ANZ Bank: Strategy & Governance Analysis

This assignment delves into a comprehensive analysis of ANZ Bank, focusing on its strategic initiatives for growth within Papua New Guinea, its overall performance in the face of economic fluctuations, and the effectiveness of its corporate governance structures. The analysis incorporates insights from various academic studies, industry reports, and news articles to provide a holistic understanding of ANZ Bank's position in the Australian financial market.

Running head: Management Audit 1
Management Audit

Management Audit 2
Contents
Introduction......................................................................................................................................2
Mission and Governance.................................................................................................................2
Strategic Position of ANZ Bank in respect with its SWOT Analysis, linking with environmental
analysis............................................................................................................................................3
Critique of the Organisational Management Function through PLOC............................................5
Conclusion and Recommendations..................................................................................................8
References......................................................................................................................................10

Management Audit 3
Introduction
Management audit can be understood as the assessment and the analysis of the capabilities and
the competencies of the management of an organisation for evaluating their efficiency and
effectiveness in respect with their business policies ad strategic objectives (Lin and Hwang,
2010). The key aim behind accompanying management audit is not to have a look or reward the
performance of any individual rather to analyze and praise the management team in respect to
their competition (Prawitt, Smith and Wood, 2009). The purpose of developing this report is to
understand the mission and governance of the selected organisation i.e. ANZ Banking
Corporation, analyzing eth strategic position of the company through evaluating its SWOT
analysis and by developing a link with the factors of environmental analysis. The next part of the
report will perform analysis of the organisational management function of the organisation
through the lenses of various management theories and PLOC framework for understanding the
ethical position and core values of ANZ Banking Corporation. The report will end with a brief
conclusion drawn from the overall analysis with few recommendations.
Mission and Governance
Mission Statement of ANZ Banking Corporation
The mission of ANZ Bank is to support in shaping the world where the communities and the
individuals throve. And this is because ANZ strives hard for developing a sustainable and
balanced economy where every individual can become its part and have improvement in their
lives. According to the organisation, the value of banking cannot be evaluated in just cents or
dollars but the actual worth of it lies in the associations which are developed by connecting with
the businesses and the people. It is all about unlocking the hidden opportunities for empowering
the communities to rapidly transform and develop. While examining the mission statement of the
bank, it is analyzed that the main purpose of the company is to serve the masses and the
stakeholders by having improved relationships but also to have a high focus upon the
development of the economy. But there is not mentioned specifically regarding the stakeholders.
Thus, it is evaluated that there must be a particular emphasis on the various stakeholders
comprising of the community, suppliers, shareholders and the employees (ANZ, 2017).

Management Audit 4
Governance
By performing an analysis of the governance offering of ANZ Bank in respect with the ethical
decision making and controlling, organizing, leading and panning, it is evaluated that the
organisation gives its employees and its strategies huge importance as they are its pillars of
success. Its planning is long term by having a huge presence in the markets of Australia, the
Pacific, and New Zealand as well as in the market of Asia. There can be seen ethicality in the
decision making as it offers the customers with adequate and correct financial solutions as well
as have its more emphasis on innovation and merger organisational culture so that it can have a
better leading and organizing. It has also been evaluated that there is effective and efficient
governance offerings as all the function and managerial aspects of the organisation are based
upon five key aspects i.e. ANZ ensures that they is high level of excellence, respect,
accountability, collaboration and integrity in all their work so to have a better and ethical
organisational functional management (ANZ, 2017).
Strategic Position of ANZ Bank in respect with its SWOT Analysis, linking
with environmental analysis
In order to perform the analysis and evaluation of the weaknesses and the strengths of ANZ Bank
in the SWOT Analysis framework it is necessary to have a better understanding of the history of
the organisation. In specific the analysis will be performed of the functional and the corporate
strategies of the company (Klepek, n.d.).
The Australian and New Zealand Banking Group Limited (ANZ) is a leading bank of Australia
and New Zealand that possess a robust market share in the Australian banking industry. The
organisation offers customized services and takes use of innovative technologies for offering
personalized services to the customers. ANZ grounded in the year 1835 and placed its
headquarters in Melbourne. The organisation attained huge recognition with its strong and
potential business and management strategies (ANZ, 2017).

Management Audit 5
SWOT Analysis
The following is the analysis of the weak nesses and the strengths of ANZ Bank where the
strengths of the company are listed and identified as the major factor for attaining competitive
benefits over the market rivalries and the weaknesses which may appear as the barricades in the
success and long term sustainability of the organisation.
Internal Environment External Environment
Strengths
 ANZ: The largest banks of New
Zealand and 4th largest bank in
Australia with strong market
capitalization.
 Diversified product portfolio of ANZ
with reduces risks of operations &
business
 Strong market share in Pacific nations
 Strong financial position
 Extensive services i.e. payment
solutions, financial services
investments, asset finance and banking
services.
 50,100 employees (Chuang and Hu,
2015).
Opportunities
 Had a license of conducting retail
business in China, therefore have
opportunities to expand many diverse
regions of China and other oversees
nations to have a global reach.
 Strong opportunities for ANZ Bank to
enhance its product portfolio (Ameme
and Wireko, 2016).
Weaknesses
 Limited global exposure of the ANZ
Bank considered as a big weakness.
 Strong market competition (Market
Research Report, 2017).
Threats
 Threat of the breakdown of the
organisation due to economic
conditions
 Threat of continuous fluctuations and
the modifications in the banking system
of the nation
 Strong competition from the global
banks

Management Audit 6
Analyzing the SWOT analysis of ANZ Bank, it has been evaluated that there is an alliance
among the threat and opportunities of the external environment with the weaknesses and the
strengths of the internal environment. By having an in-depth approach of analysis, it is expected
that there is a need to address the various weaknesses analyzed in the SWOT analysis so that
there can be gained the advantages and benefits of the several opportunities present in the market
(Gedda, 2009). There are strengths possessed by ANZ Bank such as huge number of employees
and extensive market capitalization. These strengths can help the organisation in having
increased presence in eth various overseas nation and also to have more innovative and
pioneering products and services for increasing its market share (Memis and Cetenak, 2012).
There are some threats which have been faced by the organisation in respect with global market
competition and due to continuously fluctuating economic conditions. To overcome these threats
and to retain the leadership in the New Zealand and Australian market, it is advisable to ANZ
Bank to have high investments on research and development to have a faster and rapid global
expansion as well as to have develop contingency plans so that the risks of such threats can be
minimized and the company can take use of the potential opportunities (Chuang and Hu, 2015).
Critique of the Organisational Management Function through PLOC
Analysis of Management Function: Planning, Leading, Organising and Controlling
It is analyzed and anticipated that there are few planning strategies which are implemented at
ANZ Bank. It is evident that there has been used a number of programs and also approaches for
financial forecasting as well as management forecasting. The organisation has an adequate
planning technique’s by which it plans the quarterly sales as well as the market target required to
be achieved in that span of time (Worthington, 2013). The organisation also has a proper budget
for all its expenses and investments so there can be analyzed the end results in a proper manner.
There was a change in the strategy of ANZ Bank where the organisation started its wealth and
the retail business in the regions of Indonesia, Taiwan, China, Hong Kong and Singapore in the
year 2016. This panning of diversified portfolio and global expansion offers an opportunity to
the organisational managers within ANZ Bank to have a diverse set of activities and challenges
in managing new functions, recruiting people and other various responsibilities of the other
markets (Harorimana, 2012).

Management Audit 7
With these advantages of the planning management function there has been gained improved
flexibility, focuses on the organisation and improved future sustainability of the organisation. All
these advantages of planning offer numerous benefits to ANZ Bank in order to ensure that there
is a strong market share and increasing profits and revenues. The new planning strategy of retail
business offers long term stability to the organisation. It has also been evaluated and analyzed
that ANZ Bank also takes use of one of the most effective way of planning its activities i.e.
Management by Objectives (Jain, Narayan and Thomson, 2011). It is an approach which objects
to improve and enhance the organisational performance by the way of defining management and
organisational objectives on which there is achieved consent of both the employees as well as the
management. The bank first has development of certain objectives and aims which can be used
to have action plans. The organisations attain improved support and commitment of the
employees when the goals and objectives are already set. These setting of objectives and
management by objectives help in evaluating the success of the company by reviewing it with
the set objectives (McCombie and Pieprzyk, 2010).
Within the organisation, ANZ Bank, it is evident that there is followed a charismatic leadership
style for managing the organisation and the employees. John McFarlane follows most of the
norms of the charismatic leadership style (Al Matarneh, 2011). The main aim behind taking use
of this style is to develop more sustainable as well as competitive benefits for the bank. There
was introduction of a breakout programme for having cultural transformation at ANZ Bank.
There was also started a comprehensive program by John for streamlining the performances of
the organisational workforce (Ellis and Darko, 2013). In a similar way, three was also initiated a
corporate-level policy for the spotting and management of the new and fresh talent in the
organisation. All such programs, actions and initiatives of ANZ Bank enabled organisational
management and McFarlane to put a halt on the declining performance of the organisation and to
bring essential changes in the value system, management and the culture of the bank (Wyatt,
2009). In spite of attaining a strong level of growth and success while bringing organisational
change, there are some loop holes in the leadership. As in ANZ Bank, the actions are taken only
against the employees who perform low by terminating them from their jobs but there is no kind
of action which is taken against the employees of senior management irrespective of their
declined and ineffective performances. Within ANZ Bank, it is clearly evident that it is a

Management Audit 8
transformational organisation as there is a clear description and separation of the responsibilities,
roles and the duties of the employees but stull there is increased level of team work in the tasks
(Stockport, et al., 2012). McFarlane explains the responsibilities’ to the board as well as maintain
a well-structured management for reviewing and measuring the performances. There is a need to
have an equitable behaviour in the leadership where all the employees have a similar sense of
equity in their appraisals, rewards and penalty so that there can be glimpse of effective leadership
at all the levels of the organisation (Baker, 2014).
Within ANZ Bank, there are managers at all the different levels that have their engagement in
the functional management of controlling. To have an effective control in the organisation, ANZ
Bank takes use of two effective techniques of controlling i.e. performance aunts and the budget
audit. To control the organisation management, there involves a verification and examination of
the documents and the records of the bank (Tiong and Anantharaman, 2011). In the budget audit
controlling technique, there is gained information in respect with the organisation and the
financial planning. And through the performance audit, ANZ Bank determines that whether the
results are matched with the actual required performance of not. The bank is not only have a
limited control only to the financial state of the company but also have a control and check over
the where other areas too i.e. various organisational activities, regulatory policies and the
compliance. The organisational management function at ANZ Bank therefore covers a broad and
extensive scope of the various responsibilities and duties of a manager (Baker and Saren, 2016).
Analysis of Ethical Decision Making
Because of the continuously rising practices of the companies to have high level of ethicality on
their business operations and activities, there is also same pressure upon ANZ to have high
ethical consideration and ethical decision asking (Schoenmaker, 2013). At ANZ Bank, there is
encouragement by the board to the organisational managers to maintain as well as promote an
organisational culture that which is established upon a set of values and unifying principles for
guiding the decisions as well as the actions of the Board as well as of all the organisational
employees. In the breakout culture development program at ANZ Bank, there is strong
participation of around 26,000 employees (Ula, Ismail and Sidek, 2011). Such program helped
the employees and the managers to implement values-based decision-making as well as for

Management Audit 9
balancing the needs and requirements of community, customers, shareholders and the staff in
their respective activities and roles. To have high ethical principles in the decision making as
well as to have assistance to the staff and the directors in respect with the understanding of the
organisational culture, there are three key codes of conduct that helps in guiding the decision
making and business practices.
Codes of conduct at ANZ Bank:
 Financial Officers Code of Conduct
 Employee Code of Conduct
 Directors Code of Conduct
These code of conducts and other ethical principles and policies help in enhancing the level of
transparency of the organisation and it present the way in which ANZ works and operate. There
are also policies which enable and force the organisation to have ethical code of conducts in
respect with the environment as well as the employees and the community (ANZ, n.d.)
Conclusion and Recommendations
ANZ Banking Corporation is one of the most recognized banking organisations which has a
sound performance in respect with kits corporate and business strategy and governance. The
newly established and diversified retail banking services in China and other few regions is one of
the recognized strategies of ANZ for acquiring continuous growth and success and capturing
new market areas. By analyzing the management and the strategy through the planning,
organizing, leading and controlling aspects of the POLC framework, it has been found that the
organisation leads in most of the aspects. Practicing the breakdown program is one of the most
ethical practices of the organisation and has gathered the support of the employees as well as
helped the bank in having more ethical and governance practices which is extremely significant
for executing in modern economy. In the organisation, it has been seen that there exist
charismatic leadership but still there are some loopholes which are required to be filled and
improved the organisational management. To improve it is recommended to ANZ Bank to have
modification in the mission of the organisation and have a better approach towards the
stakeholders including employees and other parties so that there can be effective participation of

Management Audit 10
the employees in the attainment of the set objectives. Secondly, there must have improvements in
the performance audit as well as to have an equal approach in dealing with all the employees
without discriminating on the basis of position. Another recommendation for ANZ is to have
more supportive policies which can have better development of the employees and flexible
working in the organisation.

Management Audit 11
References
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Ameme, B. and Wireko, J., (2016). Impact of technological innovations on customers in the
banking industry in developing countries, The Business & Management Review, 7(3),
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http://www.anz.com/documents/au/policies/Fostering%20Ethical%20Decision
%20Making.pdf
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interest rates and Australian bank returns. Applied Economics Letters, 18(10), 967-972.

Management Audit 12
Klepek, C. Design Thinking: The Case of Banking Services. In Innovation Management,
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Management Audit 13
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