Introduction to Management Development of Banking Sector

Question: Discuss about the Introduction to Management for Development of Banking Sector. Answer: Introduction This study has aimed to the theory of strategic management development of an organization. In this connection, this study has aimed to the strategic and the corporate development of a renowned banking sector of Australia namely NAB. In this regard, this report is beneficial to measure the research areas of this above mentioned banking organization. Therefore, the mission, vision as well as the competitive advantage of this definite banking organization has been discussed in this scenario (Wonglimpiyarat 2014). On the other hand, this study has tried to identify the stakeholders strategies. The stakeholders of this organization are such as customers, suppliers and the employees. This would effectively enhance the essence of the report. In addition, in this report, some important analytical practices have been discussed. These environmental analytical reports are the SWOT analysis, PESTEL analysis, specific and the internal environment. Lastly, this study has tried to discuss the core valuation of the organization with the help of the discussion of organizational behavior. Therefore, the readers will understand the concept of the study (Al-Zoubi 2013). 1. Research Areas Mission, Vision and the competitive advantage of NAB As per the statement of Grant (2016), the mission of this previously mentioned banking organization is to give potential and the necessary solution to the consumers as per their present and the future requirements. This is important to construct and maintain the long run connectivity with the clients and with the investors. NAB also focused to the larger quality strength activity. Instead of this, NAB aimed to the construction among the regions and the culture. Moreover, NAB always tried to implement the working atmosphere more helpful, which leads to the workers of NAB not to move to the other company. According to Wu (2012), NAB is capable to recognize the importance of the profitability statement, which is seemed to be helpful for the long term significance. In addition, to describe the vision of NAB Australia, it can be stated that this banking organization is willing to achieve the business success. In this respect, NAB has tried to focus to the business differentiation from the other banking organizations within the industry (Sun et al. 2012). Further, it can be observed, the other important vision of this organization is to achieve the responsibility, which is based upon the mentioned strategy. Therefore, it tried to follow the necessary approach to achieve the business responsibility. In the words of Haiss (2013), competitive strategy of a business is beneficial to take the business organization in an optimum business position.The major competitive advantage of this mentioned organization is to turning of the employees loyalty. Moreover, it is known that NAB has acquired a greater marketed position in Australia. In addition, NAB is capable to specialize in the different distributive platforms, which are based on the demand of the buyers and the value potential. Another competitive advantage of NAB is to implement the special kind of products and also the delivery of the items as well as services as per the mentioned date. Past using strategies As per the opinion of Abou-Moghli, Abdallah and Al Muala (2012), NAB has followed some specific strategies. Firstly, NAB was able to control the capital gain tax. Therefore, it can be stated that in case of selling of assets and also at the end of the financial year, in case of making of capital gain, then NAB considered the in order to reduce the past capital gain. In addition, NAB could control the cash flow significantly. This was helpful to consider the forward expenditures as mentioned by Riasi (2015). Present strategies Based on the present scenario, Thompson et al. (2013) opined that the current strategies followed by this mentioned organizationin order to increase the cash flow. This can possible with the help of the remodification of the purchase of assets. Hence, in this occasion, the NAB asset financing specialists aim to the restructure for the repayments. This will in turn control the tax and the demand for the cash flow. On the other hand, NAB focuses to increase the buying along with the selling agreement. Therefore, this is assumed to be beneficial by ensuring the organization ownership, which can be converted in some certain cases such as disability or death. Background of the organization The specialization of National Australian Bank in the field of market capitalization. IN this respect, Shirsavar, Gilaninia and Almani (2012) stated that the position of NAB in case of the banking function was 21st according to the world market capitalization estimation. On the other hand, NAB acquired the 41st position as per the total asset estimation. The financial position of this company can also be observed, and the total revenue earning by this definite company is A$ 20.176 billion in the year of 2015. Moreover, the total net income earned by NAB was A$ 6.357 billion and the total assets hold by this company was A$ 945 billion in the same mentioned year. 2. Discussion regarding the adapted strategies and the criticism The stakeholders of NAB can be identified as the consumers, workers, suppliers and the investors etc. According to Ayodo, Wanjau and Mugo (2012), customers of this organization have the rights to apply the necessary reliable practices. These practices can be achieved with the help of the delivery of the greater customers experiences. Moreover, the personnel, who are connected with this organization, are needed to recruit based on their efficiencies and their knowledge. In addition, this eminent banking organization tried to encourage its workers to enhance their focus on the customers of the company. Moreover, the workers can assort the overall working force. As a result, the workers of this organization are needed to develop their knowledge and the capabilities (Abou-Moghli, Al Abdallah and Al Muala 2012). The suppliers of NAB need to comply by accepting the relevant global principles and the regulation in the association of the unethical principle as well as the several organizational practices. The suppliers also require to develop the evaluated action plans to enhance the differentiation. The suppliers are also capable to include the corresponding sustainability principles that it can manage the sustainability risks (Obay 2014). The relationship manager can control the internal method of this organization to control the stakeholders. The relationship manager can identify the risks during the time of operation approach. These risks can be managed by adapting the risk policy of the enterprise, environmental socio principles and the governmental risk policies (Anabila et al. 2012). 3. Performance of the environmental analysis PESTEL analysis: Political The Australian government has been impose the tax rate policy. Moreover, government has included the trading agreements (Ayodo, Wanjau and Mugo 2012). Economical International economic shortcomings will reduce the disposable income. Social Consider the functions of the customers to enter into the targeted market (Kolios and Read 2013). Technological Enhance the utility of the e-commerce Ecological Enhance the ecological schedule in order to recognize the ecological opportunities Legal Modify the law principles and the global inconsistency (Rahaman, Zayed and Islam 2015) Specific environment Consumers Australian traders and the citizens are seemed to the bank account possessors. Partners The partners are the Global leaders Verifone and the Inc Industry Banking organization Unions Stakeholders along with the financial segmentation of Australia (Rahaman, Zayed and Islam 2015). Competitors Commonwealth bank of Australia as well as Westpac banking corporation Suppliers Investment companies and the bank of Australia (Abou-Moghli, Al Abdallah and Al Muala 2012). Internal environment Process Deployment of the quality function, Pareto chart approach etc. System Allowing of making of deposits and loans etc Workers Number of workers are 35063 Management Can manage the role of wealth management, relationship management and the risk management (Nab.com.au. 2016). SWOT analysis Strength Knowledge and the efficiency of the workers lead to operate the banking operation appropriately. Weakness Greater rate of debt, burden of tax and the unwilling employees. Opportunity Extra positive factors help to leverage the benefit of the dealing (Kolios and Read 2013). Threats Additional amount of droughts are seemed to the threats of this banking organization. 4. Discuss the organisational culture As per the statement of Ayodo, Wanjau and Mugo (2012), NAB has included five major core valuation. Theses core valuation are passionate for their customers, focused to win, be bold, focus to the necessary thing etc. These valuations are beneficial to provide the shape to the customers. The management of NAB is also helpful to learn and enhance the opportunities along with the flexibilities and the diversities etc. In addition, this mentioned banking organization focused to maintain a long run connection with their clients. They also aimed to achieve their business goal. To make their organization unique, NAB tried to account their new approaches. In this connection, NAB aimed to the relevant conservation with their consumers as per their requirements and necessities. Shirsavar, Gilaninia and Almani (2012) opined that NAB has included the different and updated techniques. As a result, NAB tried to take i9mportant and relevant decisions for the sake of the consumers. Furthermore, under the banking organization environment, the activities of NAB is assumed to be beneficial to develop the business. On the other hand, community involvement is significant to construct the economic and the social well being in the future. The workplace of this banking organization contains the significant financial flow to support the community sector as mentioned by Thompson et al. (2013). Conclusion This study has been highlighted the strategic development of Australian nationalized bank. This study is also beneficial to recognize the banking as well as the corporate strategies. Among all of these strategies, this study has focused to the previous adapted strategies and also the newly adjusted strategies. These strategies are helpful to identify the role performed by NAB. In addition, this study has developed the mission and the vision statement of NAB. In this occasion, it has been known that the mission statement of this company is to develop and then maintain a long run relationship with the clients and also with the suppliers. Instead of this, NAB has tried to make this business successful, which has been identified as the company's visionary statement. It can be also observed that this study has discussed the competitive advantage of NAB. This will enhance the essence of this report. Moreover, this report has discussed the role of the stakeholders in this scenario. From thi s context, the role of consumers, suppliers have been identified. This report has been highlighted some relevant analytical tools such as PESTEL analysis, SWOT analysis, internal environment and the specific environment analysis. These analyses tried to evaluate the opportunities, threats of the company. However, the threats and weakness of the company have been identified, which are needed to mitigate. Recommendation In order to enhance the business performance of NAB, it can be suggested the organization can adapt the strategic management plan, the senior managers and the other employees are able to reassess and can also get the chance to explore the functions within the organization. On the other hand, the company can develop the new procedures and approaches for the growth of the relevant strategic management. In this connection, NAB can construct the strategic positioning. The reason can be discussed as strategic positioning includes the for the further development. The purpose of the asset management and also the private banking is required to explore. Instead of this, the managers and the other workers of this banking sector can learn the larger data analysis. In this respect, it is necessary to adapt new updated technology to attain the customer- centricity. Moreover, in order to increase the asset and the liability, the employees tried to lean new approaches and steps. The organization ca n perform successfully with the adaptation of the product building strategy. Therefore, these strategies are seemed to be helpful for the customers, who open new savings account in this bank. Hence, in this context, it can be recommended that if NAB follow these mentioned approaches, then this company will be highly successful. References Abou-Moghli, A.A., Al Abdallah, G.M. and Al Muala, A., 2012. Impact of Innovation on Realizing Competitive Advantage in Banking Sector in Jordan.American Academic Scholarly Research Journal,4(5), p.1. Al-Zoubi, M.R., 2013. The Impact of Intellectual Capital on SWOT Analysis among Jordanian Banking Industry" Empirical Study".International Journal of Business and Social Science,4(2). Anabila, P., Narteh, B., Tweneboah-Koduah, E.Y. and Box, L.G., 2012. Relationship marketing practices and customer loyalty: evidence from the banking industry in Ghana.European Journal of Business and Management,4(13), pp.51-61. 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