Strategic Management of ANZ Banking Group

This report analyzes the strategic management of ANZ Banking Group through the assessment of internal and external factors, corporate social responsibility, and strategic leadership. It also evaluates the strengths, weaknesses, opportunities, and threats of the organization.

RUNNING HEAD: STRATEGIC MANAGEMENT 0
Strategic Management
Student’s Details-
9/20/2019

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Executive Summary
Strategic management plays a crucial role for an organization as it lays down the methods or
techniques for strategically moving forward within the workplace. It contains a foregone analysis
of internal and external environmental factors. The aim of the report is to analyze the strategic
management through the assessment of internal and external factors and also showing a major
role of corporate social responsibility and strategic leadership within the organization. For the
research, academic books, journal articles and website sources are used for making the analysis.
Thus, the results of the report are helpful in getting an insight of the strategic position of the
organization and an analysis of overall strategic structure of the company.

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Contents
Introduction......................................................................................................................................3
Corporate Social Responsibility......................................................................................................3
Managerial Ethics for stakeholder engagement...............................................................................4
Analysis of External Environment...................................................................................................5
Opportunity..................................................................................................................................5
Threat...........................................................................................................................................5
Analysis of internal Environment....................................................................................................6
Strength........................................................................................................................................6
Weakness.....................................................................................................................................6
Strategic Leadership........................................................................................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

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Introduction
Strategic management refers to the formulation of strategy through effective plans and
monitoring of the predefined strategies for the purpose of effective implementation of strategies
that could lead to achievement of the objectives of the organization (Ansoff, et al., 2018).
Strategic management is used as the tool by the organization in order to gain competitive
advantage and move forward strategically into the market (Morden, 2016). The report defines the
strategic management of ANZ Banking Group which is the multinational banking and financial
services company having headquarters Melbourne, Australia. The company is regarded as one of
the largest banks of Australia and holds a dominant position for the commercial and retail
services in term of banking. The report highlights the corporate social responsibility of the
company towards the stakeholders and also the impact of ethical practices of the manager on the
company. Further, the report analyzes the external and internal environment of the organization
in order to evaluate strengths, weakness, opportunities and threats of the organization. The
importance of strategic leadership in context to the CEO for the purpose of increasing success of
the organization is also discussed.
Corporate Social Responsibility
Corporate social responsibility is the practice of being socially accountable towards the society,
environment and the stakeholders of the company (Grayson & Hodges, 2017). A company
engages in the CSR programs for the purpose of building the relationship with the stakeholders
by the formation of policies that are sustainable for the environment and the stakeholders
(Schrempf-Stirling, et al., 2016). Similarly, ANZ banking group has a code of conduct that is
followed by the values and also contains principles has to be followed by the organizational
members. Also, CSR includes the policies and practices of a company that has to be adhered and
have major contribution to the welfare of the community and have a positive impact on the
wellbeing of the society.
However, ANZ Banking Group has the purpose of creating a balanced society and sustainable
environment. The company has been successful in creating environmental sustainability by
providing affordable financial services to the consumers. Supporting the households and availing

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the financial services is the priority area for the company. The company has made contributions
in the policy development and also strengthened the partnerships with the stakeholders. ANZ
Group has harnessed the skills of the employees for increasing efficiency for delivering better
services to the customers. The corporate social responsibility of the company is to promote the
financial wellbeing of the employees, customers and stakeholders to be considered by facilitating
them with the necessary funds for meeting their household and business needs. CSR is concerned
with the standards that promote the interest of the society and have major contributions towards
economic, social, environmental sustainability (Lins, et al., 2017). Similarly, ANZ has a
sustainable framework for providing fair financial services to the employees and understanding
the needs and expectations of the customers and maintaining an ethical code of conduct.
Managerial Ethics for stakeholder engagement
Managerial ethics is concerned with use of moral principles in the behavior of the manager to act
in right way with the employees (Leonard, 2018). It includes the pay, compensation and
employee involvement in order to behave in the right manner with the employees. Managerial
ethics are required for the stakeholder engagement as increases the sustainability of the company
and also leads to the increased productivity of the company (Noland & Phillips, 2010). A
manager within a company communicates the ethical values to the stakeholders in order to build
relation with them which helps in gaining the trust and integrity.
Similarly, ANZ Group identifies the needs of the internal and external stakeholders through the
stakeholder survey where the stakeholders were able to report the issues faced by them. Further,
the company has taken one on one interview with their prominent stakeholders who reported the
current and future context of the issues faced by them. It can be noted that the managerial ethics
helped in making engagements with the stakeholders and helped in the financial wellbeing of the
community and the people they communicate. The impact of these engagements was that it led to
increased satisfaction of stakeholders such as the employees, customers, community and the
government. It can be noted that the sustainability review provides disclosures regarding the
housing, financial wellbeing and environmental sustainability.

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Analysis of External Environment
The external environment relates to the impact of external forces that may have impact on the
company either in positive way or negative way. However, it can be noted that opportunity and
threats are determined on the basis of external factors (Khan, et al., 2015). Moreover, ANZ group
has to oversee the external environmental factors in order to make out the opportunities and
threats for the company.
Opportunity
Opportunity refers to the chance of exploring profits into the market (Saebi, et al., 2017). ANZ
Group has an opportunity to get the maximum support from the government as the company
highly complies with legal policies and it can be noted that the company gives due respect to the
procedures and rules of legal proceedings. Apart from this, the company has an opportunity to
serve different needs of stakeholders through their environment friendly policies to ensure the
financial wellbeing of the customers and community organization. Also, ANZ Banking Group is
regarded as the first Australian company that has received the license to carry out the retailing
business in Yuan in China. Thus, it provided an opportunity to the company to expand their
operations in the Chinese market. Simultaneously, the company has carried out operations
various foreign markets such as Thailand, Asian countries like China and India as soon as it has
received the license.
Threat
Threats refer to the negative influence of the external environmental factors which can ultimately
cause harm to the organization. However, ANZ Banking group faces risk when the company
fails to meet the laws as given by the government which ultimately increases the threat of failure.
Also, the company faces the threat of strategic failures. The transactions of the company may
also lead to threat of fraud. It can also be noted that the due to the deteriorating economic
conditions of Australia, ANZ Banking Group faces serious threat to carry out the operations.
Also, the changing lifestyle, trends and preferences of the customers brings fluctuations in their
financial need which is a major threat for the company. Ongoing threat of competition with
global banks in Australia is a major threat for the company (ANZ Banking Group, 2018).

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Analysis of internal Environment
Analysis of the internal environment includes the assessment of the capabilities of the company
in order to use the same against the competitors. It is crucial for the company to determine the
internal environment of the company to get an insight of the effective resources of the company
(Akhmetshin, et al., 2018). Thus, ANZ Banking Group makes a forgone analysis of internal
environment in order to find out the strengths and weaknesses of the company.
Strength
Strength is defined as the abilities and skills that can be used for overcoming the threats.
Similarly, ANZ Banking Group has various strengths that have made the company more
recognizable and well established. Firstly, the company has the biggest strength is that the
company is the largest bank of Australia which means the company has large number of
customers. Also, the company has values for dealing with the customers and has satisfied their
customers with their diverse portfolio. Further, ANZ Group has been leading towards the
sustainable development by ensuring the financial wellbeing of the people which is the strength
of the company. The company has strong financial position and have successful in providing
various kinds of financial services. Also, the company’s employees and internal managers are the
biggest strength of the company. The company has over 9000 employees and they are seemed to
be skilled and well trained (ANZ Group, 2018).
Weakness
Weakness is the drawbacks or the problem that can hinder the growth of a company
(Jasiulewicz-Kaczmarek, 2016). Similarly, ANZ Banking Group has weaknesses that the
company faces intense competition from the competitors which has declined the growth of the
company. One more weakness of the company is that the company has poor approaches for the
analyzing the economic conditions of the country in order to analyze the availability of finance.
This defines the poor research and development team. Also, the company has little exposure for
reaching the international markets.

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Strategic Leadership
Strategic leadership is concerned with the act of influencing and providing direction to the
people in order to strategize the activities to be focused towards the goal (Simsek, et al., 2015).
Strategic leaders are expected to formulate strategic plans and goals and take the organization
heading towards the achievement of the goal. Similarly, ANZ Banking Group has developed
various strategies and persuaded the whole company to meet the objectives. Shayne Elliott as the
CEO of the company has made a vision to create a sustainable environment through social and
economic developments. Also, the company has a strategic approach for building partnerships
with the communities in order to create and belongingness. Shayne as a strategic leader of ANZ
Banking Group has designed the remuneration structure for the encouragement of employees and
thereby increasing value for the customers. Also, the company’s senior leadership team had
successfully made a strategic vision for the company and has persuaded the employees and the
members to be focused towards the goal and reach the targets accordingly. Thus, it can be noted
that the strategy of the company that has been made by the senior leadership team has been
heading towards the achievement of maximum customer satisfaction and also led to the overall
success of the organization.
Moreover, strategic leader is the person engaged in taking the organization forward with the
strategic vision (Mayfield, et al., 2015). Also, a strategic leader is loyal to the company and also
judicious in the decision making process. Further, strategic leader has self-awareness and self-
control and also has the ability to motivate the employees for the purpose of creating energy
within the workplace (Bouhali, et al., 2015). Similarly, CEO of ANZ Banking Group has used
fair banking practices for the customers. The CEO listens to the queries of the customers and
solves them on the priority basis. Also, CEO has an honest approach for the stakeholders as all
the activities of the company are transparent. Further, CEO of the company has focused on the
employee satisfaction and has a fair approach in all the decisions. Shayne as a strategic leader
provides strategic direction to the company and also uses motivation technique for increasing the
morale of the employees and also has the ability to delegate the responsibilities to the members.
Thus, Shayne as the CEO of ANZ Banking Group has been successful in the utilization of
strategic leadership for the purpose of meeting the objectives of the company and making the
company successful.

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Conclusion
To conclude it can be said that strategic management is related with undertaking possible actions
through plans, organizing that plan, implementing that plan and monitoring for the purpose of
achieving the end goal of the organization. Strategic management is crucial for the business as it
helps in the determination of environment of the business that can be inside and outside of the
business. Here, the report is prepared on the analysis of strategic management of ANZ Banking
Group which is the leading Australian bank that provides financial services to the Australians
and New Zealand people. The report highlights the social responsibility and managerial ethics
for the stakeholder engagement in the context of the selected organization. An analysis of
internal and external environment of ANZ Banking Group is also discussed to identify the
strength, weakness, opportunity and threats that the company is discussed. Further, strategic
leadership in the selected company is also discussed to identify the impact of the CEO’s strategic
leadership on the strategy and overall organization success.

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References
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Available at:
https://www.anz.com/content/dam/anzcom/shareholder/anz_2018_annual_review_final.pdf
[Accessed 20 September 2019].
A. G., 2018. Sustainability Review 2018. [Online]
Available at:
https://www.anz.com/content/dam/anzcom/shareholder/au22289_anz_sustainability_review_201
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[Accessed 20 September 2019].
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[Accessed 20 September 2019].

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