External and Internal Influences for ANZ New Zealand

Strategy Hunt
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1 What is the intensity of competition in your industry? What are the major external influences on the organization's strategy? What are the strengths or competencies of this company? What are their internal challenges?
ANZ New Zealand has a significant impact on the daily life of the vast majority of New Zealanders. Many well-known financial institutions in New Zealand are affiliated with the organization, allowing access to a wide range of resources. As a member of the ANZ group of enterprises, ANZ New Zealand also has a global presence. ANZ is presently one of the most profitable and most valuable enterprises in New Zealand (ANZ, 2022). They are aware of the responsibility of their size, and they take it very seriously. ANZ plays a critical role in assisting New Zealanders in accomplishing their financial goals at every level, from people and families to farms and small companies that make up New Zealand's economy. This includes the firm's largest agencies and businesses. Since ANZ offers a diversified product portfolio, the firm can reduce operational risks. ANZ New Zealand operates in the banking industry, and its mission is to establish a world where individuals and communities flourish. This requires creating a balanced, stable society where everyone may participate and improve their lives.
Competition
In competitive markets, banks' actions are influenced by threats of entry and exit. Low entry barriers and simple exits for underperforming businesses make it imperative for banks to perform aggressively, even if the sector is already oversaturated. The banking industry has one of the fiercest rivalries globally. Therefore, the intensity of competition is very high for ANZ. The top competitors for ANZ within the banking industry are Commonwealth Bank, Westpac, and National Australia bank.
External Factors Influencing Strategy
Numerous external factors influence the organization's strategy, including political, social, economic, and legal (PESTEL). ANZ PESTEL analysis is a strategic method for examining the firm's external environment. Changes in the macroenvironmental elements can directly impact not just ANZ but also other participants in the banking industry. The macroenvironmental factors can also affect the Porter Five Forces, which influence planning and the degree of competition. They have the power to impact the profitability of certain banks and the competitiveness of the entire industry.
Political
Political concerns impact ANZ's long-term viability and success. The firm's increased compassion for fluctuations in political contexts of various countries is a result of its global presence. Expanding systematic risks is the cornerstone of political survival in a shifting global corporate climate (Grünig & Morschett, 2017). A country's political climate is comprised of numerous components. For instance, regulatory bodies and issues influence the organization's strategy. ANZ is one of the "Big 4" financial institutions in Australia and, as a result, controls the plurality of the Australian market, making it oligopolistic. Trade agreements enhance trade balance and economic expansion in New Zealand and Australia. The opposition to a merger of the Big Four banks reflects a broader political aversion to bank consolidation. The Reserve Bank of New Zealand and the Australian Prudential Regulation Authority are also involved in ANZ's governance and oversight. Different regulatory approaches exist for the same concern, which amounts to doing the same thing repeatedly. This increases conformity expenses, training intricacy, compliance attempt complexity, and administrative control expenditures. The ultimate bearer of these costs is the consumer.
Economic
The economic growth of a nation has a direct impact on organizational performance (Alaaraj et al., 2018). Expanding economies provide ANZ with numerous expansion options. Likewise, it is essential to comprehend the market lifecycle stage. ANZ's business performance is affected by how much the New Zealand government has invested in fundamental infrastructure growth. Well-developed facilities improve the business environment and growth prospects of the banking sector. Another economic factor that influences AZN's strategy is New Zealand's GDP. The GDP growth rate determines ANZ's ability to implement long-term development initiatives. High GDP also indicates the consumer's capability to devote more to provided goods. A high joblessness rate suggests the presence of excess labor at relatively reduced wages. Being in such a field can reduce ANZ's production expenses. In addition, the enterprise must assess the influence of the cost of borrowing on its lending capacity and capital disposition. ANZ's growth potential will be boosted by the high interest rate, which will drive investment.
Social
Society norms, values, and trends substantially affect organizational culture. Knowing population trends, political institutions, consumer buying patterns, and common values can assist ANZ in developing successful marketing messaging and achieving its company's goals. ANZ's marketing team can use environmental and sociological studies to enhance sales by focusing on specific demographics and the desirability of commodities presented to prospective clients. Variations in demographic trends like an aging population, immigration patterns, and socioeconomic variables are important to international commercial enterprises such as ANZ. Examining the demographic features can aid ANZ in selecting the most lucrative market segments.
Additionally, ANZ must correctly examine the established gender norms to align its communication and marketing operations. In addition, the emergence of social media and e-commerce has pushed consumers to shop online. ANZ must comprehend the online buying habit by taking generational disparities into account. Marketing and communication initiatives must consider the mounting popularity of mobile technology and social networking sites.
Technology
Increased knowledge of technical aspects of strategic decisions has been gained through rapid technological progress and global dissemination. The adaptation of new marketing methods to promote consumer participation results from the emergence of information and communication technologies (Alaaraj et al., 2018). The use of social media in the workplace has grown significantly in recent years. ANZ capitalizes on the potential presented by digital marketing to enhance company performance. In addition, the introduction of new technology has decreased the development process for new offerings. Nowadays, new products are created at a quick pace, and supply chain partners wield more significant influence. It coerces ANZ to develop new services, broaden its product offering, integrate adaptability into the supply chain, and nurture robust strategic partnerships.
Legal
Legal considerations must be carefully evaluated to prevent getting into significant difficulty. This ignorance can result in unfavorable outcomes for ANZ, including a reduction in competitive edge due to intellectual property rights violations and damage to the organization's reputation due to defilements of employee protection regulations. ANZ must conform to the worker labor, health, and safety legislation, as certain countries have rigorous labor safety requirements. ANZ has a moral and ethical obligation to provide a safe workplace for its personnel. Likewise, anti-discrimination rules must be thoroughly addressed in establishing human resource practices, as prejudiced actions against companies hurt the business image and hamper its ability to recruit and retain clients and employees (Alaaraj et al., 2018).
Porter's Five Forces
The Porter Five Forc...