Australia and New Zealand Banking Group Ltd (ANZ) offers a diversified range of financial and banking products and services. It is one of the four big banks of Australia and its services are provided from more than 1200 offices and branches that are located in its namesake countries including the Asia/Pacific region. In relation to its current organizational structure, the company uses a divisional form of organizational structure (ANZ, 2015).
A divisional form of organizational structure groups every organizational function into a division that can correspond to either geographies or products. ANZ’s current organizational structure is a three-division structure that facilitates operational synergies and cross-selling opportunities within its effective businesses in order to offer a wider line of senior management roles within the company. Moreover, the company has minimized its middle management layers in order to develop its strategy to become a leader bank. The new organizational structure of the company will observe the bank organized around its key geographic areas like Australia, Asia Pacific, and New Zealand. In addition, the company intends to retain its institutional division and design a new wealth division with the due passage of time (ANZ, 2015). Nevertheless, this current structure intends to establish a departure from the product-centric organization of the company, and towards one aligned with their key geographic region that supports future development.
There are various operational problems or inefficiencies in the divisional organizational structure. Firstly, there can be major conflicts betwixt the divisional heads because there may come a time when every divisional head intends to establish their superiority. Therefore, to cater to their ego, every head demands maximum resources for their respective divisions, thereby resulting in a conflict. Secondly, since the entire set of functions including marketing, production, personnel, financing, etc, is needed for every division, it can result in giving rise to the duplicity of efforts amongst the divisions (Douma & Hein, 2013). Moreover, this can result in misuse of resources and enhancement of cost of operations. Lastly, every division attempts to depict enhanced performance often at the cost of other divisions, thereby resulting in a selfish attitude on the part of divisions. Therefore, in order to be successful, proper management of such divisions is vital. Furthermore, executive leadership is the most relevant determinant for a company’s success that uses divisional organizational structure (Douma & Hein, 2013). Besides, the top leaders must understand what every division is doing, and offer leadership to the division in charge on how to incorporate new strategic ways or more efficiently partner across divisions.
Although ANZ uses accounting software packages like Xero, the most beneficial system acquisition method for it will be ERP (Enterprise Resource Planning). ERP is an integrated management of key business activities, often in real-time and moderated by technology and software. These activities comprise of production planning, sales, and marketing, inventory management, manufacturing, etc. This method is generally a kind of business management software that an organization like ANZ can utilize to store, collect, manage, and ascertain data from its enhanced business affairs. Besides, due to diversified business services offered by the company, ERP can permit it to update aspects of its key business activities uniformly and rapidly through general basis of data (Gill, 2011). Moreover, long-term planning is crucial for ANZ in order to attain its goals and objectives, and this method can play a key role in accommodating varied organizational systems and facilitating transactions that are free from frauds or errors. Besides, such methods are more helpful for banks like ANZ, as it allows them to cater to the requirements of its huge base of customers (ANZ, 2015). Moreover, this can also result in enhancing the goodwill and reputation of the company, as the efficiency of services is what a customer seeks.
The customer arrives and makes a request. If the request appears to be correct with the valid login credentials then the bank provides the amount to the client. This is one of the methods of enhancing the sales. The bank traces customers through leads and opens up a bank account or an insurance policy through convincing. The credentials of the customer are taken into consideration and on the basis of it, the bank sells the policies or account. It happens in a step by step scheme. The initial step is when the customers arrive or are approached by the bank.
Even though ERP can be considered as the best system acquisition method, yet many control problems are associated with it. Firstly, ERP lacks functionality that prevents its users to access and assess their data with the tools available in their system (Fryling, 2010). This is the reason why many users resort to other tools like Excel that are more prone to risks and frauds. Secondly, ERP necessitates regular up gradation and software that has become outdated may not prove effective to the users. Besides, outdated software can negatively affect the servers and browsers of the system of users (Zissis & Lekkas, 2012). This can also result in system crash of the users, thereby disrupting all information stored in the system. Thirdly, overlooked software of ERP poses a threat with the delay of companies upgrading their software (Layton, 2007). Furthermore, the real complication behind such threat is that the upgrading ERP systems are very difficult, thereby generating another control problem and fraud for the users using ERP. Lastly, many organizations focus on enterprise system risk management system generally on external threats, end-user securities, and data center processes. However, in relation to a software developer’s immediate access to the system, the area necessitates more scrutiny and investigation.
With the due passage of time, there is a massive development of accounting software packages from a simple accounting package to a full business management tool. The reason behind such development changes in technologies over the years. Moreover, now most of the companies are being accustomed to computerized accounting systems that aim for enhanced efficiency. In the year 1990, there was no accounting system, which could permit communication with other companies in accounting terms (Basta et. al, 2013). This is the time when accounting software packages were developed to infiltrate common business software.
In relation to effective competition in the market, such development of accounting software packages have assisted in altering the business nature. Moreover, with the appearance of innovative technologies, and user-friendly software, computerized accounting systems have played a role in diminishing the problems of bookkeeping activities. Further, in relation to the adoption of accounting software packages, various kinds of risks and costs must be duly considered. Besides, time and efforts of users’ derive from the transformation of software and go beyond the most significant requirements for change. Further, these changes are preferable in the present environment or fast changing innovative technologies, in order to provide relevant capabilities and enhancement together with the natural development of companies that widespread beyond their present accounting packages (Mehdi, 2006). However, cloud accounting is also being developed recently, in order to provide more efficiency to users regarding financial information.
The ANZ bank is hailed as the fourth largest bank in terms of market capitalization in Australia after the other four that is the Westpac, Commonwealth, and National Australia Bank. The operations in Australia sum up the maximum part of the business of ANZ and attributes to commercial, as well as retail banking. It is even the largest bank in New Zealand. The legal entity in New Zealand is known as ANZ National Bank. Apart from the operations in Australia and New Zealand, it operates in various other nations. It is the most sustainable bank as per the Sustainability Index of Dow Jones (Yeats, 2016). It shares a strong competition with that of Westpac and is running for the market share. It not only caters to the banking services rather deals in a variety of services including portfolio management and insurance. In domestic banking, the percentage share is 15%. The attribution of capital attributed towards retail and commercial banking is 40%. Hence, it controls a major chunk of the market and is into fierce competition with the other three top banks.
The top leaders in the banking market are Westpac Banking Corporation and Commonwealth Bank Ltd. In relation to ANZ, it is not entirely a market leader, and observing the company financials proves the same. In addition, it is being considered as one of the top four banking companies of Australia, and other leaders like Westpac highly dominate the market with their effective services (Yeats, 2016). Both Westpac and Commonwealth have a strong policy in terms of minimization of risk. Furthermore, the refresh of Commonwealth’s mobile application has attained massive attention in the banking market because it can offer tap and pay facilities, cardless cash, and social payments merger. Similarly, Westpac’s risk management solution offers the abilities to manage and control currency exposure in order to address both offshore and onshore requirements. The key competitive advantage of both the companies is operating the business in an efficient manner. Besides, negotiation skills and settlement assist both such leaders to have a competitive advantage over ANZ. In addition, a proper transaction methodology allows the leaders to hedge risks and diminishes the threats associated with foreign exchanges (ANZ, 2015). Besides, there is a powerful level of transparency, which allows both the leaders in gaining a competitive advantage over ANZ.
Many businesses use accounting software packages to assist automatic routine accounting affairs, in order to establish controls and generate effective financial reports. Moreover, with multiple accounting software packages, there is generally one, which can align with the requirements of a business, whether is a sole-proprietorship or a large corporation (Beckham, 2011). Besides, while accounting software can assist in conserving data and time, there are some challenges that are encountered by the users.
Firstly, when a business is dependent on accounting software packages, any loss of service because of computer or power outage can create a disruption of work. Furthermore, such work disruptions can avoid the input of fresh information, together with restricting access to stored details. Additionally, if such details are not backed up properly, an outage can result in the loss of entire financial data. Secondly, every business has unique perspectives that can cause complications when it attempts to tailor an accounting software package to its requirements (Mehdi, 2006). While customization is made available, it may create significant inaccuracies if not done effectively. Besides, as a business develops, there may be a requirement to alter accounting software packages, thereby causing immense disruption because new training may be required and the stored information needs to be transferred. Thirdly, the cost associated with accounting software packages is very high. Beyond the initial expenditure to procure the software, there is the cost of customization, maintenance, computer hardware, and training. While savings of time may justify the cost, for few businesses it can consume years before an accounting software investment actually pays off (Turban, 2008). Lastly, the information that is stored electronically can be easily accessed and manipulated in the absence of proper controls and security steps. Therefore, strict measures are required to make sure, only an authorized personnel can use the accounting software, and can have prior access to the reports (Horngren, 2013). Nonetheless, since financial information can be too confidential and sensitive, using accounting software packages can generate a potential for fraud. Therefore, these are all the challenges that are encountered by users.
In relation to recommendations, use of cloud accounting systems like Xero can help in deleting the problems or complications caused to the users of desktop accounting. In addition, adequate training and education of engineers must be made so that they can assist the users in solving their problems in a more enhanced manner, and on time. (Shanker, 2014). Besides, since there are frauds in the cloud accounting systems, effective steps like authentication measures can be perfectly used in order to restrict frauds on the part of third parties.
References
ANZ 2015, ANZ annual report & accounts, viewed 27 April 2017 https://news.iguana2.com/anz/ASX/ANZ/433344
Basta, A, Basta, N & Brown, M 2013, Computer security and penetration testing, Cengage Learning.
Beckham, J 2011, The Top 5 Security Risks of Cloud Computing, viewed 27 April 2017 https://blogs.cisco.com/smallbusiness/the-top-5-security-risks-of-cloud-computing
Douma, S & Hein, S 2013, Economic Approaches to Organizations. London
Fryling, M 2010, Total Cost of Ownership, System Acceptance and Perceived Success of Enterprise Resource Planning Software: Simulating a Dynamic Feedback Perspective of ERP in the Higher Education Environment, Theses database
Gill, R 2011, ‘The rise of two-tier ERP’, Strategic Finance, vol. 93, no. 5, pp. 35-40, 1.
Horngren, C 2013, Financial accounting, Frenchs Forest, N.S.W: Pearson Australia Group.
Layton, T.P 2007, Information Security: Design, Implementation, Measurement, and Compliance, Boca Raton, FL: Auerbach publications.
Mehdi, K.P 2006, Emerging Trends and Challenges in Information Technology, Management. Idea Group.
Shanker, S 2014, The Difference Between Traditional Accounting & Computerized Accounting, Accessed viewed 27 April 2017 https://smallbusiness.chron.com/difference-between-traditional-accounting-computerized-accounting-4021.html
Turban, T 2008, Information Technology for Management, Transforming Organizations in the Digital Economy, Massachusetts: John Wiley & Sons, Inc.
Yeats, C 2016, ANZ Bank CEO Shayne Elliott eyes bigger domestic share, viewed 27 April 2017 https://www.smh.com.au/business/banking-and-finance/anz-bank-ceo-shayne-elliott-eyes-bigger-domestic-share-20160302-gn88j8.html
Zissis, D. & Lekkas, D 2012, ‘Addressing cloud computing security issues’, Future Generation computer systems, vol. 28, no. 3, pp.583-592.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download
