MBA Capstone Project: Analysis of Commonwealth Bank, Australia

This MBA Capstone project provides a comprehensive analysis of the Commonwealth Bank of Australia. The project begins with a company overview, followed by an exploration of key marketing concepts, including the Four P's of marketing. It then delves into strategic frameworks such as SWOT and Porter's Five Forces to assess the bank's strengths, weaknesses, opportunities, threats, and competitive positioning. The analysis extends to change management, management competencies, employability, digital skills, leadership, and communication within the bank. Part B includes reflections on each activity and self-reflection based on teamwork. The project aims to consolidate knowledge gained throughout the MBA program and demonstrates an understanding of business strategies, marketing, and management principles. The project also analyzes the role of digital skills, leadership, and communication in the bank's success, concluding with reflections on teamwork and the application of theoretical concepts to real-world scenarios.

Running head: MBA CAPSTONE PROJECT
MBA Capstone project on Commonwealth Bank, Australia
Name of the student:
Name of the university:
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Table of contents
Introduction................................................................................................................................2
Part A Activities.........................................................................................................................2
Company overview................................................................................................................2
Marketing concepts....................................................................................................................3
Four P’s of marketing.............................................................................................................3
SWOT analysis framework....................................................................................................5
Porter’s five forces framework...............................................................................................6
Change management..............................................................................................................8
Management competencies....................................................................................................9
Employability and digital skills.............................................................................................9
Leadership and communication...........................................................................................10
Strategic knowledge development.......................................................................................11
Part B........................................................................................................................................11
Reflection of each activity...................................................................................................11
Self-reflection based on working in a team..........................................................................13
Conclusion................................................................................................................................14
References................................................................................................................................16

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Introduction
The portfolio is presented for managing the capstone subject and gain knowledge
about how the business organisation Commonwealth Bank can manage to become successful
within the business environment. There are various activities that have been conducted for the
organisation to ensure successful business functioning along with gaining competitive
advantage in business as well. There will be various marketing concepts considering the
marketing approaches undertaken by the company along with the ways of creating value and
managing change within the organisation are also considered as important aspects of the
research topic (Dinnie 2015). The topic will further evaluate the necessary aspects of
employability, digital as well as leadership skills that are necessary for managing business
properly and at the same time, there will be critical reflection based on the various activities
and while working as a team on a concerned project.
Part A Activities
Company overview
The Commonwealth Bank is one of the major financial services provider in Australia
and it is considered as a major multinational bank in Australia with business across Asia,
New Zealand and all over the United Kingdom and United States as well. It has its
headquarters in Sydney, Australia and has revenue of more than 2600 crorers AUD and
nearly 52000 employees are currently working for the company (Commbank.com.au 2018).
The company has established its position within the competitive marketplace and managed
business well and good with the management of subsidiaries including the Commonwealth
Securities, Bank West, etc. Commonwealth Bank is known for its great quality financial
services and this has gained the attention of customers to seek services from the company and

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they have been quite satisfied as well with the kinds of services provided by the organisation
(Kaufmann 2014).
Marketing concepts
Four P’s of marketing
Product
Being one f the best retail banking sector in Australia, the company has managed to
satisfy the customers with its extensive financial services such as loans, credit and debit cards
along with savings account and transactions management. It also has the largest ATRM
network that allows people to withdraw money or check for any other banking related
information with much ease and effectiveness (Lovelock and Patterson 2015). The retail
banking services include bank accounts management, loans, insurance, financial planning,
superannuation while the premium business services provided to the clients are asset finance,
international and online banking activities along with creation of investment opportunities
and management of business risks as well. The company also conducts wealth management
through a funds management platform, which improves the management of master funds and
provides financial advices to clients, which can further assist in providing an insight of the

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product strategy in the marketing mix of Commonwealth bank in Australia (Singh and
Agarwal 2013).
Price
The company follows an aggressive pricing strategy to keep the cost of services under
control and at the same time, influence the purchasing behaviours of clients. The home loans
markets are captured by controlling the net interest margin, which can also assist in
delivering discounts for the financials services provided to clients. The company has become
specialised in $300,000 home loans and $1,000,000 loans and it has been possible with the
adoption of barbell pricing technique (Yoganathan, Jebarajakirthy and Thaichon 2015). The
company has managed to provide 5.3% EAR on the loans, which clearly indicates that the
company has been focusing on the other loans and deciding to offer those to the clients at
additional discounts too.
Place
Commonwealth bank delivers its services in Australia as well as in New Zealand. UK,
US and in other places as well. The company manages its distribution strategy properly to
cover various locations and make it convenient for the customers to avail the services. It has a
worldwide presence and thus it can easily make the customers influenced to make purchases
consistently. There are branches of Commonwealth bank in London, New York City, Hong
Kong, Mumbai, Tokyo and in China as well (Khan 2014). The company initiated the Sate
funds management by opening its branches in these places and ensure that the clients can
easily purchase the services.
Promotions
To manage market segmentation, the company has used social media platforms and
even managed advertisements of televisions, newspapers and internet websites to facilitate

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the awareness among people regarding the financial services delivered. The company being
partnered with The Cricket Show, has sponsored the Australian cricket team as to promote
brand and differentiated its services from other company products and services (Londhe
2014). The involvement of social media platforms like Facebook, Twitter, etc. further helped
in creating more awareness among the clients.
SWOT analysis framework
Strengths
 Strong brand image and sustainable
position within the marketplace
 Multiple subsidiaries and banks
falling under the bank and few of
those include brands such as ASB
Bank, Bank West, Commonwealth
Securities and Insurance Limited (E.
Dobbs 2014).
 It is one of the Big Four banks in
Australia because of its higher
revenue generation, nearly 52000
employees and increased profit level
Weaknesses
 Few controversies emerged related to
fraud activities which blamed the
bank and it was done by Unhappy
Banking website
 There have been loan issues, due to
which, the covering up of expenses
was a major complexity as well
 The financial strength seemed to be
not much good as expected
Opportunities
 The implementation of upgraded and
advanced technologies improved the
core banking operations and eased the
delivery of quality based banking
services and even helped in global
Threats
 There could be threats of competitors
in business and the profit level has
been affected due to the shareholders’
thinking about global economy
 The foreign exchange rates while

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outreach
 The global expansion created more
customers and allowed the company
to make an entry into market
segments with convenience
 One Common bank initiative further
improved the relationship between
business and its customers to sustain
growth and development within the
competitive business environment.
expanding business globally can also
affect the business (Porter and
Heppelmann 2014)
 In case the counter party cannot meet
the obligation, the bank might be
subjected to certain risks associated
with the financial services’ delivery.
 Major competitors are National
Australian bank, ANZ bank and
Westpac.
Porter’s five forces framework
Threats of new entrants
There could be similar kinds of services available at lower prices by other banks in
Australia, but being a major bank in Australia, this kind of threat is relatively low because of
the bank’s wide range of service available. The innovation of services can persuade the
customers while investments on research and development can maintain organisational
standards to meet the clients’ needs and expectations (Rothaermel 2015)
Threats of substitute products
The threat of substitute products can be high in case the value proposition is offered,
which is different from the services offered by Commonwealth bank. The company needs to
remains service oriented rather than being product focused for understanding the client’s
needs and enhance the switching costs of customers too. Setting proper prices can also make

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them switch from the other company products to the product offered by Common wealth
bank (Pirzada and Khan 2013).
Bargaining power of suppliers
The suppliers within the banking sector often use their bargaining power to gain better
prices offered by the bank and in case it is not done, then they can switch on to some other
bank to supply the raw materials. The threat of bargaining power of suppliers, which is quite
low, can also affect the overall profit level. Commonwealth bank has developed effective
supply chains, which has implemented new product designs and fulfilled the needs of
suppliers (Fallows and Steven 2013).
Figure: Porter’s five forces framework (Fallows and Steven 20139)
Bargaining power of buyers
The threat caused due to the purchasing power of buyers is quite high and have put
pressure on the bank. The bank has streamlined the sales and processes of production and

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provided discounts on the services, which has lead to formation of a large customer base
along with higher bargaining power (Cameron and Green 2015).
Threats of competitive rivalry
The competition level is high and it has been caused due to the presence of Australian
bank, Westpac and ANZ bank. The designing of services innovatively and setting the right
prices, have already made the company sustainable and more preferred by customers within
the competitive marketplace.
Change management
The changes are possible by shifting focus on the core competencies of the
organisation. The major competence include the ability to solve issues and problems that are
not properly structured and may be complex within the business environment. It can not only
enhance the social contribution of the organisation, but will also result in innovation and
creativity in the form of enhanced services delivery for keeping the quality consistent to meet
the clients;’ requirements (Doppelt 2017). The competence of knowing could enable
Commonwealth bank to use various theories and models and manage the human resources
and company assets properly while the doing competence should allow the company to apply
expertise and knowledge practically for dealing with issues in real world situations. The
competence field of being could also assist in focusing on the personal values, beliefs and
reflect each outcomes based on the mission, vision and change procedures associated with the
organization (Wallace, de Chernatony and Buil 2013).

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Management competencies
Figure: Management competencies (Adeniji, Osibanjo and Abiodun 2013)
The management competencies of knowing, doing and being managed by
Commonwealth bank have assisted in resolving the issues while bridging the gaps during the
practical implementation. The interdependence between these management competencies c
has also facilitated critical thinking, which might be useful while working in a group,
furthermore allow us to know about the market research, communication procedures, subject
relevant knowledge and statistical methods too. The being competence can transform the
entire concept of business management and gain in-depth knowledge on the theoretical
aspects required to make a proper business plan in the future (Adeniji, Osibanjo and Abiodun
2013). The doing competence is based on the workshop materials and here the feelings and
expressions are represented to encourage innovation, creativity and critical thinking
efficiently.
Employability and digital skills
The management of employability is concerned with how Commonwealth bank can
enhance its global business expansion and create more opportunities for people to get
employed within the company. The digital skills of people will improve and the digitalised

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recruitment procedures could also help them to get selected within the banking institution
much easily. The advanced digital architecture has connected the digital skills with the
employability, furthermore created more scopes and opportunities for the company to provide
employment and reduce the level of poverty. The digital skills are responsible for managing
proper communication between employee within the workplace and share or exchange ideas
and knowledge while create digital literacy all over the community (Commbank.com.au
2018). The people would be able to connect internet and find out relevant information and at
the same time, gain some good opportunities to excel in their educational and professional
career too in the future.
Figure: Digital skills and competence (Kaufmann 2014)
Leadership and communication
Leadership is an important aspect of business and it promotes better business
functioning along with management of human resources through encouragement and
motivation too. Proper leadership skills managed through adoption of transformational
leadership style can manage changes within the organisation and at the same time, allow the
employees to share their ideas and opinions before making an important business decision

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(Kaufmann 2014). Leaders are responsible for guiding the organisational employees into the
right direction with a shared vision and mission statement; furthermore keep them motivated
by providing rewards based on their performances and even arranging training sessions to
sharpen their skills and knowledge.
Strategic knowledge development
The development of strategic knowledge should focus on improved operational
effectiveness, foster innovation and allows Commonwealth Bank to attain competitive
advantage in business. The resource based theory has been useful for making the company
accomplish the business goals and achieve competitive advantage while applying these to the
market based assets has further helped in transforming the organisational capability. The
dynamic capabilities of the bank are responsible for managing changes at Commonwealth
bank, which has also helped in reconfiguring the resources and improve the existing resource
base to produce significant value and ensure client satisfaction through services’; delivery
(Singh and Agarwal 2013). The strategic knowledge development has also been possible with
the use of business models and technological disruption models, which are relevant to the
strategic intent and influenced the formation of strategies too like incremental evolution,
radical substitution and directed transformation strategies. All these strategies implemented
have eased down the business operations managed by Commonwealth bank and ensured
cannibalisation of existing business processes and transformed it to a new one to generate
higher business revenue and competitive advantage in business (Yoganathan, Jebarajakirthy
and Thaichon 2015).