...Proposal for Operations Transformation at Westpac March 26, 2009 To: Ms. Gail Kelly, CEO and Managing Director, Westpac Bank Mr. Peter Clare, Group Executive, Products and Operations From: __________, Principal, Asia-Pacific & Australia, Verint Systems Date: March 26, 2009 Re: Operations Transformation at Westpac We are very pleased with the opportunity to deepen our partnership with Westpac and believe our proposal provides the most comprehensive approach for Westpac to execute its strategy successfully. This initiative is critical for Westpac to differentiate its service delivery model in the midst of an industry shift towards growing customer share. Westpac lags behind its key competitors and the risk of further customer attrition will result in a systemic deterioration of profitability. Westpac and Verint have formed a shared perspective on the importance of operational improvements to the bank’s overall transformation. Our diagnostic work earlier this year suggests that a successful transformation program can free up at least 2,000 personnel for frontline sales roles over the next 12-24 months. Assuming current levels of Westpac sales productivity, migration of 2,000 personnel to the frontline could add $156 million in annual revenues. As important, a successful redesign of existing operating processes...
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...PRODUCTIVITY HELPING US LEAD TOMORROW. Since our inception in 1817 we’ve built a legacy of leadership. In a young colony, through a great depression, through boom years, through a global financial crisis and in the development of a portfolio of businesses, Westpac has a history of looking ahead with a long-term view. This year we have made significant progress in implementing a strategy that is delivering better returns today, and building a sustainable business for the future. It is the strength we’ve built into our business today, with sector leading capital, a robust funding and liquidity position, and superior asset quality, that is helping us lead tomorrow. As a result we can respond to opportunities as they emerge and invest to transform the organisation. We’ve been proudly supporting Australia, New Zealand and our region for almost two centuries and we’re singularly focused on continuing our support as we approach our third century. We believe in these countries, in their people and in their businesses and their potential to prosper and grow. Our strong position today means we are more capable than ever of helping to realise this potential. And we are more dedicated than ever to play a role in leading tomorrow. …IS Westpac Banking Corporation ABN 33 007 457 141 2013 PERFORMANCE HIGHLIGHTS CASH EARNINGS ($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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...a smaller level of detail in regards to services offered. Also, Westpac directly emphasises the importance of customers to their business by indicating that their main objective is to cater for customer needs, which suggests that customers are a highly valued asset within the company. ANZ’s mission communicates a similar message. This notion of the importance of customers is not communicated as directly in NAB’s mission, which alternatively provides a level of insight into the competitiveness and ambition that drives NAB to achieve an improved market positioning. Furthermore, Westpac’s vision communicates a similar level of customer importance that is reflected in its mission statement. This is again unlike NAB’s vision, which fails to communicate the importance of customers and alternatively focuses on the business’s quantitative objectives. ANZ’s vision reflects elements of Westpac’s and NAB’s visions by emphasising the importance of customers as well as its international business interests. Furthermore, NAB and ANZ’s company values emphasise the importance of ethical behaviour in all areas of the business; however, Westpac does not touch on this notion. Also, ANZ and Westpac both highlight the underlying concept of a collaborative approach to work, i.e. working as one team. In addition to this, all three company values communicate the importance of treating customers with respect. However, only NAB and Westpac offer an insight into the competitiveness and ambition that drives...
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...forces analytic methods to analyze opportunities and threats of Westpac Bank Group in general and competitive environments. Specifically, in general environment, the key perspectives are political and economic factors. However, faced with strong substitutes and rivalries, Westpac would focus on those great threats. In addition, the report demonstrates the visions and missions of the company, indicating the Westpac’s objectives. Then, SWOT analysis is used in the company’s strategic management, which discovers the strengths including company’s infrastructure, great reputation, staffing level and the weakness covering capital risk and low profitability. Moreover, five categories of resources, namely financial, physical, reputational, technological, human resources are discussed. Furthermore, several specific strategies would be presented to gain company’s further objectives and achieve better development. Finally, some recommendations will be suggested to the company, enhancing Westpac’s business operations and development. 1.General environment As one of the big four banks in Australia, Westpac Bank is unavoidably affected by macro environment, faced with several opportunities and threats. Specifically, in terms of political and legal factors, although lots of financial policies and regulations are made to support better Australian banking industry reforms, excessive regulatory interventions may confine Westpac development and higher financial uncertainties also influence...
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...scorecard has been widely used by many companies, it has provided benefits and convinces to companies. However, not every company can successfully handle it. As a result of this, this report will identify the ways to design and implement balanced scorecard in Westpac banking with an assumption regarding to some influence both positives and negatives may occur with. 2.1 Company Background Westpac is one of the five major Authorised Deposit-taking Institution (ADI) organisations. It provides a broad range of banking and financial services to approximately 7.5 million customers across more than 1.300 service points. It has branches and affiliates throughout Australia, New Zealand and the Pacific region. Westpac’s financial services include retail, commercial and institutional banking and services such as wealth management. (Oracle, 2005) Westpac were founded in 1817 and were the first bank to be established in Australia. Under an Act of the New South Wales Parliament in 1850 it was incorporated as the Bank of New South Wales and renamed to Westpac Banking Corporation in 1982. On 23 August 2002, it was registered as a public company limited by shares under the Australian Corporations Act 2001. (Westpac, 2005) Today Westpac has 26,131 Employees with $7.2 billion net operating income in the past year of 2005, under the leading...
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...ACCOUNTING FOR DECISION MAKING A FINANCIAL OVERVIEW OF THE WESTPAC BANKING CORPORTATON 2009-2013 Lecturer: Dr Andy WANG NORTH SYDNEY Summary: 1. Title Page 2. Executive Summary 3. Introduction and Purpose of The Analysis 4. Methodology and Procedures 5. Company Profile 6. Industry Profile 7. Report on Operating Performance and Financial Stability – a 5-year outlook 8. Appendices 9. Bibliography or References 2. Executive summary 3. Introduction and Purpose of the Analysis………………………………………………………………...4 4.Methodology and Procedures……………………………………………………………………………………6 5.Industry Profile………………………………………………………………………………………………………….7 6. Company Profile……………………………………………………………………………………………………….8 7. Report on Operating Performance and Financial Stability - a 5 year outlook……………………………………………………………………………………………………………………...10 8. Appendices…………………………………………………………………………………………………………….23 9. Bibliography and References………………………………………………………………………………….28 3. Introduction and Purpose of the Analysis Our group had been assigned the company Westpac Group Banking Corporations. We have researched the annual reports for the years 2009 to 2013 and made financial comparisons in two distinctive ways: (i) the group analyzed the major accounting results fluctuations on year basis and compared them year by year; (2) the group used key ratios to fully understand the financial situation of the Westpac Group and gave a general outlook for the five year period in consideration...
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...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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...1. Westpac PESTEL analysis 1. Political and Legal analysis There are huge amounts of regulations and laws supervising the banking system in Australia. In this paper, we focus on one important and famous regulation: ‘four pillars’ policy. Basically, the ‘four pillar’ is a specific Australian policy to maintain the separation of ‘big four’ banks including Westpac and to prevent any merge and acquisition among these four banks (1997) .In terms of the report from both TUNSTALL (2007) and The Age (2006), the main objective of the policy is to keep the competition of the banking industry. Such the policy is a threat to the Westpac because the increasing competition will lead to shrinking interest margin definitely. And the profit channel such as making loans in domestic market will be in tough condition. While the ‘four pillar’ policy is also a big opportunity for Westpac due to the fact Australian banks were force to borrow offshore under the policy based on the speech of Macfarlane (2009). Additionally, according to the analysis released by IMF (2012), ‘Australia has limited foreign bank presence’. Therefore, it’s a big opportunity for Westpac to build up foreign presence to join the international banks and adsorb the cheaper foreign capital. 1. 2 Social and Economic analysis After the GFC, based on BBC many important economic entities cut their interest rate with the quantity easing policy issued by US, including Australia, to stimulate the domestic economy...
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...Group Assignment for 2204AFE Financial Institutions Management | Comparative Analysis of ANZ and Westpac | | s2758329, s2762895, s2773847, s2784238Diamond, E., Dong, G., Huang, Y. & Lin, B.Due: 5th April 2012Tutor: Sonja Kobinger | | | The following report is a brief comparative analysis of two of Australia’s largest deposit-taking financial institutions (FI), Australia and New Zealand Banking Group Ltd. (ANZ) and Westpac Banking Corporation (Westpac). This report seeks to identify which of the FIs has a greater aggregate return per dollar of equity and thus establish the highest performer, or most profitable, of the two. The Return on Equity Model (ROE) (Koch & MacDonald, 2010, pg. 96) is a series of ratios constructed to evaluate the financial position of FIs and utilised, in this case, to compare the performance, or profitability, of ANZ to Westpac. By applying ROE, and its associated ratios, to the 2011 Financial Reports of ANZ and Westpac, this report aims to justify the conclusion that Westpac outperformed ANZ for the 2011 financial year. ROE is widely accepted as an accurate reflection of the overall performance of FIs. For the financial year 2011, ANZ had a ROE ratio of 14.87% compared with Westpac’s 16.82% (Appendix A). This ratio indicates that, before paying cash dividends, the aggregate return for shareholders of ANZ is 1.95% lower than its Westpac counterparts (Koch & MacDonald, 2010, pg. 98). While the two bank’s total net assets are similar...
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...Positioning 2.0 Strategies 3.0 Marketing Mix 3.1 Product 3.2 Pricing 3.3 Distribution 3.4 Marketing Communications 3.5 Customer Service 4.0 Recommendations 5.0 Plan of Action 6.0 Bibliography 1.0 Marketing Strategy Westpac: THE ASIA PACIFIC INVASION Westpac have been servicing the Pacific Rim since 1901 with rapid support for its growth strategy of servicing Australian and New Zealand customers with links to Asia, and Asian customers with business interests in Australia and New Zealand. With Capital Market Sales and Foreign Exchange capabilities established in Singapore in 2004, Westpac Group Asia was extended to include Corporate and Institutional Banking in 2005, and most recently, Syndicated and Leverage Finance and Asset Finance. Westpac Singapore and Hong Kong offices have a strong focus on private banking for affluent customers with ties to Australia and New Zealand. While most of these Westpac Institutional Bank operations are headquartered in Singapore to cover the continent, the geographic footprint has continued to expand, incorporating Shanghai and Hong Kong Branches in China and Representative Offices in Mumbai, Jakarta and Beijing. (Westpac Group, 2011, Westpac History, 07-06-2011, URL: ) While Westpac began to seriously look at the Asian market by 2005, it was only through the form of corporate banking and as they have positioned themselves as a prestigious leader with good earnings. The challenge is how to maximise the earnings and...
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...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 16 * 4.0 Conclusion 19 * 5.0 References...
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...Finance Executive summary The purpose for this report is to find out the best option portfolio to invest through Telstra, Rio Tinto, Westfield, and Westpac Banking. The process is by explaining the relationship between risk and return, and then will explain how the risk can be measured and reduced, after this going to discuss diversifiable and non-diversifiable risk. By justifying the above relationship this report has chosen to analysis monthly opening and closing prices from four company shares and the opening and closing values for the all ordinaries index for 48 months from 1 January 2009 to 31 December 2012. In the end this report going to find out which is the most suitable option that choose to invest. Table of content 1. Executive Summary ……………………………………… 1 2. Introduction…………………………………………….….3 3. The relationship between risk and return…………………...3 4. Diversifiable and non-diversifiable risk………………….….3 5. Risk measurement……………………………………….…..4 6. Reducing risk when investing in securities……………….…5 7. Analyze the average monthly return of the shares and the expected value of the portfolios.............................................................5 8. Analyze the value of the individual betas and the beta of the portfolio...................................................................................6 9. Analyze the value of the individual standard deviations and the standard deviation of the portfolio...
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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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...transformed into tangible ones, often financial outcomes (Norton & Russell, 2005). The top half (the financial and customer perspectives) are essentially outcomes — or rather what the organization aims to achieve financially and for the customer. The bottom half of the map represents the inputs — or rather those processes/activities that must be delivered exceptionally well if the outcomes are to be realized and, consequently, the strategy implemented. Westpac’s vision is to be one of the world’s great companies, helping their customers, communities and people to prosper and grow. The mission is to earn all of the customers’ business. The focus is on: delighting the customers; having the right people in the right roles; and the reputation. Westpac do their business amongst the customer base. They want to achieve the highest levels of customer satisfaction and loyalty. They want to deepen their relationships with their existing customers, and continue to acquire new customers. Finally, they would get more profits and enhance shareholder value. From a financial perspective, the top objective should typically always focus on the delivery of value to shareholders/owners. Normally, the financial perspective will include revenue growth and cost decrease. Financial institutions will also typically choose an objective around managing risk and asset management The next step in the Strategy Mapping process is to populate the...
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...Findings and Analysis………………………………………………………………………………… 2.1 PART 2 Company Research/Graphs/Investor Information………………………………...…… 2.2. PART 3 Identification of Key Financial Data and Ration Analysis……………………………. 3. Conclusions……………………………………………………………………………………………. 4. Reference……………………………………………………………………………………………. Executive Summary This proposal will be analyse financial statistic at Westpac banking Corporation and JB HiFi Company base on researching and accounting finance number in the Annual Report 2012 of each company. The report helps to understanding transaction of accounting through analysis Source Document such as Balance sheet, Income Statement, etc. 1. Introduction This report discusses the performances of the two companies selected being Westpac Banking Corporation and JB Hi-Fi Limited. Westpac Banking Corporation is one of the largest of the four top banks in Australia. Like the other major banks, Westpac offers the full spectrum of banking and financial services to the retail, business and corporate sector. Whilst Australia is its main headquarters, Westpac also operates in New Zealand, the South Pacific, Hong Kong and in Singapore. The core components of Westpac's business are consumer financial services, business financial services, BT financial...
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