Business Strategy Analysis: CBA's PESTLE, SWOT, and TWOS

This report provides a strategic analysis of the Commonwealth Bank of Australia (CBA). It begins with an introduction to CBA and its financial services. The core of the report involves a PESTLE analysis, evaluating the political, economic, social, technological, legal, and environmental factors impacting CBA's operations. The report then presents a SWOT analysis, detailing CBA's strengths, weaknesses, opportunities, and threats. Following this, a TWOS analysis is used to align internal factors with external opportunities and threats. The analysis considers factors such as macroeconomic outlook, cyber security, cultural influences, political policies, and global environmental regulations. The report concludes by summarizing the key findings and implications for CBA's strategic direction, with references to supporting literature.

Running head: BUSINESS STRATEGY
BUSINESS STRATEGY
Name of the Student:
Name of the University:
Author Note:

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BUSINESS STRATEGY
Contents
PESTLE Analysis............................................................................................................................2
SWOT Analysis...............................................................................................................................5
TWOS Analysis...............................................................................................................................5
Conclusion.......................................................................................................................................6

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BUSINESS STRATEGY
Introduction
The Commonwealth Bank of Australia is one of the leading multinational bank which
provides various kinds of financial services such as institutional banking, retail and fund
management, investment and broking. It is one of the top listed bank on Australian Securities
Exchange. To study the macro environmental factors which will help in the development and
growth of Commonwealth Bank, it is necessary to conduct a pestle analysis of Australia (Madsen
2016).
PESTLE Analysis
Remote
Environmen
t
Serious Threat Mild Threat No
Impact
Mild
Opportunit
y
Great
Opportunity
Economics - The
macroeconomi
c outlook is
very gloomy
as US dollar is
dominating the
international
monetary
system and it
can cause
- Free trade
agreement
with other
countries
which will
enhance
global
business
expansion
and policy
It is a stable
and growing
economy.

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BUSINESS STRATEGY
global
economic
imbalance.
interest
rates are
soaring
high now.
Technology Cyber security
which is a
major area of
concern for the
banking and
financial
institutions
(Weill and
Woerner
2013).
- - - Investments
will helps to
build a
strong
technologica
l network.
Socio-
Cultural
- - - - The
cosmopolita
n culture
which is
marked by
diversity
and use of
technology
in day-to-
day life will
influence

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BUSINESS STRATEGY
the bank to
expand
Political-
Legal
There may be
litigation
against the
bank and
different kinds
of allegation
which are
related to
money
laundering.
- - The
dynamic
and strong
policies
will
facilitate
the
financial
policies in
times of
sustainable
growth in
business.
Good
relation with
China and
other
emerging
Asian
economies.
The four
pillar policy
will prevent
the merger
of the
Australian
banks with
the other
competitors
at a low
risk.
Global - - - - -
Environment The regulation
on water and
land
agreements
and climate
Legal action
will help to
disclose the
risks in
- - -

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BUSINESS STRATEGY
change will
impact
Commonwealt
h Bank
climate change
Demographic
s
- - Ageing
Populatio
n can pose
an impact
on bank
as they
are not
used to
with new
emerging
banking
technolog
y
- -
Total Impact No such
serious threats
- - - -
SWOT Analysis
Strength
 Diversified credit portfolio can impact
on CBA in managing fixed income
Opportunity
 Indigenous customer assistance will
help CBA to provide better customer

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BUSINESS STRATEGY
investment strategy
 Leading Australian Bank
 Greater emphasis on technologies in
financial sector and marketing can help
them to overshadow others
 Robust capital ratio and financial
position are high for CBA and it will
help them to retain the profits
service and more retain of customers
 Expansion in other emerging
economies as well as Asia and
expansion gives increase in market
share
Weakness
 Greater dependence on borrowings
from overseas can impact on tax related
issue
 Greater operation expense can increase
the operation cost
 Limited geographical diversity
Threat
 Higher capital requirement as bank
equity is more expensive than bank
debt
 Phasing out government guarantees
 Economic slowdown in China and
fragile business environment
(Johnson 2017).
TWOS Analysis
Opportunities
(external, positive)
Threats
(external, negative)
Strengths
(internal, positive)
Improved capital and financial
position will help in customer
assistance.
Diversified credit portfolio will
remove the higher capital
requirement