
customers use the banking options. Shared beliefs and the attitudes of the customers give the

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marketers of ANZ the need to segregate each market as per their needs. Such attitudes involve
entrepreneurial spirit, gender, education level skill and demographics, and societal class and
hierarchy.
Technological factor
The advent of technology has significantly boosted the operations of financial enterprises.
ANZ bank is committed to ensuring it adapts to the latest technology to facilitate better service to
its customers. ANZ bank has put in place a strong technology strategy by anticipating
technological changes and adapting to the new financial systems that are being developed. The
banks rely on their technology specialists to channel the way forward in regards to the advent of
technology 9. The banks also ensure it identifies the opportunities and risks that are associated
with the new technology and protect their systems against hacking and fraudulent practices. This
has seen the ANZ bank introduce a digital certificate technology that gives its customer secure
online banking experience.
Legal factor
The financial institutions are required by law to conform to standards and regulations in
their business operations. By having operations in different countries, ANZ is highly affected by
laws and regulations. For example, Australian law requires the bank to operate under the
confines of the banking Act of 1959 9. Additionally, the bank has to have the Australian
Financial Services License which is provided under the Corporations Act of 2011.
Environmental factors.

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Some of the environmental factors that affect ANZ include weather and climate,
pollution, recycling, and waste management, support for renewable energy and attitude towards
ecological products. the consumer of today is not only interested in service but on how an
institution participates in social responsibility to safeguard the planet’s ecosystem. This gives
ANZ the onus to participate in green practices to attract more customers worldwide.
Porter’s five forces of ANZ
The threat of new entrants
New entrants pile a lot of pressure on ANZ bank by introducing innovation and new
ways of operating the banking sector. The ANZ bank has to adapt to these challenges by
reducing costs, adding value to its customers and lowering their pricing strategy to remain
competitive.
Bargaining power of suppliers
ANZ relies on numerous suppliers to get its raw materials for operations. Powerful
suppliers in dominant position decrease the profit margins of the bank by having high bargaining
power and consequently extract high prices from the bank.
Bargaining power of the buyers
Majority of the customers aim at getting the best deals possible from the bank and are
therefore very demanding. A small customer base has high bargaining power over the bank, and
this makes them be in a position to demand offers and discounts. This is overall reducing the
profit margin of the banks 11. However, in areas where the bank enjoys a high customer base, it
can negotiate its prices in its favor.

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The threat of substitute product
The constant advent in technology place ANZ at risk of being substituted by new and
innovative product. New technology has facilitated paperless cash transfers and has made it more
convenient for customers to access their accounts at the comfort of their phones without
physically visiting the banking halls. ANZ bank has to, therefore, keep updating its systems to
ensure it remains relevant in the market.
Competition rivalry
A high competition rivalry between the players in the financial sector affects the
profitability of ANZ as the bank has to adjust its prices to attract more customers. In Australia,
ANZ is in fierce competition with Commonwealth Bank and National Australian Bank.
Main opportunities and threats
Opportunities
Following the above analysis of the external environment of ANZ, it can be established
that the bank can invest in new technology to increase convenience among the customers.
Similarly, ANZ has to increase its branches worldwide to tap into the growing economic abilities
especially in the developing nations.
Threats
ANZ faces threats from new establishments that are offering great deals to customers.
Additionally, the unstable political climate in Asia and the sanctions being imposed by the US in
trade will affect the operations of ANZ in its offshore branches. Additionally, ANZ has to abide
by environmental regulations and sustainability practices to maintain its customer base.

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Internal environment
Resource-based view model
The components of the resource based-view model are commonly discussed under four
main parts which are; valuable, rare, imitable and organized (VRIO). The resource-based view
model of ANZ bank will ascertain whether each of these internal resources has sustained
competitive advantage for the bank. Under valuable resources, the ANZ bank analysis has shown
that the financial resources are highly valuable as they facilitate investment in opportunities that
arise. The employees are also valuable as they are highly trained and equipped 10. They are also
ethical and follow greatly the code of conduct of the bank 5. The patent also allows the bank to
sell its product without copyright infringement and this is a valuable resource. However, research
and development are not valuable. this is because the cost is much higher than the benefits
accomplished.
In the rare resources, the financial resources of the bank as they are not easily available to
the competition. The employees are also significant rare due to their high skills and training. The
patents of the bank are also a rare resource as they are not possessed by the competition. Lastly,
ANZ has a rare distribution network, as it requires high investment to reach the capacity of the
bank.
The financial resources of ANZ have been acquired over time making them costly to
imitate. The patent is also copyright protected making them hard to imitate. However, the
employees can be imitated through training and education programs by the competition.
The organization of the financial resources is very strategic and are therefore easily
sustained and invested to increase the profitability of the banks. The distribution network is also
well organized, with the bank opening new branches in different countries. The patent, however,

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is not highly organized as it is not utilized to its full potential. This gives room for an unused
competitive advantage, and the patent can expire before they are fully utilized.
Strength and weakness
Strength
ANZ bank has high financial power and can, therefore, increase its investment and
acquire more assets for profitability. The bank additionally as strong distribution networks,
making it possible to reach a wider customer base. Similarly, the patent rights allow the bank to
protect its investment against piracy and copyright infringement.
Weakness
The bank lacks well-coordinated research and development programs, and this limits its
ability to be innovative. Additionally, the patent is not well maximized thus limiting the
competitive ability of ANZ bank. Lastly, the employees training can be copied by the
competition and this reduces the competitive edge of the bank.
Strategic leadership of ANZ bank.
ANZ CEO Shayne Elliot has been described as a charismatic and transformative leader.
The CEO does not see his position as that of defending the industry, but as a matter of fact, he is
keen to ensure that ANZ learns from its mistake that saw the global financial meltdown. The
CEO aims at incorporating the community, which is the most important stakeholders into their
business, in the operations of the bank. Elliot advocates the guiding principle of purpose to his
employees by challenging them to do something that adds value to the community. Under the
leadership of Elliot, ANZ is transforming to provide customer-centered services, through
appropriate customer management systems 5. The bank has embarked on appointing a group

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executive responsible for digital transformation. Elliot also as been advocating for diversity in
the operations of the bank and this was marked by his appointment of Maile Carnegie as the
digital banking group executive. She joined ANZ bank from Google and she has been critical in
transforming the digital innovation and research for the bank 8. Elliot leadership is additionally
focused on streamlining the banking operations and reducing the cost of operations for the
customer and build a more convenient banking solutions in tandem with the requirements of the
customers 7. He also aims at creating a wider sense of purpose both to the employees and
customers alike by emphasizing on ethical business operations and navigating the rapidly
changing banking environment. Under the leadership of Elliot, ANZ has taken unprecedented
steps such establishing franchises in Asia, strengthening its business ties in Australia, New
Zealand, and the Pacific and engaging in CSR programs such as drought mitigation in
partnership with government agencies. This success has enabled ANZ to maintain its top position
in Australia and New Zealand as the mainstream financial service provider.
Conclusion
The foregone report has critically analyzed the Australian and New Zealand bank group.
The report has looked at the corporate social responsibility and business ethic practice by ANZ.
The employees of ANZ are strictly ethical and they follow the principles prescribed in the ANZ
code of conduct. The external environmental analysis has shown that ANZ is threatened by an
unstable political climate but it has the opportunity to tap into the new technology to increase the
customer base. Shayne Elliot has been seen as a transformative leader who has guided ANZ to
unprecedented heights through community-based operations and effective customer management
practices.

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References
(4) Corporate Sustainability | ANZ. https://www.anz.com.au/about-us/sustainability/
(accessed Sep 21, 2019).
(5) Jonathan Shapiro, J. Does Shayne Elliott have what it takes to lead ANZ into a new
era?. https://www.smh.com.au/business/banking-and-finance/does-shayne-elliott-have-what-it-
takes-to-lead-anz-into-a-new-era-20151009-gk4uu5.html (accessed Sep 21, 2019).
(6) Culture and conduct | ANZ. https://www.anz.com.au/about-us/sustainability-
framework/fair-responsible-banking/culture-conduct/ (accessed Sep 21, 2019).
(7) Kabakova, O.; Plaksenkov, E. Analysis Of Factors Affecting Financial Inclusion:
Ecosystem View. Journal of Business Research 2018, 89, 198-205.
(8) ANZ's Shayne Elliott talks about shrinking the empire. https://www.afr.com/work-
and-careers/management/shayne-elliott-plots-anzs-change-of-course-20151203-glegd5 (accessed
Sep 22, 2019).
(9) Akbari, P. Adoption Of Internetbanking. IOSR Journal of Business and
Management 2013, 11 (2), 46-51.
(10) Moradi-Motlagh, A.; Saleh, A. Re-Examining The Technical Efficiency Of
Australian Banks: A Bootstrap DEA Approach. Australian Economic Papers 2014, 53 (1-2),
112-128.
(11) Moradi-Motlagh, A.; Babacan, A. The Impact Of The Global Financial Crisis On
The Efficiency Of Australian Banks. Economic Modelling 2015, 46, 397-406.

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(12) Jain, A.; Keneley, M.; Thomson, D. Voluntary CSR Disclosure Works! Evidence
From Asia-Pacific Banks. Social Responsibility Journal 2015, 11 (1), 2-18.
(13) Abbott, M.; Wu, S.; Wang, W. The Productivity And Performance Of Australia’S
Major Banks Since Deregulation. Journal of Economics and Finance 2011, 37 (1), 122-135.