Strategic Management: Analyzing ANZ Group & Cryptocurrency - MGT5STR

This report provides a strategic analysis of ANZ Group's response to the rise of cryptocurrency. It includes a background of the organization, a PESTEL analysis examining the political, economic, social, technological, environmental, and legal factors affecting ANZ, and a Five Forces analysis assessing the competitive rivalry, power of buyers and suppliers, and the threat of substitutes and new entrants. The report also delves into the strategic dilemma posed by cryptocurrency, including the resources required for mining, the viability of Bitcoin, the threat to traditional banks, criminal usages, and the interest of the Chinese government. The analysis culminates in a recommendation for ANZ Group on how to address the risks created by cryptocurrency, supported by relevant academic sources. Desklib provides this document and many other solved assignments and past papers for students.

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Strategic Management
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Strategic Management
Contents
Introduction..........................................................................................................................3
Background of the organization...........................................................................................3
PESTEL analysis.................................................................................................................3
Five forces analysis..............................................................................................................4
Strategic analysis.................................................................................................................6
Conclusion...........................................................................................................................6
References............................................................................................................................7

Strategic Management
Introduction
Strategic management is crucial in the large organization for a better outcome of the
performance. There are several constraints upon which these strategies are made and
measured. Various internal and external analyses are involved to make a perfect set of
functionaries for a company (Nurcholis and Satria, 2017). ANZ group is regarded as one
of the best banks in Australia and New Zealand upon which a description in this report is
given. Various analyses such as PESTEL, Five forces model, and recommendations for
improvements have been justified in this report. There is also a complete brief upon how
the company works and performs in the Australian market.
Background of the organization
ANZ group that is Australia New Zealand Banking Group Ltd. is the third largest bank in
Australia by market capital. It is a bank which provides the huge set of commercial
banking services to the people who are associated with it. Commercial banking includes
various activities such as retail banking, maintenance of various accounts, wealth
management etc. It provides the best workplace culture for its employees so that they can
provide best investment advice to its clients (Sung and Park, 2018). Also, ANZ group
believes in giving back to the society by various strategies and means. The company has
a set of rules upon which it makes sure that it has best strategies for the operations so as
to stand among the top in operations. The bank has also been aiming to target several new
emerging markets where the chances of expansion and business are really high. The
business is already performing best in various locations where it is operating. The
strategic alliances of the company are very particular and distinct based upon several
market analyses.
Bitcoin is one of the advanced cash in which the procedures and components of
encryption are used for managing the age of units of money and confirming the exchange
of assets. This money is worked autonomously of a national bank. Bit-coin has been
considered as the most well-known case of a creating innovation that have a capability of
acquiring progressions the managing an account area. By making utilization of the polish
of science Crypto-monetary standards empower relatively moment exchange of

Strategic Management
significant worth at least or no costs between two gatherings without the requirement for
a trusted outsider.
PESTEL analysis
PESTEL analyses consist of the evaluation of various external factors which may directly
or indirectly impact the business of an organization. This analysis plays an important role
in the formation of strategies for a company which is performing its function in this
competitive world. ANZ group is regarded as one of the best banks in Australia so there
are several hurdles which it has to overcome in order to have smooth functioning of the
company as a global performer (Kusyk, Uyar and Sahin, 2018). In other words, taking up
operations in various countries justifies various sets of rules which has to be taken into
account for which PESTEL analysis is significant. The following is a brief of the
analysis:
Political
Every country has a justified set of constitutional rules which has to be followed by the
emerging businesses. The formation of these rules depends upon several terms such as
the political environment of the nation, ruling party etc. So, the change in the formation
of the new set of rules from the government can impact the business and its functionaries
which is crucial to be accounted for a better functioning (Lumbroso and Ramsbottom,
2018). ANZ group have its functions in banking which is very much dynamic with the
new set of rules every time. Hence, every country has the different type of political
environment which has to be taken into account by ANZ while conducting its operations
at various locations. Based on the exploration it has been noticed that Crypto-monetary
forms have had a solid political atmosphere that is supporting them in picking up
prominence. A standout amongst the most experimental effects of digital money is
decentralization of cash issuance and furthermore the cryptographic forms of money are
not under the control of administering specialists. The cryptographic money is
decentralized on the grounds that the administration does not back them and subsequently
the clients are executing specifically without impedance of the state. What's more, these
all are the reasons that delineate the effects of cryptographic forms of money on the ANZ
Group.

Strategic Management
Economical
An economy of a country justifies the potential power of spending by the people of that
country. Hence, it is a very useful tool for a company to decide upon if a company can
target a particular market for its operations or not. The economic condition of companies
also keeps on changing from time to time which makes it clear that it is also a very tough
challenge in order to cope up with it (GABRIEL and ALINA, 2018). ANZ group as a
banking sector player gives a major importance to the economy of a country and this
factor is taken very crucially for the strategic management and further operations of the
organization.
Social
There is a section of every nation where a company has to take care of the society
because it includes people in it. The social culture of the nation also impacts the business
to know what kind of taste and preferences a company might get from the people or in
other words getting a response for a particular activity. This impacts the sales and
acceptance of company in a particular market (Wambui, 2018). Hence, this factor plays a
very important role information strategy for ANZ group so as to take its business
operations further.
Technological
This is an ever-changing factor which keeps on upgrading over and over again with time.
Hence, technology plays a very important and direct part in the success of a business in
today's world. ANZ group after analyzing a particular country have to take into
consideration about the technological factor of the country so as to know what stage of
technology is used in the nation and what it can add up to its smooth operations to be at
an edge in the market (Hosseini, Safari and Homayouni, 2018). This is a very important
factor as a banking group there is so much addition to this factor for operations which has
to be used by the ANZ group.
Environmental
Every nation has an environment in which a business performs its activities. This is also
known as surroundings, for example, there can be the positive environment and there can
be the negative environment where a business has to perform its best to have a good
result. The business culture of a company also varies from one place to another and this

Strategic Management
has to be followed by the organizations to develop their business (Barney and Hesterly,
2010). The environment a company creates for its people also matters and has to be taken
very seriously by ANZ group so as to make the most use of it to generate most efficient
team for the objectives of the entity.
Legal
There is the various set of law and order for every nation worldwide which has to be
followed while settling up a business (Buckingham, 2011). The legal compliance
includes fair practices of business in a nation so as avoid any kind of ill practices. These
practices vary from nation to nation and play a very significant role in the formation of
policies for a particular company. Hence, ANZ group as a banking services company
have to take care of these practices so as to make most fair and smooth functioning of the
business. Because of decentralization of digital currency there is no control of the
administering experts and consequently no obstruction should be possible by the state.
What's more, this is the fundamental reason because of which these monetary forms have
least legitimate restrictions. The CEO of ANZ bunch Shayne Elliott said that Hayne
imperial commission denotes a "watershed minute" for the managing an account segment
however cautioning to the investors is likewise given informing that slower advance
development. "The illustrious commission affect is genuine (Shapiro and Eyers (2018). "
Mr Elliott said as the loan specialist revealed a $3.45 billion half-year money benefit,
which was up 4 for every penny and coordinating accord desires.
Competitive environment
Diamond model
The jewel plan of action has been created by for the business associations to help them in
understanding their aggressive position in the worldwide markets. This Porter precious
stone model is otherwise called Porter Diamond Theory of National Advantage and this
is on the grounds that every one of the variables that are noteworthy in the in global
business rivalry look like the purposes of a jewel.

Strategic Management
Five forces analysis
Every business firm is derived from some factors to which it has to compel in order to
perform well. Hence, ANZ group while performing in various markets also faces such
factors and has to make sure that it overcomes them so as to have proper functioning of
the operations. These are the factors which directly impacts the business of a company on
the basis of performance (Carroll, Primo and Richter, 2014). Various strategies of a
company are made by taking these factors so as to have the best performance of activities
in the market. Porter’s five force model is one such analysis upon which a company can
justify the solution for the forces which derive its business operations. hence, a
justification to the same in regards to ANZ group is given below:
Competent Rivalry
Every company has a certain set of competition which has to be taken into account for the
strategic formulations. Here the competition is companies which performed in the same
line of business or they can be substituted for the services which are being provided by a
company. ANZ group have several competitive banks which are its rivals such as
Commonwealth Bank, Westpac Banking Corporation etc. So, in order to retain its
customers, it has to make sure that it has some of the other competitive advantage
strategies so as to deal with same business operations entities (Cortez et al., 2014). As the
business of a company could be impacted by this because the customers may switch to
another bank for the same services.
Power of buyer
Bargaining power of buyer in a market implies when there is the huge number of people
for a particular product and they define a particular set of price for a particular service
which justifies the problem a company faces while positioning its product in a market.
ANZ group also has to make its product viability according to the need and demand of
the nation and the customers who are available in it.
Power of supplier
The suppliers of the services also make an advantage of the monopoly of services they
provide and set a price of the services according to themselves. The person who wishes to
avail those services has no choice but to choose it because there is no other substitution
for the same (Daspit, Chrisman, Sharma, Pearson and Long, 2017). Hence, this factor of

Strategic Management
the porters five forces model also justifies the pricing of the product for a particular
market where it is unique and providing these services. ANZ group have to make an
optimum use of this factors so as make a strategy which helps it to have an edge to
achieve its goals and objectives.
Threat of substitute
There are many substitutes for the same services which a company is providing and the
strategy which the substitute company uses to attract a customer is very much
problematic for an organization as it may lose upon its potential and new customers. To
overcome this company has to make a competitive advantage strategy for a proper
functioning of business and its operations (Dhariyal, Negi and Kothari, 2017). This helps
in retaining the customers or rather may end up in losing the customers to the rivalry
which is providing the same services to the people who are associated with ANZ in lower
charges.
A threat of new entrant
A market never stops as there are companies which keep on entering the market and also
there are companies which leave the market. New companies with new ideas emerge in a
market and the existing companies have a threat of losing their customers to the new
company which is coming in the market. ANZ group also have to analyze its new
rivalries which are planning to enter into the same business market in which the company
is operating so as to make sure a proper smooth functioning of the operations without any
chances of losing the customers.
In all the company has to make the optimum strategy to make their customers associated
with it for a long period of time (Djenontin, Foli and Zulu, 2018). This can only be real
when a company makes sure that it provides best services to the customers as no other
can which will make it stand out of the crowd so that the customers chooses it again and
again for the services.
Strategic analysis
Every company has several sets of operation and ANZ has a set of division where it
operates with cryptocurrency (Duffy, 2011). The virtual currency is creating a huge boom
in a market which is not regulated by any central authority and is risky but the future of

Strategic Management
the world is justified by this. The prices of this currency changes upon certain parameters
which are not known and justified. Hence, the company has to make sure that it has a
proper strategy for the success of this currency as well as if it fails there is a backup plan
upon which the customers' demand will be fulfilled.
Conclusion
The functioning of ANZ group and various factors which may cause a problem for its
business has been concluded by the above report. How to overcome these factors is a
result of this section of study for the banking corporation. There are several
recommendations which are also there for company and its operations which have been
obtained in the above research for ANZ group. Overall company is having a good
working culture and it is performing well with its operation is also a finding of this study.

Strategic Management
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