University Assignment: Stakeholder Analysis of ANZ Banking Group

This report provides a detailed stakeholder analysis of the Australia and New Zealand Banking Group (ANZ). It begins with an executive summary and an introduction to ANZ, highlighting its functional areas within the banking industry, such as financial needs assessment, fund sourcing, financial analysis, and capital budgeting. The core of the report focuses on identifying and differentiating between internal stakeholders (employees, board of directors, investors) and external stakeholders (clients, external investors, community, and government). It examines the degree of influence of key stakeholders and potential conflicts of interest, applying stakeholder agency theory to explain these conflicts. The report then assesses the critical level of interest of major stakeholders using a PESTEL analysis, considering political, economic, social, and technological factors. A stakeholder matrix is presented to evaluate risks associated with stakeholder interests and potential mitigation strategies. Finally, a comparison between ANZ and Woolworths (a secondary company) is included before concluding with a summary of findings and references.

Running head: STAKEHOLDERS ANALYSIS OF ANZ
Stakeholder Analysis of ANZ
Name of the Student:
Name of the University:
Author Note:

1STAKEHOLDER ANALYSIS OF ANZ
EXECUTIVE SUMMARY
 The particular objective of the given below report is to examine the stakeholders of an
Australian banking industry known as Australia and New Zealand Banking Group
Limited (ANZ).
 Concerning the purpose of fulfilling the structure of the paper, the study concentrates
on understanding the functional areas that the concerned banking industry operates its
business in.
 In the connection of the functional areas determined by the report, the stakeholders of
the ANZ are analysed and differentiated into internal as well as external shareholders.
 After the stakeholders are differentiated, the report is concentrated on the examination
of the degree and nature of the vital stakeholders of the banking industry.
 Furthermore, the report is concentrated on the examination of the conflicts that arise
amongst the different stakeholders and analyses the level of interest of the different
stakeholders as well.
 Hereafter, the report presents a stakeholder matrix that helps in the examination of the
risk involved with the interest of the different stakeholders and the possible measure
of how to mitigate the same.
 Finally, the report ends with presenting the difference between the interest of the
stakeholders of two different companies related to two different industries – The
source company (ANZ) and the secondary company (Woolworths).

2STAKEHOLDER ANALYSIS OF ANZ
Table of Contents
Introduction................................................................................................................................3
Functional Areas of ANZ...........................................................................................................3
Stakeholders...............................................................................................................................4
Internal Stakeholders..............................................................................................................5
External Stakeholders.............................................................................................................5
Degree of main stakeholders......................................................................................................6
Conflicts of interest....................................................................................................................6
The critical level interest of main stakeholders..........................................................................7
PESTEL analysis showing the stakeholders interest level at ANZ............................................7
Stakeholder Matrix.....................................................................................................................9
Comparison – ANZ and Woolworths......................................................................................11
Conclusion................................................................................................................................13
References................................................................................................................................14

3STAKEHOLDER ANALYSIS OF ANZ
Introduction
Australia and New Zealand Banking Group (ANZ) is recognised as an Australian
multinational banking company (Mazzarol, 2018). The same is known to be headquartered in
Melbourne, Australia. The concerned company was founded back in the year of 1835, dated
2nd March. Thereafter, the ANZ was established in the year of 1951, dated 1st October in the
concern of merging with the Union Bank of Australia Ltd. ANZ is considered to be
positioned as the second largest bank by the number of assets the same possesses as well as
the third largest in the Australian market capitalisation (Spencer, 2017). Moreover, ANZ is
also considered as one of the big four Australian Banks.
Functional Areas of ANZ
ANZ has been recognised as banking industry, has set up its functional areas in a
manner that it assists its customers with the best services possible (Lovelock & Patterson,
2015). In respect to this growth plan and working with the greatest zeal the concerned bank
industry is building itself in the crucial areas of analysing its cost- volume and profit analysis.
In this connection, the given report tends to specify the functional areas in which the
concerned bank operates.
Determining the financial needs
As opined by Schepens (2016), the financial part of a bank describes the working
structure of the same. In this concern, the financial manager of ANZ meets the financial
requirements of the same. The funds in a bank are needed to meet the promotional as well as
fixed and working capital needs.

4STAKEHOLDER ANALYSIS OF ANZ
Selection of the sources of funds
As stated by Bruton et al., (2015), several sources are available in the concern of
raising funds for the banking industry. In this connection, relating the same to the banking
industry of ANZ the concern resorting to the need of raising the sources of funds is the issue
of share capital and debentures. Thus, the ANZ is concerned with raising its funds from the
help of financial institutions. The working capital of the company needs to be met by earning
cash credit and overdraft facilities from the help of other commercial banks.
Financial Analysis and Interpretation
As implied by Davenport & Harris (2017), the examination of the financial analysis
and its statement is a crucial part for the financial managers of the banking industry. In this
connection, the manager at ANZ is accountable to examine the profitability, the position of
the liquidity in the bank as well as the short-term and long-term financial position of the
same. In regards to this, several numbers of ratios are to be analysed and calculated which
brings the efforts of the work input to a conclusion.
Capital Budgeting
According to the viewpoint of Crowther (2018), capital budgeting is the ideology of
interpreting investment decisions concerning the aspect of capital expenditure. In this
connection, the capital budgeting methodology of ANZ is incurred in the same to acquire and
improve the fixed assets and receive the benefits from the same in every annual year.
Stakeholders
As opined by Hawn & Ioannou (2016), stakeholders of any company are known to be
divided into internal as well as external stakeholders. These stakeholders are considered to be
a vital part of any productive business firm. In regards to this, the banking industry of ANZ

5STAKEHOLDER ANALYSIS OF ANZ
has built up its stakeholders with the idea of creating a competitive business environment and
sustain the same. The active group of stakeholders of ANZ actively joins their efforts to let
the banking industry to grow. With respect to this, the given report examines the different
internal and external stakeholders that are connected to the concerned industry of ANZ.
Internal Stakeholders
As opined by Schaltegger & Burritt, (2017), the internal stakeholders are the ones
who are directly connected to the activities of the business firm the same are connected to. In
this connection, the report examined that the internal stakeholders of the ANZ banking
industry are the employees, board of directors and the investors. This is because all of the
mentioned stakeholders are directly connected to the financial activities that the bank deals
with. The employees carry forwards the tasks of the bank that deals with its customers. The
board of directors are responsible for the measurement of the achieved goals and determine
the necessity of the activities of the bank, and the investors are the primary stakeholders that
are accountable to source the capital funding of the bank.
External Stakeholders
As opined by Wheelen et al., (2017), the external stakeholders are the ones which are
not directly involved in a business firm’s activities but are affected by the same. In this
concern, the external stakeholders of ANZ are recognised as the clients, external investor,
community, and the government. The clients are the ones who make the business activities of
the bank a successful one. Their existence is crucial because there would be no activities that
would take place in the bank if the same does not maintain its clients effectively. The external
investors are the major multinational companies who hold their substantial account in the
ANZ banking industry. The community are the suppliers of the assets the banking industry
needs to carry up their work in. Like the computers, laptop and the building necessary for the

6STAKEHOLDER ANALYSIS OF ANZ
company. The Government is the primary stakeholder of the banking industry because of its
nature of the legalisation process that the bank is accountable to.
Degree of main stakeholders
The nature of the stakeholders at the concerned ANZ banking industry is to
implement the required interventions to the banking industry (Erbenova et al., 2016). The
revenues and the profits that are earned by the ANZ banking industry in the concern of the
activities they perform are all in accordance with their stakeholders. This is because the
stakeholders leverage their part and parcel in the earnings of the bank. If the stakeholders
were not connected to the bank the same would not have been able to move ahead with any of
its plans and processes. Thus, it can be stated that the stakeholders stand at the highest degree
of priority for the ANZ banking industry for the achievement of the desired goals and
objectives.
Conflicts of interest
As opined by Andriof & Waddock, (2017), the interest of the stakeholders has
resulted into chaos and conflicts when the interest of one or more stakeholder profoundly
affects the same of the other connected stakeholder. In this connection, the stakeholder
agency theory is a practical business theory to examine the relationship of conflicts between
the stakeholders of the banking industry. The theory of stakeholder agency states the
following implications that describe the conflicts arising between the stakeholders of ANZ.
 The desire of the board of director about the goals and objectives may affect the
corporate social responsibility of the bank towards the clients.
 The want and desires of the high level clients connected to the bank in order to obtain
particular services and grants from the bank create pressure on the board of directors
to fulfill the same.

7STAKEHOLDER ANALYSIS OF ANZ
 The lack of service provided by the employees creates a sense of doubt in the minds
of customers, and thus they lose their interest in the bank.
The critical level interest of main stakeholders
As opined by Kerzner & Kerzner (2017), the stakeholders of any business firm are the
most vital part of any business firm since they are responsible for letting the firm carry up
with the business proceedings and plans. Both the macro and the micro business environment
of a firm are known to be affected by the activities of the stakeholders connected to a
business firm. In this context, the level of the influence of the major stakeholders at ANZ is
recognised by the report with the help of undertaking the methodology of PESTEL analysis
and the limitations to the study of the same.
PESTEL analysis showing the stakeholders interest level at ANZ
As discussed by Laszlo & Zhexembayeva, (2017), the stakeholders are that part of a
productive business firm that impacts the same in a higher paradigm in both its internal and
external environment. Concerning this intense level of influence created by the stakeholders,
this particular report is concentrated on specifying the level of interest of stakeholder at ANZ.
Political
The communities as the stakeholders of the ANZ banking industry are considered to
influence the political stability of the concerned company. This is because the communities
provide the company with the useful assets needed by the company and in turns influences
the behaviour of the company towards the corporate social responsibility. The interest of
these stakeholders is determined to be at a moderate level since the assets provided by the
communities are not related and transacted at a numerous time basis.

8STAKEHOLDER ANALYSIS OF ANZ
Economic
The clients of the concerned banking company are termed to affect the economic
standard of the same. This is because the clients are the ones who are accountable for the
revenue earning and profit earning of the firm. The business firm, in this case, is accountable
to sustain its clients in an effective and efficient way. The clients in the modern era of
lifestyle and changing technologies are aware of the privileges they can receive through the
banking industry, and this creates a risk for the ANZ banking company to lose their peer
clients. Thus, the same should concentrate on fulfilling the demands of the clients in order to
retain them. This shows that the level of interests of clients as the stakeholder of ANZ is high.
Social
The social environment consists of the external as well as the internal investors and
stakeholders that are connected to the ANZ banking industry. This is because they are the
ones who help the company in satisfying the social needs of the clients by the proper method
and effective funding techniques. If the concerned stakeholders do not genuinely perform
their funding duties, the concerned banking industry comes under risk of losing its customers
as well as the competency in the market. Thus, it can be stated that the level of intervention of
the investors is considered to be at a high level.
Technological
The technological environment concerning the ANZ banking industry consists of the
employees connected to the bank. This is because the employees of the bank are the ones
who are accountable to carry the tasks and activities of the bank that satisfies the overall work
nature of the same. As opined by Daft (2015), the employees are to look after the needs and
demands of the customers as well as the organisation as a whole. They are to maintain the
gap between the changes made in the organisation and the changes that are required to be

9STAKEHOLDER ANALYSIS OF ANZ
made as per the need of the technological needs of the banking business market. Thus, it can
be stated that the vital level intervention of the employees is regarded to be at a high level
because they are the ones who are responsible for the complete working of the concerned
firm.
Legal
The legal environment concerning the stakeholders of the ANZ consists of
government legislation and interventions that are connected to the business of the same. This
is because the government policies and norms are a must for any banking industry to be
followed and implemented in their working structure. Any banking industry including the
ANZ is accountable to follow the strict laws of banking business since the transactions that
are adhered by the banks are case-sensitive and prone to a high risk of threats. Thus, the
intervention of the government regarding the significant stakeholder role at ANZ is
recognised to be a higher paradigm.
Stakeholder Matrix
Stakeholder Importance Influence Risk Strategy
Employees Leverages and
provides the
company with
their skill level
and talents in
order to serve the
desires and
demands of the
clients of the bank.
High Demands promotions
and appraisals and an
increase in the salary.
Offering
variable pay-out
schemes that
would benefit
both the
purpose of the
employees as
well as the
organisation.

10STAKEHOLDER ANALYSIS OF ANZ
Shareholders Investing in the
banking firm to
fulfill the internal
as well as external
needs of the
business
environment of the
banking industry.
High Lack in the
investment or delay in
the same.
Fostering
productive and
formal business
meetings and
leverage terms
and conditions
to the funding
system.
Communities Providing the
business with
desired assets to
continue with the
working process.
Moderate The high price
charged for the assets.
Building a
strong base of
communities so
that the
bargaining
power of the
same decreases.
Clients The decision to
adhere oneself to
the services of the
bank they desire to
and the retention
of the same.
High The decrease in the
amount of money
deposited in the bank
as well as losing
interest in the same.
Study the
behavioural
attribute of the
clients and
serve them in
the fastest way
so that they do
not have to wait
for the services
to be done.

11STAKEHOLDER ANALYSIS OF ANZ
Government Setting up legal
rules and norms
for the working
process of the
business firm and
keep the
sensitivity into the
legal plan.
High The termination of the
bank for the complete
future if any unethical
activity is recorded.
Prior and
effective
implementation
of the laws and
norms and
adhering
towards the
same.
Comparison – ANZ and Woolworths
In comparison to that of ANZ, Woolworths is recognised to operate in the sector of
supermarket retail chain industry (Fernie & Sparks, 2018). It is recognised to be established
as an Australian retail industry and at present is known to operate itself in the global sector.
Concerning the stakeholders of the Woolworths, the given report critically differentiates the
interests of the stakeholders of both the ANZ and Woolworths Company with the help of the
given table.
Name of
Stakeholders
Dissimilarities Interest
Woolworths ANZ Woolworths ANZ
Employees Manufactures and
serves the
customers with
the goods
produced in the
supermarket.
Leverages
services
related to
financial
needs of the
clients.
Shows interest
in producing
goods with the
help of
technological
advancements.
Shows
interest in the
accounting
and financial
activities.