Westpac Banking Group Market Analysis: Assessment 1

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Marketing
(Assessment 1)
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Table of Contents
Introduction......................................................................................................................................2
Discuss the background of your chosen business/organization.......................................................3
Analyze the microenvironment (the relevant publics, the suppliers and the marketing
intermediaries).................................................................................................................................4
Summarize the likely competitors, what they offer and who they seem to target...........................6
Analyze the macro-environment. What are the society-wide influences on your chosen
organization? Are there demographic, economic, natural, technological, political, or cultural
trends that will affect the business of your chosen organization?...................................................7
Summarize strengths, weaknesses, opportunities and threats using the SWOT matrix..................9
Conclusion.....................................................................................................................................11
References......................................................................................................................................12
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Introduction
The assessment report addresses the various factors affecting the expansion of the company
concern. In addition, the report work highlights on the effective understanding of the
microenvironment and macro environment that influences the cultural trends relating to the
expansion of the work operation of the Westpac in the national and international market. Further
provided, for the elaborated understanding series of the competitors have discussed so as to have
better command on the SWOT (strengths, weakness, opportunity, and threat) that assists in the
Westpac to capture a greater share in the market. The overall report provides for the series of the
recommendations that can assist in the better supervision leading to the attainment of the
objectives in a better manner.
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Discuss the background of your chosen business/organization
Based in Australia, Westpac provided for banking and financial services worldwide. The
concerned bank one of the biggest and the oldest institution of banking (Townsend, et. al., 2012).
The company has its command over finance and insurance, consumer banking, corporate
banking, investment banking, investment management, global wealth, credit cards, mortgage,
etc. The headquarter of the company is in Sydney. With its expounded work operations the
banking sector engages a large number of the employees to indulge in the series of the activities
and functions that tend to provide enhanced and effective services to its clients. Further provided,
the core and the major activities of the concerned bank involves consumer bank, commercial
bank and business bank, BT financial group, Westpac institutional bank and Westpac New
Zealand (Rathi, 2017). These divisions provide services to more than 13 million customers.
Apart from that, while conducting the activities and operations in the elaborated manner the
company follows suitable standards in the area of the corporate social responsibility leading to
global sustainability in the sector of banking.
However, it is requisite that the concerned bank focuses on the expansion of the activities in a
more elaborated and effective manner leading to the attracting of a greater number of the clients
(Townsend, et. al., 2012). For the purpose, it is necessary for the authorities to evaluate the
competitors so as to attain the factors of the strengths weakness, opportunities, and threats.
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Analyze the microenvironment (the relevant public, the suppliers and the marketing
intermediaries).
Westpac Banking Group is considered as one of the leading banking institutions of Australia.
Due to its magnificent performance, it has created a significant position in the concerned group.
After considering all its previous performance, it is planning to expand and elaborate its business
operations (Townsend, et. al., 2012). This will not only help to retain its existing customers but
will also help to create a dominant position in the concerned sector. It will also help to give a cut-
throat competition to its rival firms.
However, for such purpose, it is necessary for the authority concern of the Westpac to
understand and evaluate the microenvironment factors so as to have better command and
supervision. Microenvironment factors include the factors under which the company conducts
and carries its work operations. It majorly includes suppliers, competitors, customer, employees
and market intermediaries.
 Competitors: Competitors are the greatest microenvironment factor that affects work operations
in a great manner (Sánchez-Torres & Miles, 2017 ). The major competitors of the Westpac
include Common Bank, ANZ and NAB. For the attainment of the higher command, it is requisite
to understand the strategies and the policies of the competitors effectively. This will assist the
authorities of the concerned bank in a better and effective decision in relation to the forthcoming
activities.
 Customer: With the changing conditions of the market environment, there is a diverse change in
the requirements of the customer. AS such there is a great need on the part of the authority
concern of Westpac to identify the needs and enhance their level of services in an accordance
manner. This will lead to the greater attraction of the new clients and retaining the existing
clients from the global market.
 Employees: Employees are considered to be the most valuable asset for every form of
organization. Hence, it is necessary to recruit a suitable candidate at the vacant position so as to
provide vital importance to the business concern (Rathi, 2017). Since the Westpac carries
multiple functions at the global level it is requisite that the employees of the concerned bank are
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efficient enough that can manage the operations in an effective manner. This will lead to the
better coordination of the activities and operations that can assist in the smooth functioning
(Sánchez-Torres & Miles, 2017 ).
 Media: For the providing of the suitable and valuable information about its services and the
auxiliary services for the expansion of the business activities it is necessary that the management
of the Westpac focus on the effective promotional tools so as to elaborate the requisite
information to the clients. This will assist in the better and effective clarification of all the facts
and aspects leading to smooth and systematic working.
As such it can be determined that there is a great need on the part of the authority concern of the
Westpac to evaluate all the microenvironment factors before the expansion of the business
activities through a new business format. This will assist in better decision making leading to
better command and supervision.
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Summarize the likely competitors, what they offer and who they seem to target
Expanding the business operations is not profitable but has also become a prerequisite for every
business organization (Taherdangkoo, et. al., 2017). Due to the changing trend and fluctuating
taste and preference of the customers, almost all the business enterprises or concerns are moving
towards the expansion strategy. As such, there is an intense level of competition that is
prevailing in the market environment. In the context of the Westpac, the major competitor
majorly includes:
 Common Bank
 National Australia Bank
 Australia and New Zealand banking group
The concerned bank offers to the clients banking and the financial services with a view to
targeting the maximum sets of the customers so as to attain a better and strong position
(Taherdangkoo, et. al., 2017).
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Analyze the macro-environment. What are the society-wide influences on your chosen
organization? Are there demographic, economic, natural, technological, political, or
cultural trends that will affect the business of your chosen organization?
A macro environment involves the factors that are beyond the control of the authorities of the
company concern (De Moraes & De Mendonça, 2017). For the expansion of the activities in the
global world, along with the micro factors, there is a great need on the part of the authority
concern of the Westpac to focus on the macro environmental factors so as to have better
alignment of the internal operations with the external environment. Macro environment factors
include:
Political environment: Political factors play a significant role in the determination of the factors
that can impact the long term profitability. To attain success by the authorities of the Westpac it
is necessary to diversify the systematic risk ofthe political environment. With the analyzing of
the political factors following factors must be kept in mind that includes:
 Legal framework for contract enforcement
 Anti-trust laws related to banks
 Industry safety regulation in the sector of banking (De Moraes & De Mendonça, 2017).
Economic environment: It assists in the evaluation of the aggregate demand and aggregate
investment in the economy. With the analyzing of the economic factors following factors must
be kept in mind that includes:
 Bank industry growth rate
 Consumer spending
 Infrastructure quality in the bank's industry
Technological environment: Technology is one of the major changes that affect the work
operations in a great manner (Taherdangkoo, et. al., 2017). With the understanding of the
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technological factors, the Westpac can enhance its working pattern in a great manner. The
technological analysis will assist in the understanding of the following factors:
 Technological impact on the product offering
 Impact of value chain sector in the bank sector
 Rate of technological diffusion
Social factor: The manner in which the concerned bank performs it's business operations impact
the culture of the organization in an environment. Such factors will assist in the requirements of
the customers leading to the better formulation of the marketing strategy (Amidu & Kuipo,
2015). Social factor in this respect includes:
 Demographic and skill level of the population
 Entrepreneurial spirit and the broader nature of society.
 Attitude and leisure interests
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Summarize strengths, weaknesses, opportunities, and threats using the SWOT matrix.
SWOT analysis of the Westpac Banking Group analyzes the brand with the factors of strengths,
weakness, opportunities, and threats. With the analysis and evaluation of the factors, the
management of the Westpac will assist in the formulation of the effective and elaborated
strategies with respect to the expansion of the activities through market development leading to
the appropriate segmentation, targeting and positioning (Amidu & Kuipo, 2015).
The following factors of the strengths, weakness, opportunities, and threats will assist the
management concern of the Westpac in the better and elaborated decision in relation to market
development.
Strengths
 Provides flexible banking services like migrant
banking.
 Engagement of the approximately 40000
employees that provides services to the 12
million customers.
 Leads in terms of the number of branches and
ATM’s in Australia
 Conducts its activities in accordance with the
terms of corporate social responsibility.
Weakness
 Intense level of competition in retail banking
from other banking institutions.
 Less number of branches in comparison to the
other major banks.
 Inappropriate flexibility in the work operations
as per the needs of the external environment.
Opportunities
 Westpac provides a license to open banks in
other countries. This will assist in the new
market development and global expansion
(Taherdangkoo, et. al., 2017).
Threat
 Credit limit and the regulatory changes will
have a great impact on the work operation on
the concerned bank.
 Strategies and policies of the competitors will
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 Focus on the high level of technology and
innovation can assist in the development of the
new banking products.
 Setting up operations in emerging economies
will assist in the greater leverage.
have a significant impact on the bank.
 Series of the changes dominating in the market
environment can also act as a great threat to the
management of Westpac.
Strategies to capture opportunities to defend threats and overcome weakness
For the attainment of the positive and valuable outcome, it is necessary that the management of
the Westpac formulate suitable and effective strategies and policies that can effectively assist in
the capturing of the suitable opportunities, defending of threats and in the overcoming of the
weakness (Amidu & Kuipo, 2015). Some of the strategies that can be used in this respect by the
bank include:
Proper and effective scanning of the market environment
One of the most effective strategies that can assist in the better command and supervision on all
the activities and events is the proper and effective scanning of the market environment. This
will assist in the better and effective understanding of all the facts and aspects related to the
micro and macro environment factors leading to the proper judgment.
Engagement of the top level concerns
Furthermore, it is requisite that the authority concern focuses on the effective involvement of the
top level concerns so that to get a better presentation of the ideas and facts that can provide
suitable clarification to all the parties associated with the work operations of Westpac
(Taherdangkoo, et. al., 2017).
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Conclusion
The assessment report concludes on the effective understanding of the micro and macro
environment factors that assist the authorities of the Westpac in better judgment with respect to
the expansion of the business activities. In addition the reported work concludes on the series of
the factors through the analysis of the SWOT technique leading to better judgment with respect
to the current and forthcoming activities.
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