Introduction to Commonwealth Bank
Prepare a brief report about the Australian organisaiton’s Board of Directors advising the opportunities and risks involved for entering business in the scenario countries. Groups will be chosen by the Learning Facilitator.
The bank is a leading financial institution and functions in the field of providing financial advices and helps to people who wish to open their accounts or wishes to get their projects financed (Shlagwein, Thorogood & Willcocks, 2014). The aim of the project is to study the functioning of the bank and examine how the bank will function in two other jurisdictions and the laws and rules that the bank will need to abide by. Analyzing the bank from the eyes of the directors of the bank and study how the jurisdictions help the bank in setting up their business and what are the impediments to its growth in those countries (Willcocks & Reynolds, 2015). The bank is already in Singapore and South Korea. The bank has been very successful in opening its branch in two jurisdictions (Dawson, 2017). Leina, who is the national business development manager, manages the domestic needs of the company and tries to meet all the requirements that are need to succeed nationally. The work of Leina is to develop the bank nationally in Australia. The work of Femida is to take care of the international aspects of the company. The work of Femida is to incorporate all international instruments, ensure there are no conflicts of law, and look for harmonious options to settle policies amicably. Leina and Femida are the two business managers who are in charge of promoting the business and handling the financial matters of the bank.
Commonwealth Bank is a multinational Australian bank. Its business branches are spread globally across New Zealand, Asia, United States, United Kingdom. The Commonwealth Bank is also known as the CBA or the Commbank. The bank is in the business of providing business in the area of finance, retail. The nature of banking is institutional, management, super annuity. The Commwealth Bank is one of the largest banks in Australia and it is also listed on the Australian Securities Exchange along with other leading banks (Mcllroy, 2017). The other important banks to feature in the same list were ASB Bank, Bankwest and many other financial institutions of great repute (Williams, 2016). The Southern Bank is also the leading bank in the whole of Australia and the southern hemisphere. The bank was founded in the year 1911 under the Commonwealth Bank Act. The bank after its inception in the year 1911 started functioning in 1912. The CommBank gives huge support to anyone planning up to start up their business in Australia and also gives a wide array of support to financial bodies. The bank has its internal framework that regulates the governance of the members and protects the rights and duties of the directors (Haq, Avkiran & Tarazi, 2016). The CommBank is committed to the health and safety of its workers and is also committed towards fulfilling the responsibilities of the bank as a commercial institution. The bank is the leader service provider of financial services and regulates both savings and general banking services (Kuo, 2018). This bank provides integrated services globally in countries like New Zealand, Australia. The nature of the bank is offering both businesses of nature ranging from premium to institutional. The bank is also equipped in providing bank loans to both rural and urban investors.
Business Opportunities of Commonwealth Bank in Australia
Business Opportunity of the company (stelios & Richman, 2016).
There are a few factors that shape the business sector in a country. The Australian banking sector is moving towards optimizing the economics and profit. The Australian business sector, even though facing a dull moment, in terms of investment and saving, the finance company is growing steady and fast (Al Qudah, 2015). The strength of the CommBank lies in owning numerous branches that are spread across the globe. These help in growing the finance sector and branching out in different countries. The Australian laws are very flexible when it comes to encouraging business opportunities. The banks in Australia have a very strong return and profit and the CommBank being one of the four banks is in a strong place to invest more. The Commonwealth Bank has a big brand value which has evolved in a span of 102 years. People of Australia place immense trust and reliance on the bank (Sharp, 2016). The CommBank is constantly trying to improve its innovation and technology and competing with international banks. With the growth of the bank in the financial sector, there is also an advancement of competition. The bank’s competition is the international and regional banks that deal in the same subject of investment (Rosner & Kang, 2015). The banking sector of Australia aims to promote long term returns and value for money to investors. By making flexible domestic laws, the aim of the banks in Australia is to strengthen their position and grow economically. By understanding the business opportunities of the bank, the Australian laws are made flexible to accommodate more investors to come forward to invest in Australia. Currently, the bank is functioning up to its optimal potential (Ritz & Walther, 2015). They have invested in the retail sector and have emerged as the most successful retail bank in the whole of Australia. Apart from investing in financial sectors, the bank has made donations in various private, public and environmental undertakings. The business opportunities of the bank will be increased in Australia if it starts to implement core banking services by increasing the quality of its service. By increasing the quality, the reputation and well known-ness of the bank will also increase as a result more investors will start to invest in the bank. Another opportunity is by expanding in other territories of potential growth. Banks in Australia are genuinely motivated towards the benefit of the customers and moves in the direction of maximizing their benefits. The business opportunity of the banks in Australia lie in their customer centric attitude and their intention solve problems related to their finance, health, economy and tax. These additional services are beneficial because they provide additional revenue to the banks and this helps the bank in earning traditional returns. Therefore, banks in Australia have immense opportunity to grow and this is aggravated with the help of legislative backing. The trick behind the growth of CommBank in Australia is how it has found its target audience and has aligned its interests and offerings with the needs of the customers.
Business Opportunities of Commonwealth Bank in Singapore
The chosen country here is Singapore where the CommBank has its office. In this segment of the analysis, the country will be studied in detail and also the business opportunities will be examined. Bu understanding the business opportunity in Singapore, the legal, tax and employment structure along with agency and contract laws will also be studied. Singapore is a growing field for innovation and technology and the laws in Singapore are aligned towards helping the investors make more investments in Singapore (Guo & Woo, 2016). The goal of Singapore is to create incentives for the entrepreneurs so that they have enough reasons to develop and work in Singapore. The growth of industries in Singapore is not restricted to one border and the Government tries to make laws that are flexible to incorporate cross border trade. In the Economy Report in the year 2015, the Singapore Government came up with the idea of internationalization of enterprise that will include an internationalization of people (Hunter, 2017). The aim is to build a very strong framework of innovation where the investors will have the incentive to develop new solutions across globe. By creating more innovation, more partnership will be developed amongst the investors that will help in building more competition.
Under the Ministry of Trade and Industry, Singapore helps in promoting more incentives that will help in building research and development that will help in increasing more product development.(Bentley & Sherman, 2014) The memorandum of Association signed between Singapore Government and the Singapore Business Federation is entered to ensure that there is business development and research enhancement so that local and overseas development grows.
The negligence law of tort has significance in the Singapore field because after following the footsteps of the legal principels as laid down in the case of Donoghue v Stevenson  AC 562, negligence as emerged as a big tool for companies. The tort law on negligence is based highly on English law and Singapore strictly adheres to UK laws. Though in certain cases the Singapore court deviates from the UK law decisions, it also follows the precedence laid down in the UK judgments. An essential element of tort law that the business companies face in Singapore are based on the principle of rights of the claimant. To prove a case of negligence, it is important to show that claimant had rights and that the claimant had suffered immense loss and hurt due to the negligence of the defendant (Chan & lee, 2016). The defendant needs to have a duty of acre and that duty of acre ahs to extend to the members of the company and in cases of breach arising out of any negligence, the claimant needs to be compensated.
Legal Considerations in Conducting Business in Singapore
Law of agency plays a very significant role in business transactions and the benefit of investing in agency agreements is that it is always beneficial to enter into transactions with the help of a beneficiary (Lau, 2017). The principal guides the agent and an agreement is signed between the two and the principal deals with the third party with the help of the agent in between. In cases if banks, the agent acts as the intermediary and the principal is bound by the agreement between the agent and the third party.
Banking agreements are contracts and in Singapore contract law binds the two parties and in cases of breach of the contract, the bank will be held liable. The contract laws in Singapore are very stringent and the aim of the laws is to incorporate the rights of the parties and in case of any default by the wrongdoer, the other party is made to pay compensations.
South Korea has very high freedom for growth of investors. Economy is very fertile. Due to the financial as well as the monetary freedom, South Korea has developed immensely and now ranks among the top 30 countries. There is not much corruption in South Korea and therefore the inception of business plans take place here. The laws of employment and tax are very lenient towards investors as they want to promote business growth here. The Korean Contract law helps in regulating employment (Law, 2015). The contractual terms are intended to bind parties to investment. Banks are guided by the contractual obligations and in cases of any shortcoming in providing service, the banks are held accountable. Korea abides by tort law by virtue of the Korean Civil Code Article 750 which defines tort as any person losing or getting harmed and as a result facing damage due to the unlawful activities of another person (Kim, 2017). The person causing the harm to the other person shall have to pay damages and compensate the other person. The prevalence of agency laws in South Korea help in regulating business transactions as the bank becomes the agent and also earns profits as a result of the business transactions (Coffee, 2016).
The business opportunities for banks and companies in South Korea are immense as it promotes employment and cross border trade. The places of the banks are to ensure that more investment takes place and economy flows.
Business Opportunities of Commonwealth Bank in South Korea
To make sure that a bank profits in its place of origin as well as in different countries, it is important to reach a global agreement. The laws of Australia and that of Singapore and South Korea are on the similar footing which promotes business opportunities. The aim of these agreements is to bring together the governing bodies of these banks and reach a harmonious agreement. By studying the laws of these countries, it is easy to gauge that setting up a company in Singapore and south Korea and earning profit will be possible by harmoniously constructing the domestic laws of these countries
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