Discuss about the Strategic Management Study On Anz Bank.
Cryptocurrencies generally refer to the digital assets that are used as the exchange mediums on the basis pf the rules and the regulations that have been set by the cryptographic discipline with the purpose of conducting secure transactions. The cryptocurrencies generally assist the creation of the various other modes of currency. Cryptocurrencies are considered to be a part of the various currencies that are exchanged all over the digital and the virtual platforms of the world and acts as a replacement for the alternate types of currencies that are used in conducting the transactions. The following report aims to discuss the strategic background of the ANZ Bank, Australia. The report further proceeds to conduct an analysis of the macroenvironmental elements of the esteemed financial institution with the help of the PESTEL analysis of the concerned organization. The report further proceeds to analyze the competitive forces that might affect the organization with the help of the five forces model as proposed by Michael Porter. The report finally nears the conclusion with the strategic analysis of the bank with respect to the increase in the use of the cryptocurrencies among the clients of the highly esteemed financial institution of Australia, the Australia and New Zealand Banking Group Limited, Australia.
The Australia and New Zealand Banking Group Limited, Australia is one of the largest financial institutes that have been operating in the country and has ranked third in the country after the Commonwealth Bank and the Westpac Banking Corporation that have been existing within the country. The major part of the business of the concerned financial organization stems from the various activities that have been taking place within the territories of the country of Australia (Anz.com.au 2018). Founded in the year 1835, the Australia and New Zealand Banking Group Limited, New Zealand is one of the largest financial institutions and have come to be known as the ANZ National Bank in the country. The organization went through a change in its nomenclature in the year 2012. The concerned financial institution is represented by over 1265 points all over the world with the majority of the functioning of the bank arising from Asia, Australia, European countries, New Zealand, the Pacific countries, the United Kingdom and the United States of America. The financial institution in discussion, the Australia and New Zealand Banking Group Limited, Australia is one of the top 20 banks that have been operational in the global market with the major markets being based in the countries of Asia, America, Australia, Middle East, New Zealand and the Pacific regions.
The strategic environment of the concerned financial institution, the Australia and New Zealand Banking Group Limited, Australia might be determined by the PESTEL analysis of the concerned organization. The PESTEL analysis of the concerned organization deals with the analysis of the various factors that tend to affect the functionalities of the concerned organization (Rothaermel 2015). The various factors that need to be analyzed in this model are the political factors, the economic factors, the social factors, the technological factors, the environmental factors and the legal factors that have been affecting the concerned organization, the Australia and New Zealand Banking Group Limited, Australia in this case.
| Political factors |
The political factors that have been affecting the Australia and New Zealand Banking Group Limited, Australia are the various regulatory bodies as well as the various issues that have been operational in the country. The branches of the organization that have been operational in the Middle Eastern regions have faced a huge number of issues due to the political instability that have been existent within the country. The financial organization have also been dealing with the issues that tend to stem from the implications of the trans-council policies that have been operative in the various markets wherein the organization has been operating (Indiatsy et al. 2014). |
| Economic factors |
The economic factors that have been affecting the organization deal with the implications of the various economic variables that have been operative in the market wherein the organization have been operating in order to serve the clients of the concerned market. The growth in the global as well as the regional markets might affect the Australia and New Zealand Banking Group Limited, Australia (Goncharuk 2016). The strong economic growth in the various developing countries has helped the increase in the economic development of the concerned financial organization as well. |
| Social Factors |
The social factors of the organization might have been affecting the concerned financial organization in discussion, the Australia and New Zealand Banking Group Limited, Australia refer to the development of the various content strategies that have been undertaken by the organization, the focus of the concerned management of the organization on the ways in which better treatment can be provided to the concerned clients of the organization and the various societal welfare activities that the concerned organization might be participating in (Ho 2014). |
| Technological Factors |
The technological factors that affect the concerned organization in discussion, the Australia and New Zealand Banking Group Limited, Australia are the innovations in the various technological matters around the globe, the need of the latest technology by the concerned organization in order to serve the concerned clients of the company and the various issues that the company might have been facing in terms of the technology that is being used by the esteemed financial institution that has been functional in the global market (Dockalikova and Klozikova 2014). |
| Environmental Factors |
The various environmental factors that have been affecting the concerned organization are the location of the concerned banks, the changes in the climate and the various issues that might pertain to the protection of the environment of the world and the various other factors that lead to the protection of the global environment (Narayanan et al. 2016). The environmental factors affecting the concerned organization in this case is generally applicable to the branches of the bank in the various developing countries of the world. |
| Legal Factors |
The legal factors that have been affecting the concerned organization in this case are the various regulatory authorities and the proposals of the same that might be implied in maintaining the functionality of the various departments of the concerned financial institution, the Australia and New Zealand Banking Group Limited, Australia popularly known as the ANZ Bank. The other legal factors that affect the financial institution are the strict and tough capital buffers that have been present in the economy of the country wherein the concerned organization might have been functioning (Kelly 2015). |
Table 1: PESTEL Analysis of ANZ Bank, Australia
Source: (Author)
The competitive environment of a given organization might be evaluated by analyzing the concerned environment on the basis of the five different factors that have been suggested by Michael Porter (Dobbs 2014). These five factors might include the industrial rivalry, the bargaining power of the suppliers as well as the buyers, the threats that the company might be facing due to the new entrants in the market as well as the various products and services that have already been existent in the concerned market (Murphy 2016).
The industry rivalry in case of the Australia and New Zealand Banking Group Limited, Australia commonly known as the ANZ Bank is relatively low and can be predicted to remain so in the future years to come. The Australian banking industry is reigned by three different banks that offer almost same rates of interest to the concerned clients (Chiteli 2013). All the three financial institutions provide the concerned clients with the various facilities and boast off having ATM kiosks that are readily accessible by the general public of the country.
The bargaining power of the suppliers of the financial organization is considered to be low and is expected to remain low in the future days to come. This is due to the fact that the viability of the concerned financial organization is guaranteed by the federal government of the country since the times of the Great Financial Crisis that had occurred in the country (Lu, Tan and Huang 2013). The concerned financial organization does not face any such threats that might stem from the upheaval of the unions of the employees of the organization.
The buyers of the organization are observed not to put much stress on the concerned financial organization. Thus, it might be concluded that the bargaining power of the buyers is considered to be low and expected to remain low in the future days to come. However, the higher switching costs of the concerned organization might lead to the conditions wherein the clients of the bank might want to switch over to the other banks that are available within the country.
The company in the present days tend to face low threats due to the new entrants in the concerned industry. However, the concerned company is expected to face a rise in the threat levels due to the entry of the various other financial institutions in the concerned markets. The emerging popularity of the credit unions and the building societies in the market might lead to the loss of the traditional banking industry.
The threats that the concerned industry might be facing due to the various other services that the concerned financial organization is considered to be medium in the current conditions of the market and is expected to be high in the future days due to the fact that the various unconventional organizations that have been offering various schemes that help lowering the cost that needed to be borne by the concerned clients of the company.
The company in discussion, the Australia and New Zealand Banking Group Limited, Australia popularly known as the ANZ Bank has been facing major issues due to the rise of the cryptocurrencies. The reports suggest that the various financial organizations in the country tend to put forth the restrictions on the purchase of the various cryptocurrencies, especially Bitcoin (News.com.au 2018; Abramaowicz 2016). The introduction of the cryptocurrencies in the banking sector has led to the probability of the various areas and openings for the fraudulent activities to take place. Thus, the concerned banks especially the bank in discussion, the Australia and New Zealand Banking Group Limited, Australia has imposed a number of restrictions on the mining of the cryptocurrencies without the proper identification of the concerned client (Abc.net.au 2018; Raymaekers 2015). The banks do allow the transactions among the cryptocurrencies and regular finances though only with the reference of all the required details of the identity of the concerned client of the bank.
This might affect the concerned stakeholders of the financial institution hugely. The stakeholders of the bank might include the customers of the bank, the managerial staff of the bank and the governmental departments that are dedicated to the smooth functioning of the concerned bank in discussion, the Australia and New Zealand Banking Group Limited, Australia or the ANZ Bank (Sapovadia 2015). The concerned company might be advised to put forth the various matters that might be implemented in order to help the concerned financial institution to maintain the demands of the clients without having to deal with the consequences of the steps taken (Wessel 2016).
The concerned financial transactions that the clients might perform over the cryptocurrencies should all be recorded and done via the main node that engages the bank. The ledger of the concerned transactions should be updated and should be trackable over the nodes of the transaction (Zhao 2015). The various stakeholders might benefit from the measure due to the fact that the cryptocurrencies might put forth a huge amount of financial turnover thereby leading to the profit as well as the overall growth of the concerned bank (Yussof, Alharthy and Chahed 2016).
Conclusion
Thus, from the above discussion it might be said that the cryptocurrencies play a huge role in the overall growth of the concerned organization. The PESTEL analysis and the Five Forces analysis of the Australia and New Zealand Banking Group Limited, Australia popularly known as the ANZ Bank state that the concerned organization is at a favorable position in the Australian economy and might face a growth on removing the ban on the use of the cryptocurrencies among the clients, especially the use of Bitcoins.
References
Abc.net.au 2018. Bitcoin: The big four banks aren’t planning a crackdown … yet. [online] ABC News. Available at: https://www.abc.net.au/news/2018-02-05/big-four-banks-not-planning-bitcoin-clampdown-yet/9398234 [Accessed 17 Apr. 2018].
Abramaowicz, M., 2016. Cryptocurrency-based law. Ariz. L. Rev., 58, p.359.
Anz.com.au 2018. ANZ Personal Banking | Accounts, credit cards, loans, insurance | ANZ. [online] Anz.com.au. Available at: https://www.anz.com.au/personal/ [Accessed 17 Apr. 2018].
Chiteli, N., 2013. Agent banking operations as a competitive strategy of commercial banks in Kisumu city. International journal of business and social Science, 4(13).
Dobbs, M. E., 2014. Guidelines for applying Porter’s five forces framework: a set of industry analysis templates. Competitiveness Review, 24(1), pp.32-45.
Dockalikova, I. and Klozikova, J., 2014, November. MCDM Methods in Practice: Determining the Significance of PESTEL Analysis Criteria. In European Conference on Management, Leadership & Governance (p. 418). Academic Conferences International Limited.
Goncharuk, A.G., 2016. Banking sector challenges in research. Journal of Applied Management and Investments, 5(1), pp.34-39.
Ho, J.K.K., 2014. Formulation of a systemic PEST analysis for strategic analysis. European academic research, 2(5), pp.6478-6492.
Indiatsy, C.M., Mwangi, M.S., Mandere, E.N., Bichanga, J.M. and George, G.E., 2014. The Application of Porter’s Five Forces Model on Organization Performance: A Case of Cooperative Bank of Kenya Ltd. European Journal of Business and Management, 6(16), pp.75-85.
Kelly, S., 2015. Could Payments Innovations Leave Banks Behind?. Treasury & Risk.
Lu, H., Tan, Y. and Huang, H., 2013. Why do venture capital firms exist: An institution-based rent-seeking perspective and Chinese evidence. Asia Pacific Journal of Management, 30(3), pp.921-936.
Murphy, C., 2016. Competitive intelligence: Gathering, analysing and putting it to work. Routledge.
Narayanan, A., Bonneau, J., Felten, E., Miller, A. and Goldfeder, S., 2016. Bitcoin and Cryptocurrency Technologies: A Comprehensive Introduction. Princeton University Press.
News.com.au 2018. ‘Banned from 30 Australian banks and counting’. [online] NewsComAu. Available at: https://www.news.com.au/finance/money/investing/coinspot-rubbishes-liquidity-claims-says-it-is-getting-closer-to-turning-on-australian-dollar-deposits/news-story/ac5de7b98696121adace52b3157b8ca7 [Accessed 17 Apr. 2018].
Raymaekers, W., 2015. Cryptocurrency Bitcoin: Disruption, challenges and opportunities. Journal of Payments Strategy & Systems, 9(1), pp.30-46.
Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.
Sapovadia, V., 2015. Legal Issues in Cryptocurrency. In Handbook of Digital Currency (pp. 253-266).
Wessel, D., 2016. Hutchins Center Explains: How Blockchain could change the financial system. Brookings, January, 11.
Yussof, S.A., Alharthy, A.M.H. and Chahed, H., 2016, May. An Exploratory Study on the adoption of Cryptocurrency as an alternative Currency in Malaysia. In ICPESS (International Congress on Politic, Economic and Social Studies) (No. 2).
Zhao, Y., 2015. Cryptocurrency Brings New Battles into the Currency Market. Future Internet (FI) and Innovative Internet Technologies and Mobile Communications (IITM), 91.
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