Discuss about the Strategic Impact of Corporate Social Responsibility.
Strategic development is necessary to ensure the business sustainability in a competitive market. The enhancements of the competition among the different industries have become quite prominent in this current market. Each of the organisations tries to implement the innovative strategies in order to ensure profitability (Cummins and Santomero 2012). However, such implementation process even requires identifying several market segments. The financial industry even has been facing several direct competitions in this current scenario (Lember, Kattel and Kalvet 2014). National Australia Bank is holding the leading position among the other financial companies in Australia and New Zealand. Unlike others, the company has been paying attention towards the strategic development to ensure the customer base. The major focus of the company is to promote the better customer service experience that will be helpful in strengthening the business position (Klettner, Clarke and Boersma 2014). It is important to keep the concentration on the mission and vision statement of the company. Simultaneously, the identification of the competitive market is also essential. It has been seen that due to the increasing level of the competition, the company has been facing several criticisms as well. The environmental analysis will be justifying the internal strengths and weakness of the company. Depending on such analysis, the preferable recommendations will be presented accordingly.
The mission statement of a company provides the idea of the business functionalities that are needed to be undertaken. The vision of the company is to achieve the success and strengthen the organisational position in this current competitive scenario. The mission of the company is stated further:
There are several criticizing reports presented against National Australian Bank. In maintaining the Australian Financial Standards, NAB has faced enormous criticism. It is noted that the Australian Prudential Regulation Authority (APRA) raised a concern regarding several financial statements (Voanews.com 2016). NAB was alleged due to the irregularities visible in the foreign currency training operations. The continuous irregularities are affecting the foreign investment procedures. It was notified that in the month of January, NAB informed about the loss of $US270 million revenues. The company even fired several senior managers, which caused mismanagement of the internal organisational scenario. In fact, APRA accused NAB for not taking proper decision regarding the standard risk management procedures. Whereas China’s Central Bank started implementing the plan of tightening credit by raising the reserve requirements for the country’s financial structure, NAB’s performance degraded to the lower level. Hence, it was clearly seen that the decreasing performance level was the major reason behind such criticisms that National Australia Bank had to face.
While developing any strategies and making the business decisions, it is important to analyse the internal and the external market (Goodhart 2013). It helps in recognise the market potentiality, which can be beneficial for the business sustainability. Moreover, when the company has been focusing on the customers’ needs, it is important to understand the environment more specifically. PEST analysis is thus significant enough in understanding the political, economical, social, and technological market for business operations. The further description is presented below:
Political Scenario: The regulations imposed on the Australian banking industry are affecting the financial management in a very specific way. It is noted that the high interest rate is affecting the capital investments. Due to the high inflation rate, the renowned financial banking companies like Commonwealth Bank, National Australia Bank, and Westpac, have been facing the real challenges (Laby 2013). It is noted that the National Australia Bank established the partnerships with other banks in order to increase the revenues. However, the complex regulations faced by the companies are creating the troublesome surrounding more prominently (Florey 2012). Hence, it can be inferred that the political regulations are not so much in favour of the banking strategies.
Economic Scenario: The constant improvements in the financial structure are considering the significant impact on the banking industry. Due to the emergence of competition, the funding costs have been declining easily. The banking companies have therefore started accumulating capital over the increasing target (Huang, Zhou and Zhu 2012). Another most effective change has been seen in the Liquidity Coverage Ratio. This particular segment reinforced the banks to manage the probable risks associated with the financial banking process. However, the increasing level of the different risks may sometimes create the hazardous situations for the renowned financial services (Stoeckl et al. 2013). It is required to strengthen the financial pricing system, which increases the competition among the lenders.
Social Environment: It is noted that the National Australia Bank has been trying to focus on the customers’ needs. Therefore, the company is much concerned about the corporate social responsibility (Boulouta and Pitelis 2014). The company has been promoting the personal banking system to make the financial transaction simpler to the customers. The major focus of the business is the stakeholders. Therefore, the company has been implementing the strategies to engage more supports of the target customers. The company believes that involvement of the more customers is important in order to gather idea about the needs and expectations of the community (Florey 2012). In fact, the company can even identify the potential challenges by associating more customers. The advisory council is also associated with the company in order to suggest the justified initiative that the company needs to undertake. The maintenance of sich social responsibility is thus useful for the company.
Technological Scenario: National Australian Bank aims to offer the leading customer service experiences to the target customers. Therefore, the company has been concentrating on involving simpler, stable, agile, and secure technologies to ensure effective customer services (Bryson, Daniels and Warf 2013). It is noted that in this current world, customers are much attracted by the sophisticated technologies used in different industries (Jaumotte, Lall and Papageorgiou 2013). In keeping focus on such requirements, the National Australia Bank has also implemented the technological strategy to attract more customers. The instant banking system and the advanced transaction process are much commendable and easier to use. Hence, it can be inferred that the technological development has created the significant impact on the business performance of National Australia Bank.
The SWOT analysis represents the recognition of the internal strength and the weakness of the company while conducting business in a competitive market. Apart from identifying the strengths and weaknesses, it is also essential to understand the potential threats and the opportunities underlying the external business. The recognition of such segments would be helpful enough in understanding the potentiality of the company of strengthening the business position in the competitive market. The analysis of such segments is presented further.
Strengths:
Weaknesses:
Opportunities:
Threats:
The recognition of such analysis has been indicating that the company is trying to cope with the current scenario of the financial business. However, it has been previously mentioned that the company had faced numerous criticisms due to the fall of revenues. Hence, in such cases, the company needs to keep the focus on the proper strategic decision making process in order to ensure the growth of the revenues in this current competitive market. Moreover, the identification of the strengths is signifying that the company is capable of conducting business in a competitive scenario. However, it is important to structure the organisational procedure to eliminate the underlying risks and ensure the business profitability. Depending on such recognition, the further recommendations are provided to ensure the business growth in the future.
The obtained idea from the above analysis has been indicating that the company needs several improvements in the business functionalities. The first and foremost recommendation is to structure the resource allocation procedure in a cohesive way. The company has the commendable strengths, which ate much powerful for ensuring the strengthened business position in a competitive market. NAB needs to utilise the resources properly. Therefore, the management training and development process is necessary. The efficient employees’ performance can bring the specific changes in the business functionalities. Moreover, if the company can structure the idea of the resource allocating by taking the advices from the experts, it would be beneficial for the future business implications.
Another weakness was found in the declines of the revenues. In order to avoid the continuous fall of the revenues, the company needs to undertake the proper strategy. It has been seen that merger and acquisition with the foreign financial services can ensure the benefits by investing a good number of capital. When the responsibilities will be divided, the management will also collaborate. In such cases, the resource allocation process will be easier. In fact, there will be less chance to face the loss. Hence, it is important to implement the proper business strategies in order to ensure the establishment of the business in a competitive market. Implementation of such recommendations will be beneficial for the company in ensuring the future benefits.
Conclusion
The study has been providing the idea of the strategic implementation of National Australia Bank, which has captured the leading position in the financial market. The company has been mainly focusing on offering the better customer service experiences to the financial investors. Therefore, the company has been undertaking the proper strategies to strengthen their position in the competitive market. However, it has been recognised that NAB had to face huge criticisms due to the repeated fall of the revenues. The separation from Westpac Bank was also quite an insignificant step undertaken by the company. Hence, it is important to understand the proper strategic implementation that can be beneficial to the company for the future prospects. In order to consider such strategy, the environmental analysis is necessary. The internal and the external environmental analysis is considering the potential challenges that the company might face in order to conduct the business globally. It is noted that the company has the strengthened brand position and customer supports to grow further. Therefore, it is necessary to pay the attention on the proper resource allocating process and the internal business functionalities. In addition to this, if the company can establish the business partnerships with the other financial services, the risks of facing loss will be minimised. Hence, following the recommendations will be beneficial for the company to establish their strengthened business entity in a competitive market.
References
Boulouta, I. and Pitelis, C.N., 2014. Who needs CSR? The impact of corporate social responsibility on national competitiveness. Journal of Business Ethics, 119(3), pp.349-364.
Bryson, J., Daniels, P. and Warf, B., 2013. Service worlds: People, organisations, technologies. Routledge.
Cummins, D. and Santomero, A. eds., 2012. Changes in the life insurance industry: Efficiency, technology and risk management (Vol. 11). Springer Science & Business Media.
Florey, K.J., 2012. State Law, US Power, Foreign Disputes: Understanding the Extraterritorial Effect of State Law in the Wake of Morrison v. National Australia Bank. Boston University Law Review, 92(2).
Florey, K.J., 2012. State Law, US Power, Foreign Disputes: Understanding the Extraterritorial Effect of State Law in the Wake of Morrison v. National Australia Bank. Boston University Law Review, 92(2).
Goodhart, C.A., 2013. Global macroeconomic and financial supervision: Where next?. In Globalization in an Age of Crisis: Multilateral Economic Cooperation in the Twenty-First Century (pp. 343-363). University of Chicago Press.
Huang, X., Zhou, H. and Zhu, H., 2012. Assessing the systemic risk of a heterogeneous portfolio of banks during the recent financial crisis. Journal of Financial Stability, 8(3), pp.193-205.
Jaumotte, F., Lall, S. and Papageorgiou, C., 2013. Rising income inequality: technology, or trade and financial globalization?. IMF Economic Review,61(2), pp.271-309.
Klettner, A., Clarke, T. and Boersma, M., 2014. The governance of corporate sustainability: Empirical insights into the development, leadership and implementation of responsible business strategy. Journal of Business Ethics, 122(1), pp.145-165.
Laby, A.B., 2013. Revolution in the regulation of financial advice: the US, the UK and Australia: international issues in the regulation of financial advice: regulation of global financial firms after Morrison v. National Australia bank. St. John’s L. Rev., 87, pp.561-1193.
Lember, V., Kattel, R. and Kalvet, T., 2014. Public procurement, innovation and policy. International Perspectives.
Nab.com.au, 2016. [online] Available at: <https://www.nab.com.au/content/dam/nabrwd/legacy/business/calculators-and-tools/business-tools/documents/swotanalysistemplate.pdf> [Accessed 3 Sep. 2016].
Nab.com.tr, 2016. Nab Holding – Vision and Mission. [online] Nab.com.tr. Available at: <https://www.nab.com.tr/en/VisionandMission.aspx> [Accessed 2 Sep. 2016].
Stoeckl, N., Jackson, S., Pantus, F., Finn, M., Kennard, M.J. and Pusey, B.J., 2013. An integrated assessment of financial, hydrological, ecological and social impacts of ‘development’on Indigenous and non-Indigenous people in northern Australia. Biological Conservation, 159, pp.214-221.
Voanews.com, 2016. National Australia Bank Comes Under Heavy Criticism. [online] VOA. Available at: <https://www.voanews.com/a/a-13-a-2004-03-29-4-national-67492022/282207.html> [Accessed 2 Sep. 2016].
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