MGT501 Business Environment: Commonwealth Bank Stakeholder Analysis

This report presents a comprehensive stakeholder analysis of Commonwealth Bank Australia (CBA). It begins with an executive summary outlining the importance of identifying internal and external stakeholders and their impact on the business. The report details the functional areas of CBA, including front office/sales and compliance, and identifies key internal stakeholders like employees and investors, and external stakeholders like the government and customers. It examines the roles and interests of each stakeholder group, highlighting the nature and degree of their influence, and potential conflicts between them. The analysis includes a stakeholder matrix to visualize influence levels. The report concludes by summarizing stakeholder dissimilarities and differences in their interests and influences, providing a clear overview of CBA's stakeholder landscape. The report emphasizes the importance of stakeholder management for CBA's success.

INTERNAL AND EXTERNAL
STAKEHOLDER ANALYSIS

Executive summary-
Internal and external stakeholder analysis is the techniques used to identify which
stakeholder influence business in negative or positive way. The current report define external and
internal stakeholder of Commonwealth Bank Australia who are able to serve its best. This study
explains who stakeholders are different from each other base on expectations that is the main
point of dissimilarities and differences.

Table of Contents
Table of Contents.............................................................................................................................3
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Identification of functional areas................................................................................................3
External and Internal stakeholders and their roles......................................................................4
Nature & degree of main stakeholder.........................................................................................5
Level of main stakeholder’s influence........................................................................................6
Stakeholder matrix......................................................................................................................7
Stakeholder dissimilarities and differences in stakeholder influences and interests...................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Stakeholder analysis is the procedure of determining external and internal stakeholder
before project begins, grouping them accordant to their levels of interest, influence and
participation in work and identifying how best to include as well as communicate each of these
stakeholders units throughout. The current report is based on Commonwealth Bank, established
in Australia. This study explains functional areas; determine external & internal stakeholders and
their roles. It also justified degree and nature of main stakeholder’s interests, and implication of
conflicting interests. Furthermore, this report clarified level of main stakeholder influence,
stakeholder matrix and main point of stakeholder dissimilarities and differences in their interests
and influences as well.
MAIN BODY
Identification of functional areas
The functional area of business is the areas which help the company in increasing their
earning and profitability of the company. These functional areas are the various departments
which the company has made in order to continue with its business and operations. This different
department are like human resources, finance, marketing, IT and many other departments. But in
case of a bank the department are little different (Bandara, Meredith, Techatassanasoontorn,
Mathiesen and O'Neill, 2019). This is majorly because of the reason that the bank has some
different operation in comparison with other types of business. Thus, the major functional areas
of Commonwealth Bank Australia are listed as below-
Front office or sales- this is a type of functional area in which the bank try to interact
with the consumer coming to the bank. The front office can also be referred to as the reception or
the desk of bank wherein the consumer first come and share their problem. Thus, after listening
to the problem the front office employees direct the consumer that where they have to go or what
they have to do in order to resolve their problem.
Compliance- this is another major functional area of Commonwealth bank wherein the
bank try to comply with all the different rules and regulation which the company has to abide by
and follow for better working of bank. This is because of the fact that if the laws and rules and
regulation will not be followed then the bank will not be able to manage its business operation in

successful manner. Thus, this functional area helps the Commonwealth bank in managing and
understanding the entire legal requirement and to follow them.
Human resource- this is a type of functional area of the bank which is directed towards
the management of the human resources from the time they are recruited till the time they leave
the bank and go. This is necessary because of the reason that without human being no work can
be accomplished within the business (What are the common functional areas of all bank? 2020).
This is because all the operation of bank like lending, borrowing, managing consumer,
interacting with third parties and all other activities of business are being done by human. Hence,
this is the most important functional area of Commonwealth bank.
External and Internal stakeholders and their roles
Government-
National and local authorities in Australia are the most important stakeholder of
Commonwealth Bank (Dollery & Drew, 2018). They create rules and policies related to banking
sector in order to manage as well as improve their business practices and performance in
effective manner. Government in nation collects taxes from organization, so it benefits from
firm’s profit; they invest taxes back in society. The role of government in bank or banking sector
is to create regulations; they pass new laws to set up new policies for financial companies. They
regulate Commonwealth bank and their activities. They also play vital role in development of
banking as well as financial sector. Bank is a major tax payer and participates in functioning of
important state projects as well as programs. The government, represented by their firms and
authorities where it has a participating interest, it is an necessary consumer and partner of bank.
Consumers-
Customers are another stakeholder of Commonwealth bank, they operating its business in
Australia (Mogaji, 2019). Firm exist to serve their target market, they are actually stakeholder of
bank, in that they are affected by quality of products or services and their value. They take loans
from bank for several reasons, for example opening new business or building house. In simple
words, consumers use services of Commonwealth bank, organization stability depends highly on
customers preferences. Consumer play vital role in firm as they build strong brand image within
marketplace by sharing their better experience with them.
Employees-

Workers are the main internal stakeholder of Commonwealth bank in Australia; they are
able to provide better consumer services to potential clients in effective manner and give
information to them regarding financial services (Dworsky & Broten, 2018). Staff within bank
helps to achieve business aims and objectives by performing and working hard. The role of
workers in firm is to interact with target market and form organization reputation in market; they
also support in development of commonwealth bank infrastructure and assure implementation of
business mission and banks strategy in systematic way. Staffs have a direct stake in bank in that
they earn an income to help firm, along with other benefits such as non monetary and monetary.
Investors-
It include both debt holders and shareholders, investors are mostly concerned with
concept shareholder value (Maune, 2017). They invest in company and expect to earn a certain
amount of return on that invested capital. Lumped in with this team are all other providers of
business such as potential acquires and lenders. Investors play vital role in commonwealth bank,
they purchase share of business for longer term with belief that organization has strong future
prospects.
Nature & degree of main stakeholder
The stakeholders are the people who are interested in the profit and working of the
company to a great extent. From the above discussion it is clear that there are many stakeholders
who are interested in profitability of Commonwealth bank. These stakeholders are both internal
and external to the company and have interest in the company.
Government- the major interest of this type of stakeholder in the profitability of
Commonwealth bank is that if the bank will earn good amount of profit then they will have to
pay more of the taxes. Hence, for this the government of Australia is interested in the working
and operations of Commonwealth bank. But in against of this the major conflicting interest is
that if the bank will work in good and effective and ethical manner then it might be possible that
government need to give some subsidies or some benefits to the Commonwealth bank.
Employees- As discussed above, staffs are considered as internal stakeholder, they affect
overall business practices and performance may be negatively or positively (Ferrero-Ferrero and
et.al., 2018). They have power to change organizational structure and workplace culture in
effective manner. The nature of workers in bank is best defined as kind of work that is assigned
to staff while level of performances refers to the quality of duty completed. They are interested

in getting the good salary package and workplace facilities, the degree of their interest is low
because employees have a chance to get job in another firm operating within same sector.
The interest level of both stakeholders creates conflict as there are differences between
nature and degree of stakeholder interests. Government interest level in growth and success of
Commonwealth bank is high on the other hand workers interest degree is low because they does
not care about its firm progress they can find out another job option available within marketplace
where organizations pay better than before or may be same with better facilities.
Level of main stakeholder’s influence
Government is the main stakeholder of Commonwealth bank within baking sector,
Australia. The concern about the success and growth of company within industry because Bank
contribute in development of economy as they offer job opportunity as well as financial supports
to local people who are unable to start up new business or improve the existing one due to poor
financial status. Federal authorities, regional and municipal authorities are included in this
stakeholder category. The level of influence totally depends on type and quality of resources and
power stakeholder can obtain to promote their position on reform. The degree of interest or
influence is priority and significance stakeholder attached to reform area. Government concerned
that existing disclosure policies or regulations tends to match on financial performance of
Commonwealth bank, they have high power and high interest in progress of business rather than
the other stakeholder either external or internal. Organization must keep this stakeholder happy
with their project or day to day work activities. The optimal role of government intervention in
banking sector is a function of entire political structure, including accountability and checks in a
nation. Commonwealth bank of Australia is an Australian international bank with operations or
businesses across Asia, New Zealand and other (Bandara and et.al., 2019). By changing laws and
policies related to banking sector, government put high pressure on banks to keep their business
sustainable and drive towards sustainability. With the help of organization services, government
provides a variety of financial services to consumers including retail, institutional banking and
insurance. Government conduct meetings in context of banking sector growth discussion, they
conduct inquires to identify the progress and success of bank.
Another main stakeholder of chosen bank is employees as they influence firm at high
level because they directly communicate with consumers and work to set positive image about
brand in their mind which is quite beneficial for Commonwealth bank in term of increasing their

profitability and productivity rather than its competitors in same sector. Employees engagement
in business practices are really very important for company as management especially focus on
needs and requirements of staff in order to retain skilled applicants for longer period of time.
They are able to increase sales and profit margin of firm by offering better services to consumers
and satisfying their wants.
Stakeholder matrix
Keep satisfied- Consumers
In context of Commonwealth bank Australia,
management keep satisfied the needs of their
customers in order to retain them for long
period with business. When administration
satisfied the wants of potential clients, firm is
able to gain attention of new consumer as well
because existing consumers with positive
image in mind about company promote
Commonwealth bank in front of their friends
and family member. It is one of the biggest
retail bank in Australia and provide a range of
goods as well as services to local people
including credit cards, money transactions,
personal and business loans & savings
accounts. Consumers have high power as they
are able to influence firm business practices
but have low interest in growth of bank.
Manage closely- Government
Government have high power and high
interest, as mentioned above. They can
influence on business performance as well as
practices by implementing laws and policies in
context of banking industry which had to adopt
and follow by companies working under this
sector since for so long in order to cater best
services to local people. For example,
Government passes law to protect environment
with the help of adopting sustainable work
activities within business which is quite
beneficial for Commonwealth bank Australia.
Monitor- Competitors
Business rivals are the another stakeholder of
Commonwealth bank as they influence on firm
negatively when they are able to offer banking
related services to its consumers. They have
low power to influence company and low
interest in growth of firm because they only
Keep informed- workers
Commonwealth bank Australia keep their
employees informed about business
performance and activities because they are
capable to directly communicate with
consumers and response in effective manner it
only happen when they have all the knowledge

want to beat competitors in same sector and
desire to become global leader. HSBC, Cua
and ME bank are the main competitors of
Commonwealth Bank Australia who are
capable to give them tough competition.
Management within chosen company must
monitor the activities and progress of another
firm in same sector and also make assure that
they are not creating issues.
regarding services. Management just keep
these stakeholder informed periodically but
does not overdo it. Staffs have low power and
also have low interest in growth of company
because they can take much better options
accessible in market.
Stakeholder dissimilarities and differences in stakeholder influences and interests
HSBC is another bank operating in same sector in which Commonwealth bank Australia
work and manage their business activities across the nation. HSBC bank offers a range of
accounts, credit cards, foreign currency accounts, online banking and home loans service to local
people live in Australia. The stakeholder of both banks is almost same such as consumers,
government, investors and managers. But here, there are some dissimilarity defined based on
stakeholder interests and influences level that directly impact on growth and success of company
within banking sector.
In recent time, customers are highly concerned about environmental sustainability they
purchase products and services from those companies who are able and already contribute in
CSR practices because it is valuable for them. They put pressure on bank to take one step ahead
towards sustainability as it allow management to strengthen their brand image and enhance
productivity rather than before. It can be said that expectations from organization is the main
point of stakeholder dissimilarities. The expectations of government, consumers, workers and
investors towards Commonwealth bank are different. For example, customer’s expectation is
quite different from other as they require better services and all the information about banking
facilities in detail. On the other hand, employees expect that management of bank understand
their workers needs and demands and then make plan to fulfil it as soon as possible that help to
create positive working environment around workplace.
Differences in stakeholder influences & interests-

Government has high influencing power and are interested in business performance
within banking sector. On the other side, competitors of commonwealth bank Australia has low
power as they are not able to influence firm negatively because working in same sector and offer
same services, HSBC bank in country are not interested in growth of another bank as they
mainly focused on improving their own performance. Employees of Commonwealth bank are
less interested in business success or productivity, they has low power to influence management
activities and enterprises functions which is quite beneficial for company. Firm can hire more
applicants who are better than previous one.
CONCLUSION
From above analysis, it has been concluded that Commonwealth Bank Australia is
capable to satisfy the needs of their consumers by offering them the best banking services more
than its competitors. It has been determined that degree and nature of main stakeholder interest
are different from each other. On the basis of expectations stakeholders are different as they hold
specific position.

REFERENCES
Books and Journals
Bandara, W and et.al., (2019). Mechanisms for creating successful BPM governance: Insights
from Commonwealth Bank of Australia.
Bandara, W., Meredith, J. C., Techatassanasoontorn, A., Mathiesen, P., & O'Neill, D. (2019).
Mechanisms for creating successful BPM governance: Insights from Commonwealth
Bank of Australia.
Dollery, B. E., & Drew, J. J. (2018). Chalk and Cheese: A Comparative Analysis of Local
Government Reform Processes in New South Wales and Victoria. International Journal
of Public Administration. 41(11). 847-858.
Dworsky, M. & Broten, N., (2018). How Can Workers' Compensation Systems Promote
Occupational Safety and Health?: Stakeholder Views on Policy and Research Priorities.
RAND Corporation.
Ferrero-Ferrero, I and et.al., (2018). Stakeholder engagement in sustainability reporting in higher
education. International Journal of Sustainability in Higher Education.
Maune, A. (2017). ENTERPRISE GOVERNANCE, INVESTOR TRUST AND LIQUIDITY IN
THE BANKING INDUSTRY: EVIDENCE FROM AN EMERGING
ECONOMY. Journal of Internet Banking and Commerce. 22(2).
Mogaji, E. (2019). Dealing with Royal Commission into Australian Banks: Emerging Research
Agenda and Managerial Implications.
Online
What are the common functional areas of all bank? 2020. [Online]. Available through:
<https://www.quora.com/What-are-the-common-functional-areas-of-all-banks-
organization>