The impact of environmental forces on organization Essay 2022

Running Head: MANAGEMENT 0
BUSINESS CASE ANALYSIS

MANAGEMENT 1
Table of Contents
Introduction................................................................................................................................2
About Common Bank of Australia............................................................................................2
Organisational and governance structures.................................................................................2
The impact of environmental forces on organisations...............................................................3
Risks confronting the firm.........................................................................................................5
Organisational and business practices........................................................................................6
The functions of a diverse range of firms..................................................................................6
Conclusion..................................................................................................................................8
References..................................................................................................................................9

MANAGEMENT 2
Introduction
This essay outlines business case analysis of Commonwealth Bank of Australia
(CBA) i.e. one of the most valuable brands of Australia. This report aims to illuminate user
about the emergence of a business organisation with its organisational functions, corporate
practices and the impact of environmental factors on the business presenting both risks and
opportunities. The scope of this essay is to ascertain CBA organisation structure, corporate
practices and functions together with assessing various significant environmental factors
using PESTLE tool and other management framework. At the end, a short summary is also
being outlined encompassing the whole essay significant points.
About Common Bank of Australia
One of the prominent and leading Australian bank i.e. The Commonwealth Bank of
Australia (CBA) incorporated in 1911. As of 2018, CBA is the third biggest listed enterprise
in the Australian Stock Exchange and also known from the Big Four Australian banks, beside
ANZ, Westpac and NAB. CBA has its businesses across Asia, Europe, New Zealand and
North America making its one of the great multinational bank of Australia and operates
through six business segments with nearly 45, 753 employees. In 2019, CBA total assets
were identified to be nearly 976.5 billion Australian dollars (forbes.com, 2019).
Organisational and governance structures
Commonwealth Bank of Australia has a corporate structure of a company who consists of
different members and shareholders who own the company and various directors such as
Matt Comyn, Shirish Apte, Mary Padbury, Rob Whitfield and so forth (commbank.com.au,
2020). In relation with corporate governance, it refers to the interaction amid various

Figure 1- (Source: commbank.com.au, 2019)
MANAGEMENT 3
participants such as shareholders, company executives and board of directors in shaping
business performances and the way it is continuing towards. The governance structure of the
Commonwealth Bank of Australia can be seen in figure 1 where the board is responsible for
setting up the strategic goals and risk appetite for the bank and accordingly direct the people
behaviour. A CEO has been appointed by the board and they also assess and manage the
performance and bank governance framework. Certain power has been reserved by the board
and it further delegates to the board committees to undertake particular responsibilities
(commbank.com.au, 2019). The board also consults with the CEO and this make to delegate
certain power to Group executives and directors.
The impact of environmental forces on enterprise
The Commonwealth Bank of Australia decision making and performance is
influenced by its external business environment. It can be effectively assessed with using
PESTLE tool and framework that helps the management to identify key driving forces in the
external business environment of a firm.