Mgmt901 Unit 1 Assignment
MGMT901 Teacher Feedback on essay 2 UoW ID for assignment author......student username................ Company........ANZ............................ Name of marker.......Mary Barrett...........………………… Essay number..............2..............................
CRITERION 1: Evidence you understand the textbook/lecture material as it applies to the article, and can explain the article’s implications for your organisation’s CEO, other staff, competitors, etc Textbook/lecture material has been misunderstood or is irrelevant to the article. Little or no discussion of article’s implications. Basic understanding of textbook/lecture material as it relates to the article. Limited discussion of article’s implications. Textbook/lecture ideas well identified …show more content…
and explained in terms of the article. Sound discussion of article’s implications.
45
SCORE: 34-50
SCORE: 0-16
SCORE: 17-33
Comment about assessment criterion 1 An excellent analysis once again, M! Please see my additional comments on your essay below, which aim to refine some of your points. CRITERION 2: Ability to communicate effectively through writing Disorganised, unclear. Difficult to follow the argument. Writing could be clearer; it is sometimes difficult to follow the reasoning A well organised, clear, convincing piece of writing
15
SCORE: 0-5 Comment about assessment criterion 2 CRITERION 3: Appropriate acknowledgement of ideas you have read elsewhere Extensive plagiarism Some plagiarism All ideas from elsewhere are acknowledged SCORE: 6-10 SCORE: 11-15
15
SCORE: 0-5 SCORE: 6-10 SCORE: 11-15
Melissa Errey 9657797
MGMT901: Essay 2
Page 1 of 8
Comment about assessment criterion 3
CRITERION 4: Correctness of writing, ie grammar, punctuation, referencing technique etc
Many errors
Some errors
Few or no errors
SCORE: 0-5
12
SCORE: 6-10 SCORE: 11-15
Comment about assessment criterion 4 You are citing all the material that is necessary, but the formatting of your references needs attention. Please see my corrections in your reference list. CRITERION 5: Extent to which the assignment meets the style and format specifications in the subject outline Assignment poorly formatted Most formatting correct Few or no formatting problems
SCORE: 0-1
SCORE: 2-3
4
SCORE: 4-5
Comment about assessment criterion 5
TOTAL SCORE:
91
Overall comment As you can see from the scores, you are doing great work! I look forward to your essay 3.
Melissa Errey 9657797
MGMT901: Essay 2
Page 2 of 8
MGMT901: Essay 2 Organisational Strategy and Function Student username Student number One of the key outcomes of the fundamental managerial function of planning is strategy formulation. Planning identifies the organisational goals and paves the way for selecting an appropriate strategy, which is essential for success. Strategy exists at the corporate, business and functional levels and all three levels must coordinate in a coherent way to be able to meet the organisational goals. The chosen strategy must then be supported by an appropriate organisational structure to be effectively implemented. Several planning tools are available to managers to achieve this, in particular SWOT analysis and Porter’s Five Forces model. ANZ has been operating domestically since 1835, and has operated in the Asia-Pacific region for more than 30 years. In 2007 ANZ laid out a new super regional strategy that involved a focus on expanding operations into the Asia Pacific, European and American (APEA) markets, a move they believe will deliver growth for shareholders that wouldn’t be possible while pursuing a purely domestic strategy (ANZ Annual Report 2011). ANZ is still actively pursuing this strategy and has recently announced changes to its structure to support the strategy.
Melissa Errey 9657797
MGMT901: Essay 2
Page 3 of 8
Having such a long history that lead to the ANZ becoming one of the largest banks in Australia-NZ and the Asia Pacific region today clearly involved planning, correct selection of strategy by using tools such as SWOT and Porter’s Five Forces model, and adjusting its structure to suit the strategy being deployed. SWOT Analysis SWOT analysis involves examining internal organisational strengths and weaknesses as well as external opportunities and threats. This allows managers to make decisions about the strategies to pursue at corporate, business and functional levels. A key strength of ANZ would be its strong financial position as one of the leading banks in Australia. Coupled with its direct knowledge of Asian markets through its historical and growing presence in the region, this allows ANZ to take advantage of opportunities presented by the rapidly growing Asian economies. ANZ has been operating in Asia-Pacific countries since 1966. At this time Asian countries were beginning a period of economic growth (Radelet et al, 1997) which has accelerated rapidly in recent times. ANZ’s expansion into Asia-Pacific countries also accelerated through the late 20th Century
Comment [MB1]: In the text, just write ANZ and the year. Keep the URL for the reference list at the end.
(http://www.anz.com.au/about-us/our-company/profile/facts/history/), culminating in the relatively recent super regional strategy where ANZ aims to source 25%-30% of earnings from APEA by 2017. Currently ANZ claims 13% earnings from APEA sources, up 6% from 2007 (ANZ Annual Report, 2011) so it appears that the strategy is a sound one in the current economic environment. A potential weakness is loss of customer goodwill. ANZ currently claims to have the highest level of customer satisfaction in Australia (ANZ Annual Report, 2011). However, this does not necessarily translate to high levels of customer satisfaction, nor does it mean that this will continue. While individual customers in particular may feel they have little choice, the rise of community banks and non-bank institutions poses a genuine threat to the big banks like ANZ as increasingly they offer real alternatives to mainstream everyday banking (Clitheroe, 2012).
Comment [MB2]: This might be better classified as a threat, since these institutions are external to ANZ.
Melissa Errey 9657797
MGMT901: Essay 2
Page 4 of 8
The current global environment poses a significant threat despite a relatively positive domestic economic outlook.
Events such as the Global Financial Crisis (GFC) of 2009 and the more recent failing of European economies have shaken consumer confidence leading to conservative attitudes about money. ANZ identifies in particular factors such as low credit growth, funding challenges and new regulation. However they have indicated that these potential threats to the industry represent an opportunity for them provided that they can make structural changes that allow them to be leaner and more innovative (The Asian Banker, 17 February 2012). The article goes on to describes several changes to senior management, including the creation of a new CEO role to head up the new division of Global Wealth and Private, which are aimed directly at supporting the super regional strategy. Porter’s Five Forces Model Porter’s Five Forces allows managers to analyse the external environment by examining five major factors: the level of rivalry between organisations in an industry, the barriers to entry into an industry, the power of suppliers, the power of buyers, and the threat of substitute products (Waddell et al, 2011). By analysing an industry using this tool, managers can identify both opportunities and threats that exist in that industry. The banking industry in Australia is competitive, dominated by 4 large banks but also with quite a few smaller bank and non-bank organisations. Rivalry between the ‘big four’ is particularly intense. There is little in real terms to separate them in the eyes of the average consumer as any changes made by one in terms of interest rates, product offerings or services areis generally quickly matched by the other three. Each of the big four banks possesses such large resources and market share that this poses significant barriers to entry to the banking industry. Even so, there are many smaller but equally well established bank alternatives, such as
credit unions and mutual societies. While traditionally serving niche markets such as particular professional groups, for example the Teacher’s Credit Union, the ‘mutuals’ are increasingly introducing consumer products that compete directly with the ‘big four’. This should be noted by the big institutional banks as a potential threat to their personal banking business.
Melissa Errey 9657797
MGMT901: Essay 2
Page 5 of 8
The banking industry is very complex, with clear identification of suppliers difficult for the average person. ANZ has identified the cost of wholesale funding instruments as part of its reasoning for raising domestic mortgage interest rates, indicating that to some extent banks do have to take into account theirits suppliers (Chronican, 2012). However it is difficult for the average person to determine which of the two parties hold more power in the relationship. On the other hand, buyers are easier to identify as the bank’s customers. They have several customer types, from personal consumer to business consumers both large and small. Power of the personal consumers is relatively small given that people generally have no viable alternative to holding a bank account of some description in order to receive remuneration. Adding to the lack of personal consumer power is the intense rivalry which sees little real differentiation amongst the banks and their very strong financial position. This means that up to a point the banks can afford to be somewhat indifferent to the needs of personal banking consumers as many won’t change due to feeling there’s little point, and in any case the revenue they represent as an individual is insignificant. Business customers, especially big business, may have more leverage than individuals for reasons such providing return benefit by way enhancing the reputation of ANZ due to their association. As mentioned above, there is little threat of substitute products. Innovative ways of offering financial products are possible, such as the recent trend for e-saver accounts using the internet, but essentially the products remain the same. Implications for ANZ and its Strategy As noted earlier, the banking industry in Australia is dominated by the big four banks which often leads to feelings of powerlessness on the part of consumers, particularly individuals. ANZ needs to be mindful of the increasingly competitive products offered by non-bank institution as it is becoming easier for consumers to move away from mainstream banking. In a controversial move, ANZ recently de-coupled the review of its interest rates from the announcement of the cash rate by the Reserve Bank of Australia. They clearly anticipated
Comment [MB4]: True. But any customer can still move their accounts to a rival bank. The issue you are referring to is, strictly speaking, the availability of substitutes. Comment [MB5]: True. And there are often changeover costs, although some banks are trying to reduce this, or cover the changeover costs for customers moving to them. Comment [MB3]: Yes. In the conventional sense of supplying raw materials, of course, the issue does not arise.
Melissa Errey 9657797
MGMT901: Essay 2
Page 6 of 8
the unpopularity of this decision amongst the general population as they took steps to mitigate any backlash. For example, ANZ mailed a detailed letter to customers explaining the decision and the reasons behind it (personal correspondence). They have also released articles into the mainstream media that attempt a relatively in-depth explanation of the reasons for recent interest rate rises (Chronican, 2012). The risk in this is that the complexity behind their decision, despite their efforts, is likely to put understanding beyond the average person for whom the link between RBA announcements and bank announcements is naturally simpler and more appealing. Given that one of ANZ’s key strengths is its dominance in the Australian and Asian-Pacific markets. I, it needs to protect that to avoid undermining the foundations that allow it to pursue the super regional strategy.
References
Comment [FoC6]: Avoid run-on sentence by creating two sentences here.
ANZ, 2011. Annual Report, 2011. Provide complete publication details, including URL for this report, date of access, etc The Asian Banker (2012) ‘ANZ names new CFO, creates new CEO roles for institutional wealth divisions’, The Asian Banker, 17 February. A 2012, accessed via Factiva on 25/04/2012 Chronican, Philip, (2012) ‘Facts and integrity behind rates move’, The Sydney Morning Herald, 23 April. A 2012, acccessed via Factiva on 25/04/2012 Clitheroe, Paul, (2012) ‘Banks have mutual appeal’, Kalgoorlie Miner, 25 April. 2012, Aaccessed via Factiva on 25/04/2012 Radelet, S., Sachs, J. and Lee, J. Economic Growth in Asia, July 1997, background paper for the Asian Development Bank’s study Emerging Asia: Changes and Challenges
Comment [FoC7]: Be sure to format your references strictly according to the Harvard format. Please note my changes here. Formatted: Font: Italic
Formatted: Font: Italic
Formatted: Font: Italic
Melissa Errey 9657797
MGMT901: Essay 2
Page 7 of 8
Waddell, D., Jones, G. and George, J. (2011) Contemporary Management, 2nd edition, McGraw-Hill, North Ryde, NSW. , Australia.
Comment [FoC8]: One author’s name is missing.
Melissa Errey 9657797
MGMT901: Essay 2
Page 8 of 8
CRITERION 1: Evidence you understand the textbook/lecture material as it applies to the article, and can explain the article’s implications for your organisation’s CEO, other staff, competitors, etc Textbook/lecture material has been misunderstood or is irrelevant to the article. Little or no discussion of article’s implications. Basic understanding of textbook/lecture material as it relates to the article. Limited discussion of article’s implications. Textbook/lecture ideas well identified …show more content…
and explained in terms of the article. Sound discussion of article’s implications.
45
SCORE: 34-50
SCORE: 0-16
SCORE: 17-33
Comment about assessment criterion 1 An excellent analysis once again, M! Please see my additional comments on your essay below, which aim to refine some of your points. CRITERION 2: Ability to communicate effectively through writing Disorganised, unclear. Difficult to follow the argument. Writing could be clearer; it is sometimes difficult to follow the reasoning A well organised, clear, convincing piece of writing
15
SCORE: 0-5 Comment about assessment criterion 2 CRITERION 3: Appropriate acknowledgement of ideas you have read elsewhere Extensive plagiarism Some plagiarism All ideas from elsewhere are acknowledged SCORE: 6-10 SCORE: 11-15
15
SCORE: 0-5 SCORE: 6-10 SCORE: 11-15
Melissa Errey 9657797
MGMT901: Essay 2
Page 1 of 8
Comment about assessment criterion 3
CRITERION 4: Correctness of writing, ie grammar, punctuation, referencing technique etc
Many errors
Some errors
Few or no errors
SCORE: 0-5
12
SCORE: 6-10 SCORE: 11-15
Comment about assessment criterion 4 You are citing all the material that is necessary, but the formatting of your references needs attention. Please see my corrections in your reference list. CRITERION 5: Extent to which the assignment meets the style and format specifications in the subject outline Assignment poorly formatted Most formatting correct Few or no formatting problems
SCORE: 0-1
SCORE: 2-3
4
SCORE: 4-5
Comment about assessment criterion 5
TOTAL SCORE:
91
Overall comment As you can see from the scores, you are doing great work! I look forward to your essay 3.
Melissa Errey 9657797
MGMT901: Essay 2
Page 2 of 8
MGMT901: Essay 2 Organisational Strategy and Function Student username Student number One of the key outcomes of the fundamental managerial function of planning is strategy formulation. Planning identifies the organisational goals and paves the way for selecting an appropriate strategy, which is essential for success. Strategy exists at the corporate, business and functional levels and all three levels must coordinate in a coherent way to be able to meet the organisational goals. The chosen strategy must then be supported by an appropriate organisational structure to be effectively implemented. Several planning tools are available to managers to achieve this, in particular SWOT analysis and Porter’s Five Forces model. ANZ has been operating domestically since 1835, and has operated in the Asia-Pacific region for more than 30 years. In 2007 ANZ laid out a new super regional strategy that involved a focus on expanding operations into the Asia Pacific, European and American (APEA) markets, a move they believe will deliver growth for shareholders that wouldn’t be possible while pursuing a purely domestic strategy (ANZ Annual Report 2011). ANZ is still actively pursuing this strategy and has recently announced changes to its structure to support the strategy.
Melissa Errey 9657797
MGMT901: Essay 2
Page 3 of 8
Having such a long history that lead to the ANZ becoming one of the largest banks in Australia-NZ and the Asia Pacific region today clearly involved planning, correct selection of strategy by using tools such as SWOT and Porter’s Five Forces model, and adjusting its structure to suit the strategy being deployed. SWOT Analysis SWOT analysis involves examining internal organisational strengths and weaknesses as well as external opportunities and threats. This allows managers to make decisions about the strategies to pursue at corporate, business and functional levels. A key strength of ANZ would be its strong financial position as one of the leading banks in Australia. Coupled with its direct knowledge of Asian markets through its historical and growing presence in the region, this allows ANZ to take advantage of opportunities presented by the rapidly growing Asian economies. ANZ has been operating in Asia-Pacific countries since 1966. At this time Asian countries were beginning a period of economic growth (Radelet et al, 1997) which has accelerated rapidly in recent times. ANZ’s expansion into Asia-Pacific countries also accelerated through the late 20th Century
Comment [MB1]: In the text, just write ANZ and the year. Keep the URL for the reference list at the end.
(http://www.anz.com.au/about-us/our-company/profile/facts/history/), culminating in the relatively recent super regional strategy where ANZ aims to source 25%-30% of earnings from APEA by 2017. Currently ANZ claims 13% earnings from APEA sources, up 6% from 2007 (ANZ Annual Report, 2011) so it appears that the strategy is a sound one in the current economic environment. A potential weakness is loss of customer goodwill. ANZ currently claims to have the highest level of customer satisfaction in Australia (ANZ Annual Report, 2011). However, this does not necessarily translate to high levels of customer satisfaction, nor does it mean that this will continue. While individual customers in particular may feel they have little choice, the rise of community banks and non-bank institutions poses a genuine threat to the big banks like ANZ as increasingly they offer real alternatives to mainstream everyday banking (Clitheroe, 2012).
Comment [MB2]: This might be better classified as a threat, since these institutions are external to ANZ.
Melissa Errey 9657797
MGMT901: Essay 2
Page 4 of 8
The current global environment poses a significant threat despite a relatively positive domestic economic outlook.
Events such as the Global Financial Crisis (GFC) of 2009 and the more recent failing of European economies have shaken consumer confidence leading to conservative attitudes about money. ANZ identifies in particular factors such as low credit growth, funding challenges and new regulation. However they have indicated that these potential threats to the industry represent an opportunity for them provided that they can make structural changes that allow them to be leaner and more innovative (The Asian Banker, 17 February 2012). The article goes on to describes several changes to senior management, including the creation of a new CEO role to head up the new division of Global Wealth and Private, which are aimed directly at supporting the super regional strategy. Porter’s Five Forces Model Porter’s Five Forces allows managers to analyse the external environment by examining five major factors: the level of rivalry between organisations in an industry, the barriers to entry into an industry, the power of suppliers, the power of buyers, and the threat of substitute products (Waddell et al, 2011). By analysing an industry using this tool, managers can identify both opportunities and threats that exist in that industry. The banking industry in Australia is competitive, dominated by 4 large banks but also with quite a few smaller bank and non-bank organisations. Rivalry between the ‘big four’ is particularly intense. There is little in real terms to separate them in the eyes of the average consumer as any changes made by one in terms of interest rates, product offerings or services areis generally quickly matched by the other three. Each of the big four banks possesses such large resources and market share that this poses significant barriers to entry to the banking industry. Even so, there are many smaller but equally well established bank alternatives, such as
credit unions and mutual societies. While traditionally serving niche markets such as particular professional groups, for example the Teacher’s Credit Union, the ‘mutuals’ are increasingly introducing consumer products that compete directly with the ‘big four’. This should be noted by the big institutional banks as a potential threat to their personal banking business.
Melissa Errey 9657797
MGMT901: Essay 2
Page 5 of 8
The banking industry is very complex, with clear identification of suppliers difficult for the average person. ANZ has identified the cost of wholesale funding instruments as part of its reasoning for raising domestic mortgage interest rates, indicating that to some extent banks do have to take into account theirits suppliers (Chronican, 2012). However it is difficult for the average person to determine which of the two parties hold more power in the relationship. On the other hand, buyers are easier to identify as the bank’s customers. They have several customer types, from personal consumer to business consumers both large and small. Power of the personal consumers is relatively small given that people generally have no viable alternative to holding a bank account of some description in order to receive remuneration. Adding to the lack of personal consumer power is the intense rivalry which sees little real differentiation amongst the banks and their very strong financial position. This means that up to a point the banks can afford to be somewhat indifferent to the needs of personal banking consumers as many won’t change due to feeling there’s little point, and in any case the revenue they represent as an individual is insignificant. Business customers, especially big business, may have more leverage than individuals for reasons such providing return benefit by way enhancing the reputation of ANZ due to their association. As mentioned above, there is little threat of substitute products. Innovative ways of offering financial products are possible, such as the recent trend for e-saver accounts using the internet, but essentially the products remain the same. Implications for ANZ and its Strategy As noted earlier, the banking industry in Australia is dominated by the big four banks which often leads to feelings of powerlessness on the part of consumers, particularly individuals. ANZ needs to be mindful of the increasingly competitive products offered by non-bank institution as it is becoming easier for consumers to move away from mainstream banking. In a controversial move, ANZ recently de-coupled the review of its interest rates from the announcement of the cash rate by the Reserve Bank of Australia. They clearly anticipated
Comment [MB4]: True. But any customer can still move their accounts to a rival bank. The issue you are referring to is, strictly speaking, the availability of substitutes. Comment [MB5]: True. And there are often changeover costs, although some banks are trying to reduce this, or cover the changeover costs for customers moving to them. Comment [MB3]: Yes. In the conventional sense of supplying raw materials, of course, the issue does not arise.
Melissa Errey 9657797
MGMT901: Essay 2
Page 6 of 8
the unpopularity of this decision amongst the general population as they took steps to mitigate any backlash. For example, ANZ mailed a detailed letter to customers explaining the decision and the reasons behind it (personal correspondence). They have also released articles into the mainstream media that attempt a relatively in-depth explanation of the reasons for recent interest rate rises (Chronican, 2012). The risk in this is that the complexity behind their decision, despite their efforts, is likely to put understanding beyond the average person for whom the link between RBA announcements and bank announcements is naturally simpler and more appealing. Given that one of ANZ’s key strengths is its dominance in the Australian and Asian-Pacific markets. I, it needs to protect that to avoid undermining the foundations that allow it to pursue the super regional strategy.
References
Comment [FoC6]: Avoid run-on sentence by creating two sentences here.
ANZ, 2011. Annual Report, 2011. Provide complete publication details, including URL for this report, date of access, etc The Asian Banker (2012) ‘ANZ names new CFO, creates new CEO roles for institutional wealth divisions’, The Asian Banker, 17 February. A 2012, accessed via Factiva on 25/04/2012 Chronican, Philip, (2012) ‘Facts and integrity behind rates move’, The Sydney Morning Herald, 23 April. A 2012, acccessed via Factiva on 25/04/2012 Clitheroe, Paul, (2012) ‘Banks have mutual appeal’, Kalgoorlie Miner, 25 April. 2012, Aaccessed via Factiva on 25/04/2012 Radelet, S., Sachs, J. and Lee, J. Economic Growth in Asia, July 1997, background paper for the Asian Development Bank’s study Emerging Asia: Changes and Challenges
Comment [FoC7]: Be sure to format your references strictly according to the Harvard format. Please note my changes here. Formatted: Font: Italic
Formatted: Font: Italic
Formatted: Font: Italic
Melissa Errey 9657797
MGMT901: Essay 2
Page 7 of 8
Waddell, D., Jones, G. and George, J. (2011) Contemporary Management, 2nd edition, McGraw-Hill, North Ryde, NSW. , Australia.
Comment [FoC8]: One author’s name is missing.
Melissa Errey 9657797
MGMT901: Essay 2
Page 8 of 8