Mission of NAB

Describe about the Strategic Development within NAB for Australian Bank (NAB).

The National Australian Bank (NAB) is world famous bank providing services in 10 countries approx the world. It was established in 1858 in Dockland Australia. The bank has around 40,000 employees and 1714 service centers along with its branches. NAB is 17th largest bank in the world. The bank provides its services to 8.3 million banking customers including 2.3 million wealth management customers around the world. It is the most successful bank in the Australia. The bank always tries to give the best services of personal banking to its customers in all over the world. It is also planning to expand its banking services in many other countries such as UK, New Zealand, and USA etc (National Australia Bank, 2016).

There are wide ranges of products and services offered by National Australian bank. It mainly focus on personal banking and business banking products such as accounts, business loans, business finance, business credit cards, merchants and payment solutions and insurance etc. Along with this, bank has also provided online banking facility and comprehensive products such as savings, transaction and term deposit accounts, and specialist accounts for some business to its customers. Overall it provides services of consumer banking, business banking, wholesale banking, wealth management, and insurance.

1. Strategy is a kind of direction in the business by which any business can achieve success within a competitive environment to meet the needs and requirements of customers as well as stakeholders. Strategy can be on different level of business such as corporate strategy, business level strategy, operational strategy etc (Ovans, 2015).

The mission of National Australian Bank is:

• To offer banking facilities and financial services proficiently, competently and competitively to achieve a strong place in the target market.
• To establish strong relationship with customers by best service.
• To contribute in development of environment.
• To create working environment based on trust and feel proud to employees.
• To identify the importance of profitability for long-term growth.

Vision of National Australian Bank is to get success in target market be providing best services.

Competitive advantage refers to the advantage to be achieved over competitors by offering best services to the customers (McGrath, 2013). National Australian Bank has strong market position and distinct competitive advantage in banking. The competitive advantages of NAB are as follows:

The bank has leading market position in Australia, New Zealand and Ireland. It has multiple platform of specialized distribution according to customers’ needs and requirements. It is unique in products and services delivery.

It is recognized as the first Australian company which is having a positive social impact through its services by adopting core business strategy in the magazine named Fortune change world list (Shared value initiative, 2016).

At the time of 1980, Australia was a diverse country, where government took main decisions related to economy. Till 1997, the aim of National Australian Bank was to be the world’s foremost financial services company and the bank continuously adopted the strategy of “growth physically and through well measured acquisitions”. Being as the leading bank, it had announced to build up the online banking facility in Australia and New Zealand and phone banking service in UK and USA. The strategy “growth by overseas acquisition” of National Australian Bank gave an unusual opportunity over a very long period in corporate area and the bank had continued with this strategy for many years. In the race of being world’s leading financial services, the bank had done a partnership with Clydesdale and faced a loss of A$4.2 billion. With the separation of Clydesdale, the strategy of 30 years of National Australian Bank has failed (The conversation, 2016).

Vision of NAB

National Australian Bank is the leading bank in Australia’s banking industry for more than 150 words. The aim of the bank is to be the most valued bank in Australia and New Zealand. The strategy of the bank is given below:

The bank is trying to perform the best so that investors and shareholder may get best returns.

It is Focusing in the business of Australia and New Zealand to develop high customer experience, delivery and execution.

It is trying to utilize more and more resources in serving small and medium businesses.

It is aiming to develop a performance management framework for improving performance and liability.

The bank is providing better services to meet the needs of customers. For this it has also digitized the business, innovated for simplicity and consistency and built lifetime customer relationships (The Marketplace, 2015).

It has introduced new set of targets to deliver real core banking services (Winterford, 2013).

2. There have been many criticisms of the business practices that company has pursued in recent years. Criticism refers to kind of interfere in something that has mistakes, defects or drawbacks and an effort to correct those faults form of it. Criticism basically means to show the mistakes in something, to disclose the reality by removing the mistakes in it (Powell, 1990).

The strategy of NAB is to give best services to its customers and to deliver sustainable and satisfactory returns to its shareholders. The main aim of the bank is to do right things for the customers, employees and society. The controversies that have been faced by the bank are:

The first controversy has been take place in 2010 when NAB faced a problem in computer payment system. Because of failure in computer payment system payment of customers and other banks were became in disorder.

The second issue was held in 2012 when bank faced problem in payment processing and customers expected that they never receive their payments. Image of the bank has been affected with this problem (Zappone, 2012).

Because of these issues, stakeholders expressed their views about difficulty and customers were irritated because they would get late payments due to payments issues. As soon as the bank has identified the issues; it contacted the customers and shareholders through twitter, company’s website and media message. In the first issue, bank gave message that they had identified the problem regarding payment processing and were working on it to solve the issue. In second issue, bank post message on twitter that there was delay in payments due to problem in computer payment system but all accounts had been restored. The bank gave immediate response to customers via twitter and its website and had overcome with these controversies.

Political analysis:

The National Australia bank is working with different countries along with Australia. It has been protected by the rules and a strategy made by different governments   in the countries where it is working. The bank has made able itself to follow the rules decided by every government. It proves that the bank will be able to complete business operation successfully and effectively.

Competitive advantage

Economic Analysis

The National Australia bank is the leading bank in Australia. Because of being a popular bank, it has a safe and winning economic strength. Although there are lots of risks that it had met in many parts of business, the management of the bank makes it to overcome from the risks so that it can create a better economic situation and protection against unemployment.

Social Analysis

The National Australia bank has been affected by the situations of the society in which it is used. The bank is trying harder to make sure to give the same chances to the society so that everyone can take the advantage of the services given by the bank. The company is trying to maintain good relations and image in the society.

Technological Analysis

The bank always tries to introduce different systems and use internet so that it can connect with its consumers all over the world. Along with this, the bank also uses special services. By those services it advances its productions and operations. Technological innovations can create opportunities for new industries.

Environmental Analysis

The bank focuses on main three environmental changes such as climate change, resource efficiency and natural value. It creates business risk and opportunities to tackle with these environmental problems (National Australia Bank, 2013).

Legal

Although there are lots of governmental regulations but still the National Australia bank has to deal with legal compliance regarding money laundering that is costly and time consuming and it also needs higher capital requirements.

The world is getting so much competitive and diversified. Specific environment is an important factor that plays a crucial role on the ability of business in making profit and fulfilling the customer’s need (Casimir, 2009). These factors are:

Customers: The National Australia bank offers a wide range of services to its existing customers. It never offers any new deal to confuse them. It also offers huge range of bank accounts so that they can enjoy all the services and products. It has higher customer satisfaction rate compared to its customers.

Competitors: Competitors are the people who make the business environment active and identify new ideas of doing business. They always create a good competitive environment and maintain a cooperative situation of business (Brumfitt, 2001). The National Australia bank always faces challenges with its competitors. It faces threats from top banks of Australia like Bank of Queensland, Bankwest, Suncorp Group Ltd and AMP Bank Ltd etc.

Strategies used in the past

Industry: It refers to a group of products and services producing by organizations where close substitutes are available. The National Australia bank is famous for its service quality and unique products among the customers. It has one of unique feature in its service that customer can get information of real-time account by using it anytime and anywhere. It also has some unique banking services such as social networking, online strategies, business banking etc.

Unions: For NAB, the main unions are stakeholders. There are three largest unions operated by NAB and they are Finance Sector Union (Australia), First Union (New Zealand) and Unite (UK). Global Unions Engagement Agreement of NAB has identified the three unions as key stakeholders for the business (National Australia bank, 2016).

Suppliers: Suppliers are an important link in the company’s overall customer satisfaction and value delivery system. NAB has maintained a strong relationship with all the suppliers of this bank around the world. So they always cooperates the bank in any type of needed.

Partners: Partners of NAB always get preference. There are different partners of the bank such as media, government, local public, general public and internal publics etc.

Internal environment refers to factors inside the company and this can be controlled by the organization itself such as process, system, employees and management.

Process: The process of NAB is very simple. It does not make any transaction which makes the process complex. It makes the process simple and convenient by online banking, phone banking for the customers. 

System: The aim of the bank is to provide unique services by its quality based system. The area of operation of bank is customer service, core banking services, shared services such as enterprise system and operations. By the unique system, customers are attracted towards the services of banks.

Employees and management: NAB always motivate to its employees as well as customers so that they love to work with the bank. The bank has introduced a survey toolkit that enables NAB to build the higher level of employee satisfaction and customer satisfaction (strategic data, 2016).

SWOT analysis refers to strength, weakness, opportunities and threats which tell about helpful and harmful factors of a particular company (Taylor, 2016). SWOT analysis of NAB is as follows:

Strength:

Geographically well diversified

Good management implementation

High growth rate

Strong brand name and financial position

Weakness:

High loan rates

Decline in revenue impacting growth and expansion

Opportunities:

Expansion in different countries

Diversify portfolio for customers

Threats:

Changing government rules

Financial crisis i.e. recession

Changes in price

Changes in tax

The values of NAB are to maintain the tradition of bank and care the customers by decisions, actions and behaviours. The core values of NAB are:

Current Strategies

Understand the needs and requirements of the customers to make a real connection with them.

Work together with employees to become successful.

Always try to innovate and discover something for the welfare of the society.

Always try to take good decisions for customers, people and society, even when it’s difficult (National Australia bank, 2016).

Conclusion

Hence, from the above discussions it can be said that NAB is a brand name in the banking and financial service industry of Australia. There is no doubt that NAB has a simple and slow expansion strategy in Australia. There is the main reason of the strategy to provide quality service to its consumers by the mixture of traditional way and technology.  Despite of all the facts, it has been analyzed that NAB is developing gradually and eventually. The overall strategy to target new customers is improving and also growing day by day. So, it can be understand that the presence of NAB in Australia will be for long term and it will serve the Australian people more effectively.

References

Brumfitt, K., (2001), The Competitive Business Environment, UK: Nelson Thornes Ltd.

Casimir, M.J., (2009), Culture and the Changing Environment, NY: Berghahn Books

McGrath, R.G., (2013), The End of Competitive Advantage, USA: Harvard Business Review Pess

National Australia bank, (2013), Dig deeper, accessed on 5^th September 2016 from https://cr.nab.com.au/docs/environment-dig-deeper.pdf

National Australia Bank, (2016), accessed on 5^th September 2016 from https://www.nab.com.au/about-us

National Australia bank, (2016), Our values, accessed on 5^th September 2016 from https://www.nab.com.au/about-us/corporate-responsibility/responsibility-management-of-our-business/high-performing-diverse-and-inclusive-workforce/our-values

National Australia bank,(2016), work place relations, accessed on 5^th September from https://www.nab.com.au/about-us/corporate-responsibility/responsibility-management-of-our-business/high-performing-diverse-and-inclusive-workforce/workplace-relations

Ovans, A., (2015), What is a strategy, Again?, accessed on 3^rd September 2016 from https://hbr.org/2015/05/what-is-strategy-again&cm_sp=Article-_-Links-_-End%20of%20Page%20Recirculation

 Powell, M,A., (1990), What is Narrative Criticism?, USA: Fortress Press

 Shared value initiative, (2016), NAB the first Australian company to be named in Fortune’s Change the World List, accessed on 3^rd September 2016 from https://sharedvalue.org.au/nab-first-australian-company-named-fortunes-change-world-list/

Strategic data, (2016), Performance management system creation, accessed on 5^th September 2016 from https://www.strategicdata.com.au/cases/performance/

Taylor, N., (2016), SWOT Analysis: What It Is and When to Use It, accessed on 5^th September 2016 from https://www.businessnewsdaily.com/4245-swot-analysis.html

The conversation, (2016), National Australia Bank – 30 years of strategy failure, accessed on 3^rd September 2016 from https://theconversation.com/national-australia-bank-30-years-of-strategy-failure-55159

The marketplace, (2015), National Australia Bank, accessed on 3^rd September 2016 from https://www.themarketplacegungahlin.com.au/shopping/professional-services/national-australia-bank

Winterford , B., (2013), NAB promises action on core banking overhaul, accessed on 3^rd September 2016 from https://www.itnews.com.au/news/nab-promises-action-on-core-banking-overhaul-367131

Zappone, C.,(2012), NAB struggles with tech glitch, accessed on 5^th September 2016 from https://www.smh.com.au/business/nab-struggles-with-tech-glitch-20120210-1seaq.html