Westpac Bank's Challenges: A Systems Thinking Approach

Desklib provides past papers and solved assignments. This report analyzes Westpac Bank's challenges using systems thinking.

MGT603: SYSTEMS THINKING
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Contents
Real Picture......................................................................................................................................3
Root Definition report using CATWOE..........................................................................................5
Recommendations............................................................................................................................6
References........................................................................................................................................8
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Real Picture
The report consists of the problems faced by the banking industry mainly focusing on Westpac,
which is an Australian Bank. The Westpac is a company in the banking industry facing issues
like online banking, scrutiny, less innovation, and so on.
Image: Real picture of problems faced by Westpac
Source: By Author, 2019
The Westpac is a worldwide bank which aims to provide high-quality services to its customers
by satisfying them and providing them convenient and advanced services. There are various
problems due to which Westpac is not able to increase its revenues and profits and results in
decreased and diminishing goodwill of the company (Bell, et. al., 2019). Due to lack of talented
people the Westpac bank is not able to offer its customers innovated and creative services which
make it difficult for the Westpac to survive in the competitive market and gives its competitors
opportunities to attract the customers of Westpac. Innovation is key to business and help in
attracting and retaining the customers as well as the employees of the company. Another
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P r o b le m s
Less innovation
Increased
scrutiny
Online banking

problem faced by the Westpac is the increased a number of scrutiny cases. This means after
conducting the audit of the Westpac, it has come under the scrutiny that is rechecking and
proofing of the documentation and accounts of the Westpac which includes its annual reports,
and other relevant and necessary public documents (Durrant, et. al., 2016). This can result in
reducing the reputation of the company and can hamper the business of the Westpac. The
increased number of scrutiny cases can influence customers in switching to other company with
better credit rating and low scrutiny. Customers are more focused on high return and low risk.
They get attracted to the banks which provide them higher return rates for their investments and
more innovative and creative services and facilities. The Westpac is not able to provide high
technology online banking services. The customers face inconvenience while using the online
services of the Westpac. There is a greater number of errors due to which the customers unable
to complete their transactions or any other online activities. Online banking is one of the most
important services provided by the banking industry and failure in providing high-quality online
banking services by Westpac can result in heavy losses and more number of customers
switching to other companies who can be the competitors of the Westpac. These provide the
competitors of the Westpac competitive advantage and can result in attracting new and existing
customers. It is essential on the part of the Board of Directors of the Westpac to take corrective
actions and steps so as to provide better and high-quality services to the customers. The Board
in this regard shall conduct the meeting and discuss the problems with the shareholders so as to
make informed decisions and make modifications in its services so as to retain the existing
customers and attract new customers with new and innovative ideas and services as provided by
the Westpac with the support of the shareholders. The shareholders of the Westpac after
considering all the internal and external environment factors and after analyzing the marketing
conditions and competitors will make informed decisions for the betterment of the company and
to increase the revenues and profits of the Westpac (Xie, et. al., 2017). This helps in improving
the reputation of the company and results in increasing the brand identity which can help in
expanding the business of the Westpac.
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Root Definition report using CATWOE
CATWOE is the abbreviated word of client or customers, actors, transformation, world view,
owner, and environment respectively. CATWOE is a tool for systems thinking that helps in
determining and analyzing the problems of the Westpac in details and finding out for the
resources in order to solve the identified problems and also helps in inspiring the shareholders
(Wang, et. al., 2015). It is a tool which helps the shareholders in identifying the factors which
have a huge negative impact in the business of the Westpac. It also helps the Westpac in
improving the customer base by providing them high-quality services and by promoting and
increasing higher employee participation and team working in the Westpac. This helps the
Westpac in providing innovative products and services to the customers and help in increasing
the revenues and profits of the company. By using the CATWOE tool by the Westpac, the
company can build its brand identity and increase trust and loyalty among the customers.
Image: CATWOE
Source: By Author, 2019
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CATWOE
Clients Actors Transfor
mation
World
wide Owners Environ
ment

The above is the diagram of the CATWOE which helps in determining the true meaning of what
CATWOE stands for. It helps in gathering various new and creative ideas from the employees
and improving the customer base by attracting new and retaining existing customers of the
Westpac (Indahati, et. al., 2017). The company uses the tool for increasing the stakes of the
company and increasing the customer and shareholders’ value in the Westpac. CATWOE
technique helps the Westpac in identifying the goals and objectives of the company and helps it
in resolving the problems occur while accomplishing the desired goals. It is used to determine
the perspective of the stakeholders which have an impact on the people who are involved with
the company and its decisions. The CATWOE provides the key people who get affected by the
decisions of the Westpac. The “C” provides the customers of the Westpac; “A” provides the
actions or roles played by the Westpac, “T” provides the transformational process which helps in
delivering the services of the company to the customers, "W" provides the worldwide view of the
transformation process, “O” provides authority owns by the stakeholders in the Westpac, and
“E” provides the environmental rules and regulations which affects the surrounding of the
system of the Westpac (Dean, et. al., 2017).
Recommendations
Recommendation 1 The Westpac should recruit talented and skilled employees in the bank so
that it can produce new and innovative products and provide high quality and innovative services
to the customers. The customers get satisfied with the innovative products and help in increasing
the customer base which helps in attaining competitive advantage to the Westpac and surviving
in the marketplace.
Recommendation 2 The Westpac should make offers for its privileged customers so that it can
help in retaining existing customers and attracting more new customers. It should form policies
which are best suited to the customers of the Westpac and should focus on fulfilling the needs
and requirements of the employees. The offers or packages help the customers in influencing in
purchasing the products of the customers.
Recommendation 3 The Westpac Company should provide high quality and improved services
to the customers so that the customers can retain and promote its services to the acquaintances.
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The company shall conduct analysis and understand the unmet needs of the customers. It shall
also focus on the needs and requirements of its employees in order to retain the talented pool in
the company.
Recommendation 4 The Westpac should conduct an internal audit on a regular basis so as to
reduce the number of scrutiny cases. The internal audit can help in making modifications in the
accounts as per the laws and policies and minimize the scrutiny.
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References
 Bell, S., Berg, T., & Morse, S. (2019). Towards an Understanding of Rich Picture
Interpretation. Systemic Practice and Action Research, 1-14.
 Dean, E., Taylor, M. J., Francis, H., Lisboa, P., Appleton, D., & Jones, M. (2017). A
Methodological Framework for Geographic Information Systems Development. Systems
Research and Behavioral Science, 34(6), 759-772.
 Durrant, A., Moncur, W., Kirk, D. S., Trujillo-Pisanty, D., & Orzech, K. M. (2016). On
presenting a rich picture for stakeholder dialogue. In Proceedings of design research
society conference (DRS 2016).
 Indahati, P., Fitriani, R. N., & Munajat, Q. (2017). Knowledge Management System
Features Analysis Using Soft System Methodology: A Case Study of an Agency in the
Ministry of Religious Affairs in Indonesia. Journal of Engineering and Applied Sciences,
12(12), 3277-3280.
 Wang, W., Liu, W., & Mingers, J. (2015). A systemic method for organizational
stakeholder identification and analysis using the Soft Systems Methodology (SSM).
European Journal of Operational Research, 246(2), 562-574.
 Xie, Y., Saubanère, M., & Doublet, M. L. (2017). Requirements for reversible extra-
capacity in Li-rich layered oxides for Li-ion batteries. Energy & Environmental Science,
10(1), 266-274.
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