...Company Report: Strategy Evaluation 8 February 2013 Table of Contents Executive Summary 3 Industry: Banking and Financial Services in Australia 4 Overview 4 PESTLE 5 Porter’s Five Forces of Competition 6 Firm: Westpac 7 Overview 7 McKinsey’s 7 S Framework 7 Competition Analysis 11 Blue Ocean Analysis 13 SMSF and Strategy Recommendations 13 What is a SMSF? 13 Three tiers of Non-Customers 13 Strategic Canvas – SMSF 14 3 Keys to Success: Tagline, Focus and Differentiation 14 Option 1 14 VRIO 15 Option 2 15 VRIO 15 Appendix 17 Industry Analysis Charts 17 Porters 5 Forces Analysis Detail 20 Westpac Strategic Priorities 22 Material issues 23 Executive Summary Westpac Bank is Australia’s first Bank, founded in 1817 and is currently one of the “big four” group of lending banks in Australia. Listed on the stock exchange in 1970, Westpac has a history of acquisitions, notably the recent (2008) purchase of St George, which contributes 19% of Westpac’s Cash Earnings. Westpac has a market capitalisation of $76.5 billion in an industry with an overall value of $208.6 billion, or roughly 10% of Australia’s GDP. The financial services industry in Australia is an Oligopoly, with the big four banks accounting for over 80% of the market. A mature market, players are converging, and the industry is forecast to grow at around 8% year on year to 2018. Competition in this industry is fierce, though there is also speculation that there may be significant price signaling...
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...Michael C Yule - A001322735 22nd April 2014 Word Count – 2605 Not including Executive Summary and Calculations Executive Summary Westpac Private Bank aims to provide exceptional banking services to a select group of High Net worth clients. Within Westpac Private Bank’s supply chain, a continual balance has to be maintained between easy and quick transactions, while security for both the client and the bank are maintained at the highest possible level. This report will look at the supply chain management of completing service requests for clients, and make several recommendations in which to improve the processes for client services within Westpac Private Bank. Table of Contents * 1.1 Overview of Westpac Private Bank 5 * 1.2 Account Service Process within Private Bank 7 * 2.0 Analysis of the Process 9 * 3.0 Recommendation of Key Improvements 12 * 3.1 Implementation of Recommended Improvements ...
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...contributing factors which influence the contents of a firm‟s sustainability reporting through combined social and environmental accounting and management perspectives. Design/methodology/approach: This paper analyzes the disclosed sustainability indicators of a major Australian financial institution, Westpac, through the application of the research method content analysis. The theoretical framework will be shaped by the consideration of legitimacy theory and the Balanced Scorecard approach. Findings: The results indicate that the four perspectives of a traditional Balanced Scorecard are related to the main sources of influential inputs to Westpac‟s sustainability reporting – existing frameworks, stakeholder engagement mechanism, employee involvement and traditional shareholders‟ financial information needs. It also reinforced the argument that the focus of organisational legitimacy is a key resource of organisation survival. Originality/value: This research contributes to the literature on social and environmental disclosures including the research of Do, Tilt and Tilling (2007) and Baxter, Chua and Strong (2010) which was based on the sustainability management and reporting of Westpac. Keywords Balanced Scorecard, Legitimacy, Sustainability, Page 1 Introduction This paper considers sustainability management and reporting in the Australian private sector context. It aims to evaluate an Australian publicly listed firm‟s continuous voluntary...
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...PRODUCTIVITY HELPING US LEAD TOMORROW. Since our inception in 1817 we’ve built a legacy of leadership. In a young colony, through a great depression, through boom years, through a global financial crisis and in the development of a portfolio of businesses, Westpac has a history of looking ahead with a long-term view. This year we have made significant progress in implementing a strategy that is delivering better returns today, and building a sustainable business for the future. It is the strength we’ve built into our business today, with sector leading capital, a robust funding and liquidity position, and superior asset quality, that is helping us lead tomorrow. As a result we can respond to opportunities as they emerge and invest to transform the organisation. We’ve been proudly supporting Australia, New Zealand and our region for almost two centuries and we’re singularly focused on continuing our support as we approach our third century. We believe in these countries, in their people and in their businesses and their potential to prosper and grow. Our strong position today means we are more capable than ever of helping to realise this potential. And we are more dedicated than ever to play a role in leading tomorrow. …IS Westpac Banking Corporation ABN 33 007 457 141 2013 PERFORMANCE HIGHLIGHTS CASH EARNINGS ($m)1,2 REPORTED RESULTS ($m)3 COMMON EQUITY TIER 1 CAPITAL RATIO $7,097m, up 8% 2013 2012 2011 2010 2009 4,675 7,097 6,598 6,301 5,879 $6,816m, up 14% 2013...
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...E-Learning and the Changing Face of Corporate Training and Development Max Zornada As much as is critical to a manufacturing supply chain environment, e-learning is critical in a knowledge dependent supply chain environment. Larry Pereira, Motorola Internet technologies and the advent of e-learning applications in many organisations have made a fundamental difference to the way organisations deliver training and development content, activities and experiences to their employees. Some of the organisations at the forefront of deploying e-learning technologies have been global corporations and/or transaction processing intensive organisations, who typically have difficulties assembling their staff for traditional classroom based training activities, either due to logistical difficulties or because of the impact this would have on work flows and business continuity. Such organisations have developed approaches to e-learning and competency development that overcome the logistical problems of conventional training by making innovative use of e-learning. This paper examines the approaches used by several leading global, Australian and Asian organisations, including Cisco Systems, Motorola, Qantas and several others by drawing on a field study conducted by the writer during –. It attempts to identify some key emerging trends and practices in the field, and lessons that can be learnt from the experiences of organisations reviewed, for the successful deployment of e-learning strategies...
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...FINS3630 Group Project: Bank Performance and Risk Exposure Evaluation Executive Summary This report will aim to highlight the profitability of National Australia Bank (NAB) and Westpac in terms of Return on Equity (ROE) between 2003 and 2007. Using a Dupont analysis, ROE will be decomposed into Return on Assets (ROA) and the Equity Multiplier (EM). Additionally, it will further look at the various risk exposures that these banks may face such as credit risk, liquidity risk, capital risk and operational risk. Furthermore, this report will also compare the performance and risk exposures between the two banks over the past 5 years. Westpac’s Bank Performance Analysis ROE Figure 1 - ROE 25.00% 21.98% 20.00% ROE 15.00% 10.00% 5.00% 0.00% 2003 2004 15.65% 17.02% 17.97% ROE 20.11% nt 2005 2006 2007 Th ink sw Figure 1 summarizes Westpac’s Return on Equity (ROE) from 2003 through to 2007, which is one of the key determinants of profitability. Generally, one can observe an upward trend in value throughout the past 5 years, starting at 15.65% in 2003 and finishing at 21.98% in 2007. Furthermore, ROE has increased by a total of 6.33% over the last 5 years, averaging 1.5825% per year. From a shareholder’s perspective, it can be viewed that Westpac has performed consistently well and has been more profitable throughout the specified period. In order to further analyze Westpac’s increasing trend in terms of its ROE, it is essential to conduct a Du Pont analysis that...
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...1. Introduction A paradigm shift currently indicates the global challenges that industries are facing and more companies are pressured to embrace sustainability as business conditions change. However, only recently corporations started integrating sustainability as the part of their business strategy as they came to recognize that it is an essential part in growing and establishing themselves as the leader in the competing environment. A well-executed sustainability strategy can enhance the company’s value and reinforce competitive advantage in the market while protecting the capital base. The balance of power has shifted between corporations and it is important to balance economic prosperity along with environmental and social dimensions. Sustainable business strategy represents a marked shift in traditional business practices and companies who do not adapt to the changes in these practices in order to achieve sustainable profitability will be more likely to face the brand value decline or even extinction in the future. For instance, the change represents the need to understand how all three dimensions affect each other and companies ought to consciously create new consumer preferences. However, a lot of companies still are missing guidelines to implementing a marketing strategy of sustainability as an essential part, which is at the core of ensuring organizational, social, economic and environment growth while managing overconsumption issues (White, 2011). Current researches...
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...EXECUTIVE SUMMARY NOTE: “The executive summary usually appears before the table of contents and is given a lower-case Roman numeral page number (for example, i).” – from the guide on accounting writing methods on BB. The collapse of Enron in 2001 has alerted the financial standard-setters worldwide for the need to develop a single set of global high quality accounting standards in order to achieve greater transparency, clarity, consistency and comparability of the financial reports. This is important for achieving more efficient global financial markets while benefiting users of financial reports such as the investors, creditors, multi-national companies and auditors. In additions, it is evident that the financial standard setters are reconsidering the merits of group accounting and its criteria for control to a large extent. In particular, it is indicated that the application of reviewed group accounting standards such as the FIN46 could also be subjective and easily manipulated. This contrasts with the criteria of Australia’s basis for group consolidation, namely, “effective control” which is determined by control over the entity's board and the proportion of potential and current voting rights. The observations call for the principle-based accounting system instead of the insufficient and easily manipulated rules-based system. In sum, the abovementioned suggests that the financial reporting standard-setting process is largely uncertain and that the accounting...
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...BCO6604— Customer Relationship Management Semester 1 2011 Lithan Hall Singapore Presentation (30% of assessment) & Short Paper (25% of assessment) This assignment should be done in groups of no more than 2 students. You must select a customer relationship management systems topic in conjunction with your workshop leader. The topic chosen will form the basis of a professionally written paper and presentation. Students can select topics based on their own understanding and investigations of the different types of CRM systems or applications across different industry settings. The scope of the CRM topic can be relatively narrow or broad. Some suggested, but not definitive topics might include the following: |Business case for CRM systems adoption |Strategic value of CRM systems | |How CRM creates value for customers |Cloud computing and CRM systems | |Managing networks for CRM performance |Using CRM to managing supplier relationships | |Data mining CRM |Web Services and CRM | |IT requirements for CRM |The CRM Interaction centre | |CRM outsourcing ...
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...Proceedings of the 2nd International Conference on Corporate Governance Garrow A New Hypothesis on the Determinants of Acquisitions Nigel Garrow Introduction Merger and acquisition (M&A) activity is a significant factor in business in most advanced economies. According to Thomson Reuters, the value of M&A deals completed globally during the 12 months to November 2009 was US$1.8 trillion. However, the acquirers’ shareholders often lose value. Much of the literature on M&A is centred on the UK and US markets, with only a modest level of research within Australia This paper suggests a new proposition to explain why M&A activity may be value destroying for the acquirers: Success or failure for the acquiring firm’s shareholders in M&A is a function of the combined tenure, personal motivation, and recent performance of the Chairman and Chief Executive Officer (CEO) of the acquiring firm. This examination of the combined effectiveness of the Chairman and CEO is not something that appears to have been undertaken before. The paper will present the constituent hypotheses of the main proposition, followed by a literature review, a presentation of findings from a pilot study, conclusions and next steps. Four constituent hypotheses, each of which refers to the performance of the Chairman and CEO, arise out of the pilot study: Hypothesis 1. The length of time that the Chairman and CEO of the acquiring firm have been together in their respective positions at the time of the acquisition...
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...Discussion Paper No. 109 CUSTOMER SATISFACTION: A STUDY OF BANK CUSTOMER RETENTION IN NEW ZEALAND David Cohen1 Christopher Gan2 Hua Hwa Au Yong3 and Esther Choong4 March 2006 1 Commerce Division, PO Box 84, Lincoln University, Canterbury, New Zealand, Tel: 64-3-3252811, Fax: 64-3-325-3847, cohend@lincoln.ac.nz Corresponding Author, Commerce Division, PO Box 84, Lincoln University, Canterbury, New Zealand, Tel: 64-3-325-2811, Fax: 64-3-325-3847, ganc1@lincoln.ac.nz Department of Accounting and Finance, Faculty of Business and Economics, Monash University, Victoria 3800, Australia, Tel: 61-3-9905-5178, Fax: 61-3-9905-5475, Email: HueHwa.AuYong@BusEco.monash.edu.au Standard and Chartered Bank, Kuala Lumpur, Malaysia, Email: mcc9999@gmail.com 2 3 4 Commerce Division Discussion Paper No. 109 CUSTOMER SATISFACTION: A STUDY OF BANK CUSTOMER RETENTION IN NEW ZEALAND David Cohen Christopher Gan Hua Hwa Au Yong and Esther Choong March 2006 Commerce Division PO Box 84 Lincoln University CANTERBURY Telephone No: (64) (3) 325 2811 extn 8155 Fax No: (64) (3) 325 3847 E-mail: ganc1@lincoln.ac.nz ISSN 1174-5045 ISBN 1-877176-86-9 Abstract Customer retention is an important element of banking strategy in today’s increasingly competitive environment. Bank management must identify and improve upon factors that can limit customer defection. These include employee performance and professionalism, willingness to solve problems, friendliness, level of knowledge...
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...------------------------------------------------- Contemporary Credible Signalling Article Summary ‘ANZ capitalises on strong hand’ written by Jonathon Shapiro and published in an August 2011 edition of The Australian Financial Review, discusses how ANZ raised $750 million in hybrid capital (capital combination of debt and equity characteristics) in order to maintain its already strong capital position and balance sheet. ANZ has a Tier 1 capital ratio of 10.6% compared to Westpac, NAB and the Commonwealth Bank of Australia and will only improve with further equity issuance. The ANZ treasurer spoke of the company’s overall plan to stay ‘ahead of the game’, signalling to investors of his confidence in the company, along with a new common equity trigger clause. This clause states that if the company’s common-equity ratio falls below 5.125%, new convertible preference shares will be converted to ordinary shares. New stern regulations require bank hybrids to be more “equity-like” to absorb potential losses and provide greater capital buffers. ANZ’s hybrid issue comes amid volatile global market conditions which have caused Australian banks to refrain from raising wholesale debt. The demand for loans has fallen and debt has become less preferred due to risks of financial distress. Capital Structure & Hybrid Capital Trade-off’s Debt financing puts an obligation on a firm. A firm that fails to make the required interest or principle payments on the debt will enter into default...
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...Filenote The purpose of this filenote is to outline the accounting treatment associated with the receivables securitisation arrangement with Westpac. Introduction AASB 9's requirements on de-recognition are complex and require interpretation in a number of areas. Factoring arrangements are often referred to as "with recourse" or "without recourse". In a "with recourse" arrangement, all or most of the credit risk remains with the entity. Such an arrangement will almost always fail the risks and rewards tests (and possibly others). It should therefore be accounted for as a loan. By contrast, a "without recourse" arrangement transfers all or most of the credit risk to the factor (transferee). Such an arrangement is likely to qualify for de-recognition (subject to an evaluation of other risks that might be relevant such as slow payment risk). In substance, such an arrangement could be economically similar to a sale of the receivables in which case it is accounted for accordingly. The continuing involvement accounting requirements of IAS 39 will rarely apply in most factoring arrangements because most arrangements result in substantially all the risks and rewards being either transferred or retained. These requirements include special rules on recording and measuring continuing involvement assets and liabilities that deviate from the normal requirements of IAS 39. Accounting Implications When an entity factors its trade receivables, an analysis should be carried...
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...to consumers. 3.4 This chapter also considers market implications of these driving change, including changes to wholesale markets, financial providers, products, and distribution channels. Some of these implications are evident as early trends now, and the real question factors service market is how . . . 45 Financial System Inquiry quickly such trends will be borne out. Others fall into the realm of the merely possible. In order to frame recommendations about the future regulatory framework, it is important to identify the range of possible implications. The regulatory system needs to be flexible enough to anticipate and react to the range of possible developments in the financial system, to avoid inhibiting changes except in cases where there are essential public policy reasons for doing so. 3.5 The chapter concludes by...
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...FNCE90012 Mergers & Value Enhancing Strategies Semester 1, 2015 Lecture 1: Fundamentals Lecture 1: Fundamentals Overview of Lecture 1. Fundamentals – Takeovers, acquisitions, and mergers – Three examples – Types of mergers 2. Ownership and Control 3. Merger Statistics 4. Why Do Mergers Occur? Readings • Brealy, Myers, Allen, 2011, Principles of Corporate Finance, 10th edition, Chapter 31. 1 1. Fundamentals 2 Takeovers, Acquisitions, Mergers and Schemes • Takeover – One firm (the bidder) acquires control of another firm (the target) by purchasing the voting shares of the target from the shareholders of the target – The consideration paid by the bidder may be cash and or shares (in the bidder) – Usually conducted on a hostile basis whereby the managers of the bidder do not consult with the managers of the target firm prior to launching the bid – A full takeover involves the bidder acquiring 100% control of the target. A partial takeover involves the bidder acquiring less than 100% control. Takeovers, Acquisitions, Mergers and Schemes • Acquisitions – In general, the purchase of an asset by a firm – Includes purchases of single assets from a supplier or the purchase of the business undertaking and assets of another firm or the purchase of the voting shares of another firm Takeovers, Acquisitions, Mergers and Schemes • Merger – A negotiated deal between the managers of the bidder and the managers of the target which effectively results in...
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