Commonwealth Bank of Australian - Myassignmenthelp.Com

Question: Discuss about the Commonwealth Bank of Australia. Answer: Introduction Commonwealth Bank is the leading Australian multinational bank; it delivers varieties of financial services and products to various small businesses, large-scale business, and institutional associates and also to individual. This multinational bank was initiated by the Australian Government and Authority in the year 1911 under the act of Commonwealth bank. Commonwealth Bank of Australia is so famous that it was listed under the Australian stock Exchange in 1991 and it was entirely privatized in 1996. This study will demonstrate the business overview, context, background of the Commonwealth Bank. It will present the customer segments, market condition of the stated company. Furthermore, the essay will also present the complete description of its operations that will include the services provided by the corporation. It will also conduct a SWOT analysis which will highlight the future aspects of the organization. Company Overview Commonwealth Bank is the leading Australian multinational bank; it delivers varieties of financial services and products to various small businesses, large-scale business, and institutional associates and also to individual. This multinational bank was started by the Australian Government and Authority in the year 1911 under the act of Commonwealth bank("Commonwealth Bank of Australia", 2015). Commonwealth Bank of Australia is so famous that it was listed under the Australian stock Exchange in 1991 and it was entirely privatized in 1996. Today, this Australian bank has investment and operations in the global market and its many operations carry on in the Asia-Pacific Region. In the year 2014, Commonwealth Bank was the major listed firm in the Australian Stick Exchange. Apart from the financial banking, the management of the bank delivers insurance services and also funds management to the other associates and to individual. Currently, Australian Commonwealth Bank is committed to being countrys finest financial services firm along with surpassing in customer service("Commonwealth Bank of Australia: Our Strategy", 2017). According to the reports of Australian money review, the Commonwealth Bank and their associates concurrently cut down their interest on variable home loan for inspiring the housing market. The bank has also stated that they expect worldwide financial marketplaces to be normal over time so that, the bank can decrease rates by much more than the RBA modifications. The major competitors of Commonwealth Bank are the National Australia bank ltd, Westpac Banking Corporation and Australia and New Zealand Banking group Limited. Commonwealth Bank is listed among the top four banks of Australia and offers retail, private, business, funds management services, insurance and investment services. With more than 1000 branches, it is quite ahead of its competitors and is the largest life insurer and home loans providers in Australia. Comprehensive description of Commonwealth Bank Every business enterprise needs a plan for its effective business operations, and this plan is called business model. It is prepared by examining the customer base, services, products and details of the financing(Rumelt, 2017). A business model is a process through which an establishment generates its revenue. Commonwealth Bank delivers a seamless banking experience for the future. The company is delivering its services to more than 10 million individual and small commercial customers("The Australian Financial System", 2013). It also proposes market foremost products and services which are reinforced by some of the worlds best procedures and systems. The company has more than 1000 branches and six customer service centers. It is operating with a strategic focus on offering innovative and transformational opportunities to its customers. Commonwealth Bank, with its improved infrastructure and modern IT approach, is quite ahead if compared to its competitors. The administration of the company not only focuses in meeting the operations and budgets but also in meeting the customers expectation. For its high concern about the customers expectation, the organization was awarded by Money Magazine as the best innovative company during 2014("Banking Matters", 2016). With its proper approach towards, it has managemant to create a strong grip in the Aussie Home loans. It also helped the corporation in gaining a strong loyalty of netbank customers. SWOT Analysis of the Australian Commonwealth Bank SWOT analysis in the company profile of Commonwealth Bank is quite important for the higher level company information and data. The analysis is also important for the banks key business operations and also business structures, services and products and also provides details related to revenue strategy and lines. STRENGTH Commonwealth Bank of Australia is the leading bank that provides financial services and products. The bank has even adopted various conservative methods and schemes and even access into Master Netting Arrangements along with its supporters("Commonwealth Bank of Australia: Our Strategy", 2017). The bank has even maintained much more expanded portfolios with 60% of its loans. The bank has even carried on with the innovation in technology for streamlining its operations that ensures satisfaction of the customers(Press, 2010). The bank launched various bank related application in the global markets such as CommBnak App, CommBank small Business app. Daily IQ which is a mobile analytics application and much more. WEAKNESS The Commonwealth Bank of Australia has one of the major weaknesses that are; it is highly depended on off shore borrowings like the bank depends on the wholesale funding, which is done more with issuance of offshore debt(Dept, 2017). Another weakness is that, the bank has limited geographical diversity and mainly focused its operations in Australia, Vietnam, and China. OPPORTUNITY The Commonwealth Bank of Australia has a vast opportunity as the bank has acquired Court Financial Limited that helps the bank to develop and extend its distribution network. It even helps the bank in order to expand its adviser services as well as various other services network(Dept, 2017). Acquisition of Bank West has also helped the bank to spread its business in Western Australia and even come out as a market leader. THREAT The Commonwealth Bank of Australia has a major threat of Chinese slowdown as Australias largest trading partner is none other than China and if slowdown occurs in China, that will definitely affect Australian capital investments, customer sentiments, export business and also the entire economy of Australia("Major Australian Banks", 2016). Another threat of bank is legal proceedings and litigation against the bank, as in the year 2009, Australian Securities and Investment Commission has once sued the Commonwealth Bank in terms of Storm Financial which collapsed in that year. Summary of the key points It is evident that bank choose to be different from one another. Banks engage strategically in diverse intermediation happenings and thus select their balance sheet building to meet their business objectives. The best business model for Commonwealth Bank would be what is termed as retail funded. It is about high share of loans on the balance sheet and high dependence on the steady funding funds. This model is beneficial as customer deposit is only about two-third of the complete obligation of a bank. Conclusion It has been found in the study that Commonwealth Bank is the leading Australian multinational bank; it delivers varieties of financial services and products to various small businesses, large-scale business, and institutional associates and also to individual. It has strong hold in the Aussie Home Loan and tangible financial brokers network which has also enhanced its home loan quantity to the new customers in the monetary marketplace. References Banking Matters. (2016).Major Banks Analysis. Retrieved from https://www.pwc.com.au/publications/assets/major-banks-analysis-11-nov-2016.pdf Commonwealth Bank of Australia. (2015). Retrieved from https://www.fdic.gov/regulations/reform/resplans/plans/cba-165-1512.pdf Commonwealth Bank of Australia: Our Strategy. (2017).Commonwealth Bank of Australia. Retrieved 2 August 2017, from https://www.commbank.com.au/content/dam/commbank/microsite/2013shareholderreview/downloads/CBA-OurStrategy-2013.pdf Dept, I. (2017).Australia. Washington, D. C.: International Monetary Fund. Major Australian Banks. (2016).Major Australian Banks: Full Year 2016 Results Analysis. Retrieved from https://home.kpmg.com/content/dam/kpmg/au/pdf/2016/major-australian-banks-full-year-2016-results-analysis.pdf Press, W. (2010).Australia Money and Banking. Petaluma: World Trade Press. Rumelt, R. (2017). THE EVALUATION OF BUSINESS STRATEGY. Retrieved from https://teaching.up.edu/bus580/bps/Rumelt,%20evaluation%20of%20a%20business%20strategy.PDF The Australian Financial System. (2013).Financial Stability Review. Retrieved from https://www.rba.gov.au/publications/fsr/2013/sep/pdf/aus-fin-sys.pdf