Premium Essay

Westpac Pestel Analysis+Recommendation

In: Business and Management

Submitted By jvguim7x
Words 750
Pages 3
1. Westpac PESTEL analysis

1. Political and Legal analysis There are huge amounts of regulations and laws supervising the banking system in Australia. In this paper, we focus on one important and famous regulation: ‘four pillars’ policy. Basically, the ‘four pillar’ is a specific Australian policy to maintain the separation of ‘big four’ banks including Westpac and to prevent any merge and acquisition among these four banks (1997) .In terms of the report from both TUNSTALL (2007) and The Age (2006), the main objective of the policy is to keep the competition of the banking industry. Such the policy is a threat to the Westpac because the increasing competition will lead to shrinking interest margin definitely. And the profit channel such as making loans in domestic market will be in tough condition. While the ‘four pillar’ policy is also a big opportunity for Westpac due to the fact Australian banks were force to borrow offshore under the policy based on the speech of Macfarlane (2009). Additionally, according to the analysis released by IMF (2012), ‘Australia has limited foreign bank presence’. Therefore, it’s a big opportunity for Westpac to build up foreign presence to join the international banks and adsorb the cheaper foreign capital. 1. 2 Social and Economic analysis After the GFC, based on BBC many important economic entities cut their interest rate with the quantity easing policy issued by US, including Australia, to stimulate the domestic economy (2013). Based on the newsletter from Federal Reserve Bank (2011), the continuous low interest rate may lead to greater risk appetite for banks in Australia. For example, heavily investing in long-term asset like Treasury securities would suffer a huge loss if the interest rate rises unexpectedly (2011). From the same newsletter, the benefit brought by the low interest rate is obvious: (1)…...

Similar Documents

Premium Essay

Westpac

... The article applies PESTEL and five- forces analytic methods to analyze opportunities and threats of Westpac Bank Group in general and competitive environments. Specifically, in general environment, the key perspectives are political and economic factors. However, faced with strong substitutes and rivalries, Westpac would focus on those great threats. In addition, the report demonstrates the visions and missions of the company, indicating the Westpac’s objectives. Then, SWOT analysis is used in the company’s strategic management, which discovers the strengths including company’s infrastructure, great reputation, staffing level and the weakness covering capital risk and low profitability. Moreover, five categories of resources, namely financial, physical, reputational, technological, human resources are discussed. Furthermore, several specific strategies would be presented to gain company’s further objectives and achieve better development. Finally, some recommendations will be suggested to the company, enhancing Westpac’s business operations and development. 1.General environment As one of the big four banks in Australia, Westpac Bank is unavoidably affected by macro environment, faced with several opportunities and threats. Specifically, in terms of political and legal factors, although lots of financial policies and regulations are made to support better Australian banking industry reforms, excessive regulatory interventions may confine Westpac development and......

Words: 2806 - Pages: 12

Premium Essay

Ca - Management Accounting

... | | | | | | |Thought Process: | | | | |understanding what is required | | | | |calculating or compiling the information required | | | | |analysing, interpreting or understanding the information obtained | | | | |Making recommendations and drawing conclusions | | | | | | | | | |Classes of management decision-making | | | | |Planning |Pg 10 | | | |Organizing | | | | |Controlling ...

Words: 28074 - Pages: 113