Westpac Banking Corporation Strategies

This assignment delves into the strategic approaches employed by Westpac Banking Corporation, a leading Australian bank. It examines how the corporation utilizes various business strategies to attain its future objectives, focusing on their effectiveness in delivering services to customers.

Strategic development within
an organisation

Executive summary – Strategic planning and development is an organisational management
activity which is used to arrange business activities according to business objectives and goals.
For a organisation, strategy is way of describing how they are going to get things done. This
process is basically used for provides direction and guidelines to employees. Strategy has many
definition, but it is generally involves creating objectives, determining actions to achieve them
easily and utilizing all resources to execute actions and efforts. In this report strategic
development is used for Westpac banking Corporation which is an Australian bank and financial
firm.

Table of Contents
INTRODUCTION...........................................................................................................................2
1. Application of corporate strategies.........................................................................................2
2. Criticism of business practices that company has pursued.....................................................3
3. Environmental analysis for a organisation..............................................................................5
4. Various leadership style..........................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES ...............................................................................................................................8
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INTRODUCTION
Strategy development is also known as planning for achieving business objectives and
future goal appropriately. This is a organisation's process which is used to defining strategy,
direction, guideline and making decision on allocating its resources effectively. Through this
process employees of organisation get specific direction to achieve company's objective and
future goal in appropriate manner. In this process management arrange their business activities
and resources according to market need and their own objectives (Balassa, 2014). This project
report is based on Westpac banking Corporation which is an Australian bank and financial
service provider firm. The bank was founded in the year of 1982 and now they has around 13.1
million customers, approx. 1429 branches and strong network of 3850 ATMs. This project report
includes Application of corporate strategy which is used by organisation environmental affect on
it. At last it is represents organisational culture and various leadership style for bank.
1. Application of corporate strategies
For a banking organisation it is very important to meet challenges of current environment
that can affect on their application and policies. A banking firm faces many challenges from
competitive organisation who provides liquidity and flexibility in their funds and rates. So it is
important for them to manage all these priorities and strategy in a balanced way with an
appropriate growth, risk and returns as well as productivity. There are various strategic priorities
for Westpac banking corporation for its development and growth -
Improve digital customers experience – For Westpac banking corporation, it is very
important to improve digitalisation in their policies and customers experience. This is a
important aspect to get customers experience because their decision is all based on how they
interact with financial institution and their feedback is giving rise to new title for banking
industry. This process is basically used to get competitive edge in the target market and introduce
their services to customers. Digitalisation is very important for all financial organisation to
provide higher satisfaction and convenient sources to consumers. More than any other strategy,
improving customers experience is most consistent to move firms level in target market
(Cummings and Worley, 2014).
Reduce operating cost – A banking firm need to improve their operating cost to attract
more customers easily. For this, they needs to cut higher cost and interest rate of loan and money
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transaction for provide better experience to customers. Banking and financial organisations get
many competition in the market from the other firms who provides affordable rate of interest to
get more customers from the market. In this process it is very important to review and
revamping of underlying process and digitisation initiative to get customers feedback and their
experience toward their services and rates. So for them it is very important to use reduction of
cost to get higher advantages and growth from the other competitive firms.
Increase investment and innovation – Customers of the banking and financial
organisation are always wants various investment policies and innovative ideas to improve their
cost and get higher profit from them. Sometimes banking organisation are provides less
investment rates and higher interest rates on the loan and money transaction. This process
negatively affect on the customers experience because they can not get better benefit from
investment policies. So for this Westpac bank need to improve their policy to attract more
customers to get higher investment and liquidity from them. It is helps to increase assets values
and customers growth easily (Dittmar and Ohland, 2012).
Performance discipline – This the objective of Westpac banking corporation to
performing better in the competitive market through their services and policies. It is includes a
balanced way across strength, risk or returns, growth and productivity. For this process a banking
or financial organisation needs to maintain strong capital fund, to meet need of customers and
stakeholders before any investment or funding. In it funding and liquidity position help to
enhance their position in front of competitive firms. This is ensuring a diversity of funding or
build a pool with customers to optimising composition of their deposits.
Services leadership – It is important strategy of a organisation to provide their services
as larder of market. In it Westpac banking corporation needs to provide seamless customers
experience across all the target market. This strategy is all depends on employees contribution
and their services that they provide to various customers according to their need and demand. It
is also based on deepen relationship thorough customers experience. Through this bank can
easily build relation with new customers by making their policy simple, easier and provide
flexibility and liquidity in funds and services (Dixon-Mueller, 2013).
2. Criticism of business practices that company has pursued
Westpac banking Corporation is a largest banking and financial institute in Australia. Thy
provide various effective services to the customers and in other countries. The organisation is
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work effectively but due to some criticism they faces lots of problem so implement their policy
and services. There are various criticisms business practises which is being pursued by Westpac
banking Corporation and two of those criticisms are described below as:
Excise control – Sometimes banking organisation's keeps lots of control on customer's
funds and their investments. But after this control they faces lots of difficulties to survive in
competitive market. It is very obvious to make control on organisation's policy and services but
excise control can impact negatively on all the procedures. Banking and financial organisation
need to keep specific control on employees, customers funds and higher rate of interest that they
provide in the market. In this process management of the organisation help to make control on
the overall firm. This process will help to protect them from negative approach of external
environment because for this firm only can only make specific strategy and plan. This criticism
can be related to the interest policy and bank rates that they offer in the target market but if they
make excise control on this their results will be in negative form. Interest rate and liquidity of
fund provides capital and reserve to banking organisation that they use in the as credit policy of
customers (Engle and et. al., 2011).
Negative impact on employee's communication – Excise control in a firm is negatively
impact on employees communication. After this policy they can not convey messages and ideas
to others and face difficulties to work in a team. Less communication of employees is negatively
affect on banking firm because will not get new ideas and thoughts from their workforce.
Impact on productivity – Sometimes excise control is negatively affecting on productivity
of firm. It is all based on how employees provide their services and contribution to achieve
organisation's objective and future goal (Gulati, Puranam and Tushman, 2012).
Customers services – Customers are the internal strength of a firm who provide them
maximum profitability and higher revenue easily. For them firm need to use effective ideas and
strategy to provide specific services according to their needs and demand. But sometime
organisation are not able to fulfil them easily and its results are comes in negative form. Bank
need to provides effective training and learning to their employees who need to be able to
understand their customers demand and capacity to pay specific interest on credit amounts.
Interest rate, less liquidity and flexibility is the aspect of less customer service. There are some
other Criticism of customers services-
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Less ATM services – Customers of banking organisation wants ATMs facility from the at
various places to get emergency services. So it is very important for banking firm to open their
ATM services at various place for their customers and emergency services.
Less use of digitisation – For a banking and financial firm, it is very important to use
digital technology in their transaction and other services because this will help to improve others
services easily. But Westpac banking Corporation is not use this technique and faces lots of
problems (Johanson and Mattsson, 2015).
3. Environmental analysis for a organisation
Environmental analysis is a strategic tool which is used to identify internal and external
element that can affect its performance and productivity. These analysis is all because of various
changes in marketing and customers demand that can affect on decision making of the
organisation. Westpac banking Corporation is a banking and financial institution so for them it is
important to evaluate environmental analysis through PESTEL analysis -
Political- Theses factor are all bases on government policy and their rules and regulation
for the particular organisation. Theses factors are related to the country's current political
situation that why directly affect on the particular firm. For a banking and financial firm it is very
important to contribute their services in the country's growth. Sometimes government of the
country need for lots of fund for their financial growth, so in this process these type banking firm
helps to provide them specific fund easily. This factors also includes government policies, taxes
law and tariff, stability of government and entry mode regulation etc.
Economic- These factors are all about economic growth and some other factors that can
affect on organisations policy. Theses factors can conclude the direction in which the economy
might move. Economic factors are relate to customers satisfaction. This factor is directly affect
on the interest rate and liquidity of funds. For a banking organisation it is very important to know
about their customers ability to pay a particular amount and rate of interest on credit amount. For
them it is very important to understand need of both micro and macro economy that relates to
customers demand and need as well as government and country's own demand (Knights and
Willmott, 2016).
Social- When an banking organisation established to work for fulfil public demand they
need to take all the information about their ability, culture and investment mode on which they
belong. The young generation prefer to work with digital technology for use banking transaction
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in easy form. This mode of purchasing is providing them to reduction of their time so banking
sector need to understand their demand and have to provide more facilitating things.
Technological- In this era all the works are doing through digital technology and
everyone are somehow affected with this. As we all know technological changes are work very
impact fully and they also provide satisfaction in minimum efforts. New generation is like totally
addicted of technology and they all know how to use them. So For this Westpac banking
Corporation should have to do work with this factor promote new technology and its advantages.
This is reduce risk and time of company and customers.
Environmental- This factor of an organisation provides them information about their
competition in market. For this location of bank and their branches have to be on convenient
place that all the customers take its advantages easily. Bank and financial firms are most
important organisation in a economy (Leonard, 2011).
Legal- This factor is related to Risk of market, opportunities, customers rights, Law,
Rules and regulation, product safety etc. A banking firm has to know about all legal factor to
work smooth with a particular economy. This is a tricky area where a management work through
full research and legislative changes. Some risk related terms are used in payments and qualities.
But now payment are calculated through technical terms so it is quite safe and convenient for
each and every one.
There are various opportunities and threat for the Westpac banking Corporation context
Opportunity Threat
 For Westpac banking Corporation
political factors and government of the
country may helps them to get higher
opportunities from the competitive
market.
 Economical and technological factors
also helps to providing various
opportunity to get higher advantages
easily.
 Economical and social factor can
negatively impact on the policy and
procedure of banking institute.
 For Westpac banking Corporation, it is
very important to implement all their
policies according to legislation
otherwise they can be terminated from
the economy.
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4. Various leadership style
Leadership style is basically used to providing direction, motivation and guidelines to the
other employees of the banking and financial firm. Leader are very different to each other and
they all are provide different services according to various situations-
The affiliate leader- The leader is works to boost their self confidence and improve
skills to work harder. They provide training to control employees emotion in difficult situation
and decision making skills that how to deal with them. This style is not uses by more effectively
in Westpac banking Corporation because leaders need to be more strong in their emotion to deal
with competitive approaches. Its leaders are always that says people come first.
The coaching leader- These Leaders are always improve employees capacity to work in
different atmosphere with effectively and efficiently. It will not working when their teammate
are not show their interest to learn something new or make some changes in their Woking style.
These leaders are more professional with their coaching and training styles and they expect more
and more from each individuals (Li,2010).
The democratic leader- This leadership plan is always take each and everyone on a
same level. This will provides Westpac banking Corporation a perfect communication skills to
put their thoughts and ideas in front of each and every one. It is not best choice in emergency
situations because at that time all the organisation need a quick decision and efficient decision
making skills according to particular situation.
The pacesetting leader- Theses leaders are expect more models excellence and self
direction to their employees. In this, leader is provides well being direction to workers which is
helps to improve their capacity of working. This style is works best when employee's are already
more skilled and self motivated. In it leaders are requires quick result for each objectives and
they always works with more effective and efficient manner than others (Pache and Santos,
2013).
CONCLUSION
From the above report it has been concluded that business strategy is used to achieve
future objectives and goals through effective activities. This project report is based on Westpac
banking Corporation which is Australian bank and financial institution. For them it is very
important to use corporate strategies to get future goal easily and provide effective services to
their customers.
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REFERENCES
Books and Journals
Balassa, B., 2014. Development Strategies'. International Economics and Development: Essays
in Honor of Raúl Prebisch, p.159.
Cummings, T.G. and Worley, C.G., 2014. Organization development and change. Cengage
learning.
Dittmar, H. and Ohland, G. eds., 2012. The new transit town: best practices in transit-oriented
development. Island Press.
Dixon-Mueller, R.B., 2013. Rural women at work: Strategies for development in South Asia.
Routledge.
Engle, P.L., and et. al., 2011. Strategies for reducing inequalities and improving developmental
outcomes for young children in low-income and middle-income countries. The Lancet.
378(9799). pp.1339-1353.
Gulati, R., Puranam, P. and Tushman, M., 2012. Meta‐organization design: Rethinking design in
interorganizational and community contexts. Strategic Management Journal. 33(6).
pp.571-586.
Johanson, J. and Mattsson, L.G., 2015. Internationalisation in industrial systems—a network
approach. In Knowledge, Networks and Power (pp. 111-132). Palgrave Macmillan UK.
Knights, D. and Willmott, H. eds., 2016. Labour process theory. Springer.
Leonard, D.A., 2011. Core capabilities and core rigidities: A paradox in managing new product
development. In Managing Knowledge Assets, Creativity And Innovation (pp. 11-27).
Li, C., 2010. Groundswell. Winning in a world transformed by social technologies. Strategic
Direction. 26(8).
Pache, A.C. and Santos, F., 2013. Inside the hybrid organization: Selective coupling as a
response to competing institutional logics. Academy of Management Journal. 56(4).
pp.972-1001.
Rakodi, C., 2014. Urban livelihoods: A people-centred approach to reducing poverty. Routledge.
Schmeck, R.R. ed., 2013. Learning strategies and learning styles. Springer Science & Business
Media.
Wright, P.M. and McMahan, G.C., 2011. Exploring human capital: putting ‘human’back into
strategic human resource management. Human Resource Management Journal. 21(2).
pp.93-104.
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