ANZ Bank MGT100 Report: Business Environment and Strategic Leadership

This report provides a comprehensive analysis of the ANZ Bank, focusing on its internal and external business environments. It examines the company's corporate social responsibility and managerial ethics practices, detailing their impact on stakeholders. The report conducts a PESTEL analysis of the external environment, identifying key opportunities and threats. Furthermore, a SWOT analysis is performed to assess the bank's internal strengths and weaknesses. Finally, the report delves into the strategic leadership of ANZ's CEO, Shayne Elliott, and how his leadership has shaped the organization's strategy and contributed to its success. The analysis incorporates various models such as the Five Forces Model and resource-based view to provide a well-rounded perspective on the bank's operations and strategic positioning. The report also discusses core values of the CEO.

Running Head: Management
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anz
MGT100
Internal and External Business Environment
9/22/2019

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Executive Summary
The company ANZ which is the banking company provides the financial services to the
customers and it is one of the leading banks in Australia and New Zealand. The financial
performance of the company is good but still due to the change in the political, legal and
economic factors, the company has to face certain issues. The biggest strength of the company is
that operating risk of these banks is very lower. The company also has sufficient resources to
fight with their competitors. The CEO of the company Shayne Elliott has many core values
which have also stated in this report.

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Contents
Introduction......................................................................................................................................3
Task 1: One (1) social responsibility and one (1) managerial ethics practice which the company
uses to engage with stakeholders and their impact on the company...............................................3
Task 2: The external environment of the company.........................................................................4
Task 3: The internal environment of the company..........................................................................6
Task 4: The strategic leadership and its effect on the organization.................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................8

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Introduction
The report is prepared so that the factors which affect the internal and the external business
environment can be analyzed. The report is prepared in regards to the company ANZ which is
the banking company and provides the financial services to the customers. The company ANZ
limited was founded on 2 March 1835(Ames, et al., 2015). The CEO of the company is Shayne
Eliiott who has managed the company in a very effective way. This company is the most
sustainable banking in Australia and it is one of the big four Australian banks. The company has
the largest market so there are many factors which affect the internal and the external business
environment. In this report the social responsibility and the managerial ethics of the company
will also be stated and their impact on the organization will also be illustrated. The leadership
strategy and their contribution to the success in the company will also be discussed. The report
majorly focuses on the internal and the external environment and their impact on the company.
Task 1: One (1) social responsibility and one (1) managerial ethics practice which the
company uses to engage with stakeholders and their impact on the company
Corporate social responsibility: The Company ANZ is engaged in environmental sustainability
as they majorly focus on the efforts on water, energy, and waste in which the company is
operating. The company has reduced the consumption of water in the Australian Commercial
offices by 15%. The company has increased the use of renewable resources and reduces paper
consumption in New Zealand and Australia. The company is socially accountable to the
environment and they are regulating their business in such a way that societal and environmental
goals can be engaged (Wright and Rwabizambuga, 2016).
CSR has a great impact on the performance of the company. With the help of the proper
corporate social responsibility of the company the employees are satisfied in the company and
their retention rate of the employees is very high. The companies which are having the proper
CSR whose employees are more satisfied and they work with better brand recognition in the
market. The loyalty of the customers also increases with the sales and the reputation of the
company enhanced in a positive way (Waterhouse, 2016).

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Managerial ethics: This is the set of the rules and the ethics which gives the guidelines to the
company that what is right and what is wrong. The company is ethically engaged in the privacy
and the confidentiality of the customers. The company never gives the personal details of any
customers to any other person (Stockport, et al., 2012). They have maintained the privacy and
dignity in the company. The company ANX acts with honesty and integrity and ensure that the
policy framework of the company is properly complied or not.
Managerial ethics has great importance in the company ANZ as it helps in maintaining the
relationship with the customers. The managerial ethics helps the company to maintain the long
term relationship with the customers so that reputation of the company can be build up and
maintained in the company (Guziana and Dobers, 2013).
Internal stakeholders of the company: The major internal stakeholders of the company ANZ
are employees, managers and the owners of the company. They have internal control over the
company and are responsible for managing and performing the functions of the company.
External Stakeholders of the company: The external stakeholders of the company are
suppliers, government, society, creditors, customers, etc. These stakeholders also affect the
functioning of the company.
Task 2: The external environment of the company
PESTEL:
Political factor: The political factor of Australia is very diverse and it has a great impact on the
profitability of the company. Due to the changes in the political regimes, many risks have to be
faced by the company. The company has to pay a higher level of tax as the profit of the company
is very higher. The company also has some trade barriers which has some negative impact on the
company (Sharma and Brimble, 2012).
Economic factor: When any changes occur in the inflation rate or the foreign exchange rate
when the financial companies have to suffer a lot. So the company ANZ has gets affected due to
the aggregate demand and investment. If the country has a great GDP, then the company will
grow faster in the future. The borrowing and investment of the individual are dependent upon the

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interest rates. So the company will have more growth when the rate of the interest is higher as
the people will do the greater investment
Social factor: There are many societal factors also which are affecting the company such as the
attitudes, belief, values, etc. of the society. These factors are important for the company to
analyses for the marketing and the operational aspects. The population of the country should be
well educated otherwise it affects the profitability of the company as lower class people will not
understand the premium products (Harorimana, et al., 2017).
Technological impact: Due to the advancement in technology many things have to be faced by
companies such as a rapid change in the price structure. The company adopts the new innovation
and technology in the company as they want to become the market leader and maximizes their
profit. Technologies of the ANZ companies are followed by the other competitor's company
which was creating a major problem for the company.
Environmental factor: The weather conditions also impact the functioning of the ANZ. The
company has to go through with many fines and quotas as they cause many pollutions and large
amount of waste in the environment. The company is engaged in the renewable resources of the
company so that they get the support from the customers and the government (Haney, 2017).
Legal factor: There are many rules and laws which the financial companies have to follow so
that they can perform the functioning of the company in an appropriate manner. The company
has to follow the legal laws in regards to the protection of the personal data of the customers.
There should be no discrimination is allowed in the company
Five Force Model of ANZ company are stated below:
Competitive Rivalry: There is no such competition in the Australian market in the banking
sector. There were the four major banks only in Australia from where the people take their
financial services (Liu, et al., 2017). The interest rates of all the banks are quite similar so there
is as such competition in the banking sector in the market.
The threat of substitutes: Threat of substitutes in financial banking is very higher as there are
many other banks that are providing the services with great interest. Customers like to deposit

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and lend the money to the mutual funds, insurance, and the other fix securities as their interest
rate is higher (Brown, 2016).
The threat of new entrants: Threat of new entrants is also higher as there are small private
banks which are offering the better services to the customers and the customers are lending and
borrowing the money from the small private banks only.
Buyers: The bargaining power is low and there is no threat in the banking sector. The switching
cost is very higher which the major factor which affects the buyers is. If the person has taken any
kind of the loan, mortgage, credit card, etc. then it becomes difficult to switch to the other banks
(Salim, et al., 2016).
Suppliers: The bargaining power of the suppliers is lower. The banks are generally guaranteed
by the federal government so there is no big threat of capital as the banks are very viable. The
labor is very cheap on the call centers which provides offshore from line services.
Task 3: The internal environment of the company
SWOT analysis: Strength and Weakness analysis the internal environment of the company of
the ANZ which is described below:
Strength: The biggest strength which the company has that it is one of the largest banks of New
Zealand and the second largest banks of Australia. The operating risk of these banks is very
lower which the biggest strength is as the company provides the diversified product portfolios
(Sam and Tiong, 2015). The market share of the company is also available in New Zealand,
Australia, and Pacific countries. The company has a strong financial position in the market and
has many customers who rely on them.
Weakness: The equipment’s and the machinery used by the company are very outdated. The
company has unreliable suppliers and insufficient marketing which leads to declining the profit
of the company. The global exposure of the company is very limited so the company was not
expanding ta the international market. The market shares of the company cannot be increased at
higher prices as there is strong competition in the market (Salim, et al., 2016).
Resources based model:

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Tangible assets: Tangible assets of the ANZ company is very reliable as the company has
enough cash, machinery, equipment’s, inventories, land and building, furniture, etc. So the
company has enough tangible resources to perform the function of the company.
Intangible assets: The brand reputation of the company in the market is the biggest intangible
asset of the company (Sam and Tiong, 2015). The company has a good reputation in the market
among the customers so this resource is also important to attract customers.
Heterogeneous: There are many banks that are providing the same financial services to the
customers but the biggest resource which the company has is that their rate of interest is very
reasonable so most of the customers prefer to borrow and lend the money from the bank.
Immobile: The intellectual property and brand equity of the company cannot move from one
place to another so they are the immobile resources of the company.
Task 4: The strategic leadership and its effect on the organization
CEO of the ANZ Company: Shayne Elliott is the CEO of the company which is also the great
leader of the company. He was grown in the Atatu South and is the son of the builder. He has
done his education from the University of Auckland and Waitakere College.
Core values of the CEOs: There are the certain core values which the CEO of the ANZ
Company (Shayne Elliott) has such as they are very innovative in bringing the new product to
the market; they have the competitiveness which makes them the big fighter in the uncertain
market (Steen, et al., 2016). They are very helpful to the other employees and always inspire
other staffs or the employees. Shayne Elliott always tries to connect with the other employees
and make connection with them. He considers the company as the family and takes care of the
customers as well as the employees of the company.
CEO inspires the employees: The CEO of the ANZ Company inspire their employees by
showing the trust to them. The CEO of the company has faith in their employees which helps in
motivating them and achieving the targets of the company. The CEO also offers incentives and
the other prizes to motivate the employees so that they can give their best performance. He also

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gives motivated speech and includes the employees in taking the big decisions of the company
(Alwazir, et al., 2017).
Develop and implement the strategies: the CEO of the company is responsible for the strategic
and innovative thinking. They implement the strategic plan in the company by communicating
their objectives with the employees. The goals of the company are accountable so they put the
great focus on that. After then the actions are oriented and then the performance are tracked, that
the objectives of the company are attained or not (O'Shannassy and Leenders, 2016).
Conclusion
From the above report it is concluded that the ANZ limited is the leading banking company in
the market so their financial position is very strong in the market and has a good reputation. With
the help of the proper corporate social responsibility of the company the employees are satisfied
in the company and ethics helps in maintaining the relationship with the customers. The internal
and external market is analyzed above and their impact on the company is also stated.

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References
Alwazir, J., Jamaludin, M.F., Lee, D., Sheridan, N. and Tumbarello, M.P., 2017. Challenges in
Correspondent Banking in the Small States of the Pacific. International Monetary Fund.
Ames, M., Schuermann, T. and Scott, H.S., 2015. Bank capital for operational risk: A tale of
fragility and instability. Journal of Risk Management in Financial Institutions, 8(3), pp.227-243.
Brown, G., 2016. Australia and New Zealand Banking Group (ANZ): Aligning community
strategy with business strategy. Journal of Corporate Citizenship, (22), pp.18-22.
Deegan, C. and Shelly, M., 2014. Corporate social responsibilities: Alternative perspectives
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Guziana, B. and Dobers, P., 2013. How sustainability leaders communicate corporate activities
of sustainable development. Corporate Social Responsibility and Environmental
Management, 20(4), pp.193-204.
Haney, A.B., 2017. Threat interpretation and innovation in the context of climate change: An
ethical perspective. Journal of Business Ethics, 143(2), pp.261-276.
Harorimana, D., Varea, F., Vikash, V., Khan, A. and Betty, E., 2012. Impact of CRM systems on
organisational performance: A case study of ANZ bank.
Liu, H., Cutcher, L. and Grant, D., 2017. Authentic leadership in context: An analysis of banking
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Salim, R., Arjomandi, A. and Seufert, J.H., 2016. Does corporate governance affect Australian
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Sam, C.Y. and Tiong, P.N., 2015. An investigation of the corporate responsibility report
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