COAC216 Cost Accounting Report: Westpac Banking Corporation's Strategy

This report provides an analysis of Westpac Banking Corporation, focusing on its managerial practices, accounting tools, sustainability initiatives, and overall vision. It highlights Westpac's recognition as a leader in sustainability by the World Economic Forum and its commitment to social, economic, and environmental development. The report covers key managerial highlights, including support for green initiatives and social change programs, as well as the bank's product and service offerings, key performance indicators, and value chain activities. It also examines Westpac's planning and controlling mechanisms, including the use of Management Information Systems (MIS). The report concludes with a recommendation for Westpac to utilize budgetary planning and to continue its focus on investor well-being and employee engagement. Desklib offers similar solved assignments and past papers for students.

Running head: COST ACCOUNTANT
Cost Accountant
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Introduction
In the world there are organizations that stresses more on the use regarding the
sustainability of business that practices the survival strategies for overall development as well
as growth. The need of external competitive environment that caused the requirement of an
organization to proceed out their business activities in such manner that they ensure social,
economic as well as environment development. Sustainability suggests for industries to
deliberate the long-term influence of their working doings as well as includes the usage of
such performs that maximizes the comforts of all its shareholders. The report presents the
strategic of Westpac Banking Corporation. The bank has been in the news form past many
years. The report covers the aspect of managerial practise, the accounting tool, the
sustainability as well the vision of the bank. The report is concluded with the
recommendation on management accounting tool.

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Discussion
Background of Westpac Corporation Bank
In the year 2014, World Economic Forum had given reorganization to Westpac Corporation
as a leader in the list of ‘Global 100 Most Sustainable Corporations in the World. The
business is characterized as one of the most important public bank of Australia. It is indulge
in in case that banking as well as fiscal facilities to around 13 billion consumers globally. The
bank has achieved the fame of leader by generating long-term value to the consumers,
stakeholders in long-term, employees, as well as community. Westpac has industrialised and
continued a work values of enterprise communal, ecological and commercial accountability
to generate a maintainable future. The combination of sustainability as an important part of
its occupational policy has allowed Westpac to make the most of its presentation by
endorsing its goodwill globally. westpacgroup.com.au. (2017).
Establishment Year
Westpac Corporation was established in the year 1817. It headquarter is in Westpac Place at
Sydney, in Australia.
Vision and Mission
The vision of the corporation is emerging as the world`s highest fiscal service
provider, that helps consumers, society, as well as helping people in prospering and growing.
The mission statement stated that it has aim to be recognized as the leading fiscal service
provider in the markets of New Zealand as well as Australia. This mission as well as vision
declaration is suitable for the institute that it permits the company to contend in the banking
industry constructively. westpacgroup.com.au. (2019).

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Managerial Highlights
 It is the first bank that is supporting the Green Challenge Plus package hurled by
Australian government, goals at decreasing the radiation of greenhouse gases on or
after the nation’s manufacturing sector.
 The bank has sprang a ‘Social Change Fellowship Program’ in order to aim for
improving the well-being of the citizens by inculcating a confident socialising change.
This platform is targeted at as long as chance to the Australian people to travel their
possible over and done with registering in a modified plan that will advance their
services as well as aptitudes.
 It is enthusiastically convoluted in emerging comprehensive substructure, stimulating
admittance to education as well as enlightening the condition of living in these zones.
Westpac has presented a micro-business advances plan that goals to deliver reserves
to the corporate units in these extents that does not contests the conventional
advancing criteria.
 By abiding the standards of Code of Conduct bank sustains with the suppliers. Both
bank as well as the suppliers follow the Code of Conduct. This results in gaining the
trust as well as maintaining the interest.
 Westpac also obeys positively with all the constitutional necessities of New Zealand
(NZ) has consequently recognised its subordinate in the nation ‘Westpac New
Zealand’ for providing its monetary as well as financing services to the clienteles of
New Zealand.
 The operations of bank are supervised as well as monitored by the US Federal
Reserve and International Banking Act (IBA).
 . IBA act upholds that overseas banks are not permissible to found a subdivision in the
US deprived of procurement permission of the US Federal Reserve.

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Product and Services
 Bank Account
a) Everyday Account
b) Savings Account- A stretchy investments explanation along with bonus interest for
steady savers that ropes together long as well as short term savings goals.
Online saving rate is 2.01 percent that is for five months as an introductory fixed rate.
0.50 percent as the standard variable rate. Total variable interest is 2.30 percent if the
bonus criteria is met along with different criteria of bonus rate for different time period.
c) Term Deposit with different interest rate for existing customers as well as new
customers.
 Home loan with different interest rate and a premium advantage.
 Credit Cards wide range with different benefits added to each one it.
 Personal Loans- a wide group of funding is being provided under this head with
different criteria such as holiday, car, consolidate debt, renovate and wedding.
Services
 Insurance- life, income Protection, Credit Card and loan repayment, Home, travel and
car insurance service is being provided under this division.
 Shares and Investing- has wide range of portfolio as well as provides Self-Managed
Superannuation Fund.
 Merchant Services.
Key Performance Information
 The statutory profit was lifted by 7 percent from growth crosswise through their
business of banking.
 Selling of investment bought the bank a gain of $279 million.

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 Cash earnings performance stood up to 3 percent more as compared to 2016.
 Net interest income resulted to 2 percent higher in spite the growth of bank was
reduced according to the Bank Levy.
 The revenue was impacted by the $95 million because of Bank Levy. This decreased
the cash earnings by $ 66 Million in the full year 2017.
 Net interest income resulted to 2 percent. Net operating income rise to 2 percent
because of declination in non-interest income.
Value Chain
 Fund raising- the goal of bank is to find out the reasonable way of raising the funds
for the adequate of time. Basically banks raises fund from its own funds that is from
the depositors saving accounts or if there is any term deposits.
Recently, Westpac has decided to increase the interest rate of the home loans having
variable interest rate. It was done because the comprehensive cost of borrowing had
started rising back. The role or job of the corporation is to admit the volatility that arrives
in fiscal market near the funding cost.

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 Product including the service designed for the target market- the difference between
the products or service can be decided dependent upon the resources. Westpac has
wide range of products that is suitable to all types of consumers.
 Marketing- as competition in today time has been kept increasing, many financial
institution as well as other banks have emerged. To compete with them and keep hold
of the customer marketing is the important. Westpac believes in responsible
marketing so it keep updating it customer to secure their rights. It has active as well as
independent ombudsman or grievances consultants. Even they disclose their
management performance to the customer in their reports.
 Service- in banking service is a broader term as it covers way-of-payment, back
workplace operations linked to managerial and financial records dealing out of
procedures, and specifically the handing out of happenings as well as risk
management. After-auctions service is every so often measured to be the root of the
bank-customer association and is the main reason of the break-up of this association.
Westpac has sound service management team and is very much concern about it.
 Bank Infrastructure- Infrastructure also acts as a key character in the investment
industry. From bodily substructure to information and predominantly IT,
infrastructure theatres a significant role in the development as well as operative of the
banks. Due to improved rivalry, the position of IT in investment industry has also
grown. Westpac has its own infrastructure and it has even planned to improve the
infrastructure more with advanced technology. (Kabeljou, and Spathic, 2013).
 Human Resources: Regardless of the rising role of technology human resources
endure to act a significant character under the value chain of the banking business. Its
reputation in the banking business is developed because confidence shows an
imperative part in this surroundings too.

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 Technology: The part of technology has full-grown progressively significant in the
banking sphere. Specifically, numerous of the most significant growths have taken
residence throughout the last two to three times. Technology can also be a source of
economic benefit for the banks since it assistances supply healthier facilities than the
participants. Technology has complete banking relaxed and also enhanced the bank’s
efficiency. Several of the facilities can be availed of connected as well as clients do
not continuously essential to go to the subdivision to obtain their services. Westpac
has adopted the best repetition technologies crosswise the entire corporate. (Miller
and Power, 2013).
 Risk Management- Banking business is about risk taking. Several of the characteristic
plunders in investment are instinctive of risks. Still, it is indispensable for the banks to
appropriately achieve their dangers. It is since neither ailing achieved nor
disproportionately achieved dangers are respectable for the fitness of the banks. Risk
management strategies are consequently a significant characteristic of the investment
value chain. It assistances the bank executives to achieve their risks and decrease
them as required.
Planning
In incapacitating some of the experiments, Westpac Banking Corporation has
recognised numerous policies that have comparatively given it a modest edge over the
competitors. For occurrence, the corporation has allied its occupational purposes with
purchaser parts by having consumer facing separations. These parts include customer banks,
which knobs sales as well as consumer clients. The second dissection is Business Bank,
which grips unimportant to average initiatives, agro-professional, and profitable customers.
The third grouping is BT Financial Group Australia unit contracts in the commercial of
prosperity and assurance. The fourth separation is Westpac New Zealand which proposals a

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variety of fiscal facilities to organisations, commercial as well as consumer clienteles in New
Zealand. Then, finally, the Westpac Institutional Bank delivers some financial facilities to
management, organizations, commercial as well as marketable customers concerning
Australia as well as New Zealand. This divergence of commercial ranges is involved in
pushing the company towards victory.
Controlling
Westpac usages Management Information Systems (“MIS”) internationally to gather,
preserve, collective and boom evidence for the determinations of updating conclusions
concerning day-to-day processes and complete management crossways the administration in
a timely method. Westpac MIS be conditional on an assortment of private manufacturing as
well as third festivity seller-industrialised systems along with applications. Westpac’s
organisations and requests are accomplished of creating intelligences together at clear
incidences, every day, broadsheet, scheduled, on hoc basis. Such intelligences deliver both
elder organization as well as controllers with the evidence essential to observer the monetary
fitness, dangers as well as operations of Westpac. (Gilman, Joshua, and Flanagan, 2015).
Decision
To attain a variety of products, the Westpac Banking Corporation shall deliver diversities
financial facilities thus provided that a superior variety that will appeal and please cumulative
amount of clienteles. The change would resolve the company spread as well as encounter the
wants of specific customers.
Management Accounting Tool
Westpac Corporation uses financial statement analysis, budgetary control, fund flow
analysis, ratio analysis management information system. It follows an historical cost method.

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Recommendation
Westpac Corporation shall use budgetary planning for the objectives to achieve.
Westpac has also successfully recognised all its key investors and has combined best
approaches for safeguarding the well-being of the interior and exterior people associated with
the society. The major investors of the investment company include clienteles, workers,
unrestricted associates, depositors and contractors. Westpac safeguards employee’s wellbeing
by attractive the workforces in all its statement-edifice smears. It is also acquainted as the
first Australian bank that highlights on worker meeting as a chief part of its administrative
approach. (Kabeljou, and Spathic, 2013).
Conclusion
On the base of the complete conversation, it can be specified that Westpac has supported its
variety copy in the new years on the base of applying sustainability in all its commercial
purposes. The banking corporation has guaranteed the economic, social as well as
conservation growth concluded its business events. Also, it efficiently involves all its
investors in the result-creation process for defensive the concentration of all the individuals
directly or indirectly related with the business. Westpac upholds answerability as well as
transparency in its commercial model by obeying with all the permissible laws in the
authorities where it comportments its actions. It also progresses as well as distributes its
supportable report for as long as a valuation of its financial, ecological and communal
presentation to all its investors in harmony with the Global Reporting Initiative (GRI) values.
Westpac is suggested to behaviour sustainability development valuation and sustainability
inventiveness response examination for safeguarding its supportable evolution by persistently
observing and studying its sustainability presentation.

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