Organizational Challenges: An Analysis of ANZ Bank's Management

This report offers an in-depth analysis of the management challenges confronting ANZ Bank. It begins with an executive summary highlighting the importance of practical management knowledge in the business context and identifies the strengths and weaknesses within ANZ Bank's management approaches. The report employs SWOT and PESTEL analyses to evaluate the bank's macro and micro environments, emphasizing its strong financial position as a source of resilience. It then delves into various challenges, including those related to business and technology, and assesses key performance indicators (KPIs) of agile management. The report concludes by summarizing the challenges and providing recommendations for improvement. The report includes an introduction to the organization, SWOT and PESTEL analyses, Force Field Analysis, specific ANZ management challenges, challenges of focusing on business and technology, KPIs of Agile Management and a conclusion.

Running head: ORGANIZATIONAL CHALLENGES
ORGANIZATIONAL CHALLENGES
Name of the Student:
Name of the University:
Authors Note:

1ORGANIZATIONAL CHALLENGES
Executive Summary
The report showcase the importance on the practical knowledge of management in
business scenario. The report throws light on the given company, ANZ bank and identifies the
strength and weaknesses of the management approaches. There are various challenges in the
businesses that is a combination of internal and external factors. Through the SWOT and
PESTLE the macro and micro environment is analyzed. Strong financial position furthermore
provides resilience to various market developments. Moreover the various factors and challenges
is evaluated for the ANZ bank. Various challenges that leads to focus on business and
technology is also ascertained.

2ORGANIZATIONAL CHALLENGES
Table of Contents
Introduction:....................................................................................................................................3
About the Organization:..................................................................................................................3
SWOT Analysis of the Organization:..............................................................................................4
PESTEL Analysis:...........................................................................................................................7
Force Field Analysis:.....................................................................................................................11
ANZ Management Challenges:.....................................................................................................13
Challenges of Focusing on Business and Technology..................................................................13
KPI of Agile Management.............................................................................................................14
Conclusion.....................................................................................................................................15
References:....................................................................................................................................16

3ORGANIZATIONAL CHALLENGES
Introduction:
In the recent times, organization faces variety of problem or challenges that becomes a
great hurdle for their growth. The most common business challenges or issues can be different
for various industry, service or business. The report highlights the major challenges faced by the
management of ANZ Bank. There several external and internal factors faced by the firms. This
factor provides potential threats and opportunities for all short-term and long-term growth of the
firm in the business environment (Ferraro, Etzion and Gehman 2015).
With the help of external and internal analysis of the business, the challenges faced by the
organization can be evaluated. Through SWOT and PESTEL analysis, both the micro and macro
environment can be analyzed. After analyzing the organizational management practices of the
company all the opportunities and strengths can be easily evaluated. The organization can easily
ascertain the area where management strengths can be easily aligned with the organizational
goals.
About the Organization:
The Australia and New Zealand Banking Group Limited (ANZ Bank) was initially
opened as the Bank of Australia. In the year 1835, the bank opened their first office in Sydney
(Anz.com. 2018). Later, in the year 1938 the bank’s office was established in Melbourne, where
the current headquarter of the bank is located. ANZ bank operates in more than 33 markets that
is global representation in New Zealand, Australia, Pacific, and Europe and all over the Middle
East. ANZ bank is the third largest bank all over Australia and is the largest banking group in
Pacific and New Zealand among the leading banks in the world. The bank facilitates in providing

4ORGANIZATIONAL CHALLENGES
range of financial and banking products and services to more than millions of customers. The
bank also provides employment to more than 50,000 people all over the world.
SWOT Analysis of the Organization:
The factors affecting the organization can be analyzed by ascertaining both the external
and internal analysis. SWOT analysis is very helpful technique to understand the organizational
strength and weaknesses (Khan, Alam and Alam 2015). Moreover, the external threats and
opportunities present in the business environment. This helps the organization to create a very
special niche in the market
.
Strengths: ANZ bank focuses on attracting and retaining the potential individuals for the
banks. To ensure high level of satisfaction to its customer’s major emphasis is given on attracting
right talents from the diverse background on the basis of age, culture and gender. Talent
STRENGTHS
Talent Management
Continous Growth
Rich Value based System
Community and environmental welfare strategies
WEAKNESSES
Poor Technology
Controversises and Scams
Interest rate fixation scandals
OPPORTUNITIES
New markets
Employee Engagement
environment protection
THREATS
Competitors threats in evolving and existing
markets
Low risk appetite
Culture mismatch
Potential loss of customers
Poor services and controversies.
SWOT

5ORGANIZATIONAL CHALLENGES
management is the main strength of the organization. The bank provides rewards and recognition
to its employees by continuously reviewing the present working conditions so that good working
relation is maintained within the organization (Festing and Schäfer 2015). being one of the
largest bank in New Zealand it offers employment to various people throughout the country.
Strong financial position of the organization provides resilience to the adverse market
developments. ANZ bank is the leading bank that offers financial services to the employees that
includes asset finances, investment and payment solutions (Collings 2014). The organization has
a considerable amount of market shares in Pacific countries, Australia and New Zealand. Rich
value based system of the organization leads to continuous growth of the organization. ANZ
bank also follows welfare strategies for the community and environment.
Weaknesses: due to fierce market competition in the global environment from the current
players, it becomes quite difficult for the bank to increase their market shares. ANZ bank global
exposure is limited comparatively to other leading banks. Poor technology is the major weakness
of the company. In today’s competitive market place, it is important for the banks to stay
competitive with the latest technology. Most of the areas of the banks are aided by technology
development. Mobile banking, on-site deposit, pop money is few of the techniques that are used
by banks to gain competitive advantage.
Controversies and scams are the other major weakness faced by the company. Recently in
the year 2016, ANZ bank has to face a scandal involving the Malaysian leader and one of the
ANZ’s bank subsidiaries. In the same year, another controversy took place due to misleading file
notes that were presented to Victorian Supreme Court. Various interest rate fixation scandals are
also another major weakness of the ANZ bank.

6ORGANIZATIONAL CHALLENGES
Opportunities: ANZ bank is the first Australian bank to receive license from the
government. The bank can easily conduct retail business in Yuan region of China. This also
provides for the bank an immense opportunity to tap the business in Chinese market. The bank
also provides high opportunities to grow in the Thailand market after receiving license from the
government. Moreover, ANZ bank also has a high opportunity to expand its business in the
Asian markets like India and China.
In addition to this, employee engagement is another great factor that ANZ bank can enjoy
in the rapidly growing economy of Australia and New Zealand. Most of the employees in
Australia are highly enthusiastic, committed and involved to their workplace (Gerow, Thatcher
and Grover 2015). High retention and low turnover rate is a great opportunity for the growth and
development of the bank. The major advantage of investing in employee engagement is that it
will lead to give higher productivity and profitability.
Threats: the economic condition of New Zealand and Australia is deteriorating at a rapid
rate. Drastic changes and fluctuations have been occurring in the banking system of Australia.
There is also fierce competition from all the global banks present in Pacific regions and
Australia, which is increasing at a rapid rate. Competitor’s threats are very high in the existing
and evolving markets. Furthermore, several kinds of controversies that affect the business
processes create a negative impact on the goodwill of the bank. This further leads to potential
loss of target customers. The risk tolerance and appetite level is also quiet low and therefore is
unable to meet the organization’s strategic objective. Culture mismatch also poses a major threat
to the ANZ bank growth and development.

7ORGANIZATIONAL CHALLENGES
PESTEL Analysis:
The PESTEL framework highlights six major factors for the management to consider
while approaching the business environment. As pertaining to the macro-environment, various
factors are also indicative of the complete business environment. The company faces variety of
external factors that facilitates in providing major opportunities and threats for long-term success
in the organization.
Political
regulatory bodies and issues
RBA and Trans-Council policy implications
Economical
Economical implications and variables
changes in economy and its implications
Social
customer focus
development of content strategy
societal welfare activities
Technological
requirement for new technology
innovations
existing issues and technology faced
Environmenta
l
climate change issue
loaction strategy
environmental protection activities
Legal
tougher capital buffers
regulatory authorities and their proposal
bail-in and their implications

8ORGANIZATIONAL CHALLENGES
Political: politics plays a major role in the businesses as there is a balance between
systems of control and free markets. The regulatory bodies and issues affect the business that
mostly revolve around taxes, potential subsidies, import and export tariffs. The Australian
regulatory bodies and issues affect the business of the ANZ bank. The global economics now
supersede the economics of banking businesses.
ANZ bank also considers various opportunities and threats while identifying maximum
areas for production, corporate or sales headquarter and expending into new regions. This also
affects the trans-council and RBA implications of the ANZ bank. Generally there are low
barriers of market entry in this developed economy. For instance, the political strife in pacific
regions of Solomon Island, Fiji and Tonga creates an adverse impact on the environment. The
growth rate and credit worthiness for all the business prospects and investment levels within the
banks also face major consequences.
Economic: The economic factors are the major metrics that assesses and measure the
health of the economy. The main factors include gross domestic product (GDP), interest rates,
consumer purchasing indices, inflation and various other indicators. The economy of a country
and banking industry is interrelated to each other. The economic factors affecting ANZ bank is
highly critical in nature. Change in economy whether, inflation or recession severely impacts the
banking habits of the organization. The exchange rates also affect the ANZ bank at a global
level. Stable currencies such as dollars affect the spending habits and currencies of people.
The economic environment for ANZ has been fairly positive and in the near future it is
expected it to be the same. Since the last year, the world economy has been expanded by 5.4%.
The Australian economy, especially the region where ANZ bank is headquartered is in its growth

9ORGANIZATIONAL CHALLENGES
phase and is continued towards expansion (Kader Ali, Wilson and Mohammad 2014). On the
other hand, the growth rate of New Zealand is not that high and the expansion level is expected
to be the same in the near future. However, the overall economic environment is highly positive
for ANZ bank. This therefore indicates various business opportunities for the banks in the next
few years.
Social: social factors include the demographic analysis, where specific groups showcase
tendencies or preferences that can threaten a given incumbent or can be leveraged. The culture of
the individual affects the necessities and buying behavior and their application of banking
options. Social factors often lead to various kinds of risks and challenges to financial institutions,
mostly in its lending activities.
ANZ bank also has to overcome this major challenge with effective implementation of
decisions. The potential customers are always in the search of comfort and ease and as
technology has developed, as the people accept major seamless banking experiences. Customer
focused is the vital factor in the developed economy of Australia and New Zealand. ANZ bank
applies client screening tool that helps in the credit approval process. This approach also
identifies any high risk or low risk borrowers as per their social standings.
Technological: technology plays a major role in the business that will continue to drive
new innovation through research and development. Recognizing the potential technology is a
great asset for the management that optimizes the internal efficiency of the firm. In the recent
times, as technology is changing the techniques how a customer handle their funds and their
banking habits is also improving. ANZ bank offers several mobile apps to transfer funds, mobile
apps and customers can easily pay their bills through their smart phones. Smartphone can easily

10ORGANIZATIONAL CHALLENGES
scan cheques and process the banking transaction from one location to other very easily. ANZ
bank has launched full digital certificate technology that offers more secure banking and online
environment for their customers. This has also helped ANZ to complements its security
initiatives and trust level. Therefore, sustaining its position as a leader in the banking and
financial industry at a global level.
Environmental: in the recent times, the impact of the business on the environment is a
major concern for the organization. Both the government and customers penalizes the
companies, which adversely affects the environment (Reamer 2015). ANZ bank has developed a
Social and Environmental policy so that it can monitor and ascertain any potential risks in the
credit approval processes.
ANZ bank has implemented significant principles that are applied for the investments and
lending decisions in all of the developing countries. Due to the use of latest technology and with
the help of mobile banking apps, the use of paper has tremendously reduced. Most of the issues
are handled through online services, therefore reducing the adverse impact on environmental
condition. These steps taken by the bank leads to minimize the negative impacts of its
operational activities in the light of social environment (Tshelane and Mahlomaholo 2015). The
company is also involved in corporate social responsibility and various kinds of environmental
protection acts.
Legal: adequate understanding of the legal scenario is vital for the businesses to avoid the
legal pitfalls so that it could confine with the established regulations (Peltoniemi 2015). Banks
are required to comply with the rules and regulations established by law. This rule is also
applicable for the ANZ bank as they have to ensure compliance with all the operational business

11ORGANIZATIONAL CHALLENGES
requirements. ANZ bank has its operation in various countries therefore the bank is bond to get
affected by all the jurisdiction and law in which it operates. In Australia, it is mandatory for all
the banks to operate as per the requirements of Banking Act, 1959. Therefore, ANZ bank has to
take active part in the advisory bodies of government so that they can engage with the
government officials and regulators on a continuous basis.
Force Field Analysis:
Kurt Lewin’s Force Field Analysis
Source: (Festing and Schäfer 2014)
Any issues that is held in between interaction of two opposing set of forces seeks to
promote major changes and therefore attempting it to maintain status quo is analyzed through
force field analysis. While analyzing the force of changes, two major forces are taken into action

12ORGANIZATIONAL CHALLENGES
that includes driving and restraining forces. Driving force s is usually the one that sustain the
changes taking place in the banks while restraining force is the one that restraint the changes.
Through force field analysis, it will be easy to determine all the strong driving and restraining
forces of the ANZ bank. Through the force field analysis the organizational challenges as well as
effectiveness can easily be determined. This method helps in devising an action plan that is
required to improve the existing condition.
Driving forces: these forces include all the factors that enable the firm to withstand
certain pressures. The driving forces in the ANZ bank includes awareness of all the present
social obligations accelerated training activity to face the changes, well defined and laid out
policies, emphasis on customer services, development of training policy. This also includes
willingness of the banks to change policies in various departments, well defined policies.
Growing need to receive adequate feedback is also a major driving force for the organization
(Ellison, Gibbs and Weber 2015). this leads the organization to adopt itself as per the required
change. Furthermore, changing outlook of the union and development on the training policies is
the major driving forces that sustain the present forces.
Restraining forces: these forces are such factors that restraint the changes taking place in
the organization. The top management of the financial organization restraint changes when the
management is insensitive to the changing environment. The management power is inadequately
utilized and is over centralized. Lack of technology or scientific information system is also a
major threat for the organization as they are unable to make new changes (Kiptoo and Mwirigi
2014). Delayed decision by the management and ineffective manpower utilization also affects
the changes that are made in the banks. Complex and time consuming procedures also restraints
the organizational changes

13ORGANIZATIONAL CHALLENGES
ANZ Management Challenges:
The banking industries is constantly changing and thus facing a major challenge to
achieve its desired goal. These changes can be due to various factors, which include changing
customer expectations or preferences and upgraded technology (Ferraro, Etzion and Gehman
2015). The technological changes lead to highly increase the digital currencies. This
transformation is driven by various regulations and some by the bank itself. If the changes are
not made adequately then the staffs can easily lose their jobs. Therefore, this affects the overall
banking and financial industry and thus ANZ is aggressively trying hard to adopt the given
changes by practicing new techniques.
From the ANZ bank perspectives, the products and services that are to be delivered
should exceed or at least meet the expectation of customers. With relation to functionality and
application, the delivered services should be of high quality. Moreover, the customized solution
should be reliable, efficient and produced at a very reasonable cost. The major groups that
require delivering the services to customer are faced through their own perspectives. This
includes both technology and business.
Challenges of Focusing on Business and Technology
Business perspectives: each customers and individuals are unique in their own ways. The
needs and demands of the customers mostly depend on their nature of businesses. This includes
industry size, the expectation of their workers and the place where they work (Bell and Rochford
2016). As per the business perspectives, banks are required to negotiate with their customers so
that they can easily understand the requirements and needs of the transactional banking.

14ORGANIZATIONAL CHALLENGES
Technology perspectives: require enhanced solution that is required by the enhanced
customer. The technical teams have to deliver advanced and technology related solutions to face
the major changes.
Technology is constantly changing and evolving to adapt to better practices is mandatory
to achieve success in the long-term (Sánchez-Torres and Miles 2017). Outdated software and
process used by the banks have major impact on the performance and productivity of the
organization. IT costs are also too high, which becomes quite expensive for the banks to
implement. As the business expands, demands and workloads also increase the cost of
implementing latest and upgraded technology and software. In the banking and financial
industry, data security is the most crucial element for the business growth. Technology has
become major and indispensable part of any kinds of business. It is a major challenge for the
ANZ bank to embrace the latest technological changes and apply it as per their advantages.
KPI of Agile Management
Agile Management is an incremental method for managing the activities related to
information technology and engineering in other business areas that aims to provides new
services and products in a highly interactive ad flexible manner (Larson and Chang 2016). KPI’s
are the major decision making tools that enables the firm to make informed and strategic
processes decisions. The bank mangers stakeholders and the agile teams require dimensional
measures for performance contributed by the KPIs. Effective KPIs should therefore proceeded
by strongly expressed enterprises and fundamental strategies (Haynes and Appel–Meulenbroek
2014). Through proper agile work practices incremental work practices and agile methods should
be adopted by the firms.

15ORGANIZATIONAL CHALLENGES
Conclusion
Organizational changes are the induced disturbances in the present power equations. The
changes are felt more when the firm is needed to adopt fast and grow according to the required
organizational changes. As a result the organization has to face spasm if there is any wave of
changes. The organization has to thus reduce tensions by development of few forces to tackle the
challenges. With the help of PESTEL and SWOT analysis, the macro and microenvironment of
the ANZ bank has been analyzed. The major management challenges faced by the banking
industry in Australia and New Zealand have also been evaluated. ANZ bank has to focus on both
business and technological changes to gain maximum advantages. Therefore, it can be
concluded that ANZ bank has to face various internal and external challenges to increase its
profitability and efficiency in the long-run.

16ORGANIZATIONAL CHALLENGES
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