Strategic Operational Management of ANZ Bank, New Zealand

Running head: OPERATIONS
Strategic operational management
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Table of contents
Question 1 (Company selected: ANZ Bank, New Zealand)......................................................2
a- Strategy formulation..........................................................................................................2
Internal resources and capabilities.........................................................................................2
External factors......................................................................................................................2
Sustainable strategy................................................................................................................3
Strategy Implementation........................................................................................................4
Leadership..............................................................................................................................4
Key issues in strategic management......................................................................................4
b- Factors affecting strategic decision making (areas selected: product design and
facilities management)...........................................................................................................5
Product/service design...........................................................................................................5
Facility management..............................................................................................................6
Question 2 (company selected: Proctor and Gamble)................................................................7
a- Relevance of Porter’s five forces model as an approach for strategic management
practice...................................................................................................................................7
b- Application of Porter’s five forces model on Proctor and Gamble.............................7
c- Relevance of Porter’s value chain model on strategic management practice.................8
d- Application of Porter’s value chain model on IKEA..................................................9
Question 3 (company selected: Google)..................................................................................10
a- Analysis and assessment phase of strategic management in Google............................10
b- Strategy formulation of Google.................................................................................11
c- Strategy implementation of Google..............................................................................12
d- Strategy evaluation for Google..................................................................................12
References................................................................................................................................13

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Question 1 (Company selected: ANZ Bank, New Zealand)
This segment takes up the strategic management of ANZ bank, New Zealand.
a- Strategy formulation
Internal resources and capabilities
The internal resources of ANZ Bank New Zealand includes the systems, products and
services, which helps in conducting the financial transactions in an efficient and effective
manner. These resources are classified into tangible and intangible. Tangible resources of the
Bank are cash, inventory vehicles, equipment, buildings and investments (Anz.com.au,
2019). On the other hand, intangible resources are accounts, pre-paid expenses, patents and
goodwill. Within the tangible resources, drafts and reports regarding the profit margin and
sales revenue attains an important position. In this process, state of art for the quality of the
assets and liabilities helps the Bank in strengthening the brand image.
The capabilities of the Bank reaches to the extent of conducting SWOT analysis,
capability and gap analysis for gaining an insight into the areas, which need modification for
the upgrading the standards and quality of the services. Based on the identified drawbacks,
goal setting enhances the capabilities of the bank personnel in terms of strengthening the
market position in a competitive ambience (Anz.com.au, 2019).
External factors
Political
Political instabilities in Fiji, Solomon Islands and Tonga have adversely affected the
economic growth. As a matter of specification, these instabilities have added vulnerability
into the trust of the clients and customers regarding the investment areas and other business
prospects.

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Environmental
Introduction of carbon tax and policies for emissions have altered the governmental
regulations into the financial transactions. Increase in the costs of managing the climactic
change have drastically declined the emission of the greenhouse gases (News.com.au, 2018).
Plans are being made for low carbon economy for keeping a check over the macro level
shocks.
Competitors
ANZ bank receives tough competition from Commonwealth bank of Australia,
National Australia Bank and Westpac banking Group.
Regulatory
Decline in the national interests by RBA has simultaneously reduced the borrowing
costs in terms of the bank loans. Along with this, low interest rates has assisted the clients
and the customers to avail lucrative benefits by mortgaging the property, cash and other
assets. In spite of the 0.25%-3% reduction in the national interest rates, ANZ is busy
concentrating on maximizing the profit margins. Accounting standard taxation laws obstruct
the smooth functioning of the transactions within the bank (Anz.com.au, 2019). Adherence to
Prudential regulatory requirements is assistance for the bank in terms of averting the
fraudulent cases. Governance of ARPA helps the Bank in detecting the areas, which needs
modification. Mention can be made of the reforms introduced by RBA for altering the
scenario of credit market. Typical reference can be cited of new interchange standards,
reduced interchange fees and high credit card rates for the customers.
Sustainable strategy
Based on the conducted external analysis, it can be said that growth strategy is apt for
ANZ bank. Typical evidence of this lies in the hard efforts of the employees, which

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contributes in increasing the sales revenue and profit margin. Diversification in the workplace
also helps in expanding the scope and arena of the business operations of the bank
(Anz.com.au, 2019).
Strategy Implementation
Leadership
 The leaders of the Bank is entrusted with the responsibility to guide the management
in the process of formulating policies and frameworks. This is in terms of adding
focus into the business operations. Within this, conscious approach is exposed
towards the execution of risk assessment for ensuring the wellbeing of the
stakeholders and shareholders (David & David, 2016). Rationality in this approach
reflects the preservation of core values, enhancing the cultural diversity.
 Arranging training and development programs is also a primary duty of the leaders of
ANZ Bank. Using specific frameworks is beneficial in terms of making the
employees aware of the latest technologies. Strategic approach is fruitful for acquiring
productive labour.
 Evaluating the implemented strategy is accounted as one of the essential duties of a
leader in case of ANZ Bank. For example, audits for the differentiation strategy
would enhance the awareness regarding its feasibility in terms of the identified and
specified requirements (Wheelen, Hunger, Hoffman & Bamford, 2017).
Key issues in strategic management
Bearing in mind, the competitive ambience of the market, diversification strategy is
beneficial for ANZ bank in terms of luring large number of customers. However, without
business forecasting, the bank would not be able to sustain its position in the market. For this,
the leaders need to communicate the strategies to the team members in a simple and precise
format. Ethics is an important parameter in terms of respecting the individual sentiments of

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the personnel, which would enhance the cultural diversity. Therefore, Lasserre, (2017) is of
the view that taking into consideration the viewpoints of the personnel is crucial for
formulation as well as implementation of the strategies. As the employees belong to different
socio-cultural backgrounds, their understanding towards the strategies is different. Therefore,
conscious approach needs to be exposed towards simplification of the strategies in a precise
manner.
b- Factors affecting strategic decision making (areas selected: product design and
facilities management)
Product/service design
Communication gaps is one of the most important issue affecting the strategic
decision-making for companies like Volkswagen AC. These gaps delay the implementation
of the proposed designs into the vehicles. Within this, incomplete information, resistance
from the subordinates and other departments aggravate the complexities towards undertaking
the decisions for managing the manufacturing process. Morschett, Schramm-Klein & Zentes,
(2015) states that most of the times, the decisions are taken at inappropriate times. In view of
the competitive ambience of the market, decisions regarding the launch of new models of
Volkswagen AC needs to be taken for maintaining the stability in the market position. Along
with this, dissemination of wrong information related to the design of the cars act as obstacle
towards proper management of the activities.
Apart from this, not considering the impulsive threats from the contemporaries, make
the decision-making process vague for Volkswagen AC. Not taking the consent of the
employees, while taking a decision regarding the design of the cars, generates biasness within
the workplace. This gives rise to conflicts, discriminations and harassments, which stall the
productivity. Reference can also be cited of the halo effect threat, which states about the
impact on the perceptions of the employees towards the ability to perform in a specific area

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(Hitt et al., 2016). This type of effect is applicable when decisions regarding the launching
the new models of Volkswagen AC into the foreign markets.
Implementing ethical code of conduct is beneficial in terms of maintaining the unity
and coordination in the workplace. Along with this, this implementation would be effective
for averting the instances of conflict, discrimination and harassments.
Facility management
In terms of facility management, controlling the costs is one of the biggest
challenges. This is in terms of the ineffective decision-making towards preparation of the
budgets. Along with this, ineffective communication between the team members regarding
the decisions for managing the vehicular facilities, destroys the balance between the business
activities. Along with this, absence of backup plans for handling system failures also impacts
the decision-making for Volkswagen AC in terms of controlling the facilities introduced for
the clients and the customers. Inconsistency in the experimenting the old machines can lead
to discrepancies at the time of conducting actual project related activities (Aguinis, Edwards
& Bradley, 2017). Along with this, not maintaining the records of the insurances of these old
systems and machines, reflects improper management. This insurance records authenticates
the management of the vehicles.
Improper time management aggravates the complexities towards maintaining the
balance between the developing team coordination, organizing meetings, consulting the
vendors for the tasks and others. Answering the questions of the employees delays the
process of the executing the activities. Consistent meetings, involving the stakeholders and
shareholders would be effective in terms of undertaking productive decisions for upgrading
the standards and quality of the facilities (Hanson, Hitt, Ireland & Hoskisson, 2016).

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Question 2 (company selected: Proctor and Gamble)
a- Relevance of Porter’s five forces model as an approach for strategic management
practice
Porter’s five forces model enhance the awareness regarding the performance of
companies and organizations within the competitive ambience of the market. This knowledge
helps in estimating the plans for increasing the profit margin. Bargaining power of the buyers
and suppliers influence the capabilities towards effective management of the operational
expenses. For example, if many suppliers are selling the same products, the buyers get a
choice for selecting their preferred products. On the contrary, monopolistic markets increase
the bargaining power of the suppliers, typically influencing the purchasing decisions and
power of the buyers. Zhao, Fisher, Lounsbury & Miller, (2017) opines that low risks from
entry barriers of substitute products generate attracts the foreign investors. This expands the
scope and arena of the native business. On the other hand, high chances of entrance of the
substitute products offers negative prospects to the brands for setting up their business.
b- Application of Porter’s five forces model on Proctor and Gamble
Competitive rivalry for Proctor and Gamble is higher in its intensity. The major drive
behind this are the large number of firms with variety in the products and services. However,
the low switching costs is advantage in terms of retaining the prospective clients and the
customers. Bargaining power of the buyers is weaker due to low availability of the substitute
products and high overall market demand. Low switching costs from the buyers degrades the
productivity of the company, as the clients and the customers can easily switch over brands
(Bergh et al., 2016). However, low intensity of the switching keeps a check on the bargaining
power of the buyers. Implementation of moderate degree of forward integration limits the
bargaining power of the suppliers regarding the distribution and sale of the products. High
overall level of supply also contributes towards limiting the power of the suppliers. Presence

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of large number of suppliers allows Proctor and Gamble to operate without the intervention
of the suppliers. Therefore, in terms of the global consumer goods, the supplier power for
Proctor and Gamble is weaker.
Low switching costs increases the intensity of the threat of substitutes for Proctor and
Gamble. This increases compels the personnel to encounter turnovers in case of the clients
and the customers, compelling the contemporaries to enjoy competitive advantage (Gans &
Ryall, 2017). Low availability of the substitutes negates such threats. Along with this, low
variety of substitutes assists the company to attract large number of customers through
organic and natural products. Mention can be made of the only one type of variety, which is
available in the homemade personal care products. Threat of new entrants is moderate in
case of Proctor and Gamble. Low switching costs results in switchover. This situation offers
opportunity to the new entrants to exert their influence on the company.
c- Relevance of Porter’s value chain model on strategic management practice
Value chain analysis is adopted by the companies and organizations for reflecting on
the steps of the manufacturing process. This reflection is crucial for adding innovation into
the products. Within this, the aim is to generate maximum value for the products and
services. Here, Rees & Smith, (2017) argues that speculation of the budgets help in regulating
the operational expenses for each of the services. Consideration of inbound and outbound
logistics is fruitful for developing strategies in terms of efficient execution of the marketing
and sales activities. Strategic planning for executing the operations enables the companies
and organizations to increase the overall profit margin. Conducting journey mapping proves
beneficial in assessing the feasibility of the logistic operations in terms of the identified and
the specified requirements.

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d- Application of Porter’s value chain model on IKEA
Figure 1: Porter’s value chain model for IKEA
(Source: IKEA, 2018)
Primary activities
Inbound logistics
IKEA is involved in purchasing raw materials from the local suppliers in a global
parameter. Trading offices are entrusted with the responsibility to maintain the public
relations with the suppliers. Within this, mention can be made of the variety in the products
of the stores, which helps IKEA in influencing the purchasing power of the customers.
Economies of scale and strategic relationship with the suppliers are the sources, which helps
IKEA in generating value within the business (Peppard & Ward, 2016). Adoption of “Do-it-
yourself” principle assists in lowering the packaging costs for the products.
Operations
The operations of IKEA are divided into Franchise, Property and Finance divisions.
Decentralization is the main form of business, which helps in globalizing the operations. The

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regional managers are entrusted with the responsibility to undertake decisions for the
betterment of the company. Within this, the current market scenario is taken into
consideration. The areas covered here, are culture, consumer behaviour and factors, specific
to the region (Nickols, 2016).
Outbound logistics
Pick up and order points are maintained by IKEA for managing the store operations.
Distribution centres are helpful in terms of delivering the products to the customers from the
factories to the buyers. The delivery services are done in parcel and truck delivery. Along
with this, online delivery is also available for expanding the customer base.
Marketing and sales
IKEA adopts print and media advertising, sales promotion, events, experience, public
relations and direct marketing for executing the activities in an efficient and effective manner.
Being a multichannel retailer, IKEA conducts the marketing operations through stores,
catalogue, website and app services (IKEA, 2018).
Services
Customer service is one of the important parameters, which helps IKEA in generating
value within the services. Online and telephonic services are initiatives for expanding the
scope and arena of the business.
Question 3 (company selected: Google)
a- Analysis and assessment phase of strategic management in Google
Analysis and assessment are the initial phases of strategic management. In these
stages, companies and organizations gain an insight into the internal and the external factors,
which affect the productivity. In case of Google, the analysis and assessment phase includes

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the creation of mission and vision statements and briefing the employees about it. It is
usually the aim of the managers for developing the aims and objectives to add focus into the
business operations. Planning is conducted for averting any discrepancies within the process.
Sending drafts for the plans regarding innovation in the search engine optimization to the
higher authorities is beneficial for Google in terms of the assessing their feasibility in terms
of the identified and specified requirements (AboutGoogle.com, 2019). Coordination
between the team members would be reflected if proper and effective communication is
established with the team members in the online discussion forums. Follow ups are fruitful
for Google in terms of controlling the activities. This is for checking the understanding of the
employees regarding the briefed strategies. Interactive sessions are organized after the
meetings, which is assistance for clarifying the doubts regarding the developed aims and
objectives.
b- Strategy formulation of Google
For formulating the strategies, Google considers the following steps:
 Developing objectives
 Reviewing the internal and external environment
 Identifying quantitative targets
 Developing aims in alignment with the divisional plans
 Making estimates for future progress through the analysis of the exposed performance
Maintaining consistency in the execution of these activities is assistance for the Google
personnel for reaching to the appropriate strategies (Nickols, 2016). As a matter of
specification, for formulating the strategies, Google segments the business into three parts:
search, explore and innovate.

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c- Strategy implementation of Google
Innovation and continuous growth shapes the strategic implementation in the
workplace of Google. Continuous technology improvement helps in expanding the scope
and arena of the business. Acquisition and joint ventures helps in gaining an insight into the
technologies, which would be productive for enhancing the profit margin. Resource
allocation is one of the other components of the strategy implementation. Adherence to the
legislative requirements of the European Union is assistance for Google in terms of
expanding the scope and arena of the distribution network. Time management is crucial for
implementing the strategies, preserving the balance in the business operations (Peppard &
Ward, 2016). Most importantly, Google adheres to ethical code of conduct for respecting the
individual sentiments of the personnel while implementing the developed strategies.
d- Strategy evaluation for Google
At the initial stage of strategy evaluation, Google managers collect information from
the personnel regarding the progress of the strategic plan. Through this data, the managers
gain an insight into the effectiveness of the proposed strategies in terms of the identified and
specified requirements. As a matter of specification, the following activities are conducted by
Google for evaluating the strategies:
 Examination of the base of the strategies
 Comparative study of the expected performance and the exposed performance
 Identifying the drawbacks and performing the necessary modifications (Rees &
Smith, 2017)

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References
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Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2016). Strategic management: Concepts and
cases: Competitiveness and globalization. Cengage Learning.

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[https://doi.org/10.1002/smj.2589]

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