Operational Requirements and Finance Drawbacks

This assignment requires an in-depth analysis of the operational requirements of the Commonwealth Bank of Australia. It involves examining the finance drawbacks and issues that have arisen due to improper management and operational ascertainment. The report aims to provide recommendations for improving business activities, including implicating pilot testing methods and increasing security operations. The study draws on relevant literature, including books and journals, as well as online sources.

IMC PLAN for Commonwealth
bank Australia

EXECUTIVE SUMMARY
Planning for promoting the business operations as well as increasing the sales with respect to
attaining the adequate gains and revenue benefits which will eb helpful in uplifting the
operational tasks and management of various activities. In the present report. There will be
analysis based on various process of Integrated Media Communication (IMC) techniques. It
will articulate about appropriate evaluation of theoretical concepts which are underlying
through integrated marketing communication. This bank had claimed stripped of more than
$100 million remuneration through its employees in past two financial years by responding
to specific year with scandals. The outcome of executive pay has given direct impact on
Austrac settlement and findings related to Australian Prudential Regulation Authority's report
of prudential inquiry in CBA. The commonwealth bank of Australia will provide strategic
focus on commercial and retail banking business. In the present scenario they are very
important for global and domestic economy. The employees must be involved with their
strong values for providing excellent customer service, better results from its customers and
provides good contribution to its society.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
SITUATIONAL ANALYSIS..........................................................................................................1
TARGET MARKET........................................................................................................................2
COMMUNICATION OBJECTIVES..............................................................................................3
CREATIVE STRATEGY................................................................................................................5
COMMUNICATION STRATEGY MIX........................................................................................5
MEDIA MIX....................................................................................................................................6
BASIC BUDGET CONCEPTS.......................................................................................................6
EVALUATION METRICS.............................................................................................................8
CONCLUSION..............................................................................................................................10
RECOMMENDATIONS...............................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
IMC plan refers to appropriate coordination and integration about communication
channel for delivering consistent and clear message related to organization, product and services.
The present report will critically discuss about function of marketing communication in context
of overall business and marketing strategy. It will articulate about appropriate evaluation of
theoretical concepts which are underlying through integrated marketing communication. This
report will be examining different elements of contemporary mix of communication. In the same
series, it will evaluate marketing communication for different organization range and represent
on present organizational marketing with application of communication tool. This report will be
applying theoretical framework for integrating components of marketing with Common wealth
Bank of Australia to particular organization communication to develop this IMC plan.
SITUATIONAL ANALYSIS
The Commonwealth bank of Australia's reputation is battering after year along with
various series of scandals and faced departure of its various executives along with chief
executive. Over this year, its ranking of leadership has been hampered as Lan Narev (Chief
executive), Annabel Spring (Wealth boss) and Kelly Bayer Rosmarin (institutional banking boss)
has departed bank with battling scandals such as accusations and failed for enforcing anti money
laundering rules. In the similar aspect, bank bill swap rates were also manipulated.
This bank had claimed stripped of more than $100 million remuneration through its
employees in past two financial years by responding to specific year with scandals. The outcome
of executive pay has given direct impact on Austrac settlement and findings related to Australian
Prudential Regulation Authority's report of prudential inquiry in CBA. The chief executive had
lost huge payments of incentives in consequence of fiasco. Technically his remuneration was
negative as his forfeited incentives for financial year 2018 which was exceeded the $2.9 million
salary and recipient of termination payment as well as per disclosures of executives statutory
annual report. In this context, the real damage was of potential value $13.9 million forfeited
through Narev as long term incentives. The chief financial officer was appointed through him
has forfeited worth $7 million as long term incentive with May resignation. In the similar aspect,
two former CBA, ex CFO David Craig along with Chief risk officer Alden Toeves had presence
of $10.7 million of long term performance right with outcome of forfeited of inquiry through
APRA.
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The duo has presence of respective role for more than period which signifies critical
function as it was exploded in aspect of last year. In this context, board has exercised discretion
for adjusting downwards about outcome of executive remuneration on basis of risk and
reputation. They had also included Kelly Bayer Rosmarin as institutional banking operation
along with $5.15 million bundle of remuneration and termination payment of $966000. Th IT
boss, David Whiteing gained remuneration of aggregate of $4.7 million and termination payment
as well. The wealth boss, Annabel Spring received over $4 million and $1.37 million termination
payment.
The outcome of framework of remuneration operation as outcome of board discretion in
its last two financial years which might lead to decreasing remuneration outcome as it was
exceeded $100 million. The CBA is preparing for giving response to Australian transaction
Reports and analysis centres litigation alleged with more than 53700 breaches on basis of money
laundering and regime of counter terrorism financing.
TARGET MARKET
 Customer: The commonwealth bank of Australia will provide strategic focus on
commercial and retail banking business. In the present scenario they are very important
for global and domestic economy. Generally, customer deposits are brought through
retail banking which helps in enabling banks to make loans for their business and retail
customers. In the similar aspect, commercial banks will make loans and helps to
accomplish growth and to hire people for contributing in economy's expansion and to
gain good reputation image.
 Clients: The clients of retail banking might offering its services with various affiliation
of banks such as stock brokerage, wealth management, insurance and private banking. Its
services which were offered to client with dependency on income level of its customers
dealing with CBA. The modest medium of clients are directly served through
representative of teller or customer service along with high net worth individual with
deep relationship with bank with its major banking requirements handled through private
banker or account manager. The sense of solidity and stability is very important for
banking and in real case retail banking is major area of banking which is affected through
technology such as ATM or popularity among telephone banking and online as well.
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Digital agenda is not enough to ensure about market leading position of bank as it
will connect branch network and Australian based contact centres as it would be very
important and relevant for its customers. So, it will be combination of both digital and
Australia leading customer experience across face to face assisted channels.
 Employees: The employee led network signifies vital role for developing relevant
solutions and building inclusive environment for people and customers as well. Without
employees each business entity cam not accomplish its objectives. In the similar aspect,
referrals should be encouraged as they are happy for suggesting bank for work to their
friends and relatives but with potential. The employees must be involved with their strong
values for providing excellent customer service, better results from its customers and
provides good contribution to its society.
It would be focussing on employee engagement by energising and engaging to
provide productive results. It is fundamental for success related to customers, bank
community and committed to its purpose, strategy and value. Their employees should be
updated with bank values with appropriate explanation about strategy. Diversity and
inclusive workplace culture is motivated by setting target for raising representation of
women with context of leadership. Employee led network signifies major role as they
comprise Women, CAN (gender), Unity (gender identity and sexual orientation),
advantage (stage and age), Mosaic (cultural diversity) and Enable (accessibility and
disability) with reconciliation action plan.
With context of pay equity, there must be minimal gap among women and men in
similar role. Gender pay equity has taken slight backwards with huge gap for general and
executive managers. People would be encouraged to balance work with context of vital
functions in their lives. Presence of flexible working practices will be allowing for
adjustments about method for performing work in appropriate manner and to deliver the
best outcome for themselves, business and customer.
COMMUNICATION OBJECTIVES
Specific: The reputation must be rebuild for customer satisfaction after reputation
damage. In the similar aspect, they should try to avoid situation of previous events such as scam
of departing chief executive and other executives by anti-laundering money and incentives. Huge
attention should be given to its existing customers and appropriate target market. They must
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engage proactively with regulators and government which are invested in education and
communities. In the same series, it will raise its sales by 10%.
Measurable: CBA has to raise number of corporate, consumer deposit and customer
mortgage account at the end of its year. In the similar aspect, total value of commercial loans
should be raised by end of quarter with comparison or previous quarter. The most important is to
raise customer service scores in each branch by year end. The turnover of employees must be
reduced via offering program of career development and training in these three months. Further,
community awareness of services of bank must be improved by launching branch marketing
campaign in end of financial year. For building customer satisfaction after latest scandal of anti
laundering, it has to increase the sales by end of this campaign.
Attainable: The above services would be accomplished by acquiring its services of
public relations and publicity organization and appropriate launch of this marketing campaign.
For increasing customer satisfaction, customer advocacy team must seek for resolving its
disputes in maximum 15 days. In simple words, feedbacks should be addressed with specified
duration as they should responses for giving initiatives such as internship programs and to
develop road map. The organization contribution to its CSR programs which helps in positive
aspect for depicting best image. The safety, health and well-being of employees are mandatory
for success as main strategy is to set short and long term objectives to enhance well being. The
sustainable financial performance via strong culture, conduct, accountability, governance and
responsible practices about business.
Relevant: The whole data must be audited on quarterly basis, it might be on monthly
with recognised auditor, This will indirectly decrease anti money laundering and manipulation
probability. The data should be related to its financial statements along with annual report. The
clients of business such as private equity, stock broker, insurance and wealth management helps
in generating revenue. The sustainable financial performance must be delivered to its
shareholders with customer advocacy along with digital innovation. Further, its progress must be
measured and benchmarked against numerous leading sustainability surveys and indices for
driving better performance in problems related to governance, social and environmental issues.
Timely: The marketing campaign is based for long and short term objectives so it should
be accomplished in 3 months and at end of financial year. It should be accountable and
revaluation of strategy on basis of its outcomes.
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CREATIVE STRATEGY
There must be adaption of sustainable development goals which must be interconnected
and designed for triggering action like inequality, hunger, poverty and environmental impact.
These goals will be designed on basis of community, customers, shareholders and people. The
customers would be reflected on basis of service excellence, good customer outcome and
advocacy, digital innovation and financial well being. The main aspect is to rebuild trust and
reputation for engaging on proactive and open aspect to its regulators and governments, function
of modelling reconciliation, investing in education and communities. There employees will be
motivated via engagement, leadership, promoting diversity, inclusion and career development. In
the similar aspect, sustainable financial performance has been delivered with high conduct,
governance, remuneration, culture, responsible business practices with accountability. The
organization will enhance society by providing laughter programs by raising clown doctors along
with community team help for events of smile day.
COMMUNICATION STRATEGY MIX
 Advertising: The banks will be offering its products and services as responsible provider
with implicating of advertising through social media platform with full information. In
this context it will contribute to community. The outcome of this work will raise services
and products for vulnerable people. The organization would observe its popularity of
products and needs and advertise by considering this aspect. It could get approaches to
innovative market and compete with competitors on online aspect. This initiative can be
referred as marketing campaign with customer experience strategy where customers are
interested for interacting with financial institution and banks.
 Sales Promotion: The banks must imply with institutional sales and promotes it with
basic offers for increasing its sales.
 Direct marketing: It is major form of advertising where products are sold on direct basis
such as door to door or it might be corporate sales.
 Public relations: The individuals and organizations communicate with media and public
with objective to create and maintain positive image for creating strong relationship with
its customers. The existing customers must be held with conferences and to invest in
marketing and public relation in its offerings and corporate bond.
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 Personal Selling - Personal selling is the process of communicating with customers
face-to-face with the purpose of selling a product or service.
 Interact / social media : In the present scenario, this world is more fascinated towards
social media as it helps in time saving and cheap as well.
MEDIA MIX
 Television: The IMC campaign related to CBA must be communicated via television in
which it should provide details about its latest products and services along with most
needy item. When it will offer new services, then it would advertise on television. In the
present scenario, CBA's has lost its impression and image so to recover it will be framing
plans for attracting new and current customers.
 Radio: This is considered as oldest mode of communication, but still potential customers
could be gained by giving attractive adds about trust and loyalty. The existing services
will be advertised through this channel.
 Digital: In the present scenario, this world is more fascinated towards digitalisation as it
helps in time saving and cheap as well. The CBA would be providing digital help to its
customers. Across print and digital news media, 88 per cent of Australians, or 16.3
million people, read news media in July, 2018.
 Billboard - Civic Media Billboards range in size from the convenient Landmark size (6.3
x 3.3m) to an impressive Spectacular size (19 x 4.6m)
Cost:
Billboard: $2000
Radio: $1400 per week
Television: $1500
Digital: $2800
BASIC BUDGET CONCEPTS
Budgets are mainly prepared for estimating the future costs on the basis of past transactions.
Therefore, in relation with analysing the costs of Integrated Media Communication plan there
will be implication of various strategies and techniques which in turn will affect the operations of
business. This program is based on the concept for rising the sales margin of Common wealth
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bank of Australia. Thus, due to previous scam and various financial obstacles there had been
reduction in reputation of this banking industry. People are making less investment due to threat
of fund security. Insecurity of the amount which will be investment by them in bank will be
challenging because of past issues. Moreover, in these regards the formulation of effective
planning will help in leading the organisation on attaining targets.
Additionally, in term of implicating the IMC program for promoting the banking operations
of Commonwealth Bank of Australia there will be requirement in having strong budget planning.
In relation with this approach there will be consideration of various process and techniques that
will be followed by the professionals. The cost required at each level will have influences on
management of various operations. Moreover, there has been influences of the six stages which
are required to be covered in this process for IMC program. Allocating the capital at each level
will bring balanced promotional aspects as well as helps in improving banking sales.
In order to perform such tasks there is a requirement of budget which consists of all costs
and operational requirements that will help in managing the operational activities. Thus,
activities will be performed in IMC process will be analysed on the basis of its cost as:
Cash budget for Integrated Media Communication
Particulars
Amount
(in$)
Promotion through digital marketing 2800
developing branch networks 50000
connectivity charges 10000
Developing Australia based contract centres 45000
installation of inter-bank communication
software 25000
Television 1500
Billboard 2000
developing CSR activities 10000
Implementation of Pilot Testing 20000
Radio 14000
Employee training and development 25600
organising the conferences 4000
Total operational cost 245900
Cash at the beginning 5500000
Cash at the end 5745900
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Interpretation: On the basis of above estimated budget which represents cost of operation
on which it can be said that there are various costs and expenses which are needed to be payable
by the professionals during the process of integrated media communication. However, there has
been analysis over the costs of promotion through digital marketing which has been estimated as
$15000. Moreover, there have been various costs which will be levied on business operations
such as developing the band network amounted to $50000, Connectivity charges as $10000 and
developing Australia based contract centre which will costs the business as $45000. Moreover,
there will be requirement of installing the software which will execute and governed entire
transactional process of bank. Therefore, it will cost around $25000 along with this, there will be
implication of CSR activities in the firm which is expected to have expenses around $10000.
There have been various necessary costs which were to be analysed and determined that will
have impacts on business activities.
In relation with developing the employees to learn and analyse the fraud and manipulation
of any amount there will be special training and development session awarded to them. Thus,
such process will cost round $25600. Moreover, implication of piolet testing technique which
will be cost around $20000 and conferences for interacting with stakeholders of firm will cost
$4000. On the other side, by summing up all the relevant expenses the total operational cost will
be $245900 on which CBA has planned to initiate this process for the budget of $5500000.
Moreover, the ending cash balance will be $5745900.
EVALUATION METRICS
In relation with creating the adequate sustainability in the operational practices there will be
determination of various operations that will be helpful in leading the organisation in terms of
making adequate industrial evaluation. Generating higher sales revenue as well as promoting the
business operations which will help Commonwealth bank of Australia in regenerating the trust
and implicating various techniques for future business development. For executing business
operations there will be need of managing various activities of the firm such as:
Regulatory Legal and Industry review update:
In this approach there will be need of having appropriate practices and operational activities
which will result in proper determination all the laws, amendments and acts that will be helpful
in uplifting the activities of the firm. Thus, in respect with generating the large numbers of
consumers there can be use of various transparency in operational practices. However, there has
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been various approaches which will be helpful to the bank that are needed to be considered by
them such as:
Governance:
There has been consideration of more rigorous operational managements and activities on
which bards and executives committee level of operations had been handled. Thus, the
management of banking operations is quite necessary which will help in governing business for
effective improvements and management of operations. Moreover, it requires administration of
activities on the basis of proper governance on financial as well as non-financial aspects of the
business. If the proper administration and execution not being made in the organisation than
CBA has to face various difficulties relevant with managing the work culture.
Accountability:
Considering the recording of all transaction which are required to be based on the
accounting standards. Thus, considering all the operations as well as records the activities with
its proper nature and financial governance which will be helpful in uplifting the operational tasks
and activities which in turn will be useful for an entity in terms of managing business operations.
Along with this, there is need to have sound remunerational practices in the industry. There can
be rise in the operational practices as well as governance of various activities which will help the
entity in making proper motivational increment in the workforce. If accuracy in the accounting
results of the organisation were not being followed by the professionals of CBA than there will
be poor financial governance.
Capability:
This area of necessary improvements will be helpful in rising the substantial control over
the operational risks. Ascertaining all areas of issues and obstacles which will be managed
through operational analysis and determination of various aspects. The compliance functions and
various operational increment which will be helpful and appropriate in managing the operational
aspects of entity. Therefore, if professionals do not represent the capabilities of handling all
activities that all targeted aims will be attained by them most accurately.
Customer:
Main emphasis is needed to be payable over consumer relationship management by the
organisation. Common wealth bank of Australia has to have appropriate analysis over the
consumer dealings and decision making which will help in overcoming all challenges as well as
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in appropriate execution. Moreover, it requires that there is needed to have regular audit over the
transaction made between organisation and the consumer with respect to lead the firm in
attaining proper goals. As per concerning about the reputation of bank due to past drawbacks and
financial issues there will be adequate development and administration of proper operational
changes which are required to be made. CBA has to look for the Facebook likes and views on
their posts which will help them in analysing the consumer interest.
Culture:
In relation with analysing the cultural variations in the operations there can be various issues
and obstacles which creates variations in the work culture. There has been issues which are
generally based on complacent to empowered, striving and challenges for effective work
practices which will be bring ability to over-come all risks. The identification of obstacles will
bring benefits in terms of proper remediation and management of each operations. if the proper
work culture will not be followed by the professionals than it will affect the operational activities
and destruct CBA in attaining proper goals.
CONCLUSION
On the basis of above report, it can be concluded that, operational determination and
management of various tasks will be helpful in addressing the business activities. The past issues
such as financial obstacles as well as issues which had lead Commonwealth Bank of Australia in
huge losses. Thus, in these approaches and relatively operational management of work practices
which in turn will help in developing business operations as well as management of all activities.
Recovering the reputation of firm which will help in operating various activities and
governing all the tasks. Further, implementing the integrated management plan which will be
helpful in uplifting the operations as well as managing various business tasks that will lead this
banking industry in analysing all transactional activities as well as managing business operations.
RECOMMENDATIONS
As per analysing the above report, operational aspects of the Common wealth bank of
Australia on which it can be such finance drawbacks and issues which have incurred due to
improper management and operational ascertainment had lead organisation with drastic losses. In
relation with addressing operational requirements. Moreover, it will recommend to the
professionals of bank that they must make proper changes and operational advancement in
relation with improving business activities.
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 Implicating Pilot testing methods which will bring the analysis over the transactional
aspects of the business as well as regular audit of the accounts
 Increasing the security of operations that will help in appropriate financial
governance and management of each tasks.
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REFERENCES
Books and Journals
Adams, M., Borsellino, G., McCalman, J., & Young, A. (2017). Australia’s proposed Banking
Executive Accountability Regime: regulatory panopticon or fail-safe?. Governance
Directions. 11(9). 528-531.
Carnegie, G. D. (2016). The accounting professional project and bank failures: The case of the
early 1890s Australian banking crisis. Journal of Management History. 22(4). 389-412.
Liu, Helena. "Constructing the GFC: Australian banking leaders during the financial ‘crisis’."
Leadership 11. no. 4 (2015): 424-450.
Maine, B. (2017). Bank services don't need to be run for profit. Green Left Weekly. 25(1151).3.
McIlroy, J. (2017). Re-nationalise the commonwealth bank. Green Left Weekly. 20(1149). 11
Oates, G. and Dias, R., 2016. Including ethics in banking and finance programs: teaching “we
shouldn’t win at any cost”. Education+ Training. 58(1), pp.94-111.
Pha, A. 2016. War clouds gather. Guardian. (Sydney) 15(1723). p.1.
Terry-Armstrong, N. 2016. 7-Eleven: A case study of a flawed franchise model. Busidate 24(2).
p.8.
Wanna, J., 2018. Commonwealth of Australia July to December 2017. Australian Journal of
Politics & History. 64(2). pp.312-317.
Online
Colin Kruger. 2018. Former Commonwealth Bank execs pay dearly for scandals. [Online].
Available through: <https://www.smh.com.au/business/companies/former-commonwealth-
bank-execs-pay-dearly-for-scandals-20180808-p4zw8o.html>.
James Thomson. 2018. Commonwealth Bank's reputation ranking hammered amid scandals .
[Online]. Available through: <https://www.afr.com/business/commonwealth-banks-
reputation-ranking-hammered-amid-scandals-20180418-h0ywwq>.
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