Strategic Analyse for westpac Bank -Jatinder Singh ( 30370212) PDF

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8/27/2020

STRATEGIC PLAN FOR WESTPAC BANK BY JATINDER SINGH (30370212)

user JATINDER SINGH

Contents Current state of Westpac ………………………………………………………………………………2 Swot Analysis of Westpac Bank………………………………………………………………………..3 Business canvas model …………………………………………………………………………………4 Proposed future of Westpac ………………………………………………………………………….4 Key stakeholder ………………………………………………………………………………………5 Risk Management ……………………………………………………………………………………..5 References..................................................................................................................................................................... 6

CURRENT STATE OF WESTPAC BANKING Westpac corporation banking is most leading and fourth biggest Australian bank and it was established in 1817 and its headquarter is in Sydney , NSW . Westpac banking sector provide many financial and banking services to the customers , business , government sectors and institution welfares .

This business consists of four key customer-facing sectors divisions which runs a famous portfolio brands including Westpac , St.george , Bank of Melbourne , BankSA and RAMS . With the collaboration of these brands the Westpac group services over a 13 millions of customer . The group’s of four customer-facing divisions are consumer , business , Westpac institution banking and Westpac bank new Zealand and these are the influencer for the Westpac .

SWOT ANALYSIS FOR WESTPAC GROUP SWOT Analysis is strategic planning tool which can be used by different companies or organisations such as Westpac manager to find out the strength, weakness, opportunities and threats of a company. SWOT Analysis just only deals with two factors which are internal and external factor where internal factor deals with strength and weakness and, external factor deals with opportunities and threats. This tool we will use to analyse the SWOT Analyse for Westpac Banking . As a Westpac is one of world leading company which maintains its leading position in a market by critically analysing and reviewing the SWOT Analysis .

Strength Analysis : The Strengths of Westpac are given below : 1. 2. 3. 4. 5.

It leads in form of higher number of branches and ATMs in Australia . It’s the second largest business banking lender in Australia Dominant in Institutional banking across all over the Australia . Over 40000 employees provide customer service to their more then 13 millions customers . It has been described as one of the world’s most socially responsible banking .

Weekness Analysis : The weekness of Westpac

are given below :

1. Westpac banking always have a fear from lack behind from its leading position due to their competitors in a market . 2. Higher competition in retail banking from other leading banking 3. There is also still got less number of customer as compared to other major big banks .

Opportunities Analysis : The Opportunities

of Westpac are given below :

1. Westpac got a permit to open their branches in other nations and this will lead to develop their market and global expansion . 2. Westpac keep improving their technology and innovation for developing the new banking product in a market . 3. Westpac is a growing their business which leads to have the benefits to their customers . 4. As in pandemic situation , Westpac provide unsecured loans upto $250000 to those whose business has been affected by the COVID-19 with low-interest rate .

Threats Analysis : The threats of Westpac are given below :

1. Due to loss of people’s jobs and business loss in current situation , everyone applies for loan and Westpac provided the loans at low interest rate , as it will affect the economy and as in recent time the economy of Westpac hit a significant effect as compared to others major banks . 2. Regulatory and credit changes will also have a dramatic impact on the Westpac bank .

Business Model Canvas For Westpac Banking

Proposed Future State of Westpac Banking Overview : The Westpac Bank is one of the major banks in Australia and New Zealand . Due to have a higher number of customers , they should be updated everytime and will cop with advanced technology . Nowadays , the Westpac’s competitors tried best to give them a good competition by providing more facilities to attract more new customer , not only they attract new user but also take the

customer from Westpac group . Westpac will have to analyse their key businesses points and they will focus on taking as many customer as they can . Key performance Indicator : According to the recent survey which was conducted by Westpac group that shows that they got more customers whose got business account as compared to other major banks . From that research , I would suggest Westpac will provide more benefits to individuals so that they can open their personal accounts on bank . By doing this they will gets more and more customers in following years . Also , Westpac will also focus on introducing more IT system in their network . Metrics : By the result of survey , Westpac will have to come up with new strategy as there is lots of competition raises everyday among within their competitors . The main things we have discovered that Westpac should need to implement the lastest IT system and Will focus on attracting more customer . As Westpac got over a 13 million of customer and So Westpac will also focus on their security measures and overcome the risks if any occurred quickly . Westpac will need to be financially strong then they will offers customer a good amount of credit loan by checking their credit history . By this customer will choose the Westpac bank if they needed credit loan for their personals needs .

Key Stakeholder A stakeholder is a party that has an interest in a company and can either affect or affected by the business. The primary stakeholders in a typical corporation are its investors, employees, customers and suppliers. The stakeholder for Westpac Bank are given below : Customers; – Customer are the people who are member of their bank and they are using the services of the Westpac bank .Customers are really important for the growth of the bank . • Employees : This refers the staff member of the Westpac bank . They are the one whose responsibility is to provide the quality services to their customer and also doing the regular tasks which are performed regularly in banks . • Investors: : They are the one who invest in organization financially and by other means and take part in sharing of the profit too. • Government:, Government is work as an external stakeholder. investors government works outside of the organization and plays vital role in fluctuation of the business due to formation and amendment of different policies, rules etc. so government is also known as an external stakeholder. • Media: Media is external stakeholder for Westpac Group . They do promotions for westpac and these promotion help to attract more customer for using their bank services .

Risk Register

Risk event

Consequences

Credit Risk

It happens when borrowers unable to pay the credit loan money according to given contract dates then bank got hits with big financial losses.

It is the biggest risk for Westpac bank and not only for Westpac but its for all banks .

Probability

Impact

Risk level

high

high

Low

Medium

Low

Low

Low

Medium

If they unable to provide cash in a timely manner to customer which will result a snowball effect and they loose confidence with the bank and Westpac start loosing their customer. Low

High

low

Medium

Operation Risk It is a operation risk which caused by an error ,damages by people or system .

Market Risk It is occurred when the unpredictability of markets, , interest rates , commodity prices and credit spreads

Liquidity Risk It is the capability of bank to access cash to meet their funding requirement .

If there is an system error occurred then this will give chance to hacker for steal the bank user data.

It makes bank more exposed because they are heavily involved in investing in sales and trading

References B, K. (2008). In pursuit of a sustainable supply chain: insights from Westpac Banking Corporation. Sydney : Supply Chain Management. Co, W. (2017, july 1). Westpac Group. Retrieved from westpac: https://www.westpac.com.au/content/dam/public/wbc/documents/pdf/aw/sustainability/W estpac_Group_2018-2020_Sustainability_Strategy. group, W. (2011, july 25). Our History. Retrieved from Westpac : https://www.westpac.com.au/about-westpac/westpac-group/company-overview/our-history/

(Co, 2017) (group, 2011)...