Westpac's Strategic Evolution, Business Practices & Culture Report

This report provides an in-depth analysis of Westpac, an Australian bank and financial services provider, focusing on its strategic development and organizational behavior. It traces the company's growth through various corporate strategies, including past technology plans (SIPs program) and current sustainability initiatives. The report critically examines Westpac's business practices, highlighting controversies such as social media censorship and issues at the Westpac stadium. Furthermore, it includes an environmental analysis using SWOT and PESTLE frameworks to identify opportunities and threats within the industry. The report also explores Westpac's specific environment, considering customers, partners, competitors, and suppliers. Finally, the analysis delves into the organizational culture and leadership style within Westpac, offering a comprehensive overview of the company's strategic landscape and operational dynamics. Desklib provides access to similar solved assignments and study tools for students.

Introduction to management

Organization behavior
Executive summary
In this paper the discussion will be on the Westpac Company. In the first phase of the report the
focus will be given on the strategies which are considered in the past and also in the present
scenario. The purpose of the report is to conduct in-depth analysis of the overall strategies of the
company and also to find out the ways in which the company can attain its competitive
advantage. It will be important for the company to conduct in-depth analysis as it can help in
considering the accurate decisions in the workplace. By analyzing the overall report, the key
outcome which is derived it is related with considering the best strategies so that growth can be
attained by the company in the market.
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Table of Contents
Executive summary.........................................................................................................................1
Introduction......................................................................................................................................1
Task 1...............................................................................................................................................1
Strategies deployed by Westpac Company..................................................................................1
Mission, vision and core competencies........................................................................................1
Successful strategies deployed in past.........................................................................................1
Current strategies.........................................................................................................................3
Contingency approach considered by Westpac Company...........................................................3
Task 2...............................................................................................................................................3
Criticism of business practices.....................................................................................................3
Task 3...............................................................................................................................................5
SWOT ANALYSIS......................................................................................................................5
External environmental analysis..................................................................................................6
PESTLE ANLAYSIS...............................................................................................................6
Specific environment analysis.....................................................................................................7
Internal analysis...........................................................................................................................8
Resource based model analysis................................................................................................8
Task 4...............................................................................................................................................9
Organizational culture and leadership style.................................................................................9
Conclusion.......................................................................................................................................9
References......................................................................................................................................10
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Introduction
Westpac was established in 1817 and there are more than 35,200 employees who are assisting
more than 12 Million customers in Australia, New Zealand and also in the Asia Pacific Region
(Westpac, 2018). In this report, the discussion will be made on the Westpac Company.
Task 1
Strategies deployed by Westpac Company
It is important to consider effective strategies by the companies as it can help to enhance the
growth in the competitive market.
Mission, vision and core competencies
The vision and mission statement of the company is “To be one of the largest great service
organizations that help the customers, communities, and people to prosper and grow”. The core
competency of the company is related with the customer focused strategy which is considered by
the company and the emphasis is also given on the values and culture of the company. The
company earns trust by considering the highest standards related with honesty and ethical
behavior.
Successful strategies deployed in past
SIP’s program strategy
The strategies considered by the company in the past are related with technology plans that
emphasize on the strategic investment priorities. It can be stated that in 2008, Westpac enhanced
its entire strategic focus in relation to technology. The emphasis is also on bringing
improvisation in the reliability in context to the development technology strategy and
implementation plan. The company considered the set of strategic investment priorities which is
created to focus on technology strategy and to help the group to deliver its customer focused
multi brand strategy. In 2010, the company implemented the SIPs program and proceeds over the
next 4 years. In this program the group executive is accountable for the overall costs and
benefits. The financial implication of SIPs was $2 Billion, and it was 5 year investment program
which consolidated the overall project investment. The capital expense enhanced from 2011 by
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adding over 1 percentage to the expense growth in 2011 and by over 2% to expense growth in
2012, 2013 and 2014 (Westpac Group, 2018).
Westpac recent strategy is related to sustainability strategy in which the focus is given on the
three factors related to embrace societal change, environmental solutions and better financial
futures. In the factors related to embrace societal change, assist to improve the working pattern
of the employees according to the society. The next aspect is related to environmental solutions
which assist to find the solutions to manage the challenges of the environmental. The last one is
related to better financial futures which assist the customers to have better relations in context to
money as it can help to maintain the life of the people (Westpac Group, 2018).
Sustainability strategy
Westpac’s commitment to sustainability focuses on considering the essential role in addressing
the societal issues which impact customers, communities, environment and the people. This
strategy emphasizes on considering the societal issues which impact the customers, communities
and the environment. The actions which are guided by the sustainability of the company
emphasize on the three areas and it measures the objectives of the company. Sustainability
strategy is considered by the company as it helps to analyze the solution to the challenges of the
environment and also it continues to manage the overall leadership which focuses on the
environment footprint of the activities. In 2015 – 16 the company enhanced the sustainability
strategy which consists of the three targets to minimize the absolute electricity consumption and
water consumption (Yeates, 2018).
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SOURCE: (Westpac Group, 2018).
Current strategies
Contingency approach considered by Westpac Company
Contingency approach is considered as the situational approach in which the set of principles are
considered by the company and this is also considered by the Westpac Company. It can be seen
that in this the principle considered by the company is related to adapting the constant challenges
by satisfying the desires of the employees. Also, the company considered that the employees
should be motivated and empowered so that it can be easy to enhance the team building of the
activities in the workplace. In Westpac the focus is given on the information sessions and
brainstorming sessions which can be considered as the culture for the Westpac Group.
Task 2
Criticism of business practices
 Criticized on social media
Westpac has been criticized by the experts of social media at the time of censoring the comments
on the Facebook page by the irate customers. Also, the incident has enhanced the debate related
to business that the company should censor the comments which are made on the Facebook
pages or they should allow them to remain in the open discussion. It has been observed that
customers of Westpac Facebook page have noticed some negative comments deleted from the
page within minutes. The customers also complained that comments were criticizing the decision
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by the bank in relation to raising the interest rates. The company also introduced the new social
media policy that will prevent from making the negative comments in relation to bank on
Facebook and Twitter. So, this act is related with managerial ethics of the company and also
emphasizes on not fulfilling the corporate social responsibility (Stafford, 2018).
 Second criticism (criticism reveals friction at the Westpac stadium)
It can be analyzed that restrictive business practices at Westpac stadium has added the fuel
accusations in relation to venue. In this it is stated that venue is not serving according to the
interest of the customers. The criticism also leveled at the food and drink venue which is spotless
catering not the stadium management. The best example in this is related with the spotless
charges the phoenix the retail price of $4 for bottle of water the team is bringing into the
stadium. The products are offered through the deal with A- league sponsorship and it is not the
cost of the stadium. Also, the incident was not be verified with the management of Phoenix who
are again and again ignoring the calls from the Dominion Post. Also, customers complained
about the prices of tickets which are high in comparison to the other stadium. The quality and
price was one of the major issues which took place and the criticism reveals friction at the
Westpac stadium (Robson, 2018).
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Task 3
SWOT ANALYSIS
STRENGTHS
 There are many branches and ATM’s in Australia.
 Offers flexible banking services in Australia
 More than 40,000 workers serving 12 million customers
Weakness
 high competition in retail banking sector
 many branches but still it is less as compared to other banks
Opportunities
 High technology and innovation is considered that assist to create new baking
products.
 The operations are set up in the emerging economies so that leverage can be on the
growing economies.
Threats
 There is credit limit and also regulatory changes that will affect the activities of bank
 Australian and New Zealand economy will impact the entire economy.
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External environmental analysis
PESTLE ANLAYSIS
Political factor
It can be noted that the changes in the policy takes place which affect the entire operation of the
company. The introduction of bank levy is one of the factors related to the political aspect. In
this the Australian parliament passed the bank levy bill 207 in which it is mandates that 0.06 levy
will be on the banks with over $100 Billion in the overall liabilities. The purpose of the
government is to reduce the budget deficit in the short term and also it has boosted the structural
fiscal position. This can also be stated as the insurance premium in which the government would
bailout the banks to prevent the contagion impact on the different sector. The impact will be on
the customers and shareholders of the banks (Salim, Arjomandi & Seufert, 2016).
Economic factor
In this the factors related to stable Australian and global economic outlook over 2018 is one of
the factor which impact the operations and also Chinese investments has boosted the overall
property prices. When the price of property enhances it has also affect the growth of the
company in the sector as infrastructure is necessary for managing the overall activities in the
competitive market (Jackson, 2016).
Social factor
The impact on the activities is due to the increase in the ageing and also because of the diverse
customers who requires particular product and services. Also, the entire demand related to
affordable housing and services has been enhanced which is important to be controlled as it can
help in boosting the overall activities of the banks (Blowfield, Karam & Jamali, 2017).
Technological factor
Digitalization is providing the opportunities to boost the services in different sectors. Westpac is
focuses on digital journey and has considered various initiatives. The company introduced 160
new features in relation to banking platform in which there are different section related to
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customer transactions, payments and loan applications. The partnership has also enhanced with
fin-tech startups.
Legal factor
Challenging regulatory environment affecting business like the Australian security investment
commission has introduced an investigation into the Westpac lending practices in 2017. The
company also implemented the policies which strengthen the scrutiny of borrowers. The overall
regulations have also enhanced the overall cost for BT financial group and also the wealth
management affects the overall outcome of 2017 (Cummings & Durrani, 2016).
Environmental factor
The banking sector focused on the investment in the projects which facilitate the overall climate
change solutions and also it has boosted the overall profits of the company in the market. This is
also one of the major goals for the staff motivation and sustainability. The investment by the
Westpac also emphasizes on maintaining the high standards of quality and also other deliverable.
So, the job of the manager, as a front line manager of the Westpac division is to consider and
respond to the contingencies which are changing (Huang, Pepper & Bowrey, 2014).
Specific environment analysis
 Customers : According to the vision of the company it has been observed that the strategy
of the company is to focus on the vision by creating deep and effective customer
relationships and also they focuses on delivering superior returns for the shareholders.
 Partners: The partners of the company are Auror, data republic, Nabo, SocietyOne,
Zetaris, Coinbase and Fillr (Westpac, 2018).
 Industry: The license is given by the company in other countries which can enhance the
market share and can expand the activities globally.
 Unions: the finance sector union focused on the overall activities of the company.
 Competitors: commonwealth bank, national Australian bank and Australian and New
Zealand banking group.
 Suppliers: there are thousands of suppliers who offer goods and services on the annual
basis. The supply nation network is one of the suppliers of the company.
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Internal analysis
Resource based model analysis
It can be stated that resources of the company are related to the employees. In the banking sector
the tangible resources are the employees or the infrastructure. Intangible resources are related to
the market share and goodwill in the market. Westpac focuses on considering the sustainable
strategy which boosts the commitments to bring improvisation in the overall environmental
performance. The company continued to analyze and manage the direct footprint which the
progress of the targets in the competitive market. This helps to embrace the new ways of
managing the overall business and it ultimately design the overall drive in relation to the
sustainable growth and also emphasizes on the better social outcome which can boost the overall
economy. The strategy helped the company to attain the competitive advantage in the market
(Sari, 2015).
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Task 4
Organizational culture and leadership style
Cultural diverse leadership is also one of the aspects that served the customers and also it
provides right direction to the employees. Westpac focused on the partnership with the
Australian rights commission to introduce the cultural diversity blueprint. The blueprint offers
the companies to understand the suitable practices and also it is related with the change for the
cultural diversity. In the workplace the employees have chance to share their views and opinions
with the management and it has boosted the positivity in the workplace. The company also
emphasizes on the diverse leadership talent so that it can be easy to build the culturally diverse
and inclusive workforce and it promote awareness of cultural diversity in the workplace
(Westpac, 2018).
Conclusion
So, it can be concluded that these factors should be considered by the company as it can help in
achieving the competitive advantage. It is necessary for the company to make decisions by
considering the factors related to internal and external environment as it can help in sustaining in
the highly competitive market.
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References
Blowfield, M., Karam, C., & Jamali, D. (2017). Introduction. Corporate social responsibility in
developing countries: a development-oriented approach. In Development-Oriented
Corporate Social Responsibility: Volume 2 (pp. 15-26). Routledge.
Cummings, J. R., & Durrani, K. J. (2016). Effect of the Basel Accord capital requirements on the
loan-loss provisioning practices of Australian banks. Journal of Banking & Finance, 67(8),
23-36.
Huang, T., Pepper, M., & Bowrey, G. (2014). Implementing a sustainability balanced scorecard
to contribute to the process of organisational legitimacy assessment. Australasian
Accounting, Business and Finance Journal, 8(2), 15-34.
Jackson, S. (2016). No variance for filed orders: Hayes v Westpac Banking Corporation [2015]
QCA 260. Proctor, 36(2), 42-43.
Robson.,T. (2018). Criticisms reveal friction at Westpac Stadium.Retrieved from :
http://www.stuff.co.nz/dominion-post/8659886/Criticisms-reveal-friction-at-Westpac-
Stadium
Salim, R., Arjomandi, A., & Seufert, J. H. (2016). Does corporate governance affect Australian
banks' performance?. Journal of International Financial Markets, Institutions and
Money, 43(5), 113-125.
Sari, T. K. (2015). Understanding Employee Attitudes to SNS Implementation in the Australian
Banking Sector. In The Evolution of the Internet in the Business Sector: Web 1.0 to Web
3.0 (pp. 121-144). IGI Global.
Stafford.,P. (2018). Westpac criticised over social media policy after censoring rate rise
comments. Retrieved from :
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https://www.smartcompany.com.au/technology/online/westpac-criticised-over-social-
media-policy-after-censoring-rate-rise-comments/
Westpac Group. (2018). Technology plans focused on Strategic Investment Priorities
(SIPs).Retrieved from : https://www.smh.com.au/business/westpacs-multi-brand-strategy-
brings-in-the-money-20130326-2grn7.html
Westpac. (2018). Inclusion across all cultures. Retrieved from :
https://www.westpac.com.au/about-westpac/inclusion-and-diversity/Inclusion-means-
everyone-matters/across-all-cultures/
Westpac. (2018).Our partners and portfolio. Retrieved from :
https://www.westpac.com.au/about-westpac/innovation/our-partners-and-portfolio/
Yeates.,C. (2018). Westpac's multi-brand strategy brings in the money.Retrieved
from
:https://www.westpac.com.au/docs/pdf/aw/Strategy_Extract_from_Full_Year_2010_Invest
or_Discussion_Pack.pdf
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