MGMT20144 Business Case Analysis Assessment

MGMT20144 – Assessment Item 1 – Business
Case Analysis

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
CASE ORGANIZATION SYNOPSIS............................................................................................1
a. Business Structure and Governance Structure.........................................................................1
b. Environmental factors influencing CBA.................................................................................2
c. Top three risks..........................................................................................................................3
d. Business practices....................................................................................................................4
e. Functional departments............................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
There are many factors in the business environment internally as well as externally that are
influencing a business or organisation. These factors are analysed using different tools such as
Pestle Analysis, a most effective tool in analysing all the external factors affecting an
organisation. These factors also influence the process of making decisions of the business
depending upon the nature of the organisation. In the present report the business structure of
Commonwealth Bank of Australia will be examined along with analysing the various external
factors influencing the bank. Major risks faced by the chosen bank will also be identified in this
report, and the ways in which they influence the baking operations.
CASE ORGANIZATION SYNOPSIS
The Commonwealth Bank of Australia (CBA) is a global bank in Australia which came into
existence in 1911 under the commonwealth bank act. The first branch of this bank started
operating in Melbourne (Buell & John, 2018). Since the year 1920 to 1960, CBA was known to
be the central bank of Australia, it was later listed in the Australian stock exchange in 1991. It
was entirely privatized in 1996, at present the CBA has investments and operations all around the
world with the maximum of the operations the Asia-pacific region. In March 2018, it was
mentioned as the third largest company in the Australian stock exchange (Bandara et.al., 2019).
a. Business Structure and Governance Structure
CBA is a public or government owned bank and corporate bodies related to it are following the
strategy of becoming a simpler better bank for fulfilling the aim of enhancing the financial well-
being of clients and community. Structure of this bank includes Detail banking services,
Premium banking services and Wealth management (Haisken-DeNew et.al., 2019). The
corporate governance settings and activities of the bank are reviewed as well as improved on a
regular basis in light of new regulations and laws, evolving expectations of the stakeholder and
the dynamic environment in which the bank is operating. The corporate governance statement
defines the major practices and arrangements of governance of the bank. These practices and
arrangements meet all the requirements of the governance principles and recommendations
define by the third edition of ASX corporate governance council.
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