MBA600 Capstone: Strategic Analysis of Commonwealth Bank of Australia

This report provides a strategic analysis of the Commonwealth Bank of Australia (CBA), examining its business operations, marketing strategies, product development, and approaches to innovation and growth. It highlights CBA's customer-focused strategies, investments in technology, and efforts to simplify banking processes. The report discusses the bank's marketing operations, including its digital presence and product offerings such as credit cards and personal loans. Furthermore, it explores CBA's growth and innovation strategies, including the development of state-of-the-art facilities and the establishment of an Innovation Lab to foster new technologies like blockchain and artificial intelligence. The report also touches upon the implementation of changes within the organization and concludes with recommendations for enhancing CBA's future performance.

Running head: MANAGEMENT AND ORGANIZATION IN GLOBAL MANAGEMENT
MANAGEMENT AND ORGANIZATION IN GLOBAL MANAGEMENT
Name of the Student
Name of the University
Author Note

1MANAGEMENT AND ORGANIZATION IN GLOBAL MANAGEMENT
Executive Summary
As the national corporate market, financial service regulators, the Commonwealth Bank
of Australia is involved in most of the Australia’s commercial world. The aim of the report is to
identify how the Commonwealth Bank of Australia undertakes its business operations,
marketing, strategies, implementations, and various changes they have made in the recent years.
The report underlines the critical importance of ensuring that the Commonwealth Bank of
Australia has a robust corporate regulatory system under a strong and effective regulator.
Table of Contents
Introduction......................................................................................................................................2
Organization Overview and operations undertaken by the bank....................................................2
Discussion........................................................................................................................................3
Marketing operations of the bank....................................................................................................4
Product development by CBA.........................................................................................................5
Growth and Innovation Strategies of the bank................................................................................6
Implementations of the changes made in the operations of the bank..............................................9
Recommendation...........................................................................................................................10
Conclusion.....................................................................................................................................11

2MANAGEMENT AND ORGANIZATION IN GLOBAL MANAGEMENT
Introduction
The purpose of the report is to discuss the changes in the plans and strategies of the
Commonwealth Bank of Australia and will describe how such changes has helped the bank in
sustaining their position among the competitor companies. This report also describes the
outcomes of the changes also how those changes meet the need of the customers. Lastly, the
report will clarify how the Commonwealth Bank of Australia manages such changes comparing
to other organization and how they will continue in the future.
Organization Overview and operations undertaken by the bank
The strategies set by Commonwealth Bank of Australia with their customers, is that they
have a vibrant, customer – focused and high integrity in culture. The customers are the reasons
for their success. The company continues to invest in the development of the people as well as in
talent management, which makes the members committed to the diversity, safety and makes
them proud to work. The bank has been applying excellent technology in order to meet the
evolving needs of the customers (Heard, Menezes and Rambaldi 2018).
The bank is also developing new applications, which will help the customers in quicker
and easier banking. Using various software’s to make sure that the payments made are secure,
with a single tap of the phone. This will enhance the productivity and the customers will
continue using the technological. The bank is continuously simplifying the way it makes easier
for the customers to achieve things. This will help the bank to run a smooth business but very

3MANAGEMENT AND ORGANIZATION IN GLOBAL MANAGEMENT
critical in their long term success building. Group work among the members of the bank
improves the turnaround times, reduces errors and reduces unit cost.
Fig 1. Stragies set by the Commonwealth Bank of Australia.
Source: (Aulich and Head 2018)
Discussion
The Commonwealth Bank of Australia is an Australian multinational bank which does
their business across New Zealand, Asia, the United States and with the United Kingdom. It
provides a number of financial services, which includes retail business, business and institutional
funding, insurance and investment banking. It is the largest Australian listed company in the
Australian Securities Exchange as in its statement of the financial year 201. The Commonwealth
Bank of Australia operations are disclosed with the New Zealand life insurance activities of the
bank as it is a separately registered financial institution. The Life Group is the aggregation of the
life insurance activities of the ASB Group Limited, Colonial Firs State Investment Limited, and
First State Investment (NZ) Limited. The former global headquarter of Commonwealth Trading

4MANAGEMENT AND ORGANIZATION IN GLOBAL MANAGEMENT
Bank is in the corner of Pitt Streetand Martin Palace, Sydney which was refurbished in the year
2012 for the retail and commercial purpose (Lees, Winchester and De Silva 2016).
Marketing operations of the bank
The Commonwealth bank is known for offering market-leading products as well as
various types of services which is supported by some of the best systems and technologies in the
world. In the year 2018 the bank opened more than 4000 new bank accounts each day funded
more $60 billions in home loans and helped more than 20,000 first home buyers securing their
own home. The bank performs their marketing responsibilities by delivering, marketing,
analyzing public reactions, advertising and sponsorships. The bank also communicates its brand
communications with various types of retail customers, business customers, and shareholders.
The Digital channel of the bank experiences more than 15 million customers across Australia and
the whole world. People rely in the seamless banking connection of the bank. The marketing
team of the bank works hard in making the bank a fast growing bank with the opportunity to
shape the way the bank serves their customers digitally and beyond. The marketing team is
highly engaged and passionate people who support the customers in a numerous products and
services.

5MANAGEMENT AND ORGANIZATION IN GLOBAL MANAGEMENT
Fig 2. Represents the Marketing Mix of Commonwealth Bank of Australia
Source: (Brody 2018)
Product development by CBA
The products, which the Commonwealth bank mainly deals with, are its bank accounts,
credit cards, personal loans, insurances, superannuation, financial planning, travel products and
business products. The different types of credit cards which the bank deals with are common
essential credit cards, low rate gold credit cards, and low rate credit cards with a low rate on
Marketing
Mix

6MANAGEMENT AND ORGANIZATION IN GLOBAL MANAGEMENT
purchases makes it easier for the customers to pay off purchase over time with 0% p.a on
purchase for the first twelve months. Types of Personal Loans which are provided by the bank
mainly includes the variable rate loan which has the flexibility to make extra payment without
paying a fee. The consumers will also be able to redraw the available funds through a redraw
facility. The borrowing capacity starts from $4000 to $50,000. The Fixed Rate Loan offers the
customers to stay in control with a fixed interest rate as well a fixed repayments for the life of the
loan, the can also make up to $1000 in extra repayment made per year without paying any fee.
The Secure Car loan provides the customers with a payment of lower interest rate by using the
car as a security in order to get a secured personal loan. Customers are also provided with
income options like allocated pensions, guaranteed annuities and investment growth bonds. The
bank also serves business enterprises with various types of banking and investment schemes and
banking cards, merchant services loans and finance services. The bank also acts as a financial
planner, which provides a comprehensive review of the financial situation of the organization
and provide a plan which will help the firm to achieve the short, medium and long term goals.
With these the firm will be able to include new opportunities and strategies in order to improve ,
protect and growth of the organization.
Growth and Innovation Strategies of the bank
The Commonwealth bank of Australia in the year 2016 announced a comprehensive
property accommodation strategy which will be seeing the development of the state of the art
buildings and facilitate the surrounding area with an accommodation of 12000 bank employees.
The bank has been founded an developed under the Commonwealth Bank Act in the year 1911.
It has commenced its operations in the year 1912 which has empowered both the savings and
general banking business of the bank. In the present stage the bank has grown to a business with

7MANAGEMENT AND ORGANIZATION IN GLOBAL MANAGEMENT
more than 80000 shareholders and 52000 people working in the Commonwealth Bank Group.
The bank has grown by offering a wide range of financial services to help the Australian citizens
build and manage their finances properly. According to Hooper et al. (2018) the bank is designed
to support the growth of the western Sydney and beyond as it develops an exciting campus style
facility at the Sydney Olympic park. The Commonwealth Bank has always been creating an
innovative working environment that offers a greater capacity of work as well as it creates a
collaborative working environment. This aims to provide the members and customers of the bank
a satisfaction the bank also closely works with the people to ensure a smooth transition for each
and every person who is involved with the bank. It also ensure that there is no disruption to the
services which are offered by the bank to its customers.
In the words of Hooper (2016) agile is ingrained in the banking culture because the bank
is passionate in rapidly delivering the results and responding to the needs of the market. The
market in a way is also changing faster than anyone can plan for the changes. Working in an
agile way will also enable the bank to quickly make any necessary changes or decision
accordingly. The Innovation Lab of Commonwealth Bank of Australia which is based in Sydney
and London helps thousands of clients which takes a more innovative approach to the business
each and every year. The lab is dedicated in providing the bank with latest software which helps
the bank in keeping the information secured with themselves. The Lab focuses in the future of
the bank which is essential to the business. By sharing the innovation methodologies,
experiences and insights the bank has grown to help their customers with their business. This
also helps in developing bold ideas and finds competitive edge to the banking business. The
Innovation Lab is known for developing the block chain, Social Innovations, Social Robotics
with Artificial Intelligence. This attracts the customers to get in touch with the bank. With these

8MANAGEMENT AND ORGANIZATION IN GLOBAL MANAGEMENT
innovations the bank has been successful in engaging with its partners in start – up businesses.
The bank has also turned up the ideas from the departments and teams present in the bank into
reality, which has helped them in developing upgraded products and services for the customers
of the bank (Worthington 2016).
The Commonwealth Bank of Australia’s Innovation Lab is also supporting the
development of big ideas of its latest aim of Transport for Digital Accelerator, which enables
innovators to collaborate with the bank in developing various solutions to the existing problems
of the bank. It will also help the bank in developing solution to the fast track the delivery of the
Future Transport Roadmap of the bank. The access to the bank’s innovation assets and expertise
will mainly include the following things:
 Innovation Methods and Models – By assessing the expert’s Common wealth Bank of
Australia and following a systematic approach to identify the opportunities, proven
methods of working using the leading tools and techniques are the ideas which
accelerates to the concepts of market services.
 Innovation Centre of Expertise – The innovations enables the opportunities for
mentoring, collaboration and co – creation with the established expertise centers which
provides better solutions to the problems.
 Innovation Lab Facilities - The innovation strategies provides access to the bank in
building innovation spaces to test, feedback, socialize solution both in domestic and in
international market.
 Commonwealth bank of Australia’s network and community – The bank has also
proposed its ability to tap into the bank’s business communities and deliver new transport
to the network solutions of the bank.

9MANAGEMENT AND ORGANIZATION IN GLOBAL MANAGEMENT
Implementations of the changes made in the operations of the bank
To ensure that the change occurs smoothly in an organization, it is very important to
understand the psychological process of the acceptance of change in the business
organization. The senior management takes the implementation of the strategies when it is
seen that the firm is facing various challenges. Commonwealth Bank of Australia has been
implementing some sort of changes such as the simultaneous pursuit of sales made by the
bank, they have faced the challenges or has gone through a mental process they have
understood the necessity of bringing the positive nature of change in the organization. Hulse,
James and Stone (2018) describes the psychological process of understanding the staff’s
engagement in the process of implementation of change in any organization.
 Pre –contemplation:- Here the staffs or members of the organization might deny
the change which is necessary. Staffs have not even perceived the need to the
implementation to change which are required in the organization.
 Contemplation:- In this case the individual members of the organization are aware
of the issues which are taking place in the firm but they are not yet convinced of
the change which is required. They are unable to understand the logic behind the
change or the way it will be affecting them and their work in the organization.
 Preparation:- There are also different types of staffs who are actively involved in
the planning of the change which is yet to come to ensure the success of the
organization. They get quickly involved in the development of a clear map or a
picture of what the new roles need to look like.
 Action:- The action plan is to put into effect when the staffs of the organization
understands the need to change. These type of people has always been into the

10MANAGEMENT AND ORGANIZATION IN GLOBAL MANAGEMENT
action plan and part of the change. They are always focused in bringing the
change in the organization.
 Maintenance:- This is the process when the actively working strategies are put in
place to stop the progression of the old procedures of working methodologies and
the ways of doing things (Tucker and Jubb 2018).
Recommendation
Over the past five years the bank is known for implementing a number of
established firms which are using technologies in order to adapt rapidly and work
successfully to the changing customer behavior and needs.
 Finest Online Business by redesigning the net banking internet service and
building an excellent customer experience and driving sales of the products online
(Morris 2018).
 Improved customer service across channels by using various upgraded
technologies in case management and predictive analytics which has the goal to
improve the customer respond and improving the customer handlings.
 A property guide application for the homemakers. The bank has recently
introduced a property guide application which will be able to provide a licensed
information of actual property selling and helping buyers in searching their
property.

11MANAGEMENT AND ORGANIZATION IN GLOBAL MANAGEMENT
Conclusion
This report concludes that the Common wealth Bank of Australia is pretty much serious
about the efficiency of their services given to the customers. The report thus clarifies that the
implementation of the strategies of the ban can bring a large amount of positive benefit for a
company like the CBA to operate smoothly nd maintain a good relationship along with the
customers.