Anz Introduction
Recommendation
It is recommended that ANZ Bank’s management should reconsider customer value proposition, reputation and security risk as a consequence of ANZ Bank recent outsourcing strategy. This report discusses three main issues that ANZ Bank’s management may have to consider if it is to enhance strength and core competency.
Customer value proposition
Firstly, as ANZ Bank has stressed that ‘becomes a super regional bank’ is a core strategy objective (ANZ 2012), ANZ will have to consider the potential effect for customer value proposition as a result of recent outsourcing strategy. It has been pointed that the problem of losing managerial control that may arise from outsourcing (RBA tells bank to go slowly 2012). Weerakkody and Irani (2009) suggest that the loss of managerial control may negatively affect the quality of service which will lessen customer value proposition. Based on Porters’ five forces, ANZ Bank is involved in a situation of a high bargaining power of customers (loyalty) and the threat of substitution (Porter 1980). Reduced customer value proposition will enhance power of customers and threat of substitution (Porter 1980). Opponents may suggest that outsourcing will contribute to emphasising competitive advantage (Mcivor 2011). The competitive advantage of ANZ Bank is trade and supply chain (ANZ Trade & Supply chain – A Competitive Advantage 2009). Focusing on competitive advantage will enhance customer value proposition (Piggott 2012). It will assist ANZ Bank achieve its business objective. However, ANZ Bank outsourced 50 jobs include a head of human resources, credit officers and business analysts (Wade and Hawthorne 2012). Fail to package requirements and manage contract efficiently will often result in poor performance and raising cost (Scott 2008). If poor quality services are provided and ANZ Bank fail to control this, customer value proposition will be negatively affected. Therefore, the risk of reduced customer value proposition
It is recommended that ANZ Bank’s management should reconsider customer value proposition, reputation and security risk as a consequence of ANZ Bank recent outsourcing strategy. This report discusses three main issues that ANZ Bank’s management may have to consider if it is to enhance strength and core competency.
Customer value proposition
Firstly, as ANZ Bank has stressed that ‘becomes a super regional bank’ is a core strategy objective (ANZ 2012), ANZ will have to consider the potential effect for customer value proposition as a result of recent outsourcing strategy. It has been pointed that the problem of losing managerial control that may arise from outsourcing (RBA tells bank to go slowly 2012). Weerakkody and Irani (2009) suggest that the loss of managerial control may negatively affect the quality of service which will lessen customer value proposition. Based on Porters’ five forces, ANZ Bank is involved in a situation of a high bargaining power of customers (loyalty) and the threat of substitution (Porter 1980). Reduced customer value proposition will enhance power of customers and threat of substitution (Porter 1980). Opponents may suggest that outsourcing will contribute to emphasising competitive advantage (Mcivor 2011). The competitive advantage of ANZ Bank is trade and supply chain (ANZ Trade & Supply chain – A Competitive Advantage 2009). Focusing on competitive advantage will enhance customer value proposition (Piggott 2012). It will assist ANZ Bank achieve its business objective. However, ANZ Bank outsourced 50 jobs include a head of human resources, credit officers and business analysts (Wade and Hawthorne 2012). Fail to package requirements and manage contract efficiently will often result in poor performance and raising cost (Scott 2008). If poor quality services are provided and ANZ Bank fail to control this, customer value proposition will be negatively affected. Therefore, the risk of reduced customer value proposition