Strategic Decision Making: BNZ Case Study - Women Empowerment

This case study analyzes the Bank of New Zealand's (BNZ) strategic decision-making processes, particularly focusing on its commitment to women empowerment and its impact on organizational functions. The analysis covers the significance of planning, organizing, leading, and controlling within BNZ's business strategy, illustrating how these functions are applied in practice. The study compares BNZ's strategic actions with those of other banks, such as ASB, highlighting programs like financial literacy workshops and partnerships aimed at supporting women in business. Furthermore, it critically examines BNZ's strategic actions in terms of functional strategies, including marketing, operational, and financial aspects. The analysis also delves into corporate governance, assessing the ethical issues related to gender representation and the need for fair practices. The document evaluates how BNZ's efforts to empower women contribute to its overall business strategy, examining the impact of these initiatives on brand value and competitive advantage.

Running head: STRATEGIC DECISION MAKING
STRATEGIC DECISION MAKING
Name of student
Name of university
Author’s note:

STRATEGIC DECISION MAKING
Question 1:
a) Explanation of BNZ’s organisational functions
Organizational functions also known as business functions refer to core process or business
activities that are implemented within an organizational department or various areas of a
company. Organizational functions are classified into four main categories which are
planning, organizing, leading and controlling (Lowe, 2019). In this context it will be
described how these four main organizational functions apply to the business of the Bank of
New Zealand or BNZ.
Significance of organizational functions
Analysis of the significance of these functions in BNZ’s business strategy
Planning:
Not only in banking industry, but this is one of the most important organizational function
and play an important role in business as well. No business is successful if there is no
objective. Every organization needs to define their business objectives and then identify what
are the strategies required for achieving those objectives (Rogulenko et al., 2016). One of the
important aspects of business planning is to analyse business environment and Bank of New
Zealand require to consider this for identifying contingencies that might affect their business
in terms of economic constraints, competitors and their consumers. All of these aspects is
important for Bank of New Zealand if they want to retain their market dominance. In order to
drive their business revenue it is important to provide a future forecast for business and
define business strategies accordingly. For example, they are investing in women
empowerment which is an important business strategy to ensure competitive advantage.
Therefore, if BNZ do not plan how to ensure competitive advantage, then it is not possible for
define strategies that will provide them competitive advantage. Therefore, this organizational
function is not only applicable to Bank of New Zealand, it is of prime importance for BNZ as
well.
1

STRATEGIC DECISION MAKING
Organizing:
This is another important organizational function that is required for implementation of
business strategies and it provides idea regarding what are the required resources for
implementing business strategies identified in planning. After Bank of New Zealand define
their strategies, they need to allocate required resources including human resources (Lowe,
2019). While allocating human resources, it is important that Bank of New Zealand define an
organizational chart and organize those resources in terms of their roles and responsibilities.
It will help BNZ to ensure that effort of employees are coordinated with organizational
mission and vision essential for business success. If organizing function is not proper, then it
affects administration and it is not easy to obtain specialization according to business
requirements. Therefore, organizing function is applicable to Bank of New Zealand, as they
need to coordinate expertise and specialization with business strategies while sourcing
required resources for implementing business strategies as well. As identified from case study
that, in order to achieve their business objective to employ women employees for managing
its business process, they have organized workshops for providing education to women and
50 such workshops have been arranged by BNZ, which is an example of organizing function
in this context.
Leading:
While corporate vision and mission defines values of an organization, it is employees who
are responsible for driving success for an organization according to organizational value. For
example, Bank of New Zealand values women empowerment and their active involvement in
banking industry, not just as a customer, but as strategic leaders as well (Brivot, Gendron &
Guénin, 2017). However, to ensure success in this strategic vision, it is required that someone
lead in this context. It involves identifying personalities, values, attitudes and employee
emotions to ensure best performance from them. Strategic vision is best implemented when
this is communicated well and this is where leadership plays an important role. Bank of New
Zealand needs to employ managers who are not only capable of managing business
operations, but to inspire and lead others for providing values in business while integrating
organizational values as well. For example, to lead women empowerment programs, BNZ has
partnered with Plunket and in this context they have considered external leadership as well.
Controlling:
2

STRATEGIC DECISION MAKING
As already identified that employees are most valuable resource for any organization and
therefore, it is essential for Bank of New Zealand to obtain best performance from all of its
employees including people involved in managing employees and business activities as well.
Therefore, it is important to ensure control over employee performance. In this context, Bank
of New Zealand should define performance standards and evaluate employee performance
according to that standard. The aim of controlling is to ensure that performance does not
deviate from organizational performance standards (Anderson, 2019). When there is a
performance standard, it makes it easier for Bank of New Zealand to compare actual
performance of employees against set standard of performance and identify if there are issues
in employee performance. If employee performance is not effective according to performance
standard, it allows to implement necessary strategies to improve employee performance.
Controlling is not only applicable for employee performance, but it is also applicable for
implementation of business strategies (Richardson, 2017). When a strategy is implemented, it
is important to evaluate outcome of that strategy in terms of desired outcomes defined for that
strategy. For example, an important strategy for Bank of New Zealand to obtain competitive
advantage is to train and empower women to involve them into organizational business.
However, if its outcome is not measured in terms value it provides for business of Bank of
New Zealand, then it is possible to identify how effectively this strategy has been
implemented and how successful this strategy has been. It is required to make necessary
changes if implementation of strategy is not successful according to organizational standard.
Therefore, this is an important organizational function for Bank of New Zealand as well.
b) Empowerment of women
According to the case study provided, BNZ is determined towards empowering women and
other ‘underrepresented’ customers and for this they have considered a range of informative
programmes.
Comparison of strategic action
It is not only Bank of New Zealand, but other leading banks of New Zealand is also taking
similar approach that is to empower women and involve them into banking business for
strategic and competitive advantages ("Awards | ASB", 2020). In this context, the bank that is
considered is ASB bank which is owned by Commonwealth Bank of Australia and it is
operating in New Zealand. It is actively involved in women empowerment program and for
its effort and commitment towards women empowerment, in 2014 it has been awarded with
3

STRATEGIC DECISION MAKING
two White Camellia Awards for leadership in promoting gender equality and empowering
women through supply chain and marketing programs ("Awards | ASB", 2020). In 2013, it
was awarded with UN Women's Empowerment Principles White Camellia Supreme Award.
Comparison of BNZ’s strategic actions to one other organisation offering similar services.
For empowering women to involve them into banking industry, Bank of New Zealand has
designed various programs. One such program is Financial literacy program for which they
have partnered with the Commission for Financial Literacy and Retirement Income and The
Māori Women’s Welfare League for providing financial literacy workshops for providing
financial education to women. These workshops are organized across country and facilitated
by employees of BNZ. In 2013, a financial education programme was launched by BNZ to
support women who are involved in decision making process in whānau and marae situations,
which are often associated with rural areas. This program is supported by a Māori women
network along with multicultural network consisting of BNZ women. 20 women have already
taken part in this program in its first instance.
Another important initiative of BNZ in this regarding is partnership with the Auckland
Businesswomen’s Breakfast Association in Newmarket which is also sponsor of the Dairy
Women’s Network. and a lunch club was launched. This lunch club is running for five years
and its aim is to bring business women who are like-minded and provide them business
insight which helps them to design new networks and inspire others as well.
ASB, in its effort to empower women connect with women in dairy industry and provides
them financial knowledge ("ASB & the Dairy Women's Network - Helping woman farmers |
ASB", 2020). It ensures that women get support from fellow women and they are benefited
from financial knowledge that is provided to them though training organized by ASB.
Evaluation and justification
It evaluates and justify how BNZ’s efforts to empower women and other ‘underrepresented’
customer contribute to its successful business strategy.
According to business strategy of BNZ, when women employees are provided employment
opportunities, then they not only add diversity to workforce, it also helps company to obtain
fresh and innovative ideas for business. Along with this, providing employment opportunities
to women also attracts women consumers which has been a major reason for BNZ to become
4

STRATEGIC DECISION MAKING
successful in New Zealand banking industry as well. Therefore, this approach is in
accordance with BNZ business strategies as well.
c) Critical analysis of strategic action
Critically analyse BNZ’s strategic actions in terms of functional strategies such as marketing,
operational and financial.
Business strategy of BNZ is to attract more female consumers as they not only provide values
to business, but also provides ideas to business that enhances business process as well.
For marketing, BNZ associate itself with various programs and sometime they sponsor as
well. This not only enhances their brand value but it also communicate their strategies and
vision. In some programs especially which are associated with women empowerment, are
important for attracting women consumers as it provides value to women not only as a
consumer but recognizing their role in corporate field as well (Werhane, 2019).
This is an important strategy that provides them competitive advantage. It is important to note
that by doing this they are getting opportunity to capitalize on economic and consumer power
which is what providing them competitive advantages. When company provides value to
women knowledge and encourage them to offer their ideas for business, it attracts women not
only as potential leaders but also as a consumer as well. Therefore, it provides competitive
advantage to BNZ as well.
Question 2:
a) Analysis of corporate governance
Corporate governance plays an important role in implementation of organizational strategies.
It refers to organizational approach in complying with relevant rules and regulations in
industry (Du Plessis, Hargovan & Harris, 2018). In order to comply with employment
legislation that is to provide employment opportunities to people irrespective of their gender,
BNZ provides employment to female employees along with their male employees. In fact,
they even sponsors programs and training that provides employment opportunities to women.
As part of its decision making process, they have some strategic partnership with various
organizations to identify best female candidates across industry. These female candidates are
not only provided entry level jobs in bank, but they are also provided opportunities to
represent board of directors that are responsible for making strategic decisions. Special focus
is provided to payment bias that is to offer different pay according to gender. Female
5

STRATEGIC DECISION MAKING
employees are encouraged to provide fresh ideas to business so that it is possible to ensure
competitive advantages in business.
According to their operational strategies for increasing revenue, not only in terms of
employees, women consumers are also provided importance and this is to apply economic
and consuming power of women consumers to enhance business revenue. Although
importance is provided to women employment, number of women employees involved in
board of decision making is not that significant which an ethical issue.
b) Analysis of ethical issues
A BNZ Workplace Diversity Study reveals that women are under-represented on the Board
Directors of major New Zealand Banks, including BNZ.
The major ethical issues that are present in the section is that there have been creation of
gender substandard. This presence of gender substandard includes the fact that there have
been issues regarding processing of business. It have been seen that there is a common
prospect of bettering the process of business management with higher masculinity in the
work process, which acts as a major hypocrisy (Fine, Sojo & Lawford‐Smith 2020). This will
be ensuring the fact that there have been existence of biasness. This presence of biasness have
been affecting the management section. It have been seen that women have been getting
deprived of their workplace rights. This ensures that there have been proper management of
the business process in a negative manner. It is a naïve thought that have been leading to the
fact that there exists a thought of women being less flexible in nature. This being less flexible
in nature have also been a major issue that have been preventing the women from getting the
managerial roles. However, in today’s society, flexibility have never been an issue for
women. Yet they have been deprived off their rights of being a manager.
Depending on a women have still been a major issue that have been seen in the process. This
includes the fact that there have been serious thought process issues and this harms the entire
working process.
For examples,
Mary Barra have been a Chairman and CEO of General Motors. This organization is
considered to be one of the largest organizations globally. This is one of the major example
that can be considered for understanding the fact that women are equally capable as men in
managerial posts
6

STRATEGIC DECISION MAKING
Question 3:
Analysis of strategic entrepreneurship
Strategic entrepreneurship is considered for combining strategic activities that provides
advantages to business with entrepreneurial activities that is opportunity seeking for business.
There are some similarities and differences between strategic decision making and
entrepreneurship. These similarities and differences are described in details in this context.
Strategic decision making refers to process of creating a long term goal associated with long
term vision. Entrepreneurship is associated with diversity and in this process organization
aims to turn diversity into competitive advantages (Lee & Seo, 2016). Therefore, in this
context, strategic leadership an entrepreneurship is closely related that is to drive
organizational success. However, there are some fundamental difference between these two.
While strategic decision making focus on long term goals and objectives, entrepreneurship is
often associated with short terms goals which is required for achieving long term goals.
In this case study of BNZ, it is identified that long term goal of them is to become leading
bank in New Zealand and execute their corporate social responsibilities by ensuing
employment and enhancing financial condition in local communities in which they operate.
In order to achieve this long term vision, it is required to embrace diversity. However, to
achieve this goal, they need to provide employment opportunity irrespective of gender bias.
To ensure that it is required to provide training to women so that they gains proper
knowledge essential for working into banking sector and apply those knowledge in other
sectors where financial knowledge is required. This is what is referred to as entrepreneurship.
Another organization which is supporting their entrepreneurship activity to achieve its long
term goal of becoming most responsible and valuable bank in New Zealand is ASB bank.
They has designed many programs for providing financial knowledge to women so that they
add to diversity that will help this bank to obtain strategic and competitive advantage ("ASB
& the Dairy Women's Network - Helping woman farmers | ASB", 2020). Along with these
programs, they even sponsors various programs that works for women empowerment and one
such program is to provide financial knowledge to women working in dairy industry. These
women in turn will provide knowledge to other women to ensure that these programs are
effective and efficient as well.
7

STRATEGIC DECISION MAKING
Another company that is setting example of how to embrace diversity through
entrepreneurship programs for enhancing business process is Costco, one of the leading retail
wholesaler in the world. They are supporting business that are run by women for representing
them in supply chain, which is one of the most important aspects of this organization
("Qualifications for Applying to the Costco Supplier Diversity Program", 2020). According
to Costco, this is helping them to get fresh ideas for their supply chain which is required for
innovation in their business. Although this company wants to become world leader in retail
business and present itself as a responsible organization which works for welfare of society,
in order to achieve this long term goal, they need to invest in this diversity program.
8

STRATEGIC DECISION MAKING
References:
Anderson, D. L. (2019). Organization development: The process of leading organizational
change. SAGE Publications, Incorporated.
ASB & the Dairy Women's Network - Helping woman farmers | ASB. (2020). Retrieved 7
March 2020, from https://www.asb.co.nz/banking-with-asb/asb-and-dairy-womens-
network.html
Awards | ASB. (2020). Retrieved 8 March 2020, from
https://www.asb.co.nz/about-us/awards.html
Brivot, M., Gendron, Y., & Guénin, H. (2017). Reinventing organizational
control. Accounting, Auditing & Accountability Journal.
Du Plessis, J. J., Hargovan, A., & Harris, J. (2018). Principles of contemporary corporate
governance. Cambridge University Press.
Fine, C., Sojo, V., & Lawford‐Smith, H. (2020). Why does workplace gender diversity
matter? Justice, organizational benefits, and policy. Social Issues and Policy Review.
Lee, D., & Seo, H. (2016). Neural basis of strategic decision making. Trends in
neurosciences, 39(1), 40-48.
Lowe, E. A. (2019). On the idea of a management control system: integrating accounting and
management control. Management Control Theory, 63.
Qualifications for Applying to the Costco Supplier Diversity Program. (2020). Retrieved 7
March 2020, from https://www.costco.com/supplier-diversity.html
Richardson, D. L. (2017). Above and Beyond: Leading and Managing Organizational
Change. AuthorHouse.
Rogulenko, T., Ponomareva, S., Bodiaco, A., Mironenko, V., & Zelenov, V. (2016).
Budgeting-Based Organization of Internal Control. International Journal of
Environmental and Science Education, 11(11), 4104-4117.
Suárez, C. A. (2017). Internal control systems leading to family business performance in
Mexico: a framework analysis. Journal of International Business Research, 16(1), 1-
16.
9

STRATEGIC DECISION MAKING
Werhane, P. H. (2019). Women Leaders in a Globalized World. In Systems Thinking and
Moral Imagination (pp. 229-244). Springer, Cham.
10