Discuss about the Business Report for Commonwealth Bank.
The Commonwealth Bank of Australia (CBA) is an Australian multinational banking institution whose coverage of businesses spans across the United Kingdom, USA, Asia, Fiji, and New Zealand. According to Akinyemi (2009, p. 12), the CBA is the biggest Australian listed corporation on the countrywide Australian Securities Exchange as of Sep 2015. The report will examine a whole spectrum of the Commonwealth Bank of Australia (CBA) by looking at the structure, formation, the business environment, its culture and its corporate social responsibility (CSR). Through this report, it will be seen that the bank’s existence is not just there to run financial operations but also the bank is all-round in terms of catering for its stakeholders, clients, its staff, and the community at large. Different approaches were used to collect relevant information about CBA Bank Corporation. These multifaceted approaches include sourcing for information from publications such as journals, books and CBA sites. Moreover, financial records of data also aided in providing pertinent information about its progress and activities and whether it has achieved its ultimate objective by beating the target of the previous financial or fiscal years.
Purpose, Mission, Orientations &Locations of the Organization
The CBA’s vision is to be Australia's finest budgetary services organization through exceeding expectations in clientele service including individuals, other organizations, and various groups. To accomplish this, the bank does things differently. This determination to appear as something else has been reflected in bank’s latest grant wins. CBA prides in having a solid brand, great CSR, a superb training staff, and exceptional branch network. This has made the bank to gain a lot of trust from all stakeholders because of its excellent package of products and services that are far much better as compared with any other competitor. The bank has for many years adopted a strong and unshakeable strategy that requires improvement in consumer services; simplification of procedures and policies; expansion of banking footmark by enlarging business banking administration and the refining of sales model in bid to safeguard it caters for large clientele needs. This strategy has propelled the bank to soar at greater heights by continuing to develop efficient and lean processes; executing smarter sourcing; leveraging expertise and capabilities aimed at revitalizing processes and systems; and enhancing training personnel capabilities through regular training of staff and investing in talent management.
Entry strategy is a key factor towards making a firm experience continuous growth. This is achieved when the firm has identified some of its setbacks and strengths in order to obliterate or expunge the weakness and work towards building their strengths in order to move the firm a notch higher than before. The practice of strategizing aids both the growing firm and well established as everyday there are new changes in the market (Hull, 2012, p. 35). Therefore, it is important for
the firm to identify their challenges and initiate some good measures that would enable it to increase on its production. CBA Bank being a multinational company, it operates its business basing their operation on Equity theory. This theory attempts to look at all possible ways that would make the firm be at equilibrium state taking into consideration the needs of employees (Akinyemi, 2009, p. 23). Equity theory is geared towards making the firm maximize on its profits and cutting down
all the miscellaneous expenses that affects the firm production and activities.
Organization's General Environment
This paper is interested in analyzing and knowing the factors in the external industrial environment that have enabled CBA to outperform its competitors. In general, it is imperative to analyses the overall Australian financial industry and macro-economic factors that have transformed within the entire industrial structure (Aroney et al, 2015, p. 23). As a financial institution, CBA understands that the choices it has will affect the wider community and that CBA is in a position to utilize its capacities and assets to make a positive commitment to the economy by and large and to nature. In this kind of setting, CBA completely comprehends its part in tending to the challenge of environmental change. CBA has a powerful, dependable loaning practices put in place to enable various affiliated associations ton rise move to a low carbon economy. This motivates the bank to put resources into the renewable substantial element and measuring and lessening Australia’s own natural impression. The Environmental Policy of Australia states that attainment of conservation change will have a noteworthy ecological, financial, and social effect. Environmental change presents both opportunities and risks and thus the CBA Group will continue undertaking a vibrant part as a monetary middle person in tending to environmental change. The CBA seeks to build up a structure for setting natural terminuses and aims at measuring, lessening, and reporting its own greenhouse emissions (Bruce, 2007, p. 79).
Furthermore, CBA engages with its clients, shareholders, and different partners to advance a more extensive understanding, and more viable management of environmental change issues. As informed by Saunders (2014, p. 24), the bank is dedicated to taking a mindful way of dealing with the way it gives budgetary/financial products and services. Part of that methodology has been the improvement and execution of the bank’s Environmental, Social, and Governance (ESG) Lending Commitments (Griffiths & Wall, 2011, p. 34). Its ESG Lending Commitments spells how it approaches the appraisal and management of ESG opportunities and risks linked to customer activities, for example, carbon intensity, corruption, and human rights. The bank has so far augmented a variety of loan facilities mainly through its wide customer base.
Organization's Specific Environment
CBA is Australian largest organization association and its processes have both instantaneous and ancillary effects on nature. Accordingly, this can be avoided by realizing the Carbon Reduction Target and by giving support to various groups of clientele that seek to transition to a lower carbon economy. They achieved these objectives by substituting wasteful lighting and updating warming, ventilation and aerating and cooling framework in both retail and business structures. As noted by Hannam (2013), they additionally moved their main offices from inefficient building to environment proficient premises. These measures were appreciated to pose incredible effect on commonwealth bank. Consequently, in 2012, CBA won sustainability awards for built and manufactured environment. Significant effect of their activity is that the bank later achieved a position in ASX 200 Performance Leadership Indices (Hull, 2012, p. 35).
Hull (2012, p. 21) affirmed that a blend of both tangible and intangible resources were taken to act as regulator by the CBA could be recognized as core assets to execute its key competences. Kaul (2000, p. 54) was of the opinion that expressed that CBA has all the earmarks of being in front of competitors in the bank’s IT advancement methodology and this has incited CBA to accomplish operational and cost effectiveness as well as enhancement of consumer loyalty. Accordingly, because of its new transformation in core banking framework with best internet banking platforms, the bank has accomplished the greatest improvement in terms of consumer loyalty (Moore, 2013, p. 54). In addition, CBA's solid shareholder with a strong accounting report has additionally engaged full supported obtaining from inner and outer partners (Letts 2014). CBA's huge accounting report development with high acquiring resources and store has engaged natural capital development and speculator's trust in venture. Along these lines, it is expected that solid budgetary quality with high benefit return has increased CBA to stay ahead opponents and exchanges its shares at premium over their household rivals. Additionally, the bank’s strong shareholder with a well-established balance sheet has further empowered and enabled its management to fully fund its activities and running operations (Levy & Newell, 2005, p. 20). The bank’s 1000 and well networked system in Australia is an exceptionally efficient innovation phase that is bound to enable CBA to increase net-bank clientele reliability bases throughout Australia and even beyond (Saunders, 2014, p. 62).
CBA's critical accounting report development with high-revenue earning resources and deposits has enabled capital development and speculator's trust in the bank’s ventures. Hence, it is expected that strong financial-related quality with high quality return has enhanced CBA’s competence to perform better than its competitors have and exchanges its shares at premium as compared to its competitors. CBA's solid acquisitions with Aussie Home credit and cement money related agents system have enhanced its home advance supply to the new clients in the budgetary business sector (Milman, 2015, p. 15). Besides, CBA's 1000 or broader branch system in Australia with very proficient innovation stage has likewise supported CBA to increase strong net bank client dedication bases in Australia (CBA 2014).
Corporate Social Responsibility and Ethics of the Organization
The CBA is known to be a continued to support various community activities both around the country and in other organizations. This special patronage is coordinated at a broader scope of activities that convey long-term benefits to Australians and mirror community activities and other organizations. Field of specific accentuation will include technology, scientific innovation, the environment, arts, medical, and youth. In the sector of education, the bank’s goal is to develop online learning and financial literacy for the youngsters. The bank has continued to bolster educational projects that are meant to offer credible and professional learning activities.
The Commonwealth Bank Foundation empowers advancements in training, education, including the improvement of money related education abilities for youthful Australians. The bank’s broader scope of arrangements is meant to empower Australian businesses to manage income, fund growth, and to manage risks found in the handling of commodities, interest rates, foreign exchange, securities, and derivative markets. As the country’s banking partner, CBA is shouldered with the role of developing solutions that are designed to support the direction and ambitions of various businesses operating in Australia. CBA’s committed industry teams exist to provide the client with an integrated banking solution that further propels a given business to adjust its clientele needs, opportunities, and shareholder expectations of the wider economic environment.
Ever since the dawn of twenty-first century, CBA has remained committed to implementing its four pillars of responsibility, including productivity, technology, people, and strength. These four aspects have formed the bank’s internal culture for many years and coupled with the bank’s long-term strategy to continue serving well, Moosa (2010, p. 47) sees the potential of the bank remaining steady despite the dynamic market conditions.
The long-standing achievement of the bank is a clear reflection of its progressing commitment to its people. The bank appreciates its people who always cooperate to accomplish the vision of the bank both locally and internationally. The bank prides in its staff dedication to serve the necessities of the clientele and ceaselessly enhance the clientele experience. The bank has kept on supporting its people by always insisting on the significance of culture and values, and by investing in resources and incentives geared towards advancement as well as activities that cultivate a lively, sheltered, and steady workplace. According to Laurin (2006, p. 33), the bank’s management is additionally dedicated to building an inclusive culture, where its staff reflect the bank’s clientele base more extensively, and where everybody feels empowered and upheld to put forth a valiant effort. Above all, the bank requires everybody to feel esteemed and regarded, irrespective of his or her sex, religion, ethnicity, age, or of any inability. Diversity and differing qualities must abound more than “resilience”. The bank’s ongoing commitment to its way of life has so far deciphered into elevated amounts of engagement among people, as illustrated by Phillips & Hock (2011, p. 26).
The quality of the bank’s business has empowered us to keep on innovating through investment in innovation. The bank has kept on focusing on the utilization of innovation for the advantage of our clients. One of the cornerstones of the bank’s innovation has been the CommBank application (app). In 2013, the bank launched a 'transitory lock' that enabled it to help its credit card clientele abstain from cancelling out their lost cards. In the meantime, the bank provided its clientele with the capacity to quickly wipe out and supplant a lost, stolen, or damaged card. The bank later presented the CommBank application app for specified smart watches, in the process allowing its clientele to have viewership of their bank balances, locate an ATM, and make a withdraw of their money by use of the bank’s “cardless” cash offering.
The bank’s IT department has safeguarded the quality of innovativeness to its business clients by dispatching 'Albert', a worldwide first-to-business sector EFTPOS tablet. The gadget permits organizations to make a customized experience for their clients. Among Albert's exceptional components are the capacity to email receipts and invoices, split bills up to nine different ways, record/track installments, and gather constant examination and business insights of knowledge. A further advancement occurred when the bank unveiled the Group's Innovation Lab situated at Commonwealth Bank Place in the city of Sydney. The Lab gives a creative space to its staff and clients to allow them innovate together to convey market-driving arrangements and services to clientele.
Monetary quality and strength, inclusive of a solid capital position, is the fourth mainstay of CBA's procedure. The bank has always maintained a solid monetary record (balance sheet) consistently, including large amounts of capital, with all proportions well in abundance of regulatory minimum capital requirements. This was against a scenery of vulnerability in the local economy and unpredictability on worldwide markets.
The report has examined a whole spectrum of the Commonwealth Bank of Australia (CBA) by looking at the structure, formation, the business environment, its culture and its corporate social responsibility (CSR). Through this report, it can be seen that the bank’s existence is not just there to run financial operations but also the bank is all-round in terms of catering for its stakeholders, clients, its staff, and the community at large. The bank, since inception, the bank’s leadership has been awesome
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