Strategies of Commonwealth Bank-Free-Samples-Myassignmenthelp

Questions: Discuss about the Commonwealth Bank and its Strategy to enter Indian Market. Answers: Introduction The report will discuss in detail about the Australian company called Commonwealth Bank and its strategy to enter Indian market. The international banks and their entry India go back in nineteenth century when the economy understood the need of modern and advanced banking services with uniform remittances and currency by the army of UK and other civil servants. The earliest time for the banking organization was associated with joint stock banks, presidency banks and agency houses that were settled as the concept of banks and this happened during the time of British rule in the country (Singh Gatina, 2015). Aim The report will discuss about the CBA entry in India. The bank is actually a multinational bank and the bank is operating in countries like New Zealand, USA, Asia, Fiji and UK. The bank is commonly referred as CBA and provides so many kinds of financial services which also works with the different services of banking like the retail factors and the institutional and the business development, management of funds, insurance, broking services and investment. Situation analysis Business environment Political: As per the analysis, India is considered to be the country of democratic world with federal based government. The current political environment is impacted by features like policies from government, interest of political and varied ideologies of many political parties because of which the business environment in the country is greatly impacted by so many types of political features (Parwada et al, 2015). Economic: the present economy of the country is stable and this is why, there has been introduction of many kinds of industrial based reform policies which were introduced in 1991. According to the policy, there has been decreased in the licensing, concept of liberalization of international capital, forming of FIBP with continuous improvement of economic environment. Social: the factors associated to any kind of transformation that can influence the present business environment. For example, there is rise in population of aged people and it is resulting in rise in cost of pensions and also results in the employment of old employees. Technological: technology impacted the development of product and also introduced cost cutting procedure. The country is also serving with technologies like 3G and 4 G which later have facilitated many technology based projects. In addition, the country also possesses some of the strongest IT sector worldwide and also promotes the concept of development in IT fields with constant software upgrade and advancement of technology (Lang, 2017). Legal and environment: recently there are a number of legal transformations that have executed in the country like minimum wage rise, recycling and discrimination in disability that has directly impacted businesses. As a result, the environment along with the quality of the air in the country has been impacted in adverse manner by the concept of urbanization and industrialization which further resulted in many health based issues (Islam et al, 2016). Market Analysis The present banking system in India consist of twenty seven banks in public sector, twenty six banks in private sector, forty six global banks, around fifty six rural banks, approximately sixteen hundred cooperative banks and approx. one lakhs of rural based cooperative banks along with cooperative credit based organizations. It is important to understand in this industry that the seventy percent of banking industry is controlled by public sector banks which leave a very small scope for the private sector banks (Islam et al, 2016). Banking organizations are constantly motivating the consumers to effectively manage their finances by using mobile phones as well. There is increased level of spending as well on the infrastructure with rapid execution on the projects and continues to reform that are expected to give additional impetus for development. All such features advise that the banking sector of the country is also poised for the development as the rapid development of business tha t will turn the banks for the needs of any kinds of credits. In addition, when there is advancement in the level of technology that has bought the internet banking and mobile services to the core. The present banking sector is also laying a lot of attention on giving improved level of services for the clients and it also upgrades the technology based infrastructure to increase the overall experience of the customers along with banks provides a competitive edge. There are number of banks that includes, HDFC, AXIS and ICICI are exploring varied options to establish contact less debit as well as credit cards in the market in sometime in future. The cards also utilizes close field based communication which is also called as NFC related methods and it will permit the consumers to transact without swiping and inserting the cards (Tiwari et al, 2016). Competitive analysis There are around forty three international banks from approx. twenty six nations working as branches and there are forty six banks operating in more than twenty two nations operating as number of representative offices. At the same time, the overall discussion around different methods of licensing which is can be nascent and there is one international bank which presents as a credit card issue with restricted banking license. Moreover, there is a number of international bank that have also entered the country through the NBFC routes with large number have settled captive base in the nation (Demirer et al, 2017). International banks present that country as a main representative office with usual correspondent association with banking with local banks and provide with useful platform for international banks to access options for the international currency that lends to Indian institutions and corporate. Organizational analysis The bank discussed in the report is Commonwealth bank where banking is far more than the actual time of real time work and with apps on Smartphone also claims that technology leadership is actually the future. The launch of the app on iPhones, the bank has become the second largest bank in the country and it is also associating with number of technologies. The technology helps in updating to analysis and media in this country and it was designed to prove it to make development (Kappil et al, 2016). In the present time, the competitive advantage of the bank is the application designed with advanced technologies and introduces the last three world leaders, with number of experts who taking the values from the technological advancement. Strength The bank is the owner of many brands like ASB bank, Commonwealth Securities Ltd. and Insurance Ltd and Bankwest. The bank also operates in so many countries and the international policies of the organization are quite strong. The bank is also considered as one of the biggest Australian listed as a company on securities exchange of the country. The organization is also considered as one of the big four banks of Australia, in the similar league as National Australian bank, ANZ and Westpac (Kumar et al, 2016). The organization also provides varied services like consumer based banking, insurance, corporate level banking with investment based banking. The organization also manages international or global wealth management, credit cards and mortgages. Weaknesses The bank has faced a lot of controversies which was initiated by different action based group and varied websites known as Unhappy Banking or experience for the customers. The finance based strength rated through Moody provided for the organization is B- in the current time (Choudhury, 2013). Opportunities Execution based on technology is based on the core banking functions that will assist the bank to raise the level of quality of services and therefore there is also rise in the overall reach. The initiative like one Commbank also assists in building relationships with the consumers which is very crucial for sustainable development (Choudhury, 2013). Expanding of operations in Asia in countries likes India and there are other emerging market will also help the bank to have long term development. Threats Functions of bank and profitability are also impacted by the confidence of investor in the international economy. A weak outlook in economics can further lead to stagnant development. The organization can also face some kind of risk because of the transformation in foreign exchange as the operations are based on many kinds of geographies. The bank can be faced as a default level risk because to counter based party which cannot meet the obligation with right influx (Choudhury, 2013). Conclusion As per the latest reports, India is facing a lot of challenges as far as foreign banks are concerned. In fact, the one branch of Commonwealth Bank in Australia shut down its operations after the exit of other global banks because of the tough competition and the fluctuating economy. With the development through innovation and the infrastructure, with the business management and the improvement of the professional forms. The integration supply and the drainages systems includes the re-use with the majority set for the efficiency in the long run. Recommendations PESTLE factors work on the major threats with the fast economic growth, with the stability of the democratic government that leads to the development of the strong institutions. The low levels of the corruption and the higher levels of the economic freedom works on the great location with the expansion into the controlled forms. According to the current trend, fast developing nations like India has actually ceased to main priority for many global and multinational banks since there is financial crisis and as the high capital and regulatory based needs at home have forced the banks to retreat into local markets for cost saving and protect the level of profitability (Pradhan, 2014). References Choudhury, K. (2013). Service quality and customers purchase intentions: an empirical study of the Indian banking sector.International Journal of Bank Marketing,31(7), 529-543. Demirer, M., Diebold, F. X., Liu, L., Y?lmaz, K. (2017).Estimating global bank network connectedness(No. w23140). National Bureau of Economic Research. Islam, M. A., Jain, A., Thomson, D. (2016). Does the global reporting initiative influence sustainability disclosures in Asia-Pacific banks?.Australasian Journal of Environmental Management,23(3), 298-313. Kappil, E., Sheppy, B., McIntosh, B. (2016). 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