Strategic Information Systems Analysis of National Australia Bank

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Strategic Information System
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Table of Contents
Introduction:....................................................................................................................................3
Part 1(External Analysis).................................................................................................................4
1. Business Background............................................................................................................4
2. What industry is it?..................................................................................................................5
3. General environment analysis...............................................................................................6
4. The industry environment........................................................................................................8
5. Competitive environment........................................................................................................9
6. Opportunities and threats.......................................................................................................10
Part B (Internal analysis and Proposal).........................................................................................11
1. The firm’s resources, tangible and intangible........................................................................11
2. Capabilities identification......................................................................................................12
3. Core competency analysis.....................................................................................................13
4. Propose a suitable information system solution that meets the chosen company needs.......14
5. Evaluate the proposed system and provide your recommendations......................................15
Conclusion:....................................................................................................................................16
References:....................................................................................................................................17
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Introduction:
The report provides the study of the internal and external analysis of the National Australia
Bank Company that is a well-known local company of Australia. The report provides the study
of the background of the company and its working criteria in the specific industry. This also
gives the knowledge that general, competitive and industry environment gives a direct impact on
the company and its working process. On the other hand, the report provides a study that there is
two aspect of the company which make the effect on the background of the company such as
opportunities and threats. The report presents the learning that there are main elements which
make the innovative changes in the system such as capacities, resources and core competencies.
Alternatively, this gives the learning that information system provides the aid to resolve the
issues and manage the work in the organisation. Apart from this, the proposed information
system needs to improvise with the aid of the recommendation which is mention at the end
section of the report.
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Part 1(External Analysis)
1. Business Background.
The National Australia Bank Company is the well-known company of Australia which provides
the banking facilities to the customers of Australia. Headquarter of the company is situated in
Melbourne, Australia and it services the banking services in Australia, New Zealand and Asia
which gives aid to spread the business in the global market. On the other hand, the company
provides services such as business, wholesale, consumer, insurance and wealth management
banking. The organisation has the 35063 employees who provide their efficient service to attain
the objectives and aims of the organisation (Rogers, et. al., 2015). The revenue of the company is
20.176 billion and assets are 945.0 billion which identity in the research of the 2015 survey. The
National Australia Bank Company branded as NAB which listed in the four largest financial
institutes according to the earning, customers and market capitalisation. This is also ranked 21st
largest bank in the worldwide level because of their capitalisation. The organisation has the 4412
ATMs across Australia and serves the 12.7 million customers in New Zealand, Asia and
Australia.
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2. What industry is it?
The organisation based on the banking sector which gives their efficient services to the target
customers. The company provides services such as business, wholesale, consumer, insurance and
wealth management banking in an effective manner. The organisation formed as the National
Commercial Banking Corporation of the Australia which is a merger of Commercial banking
company of Sydney and National bank of Australasia. In October 2008, the company launches a
direct bank trading to provide effective banking facilities to the customers.
On the other hand, the organisation produces the strategic plan to start the retail banking to
enhance the market share and reduce the cost of the fees and prices so that attracts the more
customers in the bank. Alternatively, this retailing plan satisfies the need of the customers which
is the main element of the objective (Guo and Liang, 2016). The bank creates the theme which
called as then “Breaking up” which provides the symbol to compete with the other banks and
make the goodwill in the competitive market. According to the study, the organisation manages
in the 8 division and spread their business in the 2 geographic regions. The revenue share of the
organisation in Australia is 74%, in New Zealand 10%, in Europe 12%, in USA 3% and in Asia
1%.
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3. General environment analysis.
The general environment gives a direct impact on the National Australia Bank Company which
is briefly mentioned underneath:
 Political factor: This kind of external factor directly impact to the organisation because
the political parties of the country are the most powerful thing which has the ability to grow the
business or destroy it in the market. So, according to the study that the government of Australia
create the new rule and regulation for the banking sector which is beneficial for both the
organisation and customers. The NAB provides the loan and insurance facility to the customers
with the new interest rate and new offers which attracts the customers which gives aid to
improvise the sales of the company. This is also beneficial to maintain the faith in the
organisation by the efficient employees.
 Economic factor: This external environment gives the impact on the financial situation
of the NAB Company which also gives an impact on the employees’ turnover rate. Most of the
time, the financial crisis down the market of the banking because the company decrease the
interest rate to earn the profitability and overcome the loose of the organisation (Nurullah and
Staikouras, 2015). In this case, the customers get disappointed and employee also leaves the job
due to a less effective outcome of the service.
 Socio-cultural factor: This factor provide the study that local public of Australia have
their own culture and values which need to be followed by the NAB bank so that satisfy the
feeling of the population. This external environment gives the major impact on the background
of the company so the organisation provides the facilities on their festival seasons and earns a
huge amount of profitability.
 Technical factor: According to the study that today is the time of digitalisation and
every organisation need to enhance the efficiency of the work with the advanced technology to
attain the objectives in an effective manner (Klettner, et. al., 2014). The organisation takes the
aid from the technical giant firms which provide the effective software or information system to
secure the data of the customers and easily transfer the money through the system.
 Legal factor: This legal factor makes the impact on the organisation in the terms of rule
and regulations because the government of Australia invent the rules for the banking to provide
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the secure service and save the rights of the customers. If this is not followed by the organisation
then the company faces the legal issues. So, it is essential to fulfil the requirement of the legal
documentation and take the registration in the appropriate manner.
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4. The industry environment.
There are various elements which directly impact on the business that is mention underneath:
 Buyer’s power: The National Australia Bank Company is well-known in the banking
sector because it provides effective services and makes innovative changes in the system to
attract more customers. So, the customers have the various choices to select those services which
are beneficial for their banking transaction or insurance. The customer takes the service facilities
which fulfil the need with the less cost and satisfy with the organisation for the long time period.
 Supplier power: Most of the companies give the aid to supply the service to the
international customers in an effective way and spread the business in the global level. So, the
supplier must have the ability to attract the customers with the influence nature and provide the
facility in the appropriate way (D'Cruz, et. Al., 2016). On the other hand, this element is
beneficial to satisfy the financial need of both parties such as organisation and customers.
 Altitude of the competition: There is a huge competition in the market which impacts
on the working criteria of the business. The NAB Company is the well-established bank but there
are various competitors daily grow in the market so it is essential to improvise the quality of the
service to enhance the number of customers and profitability as well.
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5. Competitive environment.
The NAB Company provides the banking services to the customers and this also provides the
insurance and wealth management facility because competition arises on the daily basis and
customers want the more facilities in their terms. According to the study, the organisation has the
main competitor which also provides a variety of services in an effective manner such as ANZ
Company which also depends on the banking sector. The ANZ provides the finance, investment,
management, global wealth, insurance and many more facilities to their target customers
(Moradi-Motlagh and Babacan, 2015). This company have the 50152 efficient employees who
handled the work in the branches of the 34 nations. The revenue of the ANZ Company is 21.071
billion and the assets of the organisation are 889.9 billion which is analysed in the survey of the
2015 year. This bank is also providing the retailing and commercial services just like NAB bank
and satisfy the need of the customers.
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6. Opportunities and threats.
Opportunities:
 The company have the ability to establish the company in the various places so that
spread the business in the global market.
 The customers not only get the banking facility from the company but also, finance,
insurance, wealth management and much more.
 The company have an efficient information system to maintain the data and information
in a secure way (Cohen, et. al., 2016).
Threats:
 The company face the poor financial situation in the duration of the financial crisis.
 There is cyber risk surrounded in the system which may harm the confidential
information of the client.
 The competition is increased day by day which loses the faith and interest in the target
customers.
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Part B (Internal analysis and Proposal)
1. The firm’s resources, tangible and intangible.
The organisation has the various resources which give aid to attain the objectives in an
innovative way and maintain goodwill in the competitive market. The most effective tangible
resource gives aid to improvise the sales of the organisation and grow the business in the global
market (Žylius, et. al., 2015). On the other hand, the government of Australia provides financial
help to improvise the banking service of the NAB and attracts more customers. This provides aid
to produce internal funds for the organisation to make the connection with the international
customers to spread the business in various countries.
Alternatively, the intangible resources are the information system or software which provides aid
to enhance the efficiency of the system to provides the effective service through the technology.
The NAB provides the banking services such as money transfer, cash deposit and ATM handing
which enhance by the accurate information system.
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2. Capabilities identification.
There are various capabilities available in the NAB Company which makes it well-known in the
global market that mentions underneath:
 The organisation has the ability to provide the money transferring facility through the
online transaction feature.
 The company provides services such as business, wholesale, consumer, insurance and
wealth management banking in an effective manner (Audzeyeva and Hudson, 2016).
 The organisation produces a strategic plan to start the retail banking to enhance the
market share and reduce the cost of the fees to attract more customers.
 The company frequently upgrade the system so that reduce the issue and increase the
effectiveness in the services.
 The interest rate of the company is high which make the attraction point for the
customers and it increases the efficiency in the appropriate way.

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