MBA600: Strategic Analysis of Organizational Culture at CBA - Report

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Added on  2023/01/17

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This report presents a comprehensive analysis of the Commonwealth Bank of Australia's (CBA) organizational culture. It begins with an overview of CBA, its history, and market position. The core of the report involves a detailed SWOT analysis, identifying CBA's strengths (e.g., strong financial position, technological advancements), weaknesses (e.g., reliance on foreign borrowings, past scandals), opportunities (e.g., expansion into new markets, technological advancements), and threats (e.g., competition, regulatory changes). A PESTLE analysis evaluates the political, economic, social, technological, legal, and environmental factors impacting CBA. The report then identifies CBA's competitive advantages, including market penetration, product development, and diversification strategies, referencing the Ansoff Matrix. A diagnosis section synthesizes the findings, highlighting the need for continuous innovation and addressing brand image issues. The report concludes with a discussion of CBA's growth potential, importance of customer satisfaction, and the significance of corporate social responsibility, supported by a list of relevant references.
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Analyzation of Organizational Culture of
Commonwealth Bank of Australia
Name of the Student
Name of the University
Author Note
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Introduction
Overview of Commonwealth Bank of Australia
Analyze the internal and external factors of the company
Diagnosis of the internal and external economy of the company using
SWOT and PESTLE analysis
Identification of competitive advantage
Identifying strategic opportunities and risks
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Overview
Commonwealth Bank of Australia is a multinational bank
Having presence in UK, USA, Asia, New Zealand apart from Australia
Founded in as a Government Bank in the year 1911
Changed to private bank in 1996
Headquartered in Sydney
Has over 1,100 branches and over 4,300 ATM
Largest listed company in Australia
Largest bank in Southern Hemisphere
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Supplies full range of commercial services like Capital Management,
Professional, Institutional, Premium and Retail Banking, Investments,
Insurances, Pension and Broking Services
Catherine Livingstone is the Chairman
Matt Comyn is the Managing Director and Chief Executive Officer
Serves almost 16 million customers
Employs almost 49,000 people
Stakeholders presence of almost 800,000
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SWOT Analysis of CBA
STRENGTHS
Chief Bank in Australia according to the Main Financial Institution
(MFI) Rankings
Well differentiated and superior quality credit portfolio
Continuous importance on technology
Strong wealth position and capital ratios
Continuous improvement of the working environment
Successful track record of product innovation
Strong presence of free cash flow
Reliability of the suppliers
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SWOT Analysis of CBA
Weaknesses
High dependency on borrowings from foreign banks, corporates and
institutions
Increase of operational expenses globally
Limitation of geographical variations
Involvement in the scandal of money laundering
Hugh attrition rate in workforce
Limited success outside nucleus of the business
Lack of product range
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SWOT Analysis of CBA
Opportunities
Expansion into other developing markets like that of Asia, North
America and Europe
Indigenous Customer Assistance Line (ICAL)
New customers base from the online channel
New environmental policies
Reduction in the transportation cost
New policy in taxation
Fresh use of technology
Change in the behavior of the customers
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SWOT Analysis of CBA
Threats
Cancelling of the government agreements to banks
Requirement of higher capital by APRA
Delicate professional environment and slowdown in China
Shift of consumer buying behavior from online platform
Irregular supply of innovative products
Liability laws in different countries
Intense competition from the other market players
New development of technologies by the competitors
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PESTLE Analysis
Political Factors
Warming relations with China and other Asian countries
Regulations in Price and change in taxation
Legal architecture and contract enforcement
Economical Factors
Ageing population and expansion of economy
Dark or cloudy macroeconomic outlook with rising risks
Inflation and interest rates
Economic growth and unemployment rate
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PESTLE Analysis
Social Factors
Cosmopolitan culture market variation
Class and power structure in the society
Attitude and culture of the people
Technological Factors
Concern of Cybersecurity
Investment in next-generation financial technology
Impact of cost and value chain structure in Banking industry
Rate of technological dispersion
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PESTLE Analysis
Legal Factors
Accusations of money laundering and other disputes against the bank
Employment, Health and Safety and Discrimination law
Protection of Data
Environmental Factors
Regulations of land and water
Weather conditions and climatic changes
Regulation of laws in environmental pollution
Recycling and waste management
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Competitive Advantage
Commonwealth Bank of Australia follows the Ansoff Matrix
Market Penetration – CBA has penetrated the international market with its existing as well as
new and fresh services like CommBank app
New schemes in Everyday Account Smart Access in Debit Cards, Personal loans and Savings
account and term deposits
Premier and Private banking with dedicated Relationship Manager and International Money
Transfers
Market Development – CBA is trying to penetrate into new untapped market, regionally and
globally through its wide range of services
Range of insurance options like Home 7 Car Insurance, Travel Insurance, Home Loan Protection
and Life and Income Insurance
Terrific Customer Services as well as Self Managed Super Fund schemes and Investment
Guaranteed Bonds as unique products for the customers
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Competitive Advantage (contd.)
Product Development – CBA is creating innovative services to attract
the global competitive market
Unique Services like Essential Super to sustain CBA as market leader
Provides financial planning to the customers, another unique service
from CBA to remain different from others
Providing various EFTPOS options and flexible merchant solutions
Diversification – Introduced a wide range of services in the existing
and new market to retain as well as increase customer base
Various market leading and financial solutions for large corporations
and institutions
Commonwealth Direct Investment Account, another Unique service
provided by CBA to remain the market leader
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Diagnosis
Always trying to launch new products and services continuously
To retent the existing customers as well as attracting the new untapped
market
Maintaining high rate of customer satisfaction level
Requirement of high quality customer service
Hamper in the brand image due to the money laundering scandal in
August 2017
Have to manage the global wealth properly
Huge scope to expand more globally
Can tie-up with some indigenous and low-revenue generated financial
players of different countries
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Conclusion
Excellent scope of growth
Huge customer base and scope of adding more
Launch of new innovative products and services
Bringing back the brand loyalty
Proper allocation of resources
Corporate social responsibilities
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References
Gianos, J.F., 2013. A Brief Introduction to Ansoffian Theory and the
Optimal Strategic Performance-positioning Matrix on Small Business
(OSPP). Journal of Management Research, 5(2), p.107.
Hasan, I. and Xie, R., 2013. Foreign bank entry and bank corp
Ho, J.K.K., 2014. Formulation of a systemic PEST analysis for
strategic analysis. European academic research, 2(5), pp.6478-6492.
Pavlyushchenko, D., 2017. Digitalization of Retail Financial Services:
Direct Banking in Europe.
Perez, E., Com, B. and GU, B., 2014. Exploring Strategy and Strategic
Planning within Australian Commercial Fisher Micro-Businesses.
Shi, X., 2016. The future of ASEAN energy mix: A SWOT
analysis. Renewable and sustainable energy reviews, 53, pp.672-680.
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