National Australia Bank (Essay Sample)

National Australia Bank
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Introduction. The financial sector contributes to the largest share of national output in Australia. Over 11 percent of National production in Australia came from the financial sector in 2011.National Australia Bank (NAB) is among the largest Financial Bank in the Republic of Australia. National Australia Bank constitutes a large volume of customers with over 12,700,000 customers and more than 42,000 people. The essay will analyse the important business processes, structure, the environment, business strategies, and strategic information systems of National Australia Bank. Also, the article will address Value Chain, Information system supporting the value chain, competitive strategies, and information system supporting the competitive strategies of the National Australia Bank. Important Business Processes. The Bank mainly operates in Australia and New Zealand. The primary objective of NAB involves provision of competitive brands of high quality and services at affordable charges. The bank offers a broad range of the banking products and services to its customers (Fund, 2012). The customers consist of both business and retail sector. The products offered by the bank include Business Banking, Personal Banking, Fixed Income, Currency and Commodities, Treasury, Debt Markets, Specialised Finance, and Asset Servicing. Business Banking products are tailored to suit customers in the field of property, government, agribusiness, health, community, and education. Customers have various channels to access personal banking products which include NAB, NAB Brokers and UBank. UBank is an online division of National Australia Bank. The National Australia Bank gets most of its revenue from operation within Australia. In the year 2014, Australia region contributed 74% of the Bank total revenue share. Europe contributed 12%, while New Zealand, U.S.A and Asia contributed 10%, 3%, and 1% respectively ('National Australia bank', 2015). Organisation structure of National Australia Bank. An organisation structure defines the allocation, supervision and coordination of firm’s activities in the achievement of organisation goals and objectives. The Organisation structure of National Australia Bank consists of Board of Directors, Executive Leadership Team and Corporate Governance framework. A Board of Directors governs the National Australia Bank group. The Chairman of the board of directors is Michael A Chaney. The Group Chief Executive Officer is Andrew Thorburn. Also, the board consist of eight Non-Executive Directors. A committed Executive Leadership Team leads the Bank. The Team comprises of Group Chief Executive, Group Executive and Product and Market, Group Executive Finance and Strategy. Also, the team includes Group Chief Risk Officer, Group Executive NAB Wealth, Group Executive Governance and Reputation, Group Executive Business Banking, and Group Executive Personal Banking. Corporate Governance frame work contributes an essential role in ensuring business operations are effectively carried out. The framework guides efficient decision making in all critical areas of the Bank. Organisation Environment. National Australia Bank (NAB) is among the largest Financial Bank in the Republic of Australia. National Australia Bank constitutes a large volume of customers with over 12,700,000 customers and more than 42,000 people. NAB has a vast network of branches and stores all over Australia and globally. National Bank of Australia was categorized as 21st biggest bank in the world when measured by Market Capitalisation. When measured by total assets, National Australia Bank was ranked 41st largest financial institution in the World. The Headquarter of NAB is in Melbourne, Australia. National Australia Bank operates in Australia, United Kingdom, the United States, New Zealand and Asia. The Bank has 1,771 4578 ATMs globally. Business Strategy of National Australia Bank. Over the years, the National Australia Bank has come up with several business strategies. The strategies are vital to the Bank as they guide the Bank to do best in delivering superior returns for their esteemed shareholders. The Bank has invested a lot in ensuring that the customers are satisfied with their products and services. NAB has been the leading financial institution for more than 150 years. The Bank has used the strategy of investing in their strengths. The strategy involves the investment of more resources. The investments aim in serving small and medium businesses. The Bank has continued to deepen in specialization in health, agribusiness, education and government. In individual banking, NAB has been in the forefront in advocating for their customers. Also, the Bank has used the strategy of delivering exceptional customer experience. The Bank focuses in ensuring that it meets its customer needs. NAB understands the essence of listening and responding to their customers’ feedback and queries promptly. The Bank lives to attain its five company goals as one of their business strategies. The goals comprise of Passion for customers, being bold, respecting people, willingness to win and doing the right thing. In attaining these five goals, the Bank gets the chance to cement their competitive position in the industry.
Strategic Information Systems in achieving the Business Strategy. National Australia Bank understands the power of information systems in achieving their strategies and achieving better results. The Bank has digitized their business, innovated for simplicity to their customers. Through, the information system, the Bank continues to build lifelong relationships with their customers. With the help of information system, the bank has achieved meeting world-class needs to its esteemed customers. Simplifying the products leads to satisfaction of world-class needs. Also, standardization of their products and services offering has contributed to their positive results. Information system enables the Bank to keep improving on how they implement change in their business. Also, over the years, NAB continues enjoying high speed and reliability in their transforming processes due to the technology. The Bank is in a position of understanding their performance and how they can improve it without flaws. The Bank has embraced DIY digital options to the customers. DIY means do it for yourself. DIY helps the customers to be able to perform most of the bank operations in the comfort of their homes. All these advancement are made possible due to provision and use of the information system in the banking industry. For the National Australia Bank to maintain its dominance in the industry there is the need to use information systems. The information systems provide essential means of transforming how the Bank does business. The end results always lead to improving customer experience and service delivery. Firms operating in efficiency always deliver sustainable and superb returns to its shareholder.
Value Chain of National Australia Bank Value chain involves a set of actions that an organisation operating in a specific organisation performs to deliver a high-quality product for the market. Value chain ensures that the firm limit risk and add value at each and every stage of product development. According to Samson & Daft, (2011) the manner in which the value chain actions are carried determines the costs and affects profits. In 2014, National Australia Bank achieved annual cost savings of approximately $800m due to value chain addition. Value chain involves both primary activities and supports activities. Primary activities include; the marketing and sales of the products, service delivery, operations and logistics. Support activities comprise of human resource management, procurement and infrastructure.National Australia Bank has replaced ageing infrastructure. The move aims at reducing the cost of doing business. Also, the replacement of ageing infrastructure is vital in transforming the manner in which NAB do business. Replacement of ageing infrastructure involves setting data centre, new single general ledger sand upgrade of a procurement system. The replacement of ageing infrastructure is in line with the ever-changing customer taste and preferences. The value chain is essential in the banking industry where competition among banks is very high. NAB has taken tight control and risk settings in a move to reduce operational risk (Nemetz, 2013). Over the years, the bank has a good understanding of the opportunities and risks which are possible in the entire value chain process. National Australia Bank have lowered its current and future risks of its business in terms of operational, reputation and regulatory. Value chain has been key to the Bank in realising opportunities available for innovation. The innovations lead to the higher growth rate of the bank and enhancing productivity due to improved efficiencies. The value chain directly creates value for the bank’s customers and shareholders. An information system that improves the value chain. The information system in banking system plays a significant role in improving the value chain. NAB has embraced technology to market and sell its products and services globally. Examples of the information system used to better service delivery and customer experience. They include: Mobile apps on all major devices and platform that support mobile banking. Improvement of payment process that help for the same day merchant settlement. Another type of i...