Strategic Development Report: Westpac Banking Corporation Analysis

This report offers a comprehensive analysis of Westpac's strategic development, examining its mission, vision, core competencies, and past and current strategies. The report explores various strategic approaches, including contingency, growth, and Porter's generic strategies, as well as emergent strategies and strategic partnerships. It delves into criticisms of the business, focusing on past strategies and stakeholder concerns. The analysis incorporates tools such as PESTLE and SWOT analyses to evaluate the general, specific, and internal environments, alongside Porter's Five Forces. Furthermore, the report highlights Westpac's core competencies and the CEOs who have successfully implemented strategies, shaping the company's culture. The conclusion summarizes key findings and insights into Westpac's strategic direction and competitive positioning within the banking sector. This report provides valuable insights into Westpac's strategic development, making it a valuable resource for students studying business development and strategy.

Strategic Development within
an organisation

Executive summary
Fundamental aim of this report is to determine research areas of company, i.e. mission,
vision, core competencies etc. This assist organisation to attain their targets and goals within
certain period of time. There are many sorts of strategies which is covered in this report and will
be adopt by firm, as this will help them to take benefits from competitors. They will develop new
and unique items for clients as this assists them to capture attention of numerous people. Along
with this, it helps to improve customer base of company. They will enter into new marketplace to
target numerous individuals. It aids them to increase their market share and in addition, profits.
By improving revenues, they will expand their business into new areas which help them
accomplish requirements of all persons who are residing distinctive place.
It is required for manager of enterprise to analyse their environment as this assists them
to prepare strategies as well as policies in a proficient manner. As a result, they can compete
their rivals at competitive world. With assistance of PESTLE investigation, organisation will
know about their extrinsic elements. Whereas, SWOT analysis provide assistance to them to
determine internal factors. Superiors need to motivate their subordinates; therefore, they will
accomplish their work within provided time frame. Along with this, by implementing leadership
theories they can inspire them to take responsibilities regarding their work. Apart from this, there
is description about organisational culture.

Table of Contents
Executive summary..........................................................................................................................2
INTRODUCTION...........................................................................................................................1
RESEARCH AREAS.......................................................................................................................1
Mission Vision and core competencies..................................................................................1
Successful strategies deployed in the past..............................................................................2
Current strategies....................................................................................................................2
TYPES OF STRATEGIES..............................................................................................................3
Contingency approach............................................................................................................3
Growth Strategies...................................................................................................................3
Porters generic strategies........................................................................................................3
Emergent strategies................................................................................................................4
Strategic Partnership...............................................................................................................4
CRITISM OF BUSINESS...............................................................................................................5
Focus on the past strategies / tactics which were criticised....................................................5
The criticisms may comes from various stake holders...........................................................5
ANALYSIS TOOLS........................................................................................................................5
General Environment analysis................................................................................................5
Specific Environment analysis...............................................................................................6
Porter's Five forces analysis...................................................................................................7
Internal environment..............................................................................................................7
SWOT analysis.......................................................................................................................8
ORGANISATIONAL CULTURE...................................................................................................8
Core Competencies:................................................................................................................8
CEOs who inspired the employees, developed or implemented strategies successfully and
created company’s culture......................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Strategic development is fundamental as this aids to provide growth and development to
company. It assists to manage performance of staff members by providing proper training to
them (Burke and Noumair, 2015). Present assignment is based on Westpac which is banking
corporation and operating their business in Australia. They are providing their financial services
and products worldwide. This project is going to highlights many research areas. There are many
strategies which are used by organisation in their past and they aid in their growth and
development. Apart from this, various analysis tools are going to highlighted in this project.
RESEARCH AREAS
Mission Vision and core competencies
Mission: To become market leader Westpac have small of objectives that will help them
to hit targets. These goals are providing higher returns on stakeholders investments, give tenable
consumer and service provider relationship, being leader of community, and set organization as a
place where eminent people want to work.
Vision: Company wants to become world's greatest service provider and want to get
highest market share over the globe and to help out our consumers, communities and people to
enrich and grow. Association is focusing on complete world apart from Australia, New Zealand,
and near pacific area. Corporation's vision goals are acquiring strongest position, and nearly 13
million customers, also focuses on organic growth of organization as well as customers and
establishing deeper and strong bond between company and its targets (Prpić and et. al., 2015).
Core competencies: Corporate is having following core virtue points that are stated as
beneath:
 Seamless Banking: Day to day banking solutions by their online platform.
 Efficient trade than competitors.
 Intelligent finance means complete range of financial solutions.
 Better risk management.
 bester way to do business.
Successful strategies deployed in the past
There are various strategies which is adopted by manager of Westpac in the past which
aid them into their growth and development. These are stated as below:
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 Market Penetration: They improved their market; therefore, they compete their rivals,
such as Commonwealth bank of Australia. Along with this, they enhance their sales into
current market which helped them to satisfy needs and demands of people in an adequate
manner. Market development: As indicated by this, they expanded their market in new areas. For
this aim, they sole their current goods and services into new marketplace. By doing this,
they easily improved their market share and along with this, revenues. Product development: To acquire success and advancement, they produced new and
unique items for people. They used different methods to manufacture innovative goods. It
contains less risk. This helped them to gain attention of maximum individual; as a result,
they able to compete their competitors at competitive world.
 Diversification: This method is much high risky because product as well as market, both
is entirely new (Peppard and Ward, 2016).
Current strategies
Recently, they are utilizing Growth strategies in to their business. They want to expand
their firm into many nations. For this, they have some options, such as merger, acquisition and
joint venture. Along with this, they are developing goods and services by implementing new and
unique ideas. This aids them to capture attention of numerous people. They are providing
products to people as per their demands which help them to take benefits from their competitors
at marketplace. Rather than this, they are diversifying their item. According to this, they are
producing new products and services for people and sell them into new marketplace. This aid
them into their growth and advancement. Along with this, by entering another market or place
company will increase their customer base. It is must for them to maintain quality of goods and
services as this aids them to gain trust and loyalty of people. Which help Westpac to builds their
goodwill at global level (Demil and et. al., 2015).
TYPES OF STRATEGIES
Contingency approach
It is considered as a management hypothesis which help to provide suggestion according
to the circumstance. This can be adopted at a single time and not appropriate for long duration.
Employer needs to pay attention to their styles and in addition condition; so that, by making
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proper efforts they both will interact adequately. This method is much effective for organisation
as people will learn new things through distinctive situations. As a result, manager will easily
face similar kind of circumstances if it developed in future. This will assist to create ability into
people; thus, they can easily adopt extrinsic force.
Growth Strategies
This can be classified into categories:
Vertical Horizontal
More control Less control
If finished item get success then, this will
provide maximum advantage to company.
Whereas, it will cater benefit to a particular
department.
Efficiency over flexibility Flexibility over efficiency
High risk Less risk
Requirement of capital is maximum Less need of capital
Porters generic strategies
Industry Force Generic Strategies
Cost Leadership Differentiation Focus
Barriers of entry To acquire it,
organisation will
reduce value of their
goods and services
Loyalty of clients will
discourage newcomer.
This will aid to create
core competencies and
act as a entry
obstructor.
Purchaser power They will provide
items at less cost to
their purchasers.
They have minimum
power as there is only
some alternatives of
goods are available at
marketplace.
They have minimum
power as there is only
some alternatives of
goods are available at
marketplace.
Power of Supplier If they are not
providing material at
They will enhance High supplier power
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moderate price then,
manager will change
them.
their price.
Substitutes threat Will utilize less value
to prevent against
utility.
As clients will easily
attached to items;
therefore, there is less
threat of substitute
items.
Special items will help
organisation to protect
them from any
substitute products.
Competitors Take benefits from
price.
Loyalty and trust of
people regarding brand
will help company to
compete rivals.
There is no
competitors as firm
concentrates on needs
of clients.
Emergent strategies
With assistance of this, company will develop an action, if they do not have particular
vision, targets, mission and core competencies. This is also known as realized strategy and it is
entirely distinctive from intended approach.
Strategic Partnership
It is considered as a relations amongst two companies who are formalized through more
than one business agreements (Barrick and et. al., 2015). This can be classified into three parts: Licensing agreements: With assistance of this, business person will easily manage their
firm. Joint Ventures: Development of third party presents their interest.
 Consortia and networks: It is considered as a much complex link between organisations.
CRITISM OF BUSINESS
Focus on the past strategies / tactics which were criticised
Banking segment was been in criticism that they were selling products that they grown in
occupied areas without clearing tag purport that shows name of its origin areas of produced
goods. Some campaigners raised this issue that all goods should have been properly tagged that
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every customer can make choice over it. It was strategy of selling goods that were grown in
Israeli land and company was not in state of attaching label but after criticism they took back
their policy and labelled those goods or products with name of their origin.
The criticisms may comes from various stake holders
When organization launches any product and customer refuse to accept that is called
customer criticism (Anderson, 2016). There are various criticism from stakeholders like if
employees are not satisfied with association's policies, stakeholders are not satisfied with
provided informations, media is raising issues again and again that spreads negative info about
corporate, industry experts are not comfortable with business operations, suppliers are not given
justified prices for their raw materials and communities denied to allow corporation's activities in
specific areas.
ANALYSIS TOOLS
General Environment analysis Political - Westpac operating their operations in Australia and Asia so that company
focus on two political environment. Government are stable in both continentals but their
way of work are different. Company works in Australia but for providing banking
solutions company also operates its operations in Asia pacific. Foreign trade regulation
and trade policies help in growth to organisation. The political factor are important for
firm because they provide services according to country law and they effected by the both
countries home country as well exporting countries. Legal - Westpac are working in others countries also so that legal barriers create the
problem for company operations. Some law are import & export law, employment law,
heath & safety law etc. company may have strong compliance standards and audits for
suppliers. Company wants to know what is legal and what is not legal for trad
successfully. Each countries have their own set of rules and regulations (Albers,
Wohlgezogen and Zajac, 2016). Social cultural – The working environment can effect the profitability of the company.
The Australian people focus on quality of products and efficient services. In Asia one of
the social culture factor are education for Westpac but the consumers are less educated.
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Some factors that consider in analysis are income, age, sex, mobility, and location etc.
these factor are influence the work of firm. Environment – This factor affecting external working of Westpac. Environment are
effected by pollution, waste disposal, energy consumption, etc. for resolve this issue
government are introduced environment law and its change time to time when
requirement are arise. Technological – Westpac use the technologies in both countries. Company uses
Australian techniques in Asian countries to take technological advantage.
 Economical – Association run in both countries Australia and Asia their operations. The
both countries are different in economical environment. Some economic factor influence
Westpac like economic growth, interest rates, exchange rate, inflation, disposable income
of consumers etc.
Specific Environment analysis Customers: They are most fundamental part of any organisation; therefore, by conducting
research they can easily accomplish their needs and wants according to their
requirements. This will assist them to take benefits from their competitors. Partners: As per this, when two or more individuals come together and begin a firm.
Along with this, they share both profits and loss equally or in decided share. Industry: It portrays trade, affiliation and in addition business. Their main task is to
produce or manufacture goods and services for people (Smither, Houston and McIntire,
2016). Unions: This is formed by employees of company to secure their rights as well as
interest. There work is to provide best environment to their members; so that, they will
accomplish their task in an effective way. Competitors: There are many rivals of Westpac, such as National Australia Bank limited,
Commonwealth bank of Australia and many more.
 Supplier: They are investor and fund provider of corporation and corporate house tries to
get these funds with low rate of interest so that they can make high return on investment.
Porter's Five forces analysis Bargaining power of buyer: Westpac Banking Corporation which is an Australian
banking and financial service provider. In UK there are many banks who are providing
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best and qualitative services and in addition financial products to people. They are giving
loans to individuals at a moderate interest rates but if other banks are giving it to people
at more less rates then persons will go there. Bargaining power of suppliers: In Australia many service providers sale their items to
company. Large suppliers have potential to build their own brand at market. Threats of substitute: There are many banks who are providing distinctive financial
products to individuals. Like, people will save there money in banks but if they are
getting adequate return then, they will invest their fund in mutual funds (Self and et. al.,
2015). Competitive rivalry: There are many rivals of Westpac banking corporation, such as
National Australia Bank limited, Commonwealth bank of Australia etc. But if clients are
loyal to them, then they will always opt option from this organisation.
 Threat of new entrance: In UK threat of new entrance are very low in banking sector.
Westpac create barriers for new business at market with strong brand image. Along with
this, if people want to go into this segment then, they must have maximum fund and in
addition, they need to get license and accomplish legal requirements. Brand loyalty of
the customers are very important factor for new entrance.
Internal environment Process: Company has to utilize an adequate procedure into their business. They have to
implement new tools and methods; therefore, they will create innovative products for
people. System: This needs to be effective as it aids workers to comprehend each and every thing
properly. Along with this, employee will understand about their roles and duties. Employees: They are most significant part of any affiliation as they help them to attain
coveted targets within limited period of time.
 Management: It is required for them to manage open communication into company; thus,
people will share views and thoughts with each other easily. They need to formulate
policies and strategies which need to be follow by each staff members to accomplish their
work (Missimer, Robèrt and Broman, 2017).
SWOT analysis
 Strength:
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 There market share is much wide as they are having more than 290 stores in
Australia.
 Quality of goods and services are much effective.
 Weaknesses:
 Rates on loans are high.
 As per a current article which is published in relation to company affected their
image in an adverse manner.
 Opportunities:
 They are expanding their business in other nations which help them in
enhancement of customer base.
 Promotional strategies which are using by them is very effective as this assists
them to attract numerous people towards them.
 Threats:
 There are many competitors of Westpac banking corporation, such as National
Australia Bank limited, Commonwealth bank of Australia etc.
 Economic condition of country is not adequate (Westpac SWOT and Pestle
analysis, 2017).
ORGANISATIONAL CULTURE
Core Competencies:
Westpac is producing environment friendly items for their customers. As per their loyalty
scheme which was developed in near almost 1995, they launched a club card to attract attention
of numerous people. Quality of goods are much appropriate which is providing by them at a
affordable price to buyers. This will assist them to target market at wide range. By implementing
competitive strategies into business, they can easily take benefits from rivals (Rees and Smith,
2017).
CEOs who inspired the employees, developed or implemented strategies successfully and
created company’s culture
It is main duty of management to motivate their staff members; therefore, they will
accomplish work in an appropriate manner. They need to formulate strategies and policies
effectively, which need to be taken after by staff members. By doing this, they will take
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advantages from their competitors at competitive world. Along with this, management needs to
create culture of association; so that, people will easily share their beliefs and values with each
other. It has strong affect on firm as workers will perform their work adequately (Cheung-Judge
and Holbeche, 2015).
CONCLUSION
From above assignment it get concluded that company has to prepare vision and mission;
therefore, they will accomplish their work in an effective way. It is must for them to analyse
internal as well as external environment as this assist enterprise to expand their business. Apart
from this, it is must to understand organisational culture; thus, coveted targets will attain within
limited period of time.
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REFERENCES
Books and Journals:
Albers, S., Wohlgezogen, F. & Zajac, E. J. (2016). Strategic alliance structures: An organization
design perspective. Journal of Management. 42(3). pp.582-614.
Anderson, D. L. (2016). Organization development: The process of leading organizational
change. Sage Publications.
Barrick, M. R. & et. al. (2015). Collective organizational engagement: Linking motivational
antecedents, strategic implementation, and firm performance. Academy of Management
Journal. 58(1). pp.111-135.
Burke, W. W. & Noumair, D. A. (2015). Organization development: A process of learning and
changing. FT Press.
Cheung-Judge, M. Y. & Holbeche, L. (2015). Organization development: a practitioner's guide
for OD and HR. Kogan Page Publishers.
Demil, B. & et. al. (2015). Introduction to the SEJ special issue on business models: business
models within the domain of strategic entrepreneurship. Strategic Entrepreneurship
Journal. 9(1). pp.1-11.
Missimer, M., Robèrt, K. H. & Broman, G. (2017). A strategic approach to social sustainability–
Part 2: a principle-based definition. Journal of Cleaner Production. 140. pp.42-52.
Peppard, J. & Ward, J. (2016). The strategic management of information systems: Building a
digital strategy. John Wiley & Sons.
Prpić, J. & et. al. (2015). How to work a crowd: Developing crowd capital through
crowdsourcing. Business Horizons. 58(1). pp.77-85.
Rees, G. & Smith, P. eds. (2017). Strategic human resource management: An international
perspective. Sage.
Self, D. R. & et. al. (2015). Improving organizational alignment by enhancing strategic
thinking. Development and Learning in Organizations: An International Journal. 29(1).
pp.11-14.
Smither, R., Houston, J. & McIntire, S. (2016). Organization development: Strategies for
changing environments. Routledge.
Online:
Westpac SWOT and Pestle analysis. 2017. [Online]. Available through:
<https://www.swotandpestle.com/westpac/>.
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