Financial Analysis of ANZ Company: Strengths, Weaknesses, and More

This report provides a comprehensive analysis of ANZ Company, a major financial and banking services provider based in Australia. It begins with a background of the company, including its establishment and strategic objectives. A significant portion of the report focuses on a SWOT analysis, evaluating ANZ's internal strengths and weaknesses, as well as external opportunities and threats. The report also delves into the ethical concerns and social responsibilities of ANZ Bank, discussing its code of conduct, ethical sourcing policies, and commitments to various voluntary standards, alongside a discussion of past ethical issues. The conclusion summarizes the key findings and emphasizes the importance of innovation, ethical practices, and strategic expansion for ANZ's continued success. The report also references various academic sources to support its analysis.

Running Head: ANZ COMPANY 0
Management
ANZ Company

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Contents
ANZ Company...........................................................................................................................2
Background of ANZ Company..................................................................................................2
SWOT analysis of ANZ Company............................................................................................2
Ethical concerns and social responsibility of ANZ bank...........................................................4
Conclusion..................................................................................................................................5
References..................................................................................................................................6

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Background of ANZ Company
ANZ is the financial and banking services company that has headquarter in
Melbourne, Australia. It is the second biggest bank due to its asset. In terms of the market
capitalisation, it is third biggest bank. It was established in the year 1 October 1951.
Including National Australia Bank, Commonwealth Bank, and Westpac, ANZ also come
under the biggest four Australian banks. The major purpose of ANZ is to shape the world
where communities and people live. By ensuring this, it strives to create the sustainable and
balanced economy where everyone can build the better life. Due to the changing
technologies, climate change, globalisation, and demographic shifts, ANZ is playing
significant role in enabling the economic participation (Noe, Hollenbeck, Gerhart & Wright,
2017).
ANZ strategy is to use the strong New Zealand and Australia foundations, market
leading insights and services for better meeting the needs of the customers. It includes three
elements in its strategy. First element is for creating the best bank in Australia for the small
business customers as well as home owners. The second element is to build the best bank for
the clients across the world. in the third element, it tends to establish the digital ready
infrastructure in order due to the service industry, it is seen that the service offered is
homogenous. Due to this, ANZ is working well and focusing on increasing the efficiency. In
the report, further discussion has been carried on the strengths and weaknesses that ANZ
have. In addition to this, opportunities and threats of ANZ is also discussed. At the end,
discussion has been carried on the social responsibilities and ethical practices of ANZ.
Ethical concerns and social responsibility of ANZ bank
The code of conduct and supporting policies of ANZ set the behaviour standard linked to its
values. Under its policies, every contractor and employee is required to take the training in
order to know the significance of code and values. In the recent time, every Australian
company was charged for fixing its bank bill swap rate (Salim, Arjomandi & Seufert, 2016).
ANZ was also accused of the toxic culture. Due to this, it is seen that it has strong focus on
the ethics, culture, and fairness. ANZ has also committed itself toward the voluntary
standards such as equator principles, carbon disclosure projects, initiative regarding global
reporting, and united nations global compact.

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By taking to ethical consideration of ANZ, it is seen that ANZ is committed toward the
outstanding results and performance to provide the value to its shareholder. It is also stated
that the sustainability approach of ANZ is to ensure that its business effectively taking into
account the environmental, social and economic opportunities and risks. It has also included
the several targets in its ethical sourcing policies. The first target is to implement the
strengthened management framework that is applicable to every employee in the breach of
code of conduct. It will also implement the new dispute resolution principle by the year 2019
(Chuang & Hu, 2015).
For fulfilling the social responsibilities in effective manner, it has made several targets for the
next few years. It has invested around $15 billion by the year 2020 toward the sustainability
solutions for its customers. ANZ has also introduced Sustainable Development Goals Bond
issuance. It is also seen that the Australia is operating the criminal cartel charges against the
biggest banks of the country. Australian competition and Consumer Commission has also
stated that it will charge the Australia and New Zealand Banking group against the unnamed
individuals (Davidson, Wreford, Penter & Perrin, 2017). All the banks have denied the
wrong things in order to save themselves from the charges. It is seen that the Australia has the
toughest laws related to the anti cartel across the whole world. In the year 2015, banks of
Australia were under the pressure to meet new requirement of capital. Due to such ethical
issue, shares of ANZ were goes down to 7.5 per cent in the year 2015. IN order to address
such issues, ANZ were required to take several necessary actions (Liu, 2015).
In its managerial ethical practice, it use the remuneration policy in order to ensure the right
bonus system for its shareholders (Akhter & Daly, 2017). By ensuring this, the board is able
to eliminate as well as reduce the deferred performance based remuneration. It also ensures
the use of Whistle-blower protection program that enables every contractor, employee and
consultant to keep the confidential report concerns related to practices, conduct and issues. In
addition to this, Reputation Risk Committee of ANZ also oversees the management of
environmental, social and regulatory risks specially in the institutional and corporate client
(Ransome & Sampford, 2016).

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Environmental analysis of ANZ Company
SWOT analysis is a proven framework of management that enables the ANZ bank to
benchmark its performance and business as compare to the several competitors. ANZ bank is
the leading brand in the financial and banking service sector.
External environmental analysis
Opportunities
 It is proved to be the first Australian bank to receive the license for conducting
retailing business in China. Due to this, it has the opportunity to tap the Chinese market by
introducing several new market segments.
 IN the Thailand market, it has great opportunity if it gets the license. It can undertake
the market of Thailand by ensuring the effective utilisation of technological advancements
and innovation.
 Besides his, it also has several market opportunities to expand its business in the
emerging economies such as India and China. It is seen that the government in emerging
economies is promoting some of the reputed and good banks. Besides this, people banking
habits and income level are also increasing.
Threats
 It is facing deteriorating economic condition in New Zealand and Australia. besides
this, several fluctuation and changes in the Australian Banking system can prove to be the
threat for it. Fluctuations in the currency rate are the biggest problem that can be seen in the
banking industry. In the recent time, economic conditions changes due to several factors. The
major factor that can affect the banking industry is the purchasing power of the people.
 It can also face the several challenges due to the increasing competition from global
banks of pacific regions and Australia (Heard, Menezes & Rambaldi, 2018). In the banking
industry, it is seen that most of the banks offer the similar services. If any new branch comes
up with any new or innovative concept then it might be possible that ANZ have to come
across several challenges.
 Security and privacy threat can be seen in the banking industry that can affect the
growth of ANZ bank in Australia. If any manipulation on the side of employees is being seen,
it can cause the hacking of its data too. This might cause the damage to the security off ANZ.

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In this way, it is required by ANZ to properly review its data time to time so that any problem
caused can be improved. In the recent time, hacking has increased to a great extent if not
ensured the right privacy policies. There are times organisation has to face the issues related
to the leakage of personal information of customers or clients. In such a way, it might be
possible that the banking industry to come across such issue in future due to any negligence.
Internal environmental analysis
Strengths:
 ANZ has successful record of the firms with the help of acquisition and mergers. It
has also effectively integrated the technology company in previous years for building the
reliable source of supply chain. Due to its strong market position, it ensures the maintenance
of positive and long-term relationship with its suppliers.
 ANZ also has strong free cash flow that assists it in getting the needed resources for
expanding into the new project (García‐Sánchez, Martínez‐Ferrero & García‐Meca, 2018).
 It also has proper and successful track record of developing the new project.
 ANZ also has strong base of the suppliers of its raw material that helps it in
overcoming the bottlenecks of supply chain. Due to this strength, it is able to gain several
benefits.
 ANZ has high skilled and competent workforce with the help of learning and training
programs. It has highly investing in the training and development of the employees that not
only helps in achieving success but also motivates its workforce.
 From the past few years, ANZ is able to ensure the reliable network of distribution
that helps in reaching the wider market. Due to its wide market reach, it is able to effectively
grow its presence in the market.
 Good return on the capital expenditure is also seen as the biggest strength of ANZ.
Due to this, it is also successful to execute the new projects and as a result generate the good
return on the capital expenditure by ensuring the new streams of revenue (Novokmet &
Rogošić, 2017).
 ANZ also has diversified product portfolio that assist it in reducing the operation
risks. Due to its sound financial position, it helps to get the better marketing budget.
 ANZ is effective able to offer the financial services such as assets finance, banking
services, payment and investment solutions. Due to these activities, it is able to maintain the
string financial position.

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Weaknesses:
 It is seen that the global exposure of ANZ is limited as compare to the other major
banks. It is the biggest weakness of ANZ that is creating problem for it gain large customer
base from different countries. Besides this, it is also facing challenges to move itself to some
other product segment.
 Due to the increasing competition, it has to face strong competition from the several
existing players (Tery Armstrng, 2016).
 It is not able to effectively do the research and development. Due to the limited
investment in the research and development, it is not effectively able to compete with the
effective and leading players. Limited success outside the core business is also one such
challenge ANZ have to face in order to move the other product segment. ANZ is effective
able to offer the financial services such as assets finance, banking services, payment and
investment solutions. Due to these activities, it is able to maintain the string financial
position.
Conclusion
In the limelight of above discussion, it can be concluded that ANZ come under the top four
banks of Australia due to its strong brand image and financial position. It also has strong and
competent staff that helps it in bringing out the best for customers as well as several other
concerned parties. Due to the sufficient amount of fund, it has invested in several new
projects that is helping it in growing further. However, competition has increased to the
greater extent that pushes the company to come up with several innovative services. It is also
required by the ANZ to ensure the significant investment in its research and development.
Moreover, it also has the opportunity to expand its business segment in the several new
emerging economies. This will definitely help it in increasing its market share. In spite of the
several ethical issues, ANZ has always undertaken the significant steps to solve those issues.

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References
Akhter, S., & Daly, K. (2017). Contagion risk for Australian banks from global systemically
important banks: Evidence from extreme events. Economic Modelling, 63, 191-205.
Chuang, C. C., & Hu, F. L. (2015). Technology strategy-innovating for growth of ANZ
Bank. International Review of Management and Business Research, 4(3), 682.
Davidson, F., Wreford, J., Penter, K., & Perrin, B. (2017, February). Capturing stakeholder
engagement: CSR and gender equality in global in-house centres. In International
Workshop on Global Sourcing of Information Technology and Business
Processes (pp. 95-110). Springer, Cham.
García‐Sánchez, I. M., & García‐Meca, E. (2017). CSR engagement and earnings quality in
banks. The moderating role of institutional factors. Corporate Social Responsibility
and Environmental Management, 24(2), 145-158.
García‐Sánchez, I. M., Martínez‐Ferrero, J., & García‐Meca, E. (2018). Board of directors
and CSR in banking: the moderating role of bank regulation and investor protection
strength. Australian Accounting Review, 28(3), 428-445.
Heard, C., Menezes, F. M., & Rambaldi, A. N. (2018). The dynamics of bank location
decisions in Australia. Australian Journal of Management, 43(2), 241-262.
Liu, H. (2015). Constructing the GFC: Australian banking leaders during the financial
‘crisis’. Leadership, 11(4), 424-450.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human resource
management: Gaining a competitive advantage. New York, NY: McGraw-Hill
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Novokmet, A. K., & Rogošić, A. (2017). Explaining CSR Performance with Contextual
Factors: Focus on Development Banks. In Finance in Central and Southeastern
Europe (pp. 103-123). Springer, Cham.
Ransome, W., & Sampford, C. (2016). Ethics and socially responsible investment: A
philosophical approach. Routledge.

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Salim, R., Arjomandi, A., & Seufert, J. H. (2016). Does corporate governance affect
Australian banks' performance?. Journal of International Financial Markets,
Institutions and Money, 43, 113-125.
Terry-Armstrong, N. (2015). Managing staff: Happy, safe and contented. Busidate, 23(2), 2.
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