Strategic Management on Analysis of Cross-Functional Trade Decisions by ANZ Bank Assessment Answer
Strategic management refers to continuous monitoring, assessment, planning and analysis of everything needed for the company to fulfil its business objective and goals. This report aims to undertake strategic management procedure related to the analysis of cross-functional trade decisions by ANZ Bank. The detail information about several CSR activities and business ethics, followed by the company, will be provided. The environment analysis will be undertaken to deliver strategic formulation for selected business growth in the market it operates. The strategic leadership of corporate CEO’s in the history of ANZ Banking Group will also be provided within this report.
CSR Activities in Australia and New Zealand Banking Group
The strategic administration procedure has been management approach utilized to prepare for the future. The ANZ Bank or Australia and New Zealand Banking Group create vision by enhancing long term strategies. It helps recognize essential resource allocation and process to accomplish business goals. The ANZ Bank has been multinational financial and banking service company of Australia headquartered in Melbourne (Unepfi, 2019). The company is second leading bank by asset and market capitalization let it stand in third-largest position within the Australian market. The ANZ Bank has been among top four banking organization in Australia along with top banking group in Pacific and New Zealand as well as ranking among the top 50 banks across the globe (About us, 2019). The company undertaking several CSR activities utilizes its authority to thrive beyond personal and industry-wide initiatives. The CSR or corporate social responsibility refers to global private corporate self-regulation focused on contributing societal goals or ethical practices (Dell'Atti et al., 2017). The respective approach has been helpful for the company to remain conscious of their moral and social responsibility. The company embarks business practices on a truly unique program to be the leader in sustainable value and corporate responsibility. At the central their approach, ANZ Bank commits to establishing a relationship of integrity, respect and trust with every stakeholder over the long duration. It leads the company to enact under the action of placing the customer as the first priority, earn trust from the community, perform and develop to create value for shareholders (Unepfi, 2019). The responsible business approach has been favourable for the company to deliver high performance against material environmental, economic and social challenges as well as opportunities.
Figure 1: Sustainability initiative by ANZ Bank in 2018
(Source: Sustainability Review, 2019)
In the process of supporting society in hard times, the company progressed several relief measures to support communities and farmer impacted by continuing drought within Australia. The ANZ Bank donated AUD 500,000 to the foundation for regional and rural renewal (ERRR) along with AUD500,000 towards Financial Counseling Australia (Sustainability Review, 2019). While the requirement of potential customers remains a priority through concentration on environmental sustainability, housing and financial wellbeing corporate need to contribute effectively towards the wider sustainability agenda. The business practices in such areas need to be aligned with corporate strategies and purpose to meet several sustainable development goals. The company observes to operate within a complex atmosphere across 34 markets, steering number of sensitive concern with potentially critical economic and social influence. For this reason, report on sustainability performance becomes crucial explaining the way corporate manage most social, governance risks and environmental opportunities. The public disclosure of business performance against assessable sustainability target has been essential of holding management accountable. In the year 2018, the Royal Commission report highlighted that ANZ bank has been insufficient to fulfil community expectation and standards or engaged in misconduct (Sustainability Review, 2019). The significant adoption of CSR actions is likely to enhance the company's public image, brand recognition, the advantage over rival and improved customer engagement. Communicating openly and transparently would be essential to rebuild community confidence. In order to become a better bank, the company require focusing on two key things that involve keeping promises, learning and listening as well as to be simpler with faster business actions.
Business Ethics in Australia and New Zealand Banking Group
The culture and values of ANZ Banking Group are supported by their own code of conduct that is followed by all the employees and contractors. The organisation gives importance to the integrity, collaborations, accountability, respect and excellence within the business. The purpose of the ANZ Banking Group is to ensure that the communities and the people are provided with an environment to be shaped (Corporate Governance Shareholder Centre, 2019). The company believes in providing solutions for complex environmental and market issues within the core business strategy. The company has a sustainable framework that supports the business strategy reflecting environmental sustainability, housing and financial wellbeing (Joyce & Paquin, 2016). The ANZ Banking Group believes in the maintenance of responsibility and fairness within their strategy. The company maintains high standards of conduct by behaving responsibly and fairly towards the community, employees and customers (Corporate Governance Statement, 2019). The environmental sustainability includes the initiatives to improve the support towards the financial practices, businesses and household building for the community. ANZ Banking Group helps in the improvement of households for the people in Australia and New Zealand, in an accessible and affordable manner (Clarke & Boersma, 2016). The company strives to provide improved management of the finances for the employees, community and most importantly, the customers. The company committee looks after the ethics, environmental and social responsibilities to ensure that focus is on sustainability specifically. This helps in the review of the management progress and risk identification, which is reviewed afterwards (Boersma, 2015). The governance of the responsibilities that monitor the risk compliances is mitigated with the risk management policies. The ethics committee also is accountable for the agreement within the ANZ banking group to reduce the risk implications using alliances that match with the bank’s purpose and values. The lending decisions are overlooked with the products, services and processes with the bank’s ethical purpose (Corporate Governance Shareholder Centre, 2019). The committee does the monitoring of the current as well as emerging risks in ethics and social governance by debating over a wide range of issues, specifically those dealing with aspects that influence a bank's reputation. The bank has recently developed an ethical decision-making framework that allows them to guide and support the customers to transfer their investments towards a low carbon economy by cross-referencing the bank’s policies. The areas of consideration and guidance also include safe credit-card usage and exporting policies to prevent fraudulent and gambling within the region. The bank is able to identify their customer's financial stress and conduct an intervention for finding a solution.
ANZ Banking Group has well-established fairness and ethical conduct, which is made to order by the Royal Commission to influence stakeholder intentions within Australia (Hargovan, 2019). The company maintains transparency to display ethical practices and gain the trust of the stakeholders. The company took into consideration the concern of the stakeholders towards the company’s services those results in poor customer outcomes (Corporate Governance Shareholder Centre, 2019). Fraudulent and data security is also ethical conduct sated by the ANZ Banking Group. Banks need to understands the seriousness of its operations, which might be able to affect the reputation in the event of a data security breach (Lawrence, Minutti-Meza & Vyas, 2017). The company, therefore, has maintained a strong control on its server and manages the risks effectively. The improvement of customer satisfaction is an area that ANZ takes seriously. The improvement in the services differentiates its services from other organisations. Customer education, transparency, fairness, simplicity and accessibility of the products are critically maintained.
Strategy Formulation by Environmental Analysis
The strategic management of business activities related to the environmental factor is likely to allow ANZ Bank to support and strengthen its central competencies. A business environment includes industry in which company operates to generate revenue along with environmental dimension as political, legal, technological, economic and social. The environmental factors impacting company needs to be understood, documented and evaluated to establish strategies effectively.
Figure 2: Strategy Formulation
|(Source: Robinson, 2015)
The strategy formulation through analysis of business environment relates to the adequate procedure that ANZ Bank needs to take in the course of achieving banking goals. The strategic intent would be the initial approach under strategic formulation to produce a compelling statement about the progress of the company and goals to be accomplished in the long run. The political stability within Australia and transparent administrative structure favour a profitable business (Heritage, 2019). The richest Asia-Pacific country is Australia and celebrates 20 years of consistent economic development. The country encouraging shift through free-trade, a decrease in corporate tax and reforms within the labour market let the company have the dynamic region to grow (Heritage, 2019). The strategic intent aligned with mission, vision, objectives and goals of the company becomes crucial to achieve environmental sustainability. The mission of ANZ Bank is to frame the world for community and people to thrive as well as vision relates to creating a sustainable economy in which every person build a better life (About us, 2019). In order to mitigate challenges occurred within the environmental dimension, strategic formulation referring to resource management and external interaction also becomes crucial. The improved living standards likely to increase product sales; however, socio-economic challenges need to be mitigated by ANZ Bank. In terms of social aspects, the increased awareness among people of community-related to sustainable and environment development makes it essential for the company to strategize their goals accordingly. The company incorporating ERP or Enterprise Resource Planning would be capable of achieving the approach of integrated application to administer business as well as automate several back-office operations as services, human resource and technology. While violent social atmosphere over racial inequality often hampers business growth, the company need to comply with responsible and fair banking. In addition, the legal, technological and environmental aspects become necessary for strategy formulation process. With the beginning of e-banking, more external interaction with several applications is encouraged (Alarifi, Alsaleh & Alomar, 2017). This involving technological breakthrough exposes the company to consumer data protection breach under legal lawsuits. The threat of code manipulation and brute-force attack lead requirement for interface application into IDS to safeguard internet banking activities. Moreover, the implementation approach and strategic choices have also been crucial aspects to determine the future tactics of the company. Almost every environmental dimension influence the strategic choice of the company related to information constrains, affect of past strategy and management behaviour towards the threat. In leading sustainable strategic choices, ANZ Bank may progress focused business tactics through contingency implementation. In achieving environmental sustainability goal, the implementation of respect, accountability and collaboration practices within the workplace can be foster within 6 to 12 months duration. The company in shaping community also progressed financial wellbeing, and housing initiative wished to achieved until the year 2020 (Sustainability Review, 2019). The people within the company, its culture, adequate resource or management structure and technology system utilized efficiency, as well as strategically, would be key to support implantation of standards in sustainable development goals.
Strategic leadership of the CEO’s in the history of Australia and New Zealand Banking Group
The CEO of ANZ Banking Group, Shayne Elliott, ensured to attain a strategic decision that would sustain the business for a long future by simplifying the existing business processes and improving their qualities. Initially, in 2009, Shayne Elliott joined the organisation and was positioned as Chief Financial Officer in 2012. His experience in the US, Middle East, UK and Asia facilitated the handling of the business in ANZ. The CEO offers strategic leadership that functions in 34 markets which a complex environment with different social and economic impacts. The CEO believes that in order to improve financial performance, it is important to maintain performance sustainability (Sustainability Review, 2019). The strategic leadership of the CEO also involves the communication being transparently done and criticising the community confidence for rebuilding the business process (Kim, 2015). The industry implications and the criticism from the Royal commission have ensured that the company needs to improve on the areas of failure to maintain effective sustainability (Hargovan, 2019). The improved strategies for the betterment of the ANZ Banking Group, Shayne Elliott, want to make the business process simpler and faster to initiate the necessary changes (Sustainability Review, 2019). The implementation of the strategic decisions needs to align with the purpose and value of the ANZ bank. The identification of the performance gaps within the ANZ bank has been increased to ensure that the customers are provided with improved services. ANZ bank also wants to ensure its customers that the acknowledgement of the grievances. The company will maintain its organisational culture in creating a stronger community with the customers and improve ethics (McMurrian & Matulich, 2016). This will ensure that the trust and community engagement is assured for the ANZ bank. The company would effectively disclose the bank’s financial performance and provide sustainability targets in future. This will increase the company’s accountability towards public services in future. The criticism from the Royal Commission to highlight the company’s failures would be mitigated to maintain their solidarity in the business (Hargovan, 2019). Since, 2002, the ANZ Banking Group has been able to provide services to via Saver Plus, MoneyBusiness and MOneyMinded programs for 621,000 people. The target was to enable economic participation in both domestic and international regions and reach 1 million customers until 2020 (Sustainability Review, 2019). Durable housing was provided throughout Australia and New Zealand, making 550 damp proof homes with the government. The initiative included the services that would be interest-free, making the amount of 100 million AUD for insulations and loans in the region. As of 2015, the objective is to fund and facilitate $11.5 billion for providing customers with sustainable solutions’ and low carbon housing establishments (Sustainability Review, 2019). This includes the banks' investments in renewable energy and green building initiative in Australia and New Zealand. In addition to this, a more recent complaint from the Royal Commission, the company will seek ways to mitigate consumer lending, financial services, loaning small and medium-sized enterprises. The issues that would be affecting the Australian in regional and remote communities would be mitigated.
CSR activities provide the business organisation with the ability to improve their business service and engagement in the community. The company has previously involved itself in increasing social and environmental awareness by funding and supporting organisations and agendas. The recent investment in building sustainable housing with low-carbon emission provided the company with improved value. The company has a sustainable framework that allows it to reflect on the issues pointed out by the Royal Commission to improve its business strategy (Hargovan, 2019). In addition to this, ANZ Banking Group provides fairness towards the customers to enhance the community through financial practices and consumer awareness. In order to mitigate the external issues that affect the business environment of ANZ Banking groups, a sequential strategy is undertaken. The implementation of the strategic intent, resource management, external interaction, implementation and strategy choice is carried out.