Strategic Operation Management

Running Head: STRATEGIC OPERATION MANAGEMENT 1
Strategic Operation Management
Name:
Institution

STRATEGIC OPERATION MANAGEMENT 2
Table of Contents
Question 1.................................................................................................................. 3
Strategic formulation.......................................................................................... 3
Internal factors and capabilities of Commonwealth bank........................................3
External factors of commonwealth bank.................................................................3
Strategic implementation................................................................................... 5
Question 1b................................................................................................................ 5
Product design..................................................................................................... 5
Quality management........................................................................................... 6
Question 2a................................................................................................................ 7
Question 2b................................................................................................................ 7
Nike Porter’s five forces analysis.....................................................................7
Question 2c................................................................................................................ 8
Question 2d................................................................................................................ 9
Starbuck value chain analysis...........................................................................9
Question 3................................................................................................................ 10
References............................................................................................................... 15

STRATEGIC OPERATION MANAGEMENT 3
Question 1
Strategic formulation
Strategy formulation involves developing a program or an initiative in an organization.
The purpose of strategy formulation in an organization is to evaluate the resources of the
organization, allocating appropriate budget and determining the most efficient way for the
organization to maximize the return of investment. The competitive strategy is among the key
issue of strategy formulation. It considers internal factors such as resources available in the
organization and external factors such as competitors. Commonwealth Bank of Australia is a
public financial institution, ranked fifth out of top 2000 companies in Australia (Brämer &
Gischer, 2013).
Internal factors and capabilities of Commonwealth bank
The banks has highly skilled workforce due to its constant employee training.
Additionally, commonwealth banks has integrated a number of technologies
companies in their operations through mergers and acquisition. For example,
commonwealth banks has developed the mobile banking app. Strong cash flow
enables the bank to be able to integrate programs.
External factors of commonwealth bank
PESTLE analysis of common wealth bank.
 Political factors
Political factors such as the trade regulation policies by the Australian
government, taxation, mandatory employee benefits and anti-trust laws
affect the operating environment of the bank.
 Economic factors

STRATEGIC OPERATION MANAGEMENT 4
Commonwealth bank is affected by foreign exchange rates, interest rates,
economic recession and inflation, and consumer saving. Commonwealth
can evaluate spending behavior to forecast demand for the banking
services in Australia.
 Social factors
Such factors as shared beliefs, entrepreneurial spirits, and attitudes of the
population can help the marketers of the bank design an effective
marketing message.
 Technological factors
The advent of the technology has introduced online banking services,
creating a marketing niche for the bank to tap on new markets.
 Environmental factors
The increase campaign on climate change facilitates commonwealth bank
to adopt sustainable business practices. Consumers are highly attracted to
organizations that manage waste, apply environmental regulating laws and
use recyclable energy.
 Legal factors
The bank is affected by such laws as anti-trust laws, employment laws,
data protection, consumer protection and health and safety laws. The
various stakeholders including the consumers expect the bank to follow
the laws.
By analyzing the capabilities and external environmental factors, commonwealth bank can
formulate strategies that maximize on the resources and address the macro-environmental issues.