...Company Report: Strategy Evaluation 8 February 2013 Table of Contents Executive Summary 3 Industry: Banking and Financial Services in Australia 4 Overview 4 PESTLE 5 Porter’s Five Forces of Competition 6 Firm: Westpac 7 Overview 7 McKinsey’s 7 S Framework 7 Competition Analysis 11 Blue Ocean Analysis 13 SMSF and Strategy Recommendations 13 What is a SMSF? 13 Three tiers of Non-Customers 13 Strategic Canvas – SMSF 14 3 Keys to Success: Tagline, Focus and Differentiation 14 Option 1 14 VRIO 15 Option 2 15 VRIO 15 Appendix 17 Industry Analysis Charts 17 Porters 5 Forces Analysis Detail 20 Westpac Strategic Priorities 22 Material issues 23 Executive Summary Westpac Bank is Australia’s first Bank, founded in 1817 and is currently one of the “big four” group of lending banks in Australia. Listed on the stock exchange in 1970, Westpac has a history of acquisitions, notably the recent (2008) purchase of St George, which contributes 19% of Westpac’s Cash Earnings. Westpac has a market capitalisation of $76.5 billion in an industry with an overall value of $208.6 billion, or roughly 10% of Australia’s GDP. The financial services industry in Australia is an Oligopoly, with the big four banks accounting for over 80% of the market. A mature market, players are converging, and the industry is forecast to grow at around 8% year on year to 2018. Competition in this industry is fierce, though there is also speculation that there may be significant price signaling...
Words: 6332 - Pages: 26
...Sustainability and the role of the management accountant Research executive summary series Volume 7 | Issue 14 Associate Professor Eva Collins, Professor Stewart Lawrence Professor Juliet Roper, Associate Professor Jarrod Haar Waikato Management School, University of Waikato Key findings: • Our research has shown that companies need to have management accountants in strategy-setting roles in order to achieve the best sustainability outcomes. • There is a worldwide move toward ‘integrative’ reporting incorporating non-financial as well as financial data. Management accountants are ideally placed to provide the alignment mechanisms and collaborate with senior management in producing fully integrated reports, reflecting sustainable strategies adopted by organisations which fulfil the needs of stakeholder groups. • Our results found that many management accountants are fulfilling their traditional role of financial specialist but not yet acting as collaborators in driving toward sustainability as a goal. • The survey showed that CIMA members had a higher rate of accountants participating in sustainability strategies than non-member companies but it was still a minority (12%) compared to the role of the managing director, environmental, human resources and marketing managers. • Like any other aspect of business, collection and analysis of good, issue-specific data is crucial to sustainability decisions. Sustainability requires accountants to monitor and manage non-traditional...
Words: 7421 - Pages: 30
...SUSTAINABLE BANKING -AN INDIAN PERSPECTIVE Abstract ------------------------------------------------- The contribution of financial institutions including banks to sustainable development is dominant, considering the crucial role they play in financing the economic and developmental activities of the world. In this context, the urgency for banks to act as responsible corporate citizens in the society, especially in a developing country like ours, need be hardly overemphasized. Their activities should reflect their concern for human rights and environment. Since banking sector is one of the major stake holders in the Industrial sector, it can find itself faced with credit risk and liability risks. Further, environmental impact might affect the quality of assets and also rate of return of banks in the long-run. Thus the banks should go green and play an upbeat role to take environmental and ecological aspects as part of their lending principle, which would force industries to go for mandated investment for environmental management, use of appropriate technologies and management systems. This paper explores the developments of environmental concern in Indian banks, their environmental impact, and their role in the economy as a driving force for more proactive policies toward sustainable development. 1Introduction Banks and financial intuitions have played major role in the economic development of the country and most of the credit- related schemes of the government...
Words: 3042 - Pages: 13
...Paper Travel And Tourism Bussiness Plan Business plan: As a part of Travel & Tourism AS course we had to organize a trip.From the first day we were a group of five persons.However,due to some... Save Paper The Virtual Office’s Impact On Employee Work-Life Balance And Business Sustainability 1 MGT 3201 The virtual offices impact on employee work-life balance and business sustainability Prepared for: Mr. Ray Hingst Submitted: 18 October 2013 Prepared... Save Paper Travel And Tourism UK, and over 200,000 small and medium-sized enterprises. People are employed in tourism right across the country, in every constituency, in cities, in seaside towns... Save Paper Energy For Sustainable Management: Unit 3 Assignment able to produce as much useful energy as they consume, the break-even point. Sustaining reactions that produce enough energy to make them a commercially viable power... Save Paper The Sustainability Of Bws Under Philippine Laws Sustainability of BWS under Philippine Laws (A Position Paper) The case of People v. Genosa in 2004 was a landmark case that allowed for the Philippine... Save Paper Can Coke And Pepsi Sustain Their Profits In The Wake Of Flattening Demand And The Growing Popularity... best rates for the majority of their needs. Coca-Cola and Pepsi can sustain their profits in spite of a flattening demand for carbonated drinks by continuing to... Save Paper Banking Industry And Sustainability Of Business change, disaster risk reduction, biodiversity...
Words: 768 - Pages: 4
...and Hansen (2009: 105) suggest that ‘a strategy is a game plan for a business to achieve its objectives; a statement of long-range intent and direction than short-term actions.’ However, all organisations exist in dynamic markets therefore its strategy focus on its market, its customers and its value proposition, may have to be operationalised as short term activity, in response to external, industry, market, competitor and customer analysis; using tools such as portfolio analysis namely the Boston Matrix, Porter’s five forces, Grant’s key success factors, the Ansoff Matrix, a micro and macro-environment analysis, industry and segmentation analysis, market positioning analysis, innovation and new product development and the marketing mix. Presumably, every organisation would be responsible to its stakeholders and shareholders and formulate its strategy being informed by such business investigation/intelligence. In the absence of such information in the Capitec Bank: Low-Cost Banking for Joe Average case study (Townsend and Mosala: 2006), such is going to be assumed. The facts and figures from 2002 to 2006, point to the success in profit and volume growth of the Capitec strategy of ‘providing low-cost basic banking services to the lower to middle-income market, and to create a bank that offered everything to everybody.’ From public source information, the Fin24 and BusinessLive (2011) the focus on banking the unbanked remains a key national issue. While Capitec led market share...
Words: 1955 - Pages: 8
...customers account for the largest part of the institution’s working capital. However, the company has global outreach providing it with a huge number of suppliers. In addition, the suppliers still control the institution's interest rates as the world has become more corporate. Therefore, the bargaining power of suppliers is high. The Bargaining Power of the Buyers Customers in the banking sector have more power due to more concentration and availability of knowledge of the market as well as the huge number of alternative financial institutions. The advantage of Barclays bank is founded on the king of products and services it offers. It offers insurance services, e-banking and free credit cards as some of the services that differentiate it from its main rivals. In general, the power of the buyers is high. The Threat of Potential New Entrants A market with more barriers to new entrants minimizes this threat. Some of the main factors that are considered to obstruct new entrants into the market are switching costs, capital requirements, product differentiation, and economies of scale. In the banking industry, the statutory financial capital requirements are the main...
Words: 2260 - Pages: 10
...Abstract Businesses today face heightened expectations around their role in society and the world, with turning a profit only one of many criteria by which performance is measured. Rising in importance is the impact a company has on its stakeholders, society, and even the planet. Integrated reporting, which encompasses elements of traditional financial reporting, sustainability reporting, and governance reporting within a single presentation, represents a growing trend that reflects these new expectations. The core concept underlying the term “integrated reporting” is providing one report that fully integrates a company’s financial and non-financial (including environmental, social, governance and intangibles) information. Integrated reporting offers the opportunity to centre business reporting on strategy and value creation, to demonstrate how the business uses capital and the extent to which they should continue to be invested in business. Integrated reporting is a journey. Organizations are unlikely to achieve perfection in the first year. In the absence of a generally accepted framework, companies that wish to move toward integrated reporting may encounter several dilemmas around relevance, scope, assurance and other issues. However, as reporting processes for the production of the supporting information are designed and improved and as the executive team begins to benefit from a more informed implementation of the governing structures’ decision, reporting will improve...
Words: 14827 - Pages: 60
...External Remote Environment Analysis The banking sector in Nigeria is can be analyzed using the General Forces Matrix to analyze trends or events that give a pointer into the future of companies operating in the industry. In terms of economics, there has been a persistently high inflation rate in Nigeria. Although the Central Bank has tried to keep the rate stable in the last three years, the absolute rate is still relatively high. The impact of this is that there are not enough small and medium scale businesses to employ the teeming population of unemployed people. Demographically, the population of Nigeria is growing at an alarming rate and this is estimated to get to 170million by 2016. This growth is as a result of illiteracy and the influence of culture in this part of the world. The banking industry is highly regulated and as such, banks are vulnerable to the changing policies and guidelines from the regulator, the Central Bank of Nigeria. Some of these laws include guidelines for capital adequacy, obligor limits, prudential guidelines for banking operations and other operational modalities. Sometimes, the regulators can introduce changes due to trends or events happening in the global landscape. As a result, banks invest substantial time and resources towards understanding these trends and forecasting to reduce the impact of sudden shocks. The barrier to entry in the banking sector is high. In Nigeria, there is a huge capital requirement of between 300 to 500 million...
Words: 785 - Pages: 4
...2013 ANNUAL REVIEW AND SUSTAINABILITY REPORT THE STRENGTH WE’VE BUILT TODAY… STRENGTH RETURN GROWTH PRODUCTIVITY HELPING US LEAD TOMORROW. Since our inception in 1817 we’ve built a legacy of leadership. In a young colony, through a great depression, through boom years, through a global financial crisis and in the development of a portfolio of businesses, Westpac has a history of looking ahead with a long-term view. This year we have made significant progress in implementing a strategy that is delivering better returns today, and building a sustainable business for the future. It is the strength we’ve built into our business today, with sector leading capital, a robust funding and liquidity position, and superior asset quality, that is helping us lead tomorrow. As a result we can respond to opportunities as they emerge and invest to transform the organisation. We’ve been proudly supporting Australia, New Zealand and our region for almost two centuries and we’re singularly focused on continuing our support as we approach our third century. We believe in these countries, in their people and in their businesses and their potential to prosper and grow. Our strong position today means we are more capable than ever of helping to realise this potential. And we are more dedicated than ever to play a role in leading tomorrow. …IS Westpac Banking Corporation ABN 33 007 457 141 2013 PERFORMANCE HIGHLIGHTS CASH EARNINGS ($m)1,2 REPORTED RESULTS ($m)3 COMMON EQUITY TIER...
Words: 14831 - Pages: 60
...Green Banking Initiative: Opportunities for Bangladesh Dr. S M Ahsan Habib Professor and Director (Training & Research), BIBM The paper was presented at a seminar on Green Banking at BIBM on October 14, 2010 Green Banking Initiative: Opportunities for Bangladesh I. Introduction Banks that were once seen only as profit motive institutions have been adjusting to a more demanding market and to a more conscious society over last two decades. An increasing number of banks around the world are going green by providing innovative green products that cover financial services to support the activities that are not hazardous to environment and help conserve environment. A green bank is also called an ethical bank, a socially responsible bank, or a sustainable bank. The exact meaning of all these titles may not be same however they cover a lot of common activities and perceptions. At least, all these banks- in various ways and at different times- have engaged themselves in making a better future (Merzio 2007). The approach to green banking (GB) varies from bank to bank, however, broad objectives of green banks are to use their resources with responsibility avoiding waste and giving priority to environment and society. The public concern of the state of environment has been growing significantly in the last few years, mostly due to apparently unusual weather patterns, rising greenhouse gases, declining...
Words: 16618 - Pages: 67
...ethics and social responsibility only leads to a great downfall and loss to the community. For example a firm that is no longer doing business because it failed to include the role of ethics in strategic decision-making is Countrywide Financial. The firm simply disregarded the wellbeing of the economic environment and its threshold for creating new loans in order to keep the greed machine working long enough to benefit a few select stakeholders and their agendas (Lecker, 2011). The firm’s founder Angelo Mozilo’s behavior was dubious at best suggesting the firm functioned upon core cornerstone values like accountability and ownership of actions when really leadership was only seeking these actions as pretense to create false social responsibility (Lecker, 2011). Instead leadership was hiding a big scam, a secret that would create one of the worst financial recessions since the Great Depression. In short the role of ethics in this strategy was simply nonexistent. Aguinis and Glavas (2012) see the role of ethics as a guiding force within the business to uphold a sense of responsibility and transparency about business actions. To not have openness means the company has something to hide in their actions. Ethical choices and social responsibility show to the consumer and the local communities how the business intends to use resources and how business strategies meet the needs of all stakeholders. This...
Words: 900 - Pages: 4
...Introduction s environmental issues gain greater attention, pressure is being placed on all industries, including financial services to implement “green” initiatives. While green banking is not yet a key reason for most customers to select one financial institution over another, customer demands and greater environmental awareness are driving a number of financial institutions to go green. Environment is a key focus amongst ethical banks (in this field specially called sustainability or green banks) as well as amongst many conventional banks that wish to appear more ethically oriented or that see switching to more environmental practices to be to their advantage. In general bankers “consider themselves to be in a relatively environmentally friendly industry (in terms of emissions and pollution). However, given their potential exposure to risk, they have been surprisingly slow to examine the environmental performance of their clients. A stated reason for this is that such an examination would ‘require interference’ with a client’s activities. While the desire to not meddle in the business of the client is valid, one could also note that banks are required to interfere in the business of their clients regularly to ensure that the clients’ business plan is viable before issuing them a loan. The kind of analysis that all banks partake in is termed a single bottom line analysis (this analysis only considers financial performance). It is arguable whether or not performing a triple bottom...
Words: 3636 - Pages: 15
... 2 2. Motivating factors for companies to publish sustainability reports 2 3. Key features of effective sustainability reports 3 3.1 General standard disclosures 3 3.2 Specific standard disclosures 3 3.3 Sector specific disclosures 4 4. The evaluation of Westpac’s sustainability report 4 4.1 General standard disclosures 4 4.2 Specific standard disclosures 5 4.3 Sector specific disclosures 5 5. Conclusion 5 6. Reference 6 Executive Summary This article is going to explain the reason for companies to present their sustainability behaviors and highlight the key feature of an effective sustainability report. Sustainability reports refer to disclose companies’ social and environmental performance. It is essential for the financial service industry to convey their sustainability profile and integrate this to their financial report. This article also makes an evaluation about Westpac’s sustainability report. Westpac’s sustainable reporting has used the table and bar chart to illustrate their sustainability performance accurate and transparent. Therefore, this report has a good quality. 1. Introduction...
Words: 1561 - Pages: 7
...stakeholder engagement is referenced in the following table and throughout this report. [pic] [pic] [pic] [pic] [pic] Top Competitors Metropolitan Bank and Trust Company Banco De Oro Unibank Inc. Philippine National Bank China Banking Corporation Metrobank Land Bank of the Philippines Rizal Commercial Banking Corporation Corporate Social Responsibility Aside from being BPI customers and sources of skilled workforce, communities are our partners in nation building. BPI Foundation, Inc., for more than three decades, serves as a catalyst in social development by focusing on areas of entrepreneurship and education, and environment. [pic] Entrepreneurship and Education Small and medium enterprises (SMEs) contribute 32% of the country’s gross domestic product, employ 70% of the workforce, and account for 97% of all registered businesses. To enable them to access financing, BPI Foundation provides learning sessions on financial and credit management through its “Show Me, Teach Me SME – Empowering Entrepreneurs” with the help of BPI, its thrift bank arm BPI Family Savings Bank and the Department of Trade and Industry. In 2008, learning sessions for 106 SMEs were conducted in the cities of Balanga, Koronadal, Tacloban and Bacolod. A total of 816 SMEs has benefited from this program since its inception four years ago. In 2008, these were attended by 169 participants from 60 MFIs,...
Words: 916 - Pages: 4
...Implementing a Sustainability Balanced Scorecard „Dashboard‟ Approach to Assess Organisational Legitimacy. Kevin Huang, University of Wollongong, Wollongong, New South Wale Matthew Pepper, University of Wollongong, Wollongong, New South Wale Graham Bowrey, University of Wollongong, Wollongong, New South Wales gbowrey@uow.edu.au Abstract Purpose: The purpose of this paper is to identify and determine the contributing factors which influence the contents of a firm‟s sustainability reporting through combined social and environmental accounting and management perspectives. Design/methodology/approach: This paper analyzes the disclosed sustainability indicators of a major Australian financial institution, Westpac, through the application of the research method content analysis. The theoretical framework will be shaped by the consideration of legitimacy theory and the Balanced Scorecard approach. Findings: The results indicate that the four perspectives of a traditional Balanced Scorecard are related to the main sources of influential inputs to Westpac‟s sustainability reporting – existing frameworks, stakeholder engagement mechanism, employee involvement and traditional shareholders‟ financial information needs. It also reinforced the argument that the focus of organisational legitimacy is a key resource of organisation survival. Originality/value: This research contributes to the literature on social and environmental disclosures including the research of Do, Tilt and Tilling...
Words: 9462 - Pages: 38
