ANZ Banking Group: CSR, Ethics, and Strategic Leadership Analysis

This report provides a comprehensive analysis of ANZ Banking Group Limited, examining its social responsibilities and managerial ethics in engaging stakeholders. It utilizes PESTEL analysis and Porter's Five Forces model to assess external opportunities and threats, while SWOT analysis evaluates the company's internal strengths and weaknesses. The report delves into the strategic leadership of the CEO, Shayne Elliott, and how it has shaped the organization's strategy and contributed to its success. Key aspects include CSR practices, ethical considerations, and strategic initiatives within the competitive banking sector. The report concludes with a summary of findings and insights into ANZ's market position and future prospects, making it a valuable resource for students studying leadership, management, and business strategy. The analysis covers the company's operations in Australia and New Zealand and globally, considering its financial services and banking activities.

ANZ BANKING Group Limited
Executive summary

In this report, social responsibilities and managerial ethics are discussed of ANZ banking group.
With the help of PESTEL analysis and Five forces model, opportunities and threats of the
company are analyzed. ANZ banking has various strengths and weaknesses which helps in
analyzing the market position of the company. CEO of the company has implemented the
strategic leadership in the business for the growth and development. the analysis of the market
position of th company is done with the help of SWOT analysis.

Contents
Introduction.................................................................................................................................................1
CSR and managerial ethics..........................................................................................................................1
PESTEL Analysis and FIVE FORCE MODEL...........................................................................................2
SWOT Analysis...........................................................................................................................................4
Strategic Leadership....................................................................................................................................5
Conclusion...................................................................................................................................................5
Reference.....................................................................................................................................................6

Introduction
ANZ banking is the Australian and New Zealand banking group Limited which dals in banking
and financial services and it’s headquarter is in Melbourne, Australia. It was established on 1
October 1951. The operation of ANZ bank is in 33 markets globally. In this report, social
responsibility and managerial ethics will be discussed which are used by the ANZ banking group
for engaging the stakeholders. The PESTEL analysis and five force model helps the business in
analyzing the opportunities and threats which are required to consider for the growth and
development of the organization. the analysis of internal environment helps in analyzing the
strengths and weaknesses of the business. The core values and competencies of the company will
be discussed which are developed by CEO and the various strategies of the organization will be
discussed which helped in the growth of the business. it is important to analyses the various
factors which help the banking sector to grow in market. It is analyzed that the bank includes
almost 545,000 shareholders (Liu and Trabi, 2003).
CSR and managerial ethics
Corporate social responsibilities are the self-regulations of the company which aims regulating
itself, stakeholders and the public. ANZ bank group adopts the responsible practices by
providing the uncomplicated products and services to customers. ANZ always strengthens the
decisions of business by considering the economic, social and environmental issues and
opportunities. ANZ banking considers the employees and customers fairly and provides the best
services to them. ANZ has implemented the new CR framework which includes the new policies
and initiatives for developing and enabling the staff to engage the employees in community
investment activities (Young and Thyil, 2009).
They had emphasized education and employment opportunity by enhancing and expanding the
program for creating opportunities in order to improve the economic and social inclusion. They
had increased the percentage of women in all the levels of the business. They provide the values
to their shareholders by considering the interest of employees, customers, and communities.
They had created their strategic priority of delivering a purpose and values-led transformation
(Sujan and Abeysekera, 2007). They had created the values for customers, employees, and the

community by making effective contributions by integrity, collaboration, respect, excellence, and
accountability. They had created the culture in business to be customer-centered as to provide the
services to customers and creating a good relationship with customers they adopt effective
strategies. They had adopted the practice along with the supporting policies for providing the
training to the employees. They consider the whistleblower policy which ensures that the
concern, ideas, and opinions of employees, contractors are considered for the adoption of ethical
and legal standards (Hull, 2002). In order to improve the customer's outcomes, ANZ banking has
adopted the net promoter system for solving the customer's complaint. To ensure customer
satisfaction, ANZ banking has provided customer remediation activities. They had implemented
the new banking code of conduct for customer satisfaction.
PESTEL Analysis and FIVE FORCE MODEL
Political factors-Political factors impacts on the profitability for the long run of the business.
Regulatory bodies and issues are included in political factors. It is necessary to follow the trade
regulations and tariffs for running the business. legal framework for contract enforcement which
also includes wage regulations and taxation (Brown, 2006).
Economic- Economic factors which impact the ANZ banking are the inflation rates, interest
rates, foreign exchange rate. GDP growth rate impacts the growth of the organization in the
future. Infrastructure quality impacts on the ANZ bank in the market.
Social- social factors include the consideration of culture, attitudes, beliefs, and values for
running the business. ANZ bank analyzes the demographics and skill level. They always focus
on customers for providing effective services and involve in societal welfare activities.
Technological- ANZ banking group adopt innovations in the process of banking services. They
had faced issues with the existing technology. Technology impacts on the offering of products to
customers and providing the services to customers. In the ANZ banking group, technology
factors impact the cost structure and value chain structure (Brown, 2006).
Environmental factors- In the banking industry, the various financial risks are involved which
impact on the ANZ bank. The bank has adopted the various environmental issues policies for

monitoring and identifying the potential social risks like the process of credit approval. Policies
are involved in taking the lending and investment decisions in various countries (Hull, 2002).
Legal factor- In the banking sector, companies have to follow the laws and regulations regarding
privacy, consumers, and transaction. It is essential to apply the legal policies for running the
business.
Porter’s five force model helps in analyzing the long term attractiveness
Bargaining power of suppliers
In ANZ banking the bargaining power of suppliers is considered as moderates and the corporate
suppliers of the ANZ banking group are Dell, KPMG, Telstra and IBM. The bargaining power of
suppliers is affected by the interest rates and rise in avenues for investment. The customer
deposits, mortgages loans, securities, and loans are also included. The day to day activities in
bank affects the suppliers bargaining power (Hess, et al., 2009).
Bargaining power of customers
In the banking industry, the bargaining power of customers is analyzed as high. Customers are
the king as they can make or break the bank with their choice. It is necessary for banking
services to provide the best services to customers. it helps in ensuring the customer's loyalty and
tries to not lose customers of competitors as the banking industry includes the wide competitors
in market. ANZ bank is the 2nd largest bank which leads to retail customer satisfaction ratings
(Pomering and Dolnicar, 2009). With the help of diversified product portfolio ANZ bank is able
to provide the best services to customers. It is analyzed that the customers prefer modern
technology in banking sector (Sila and Ebrahimpour, 2002).
Threat of substitutes
In the ANZ banking group, threat of substitutes is medium. The threat to the bank is from the
other institutions and competitors who deals in non-financial services. NBFC provides a wide
variety of options and it attracts the customers. ANZ banking faces the threat in case of insurance
options, fund management and the services which are provided by the other non-banking
institutions (Hess, et al., 2009).

The threat of new entrants
In the banking industry, the threat of new entrants is quite low. ANZ has established a position in
the market and it is analyzed that it is the largest bank in New Zealand. It is difficult for new
banks to enter the market and attract customers by providing services. It is necessary for new
entrants to consider the norms and regulations of banking industry. The requirement od
investment in banking industry is also high (Farrar, 2001).
Degree of rivalry
In the banking sector, the rivalry is high in competitors. ANZ banking group considers the
effective strategies for continuously moving towards success and improving the process for
sustaining in competitive market. In banking industry, competition is inevitable as in the industry
exit barriers are considered high. ANZ uses high technology for competing with rivals.
SWOT Analysis
An internal environmental analysis includes a SWOT analysis. SWOT includes the strengths,
weaknesses, opportunities, and Threats.
Strengths- The strength of ANZ bank is that it is the largest bank in Newzealand and Australia.
IT provides a wide range of products to customers which helps in reducing the operating and
business risks. They offer various financial services like asset finance investment, payment
solutions to customers, and other banking services. ANZ bank includes more than 6000
employees (Pomering and Dolnicar, 2009).
Weakness- the weaknesses of the company are the poor technology, fixation of interest rates. In
ANZ, global exposure is limited as compared to other banks. It is difficult for ANZ bank to
increase the market share because of the strong competition in the banking sector. ANZ bank is
facing issues because of new entrants in the market. It is analyzed that the profitability ratio of
the ANZ is not equivalent which is required in the industry (Josh, et al., 2010).
Opportunities
An external environmental factor helps in analyzing the opportunities which are available in the
market. It is an opportunity for ANZ to expand the online presence as it will help them to interact

with customers more (Sathye, 2002). In order to reduce the various costs, technology
development can help in increasing the revenue of the business and helps in collecting the
relevant data from customers quickly. They can adopt the green government drive which helps in
providing the opportunity to ANZ for selling the products to contractors of state and federal
government. They have a high opportunity for expanding their business in Asian markets like
India and China. In order to grab the opportunities in the market, it is necessary to adopt the
effective strategies to compete in market with competitors (Belias and Koustelios, 2014).
Threats
The external analysis of the environmental factors as the deteriorating economic conditions of
the new Zealand and Australia. In a banking system, the changes and fluctuations take place
which impacts the ANZ banking group (Sathye, 2002). Competition is increasing in Australia
and the Pacific region and it is becoming a threat to the ANZ bank.
Strategic Leadership
It is essential in business to implement strategic leadership for the success of the business. CEO
of the company adopted the strategy for integrity, collaboration, accountability and respect and
excellence for the success of the organization. he had invested in developing leader which are
required in the rapidly changing environment and adopted the new way for leading and also
increased the lead in women and set the target of women in leadership to increase it by 3 to 34%
by 2020 (Paul and Kaurouche, 2008). CEO of ANZ Shayne Elliott leader has adopted the
strategy of 7 C’S which includes customer focus, communication, collaboration, creative
problem solving, constructive leadership and continuous learning and change management. He
has contributed to the growth and development of the business. the had adopted the leadership
skills for the effective culture and growth of the business. he had adopted the strategy for
motivating the employees for performing their job roles effectively. he had provided the various
monetary benefits to employees for motivating them to perform at their job roles. He had
changed the culture of the business as an effective culture for the employees. His leadership has
contributed to the success of the business and satisfied the employees by the effective working
culture and rewards. He is having very effective communication skills and he had to
communicate with the team and employees for making them understand the work and objective

of the organization. In banking sector, teamwork is the most important skill which is required to
be performed and motivating the team to work in team for achieving the objectives and success
of the organization (Braemer and Gischer, 2012). In order to improve organizational
effectiveness, he had focused on the education and growth of the employees and he always keeps
customers in mind for providing the best services to them and satisfies them with the services for
increasing the market position of the business in different markets.
Conclusion
In this report, it is concluded that strategic leadership is required for making an effective decision
in the business. the implementation of managerial ethics practices helps in engaging the
stakeholders. PESTEL analysis helps in analyzing the market position of the business in the
banking industry. With the help of analysis of internal environment it helps in analyzing the
strengths and weaknesses of the business. ANZ uses high technology for competing with rivals.
CEO of the company implemented the various strategies which help in making the effective
decisions and made the business successful. It is concluded that for improving the position of
business in market, effective strategies are required to be implemented for increasing the
organizational effectiveness.

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