Expansion Bank of Queensland Business †Free Samples to Students

Question: Discuss about the Expansion Bank of Queensland Business. Answer: Introduction The business strategy is an important business aspect that shows the organizational direction and ability of the organization to see the future. Organizational strategy is based on vision, mission, objectives and core value of the business. Banking sector requires a specific organizational strategy that enables the organization to move forward and expands. The external fit of the business can be grouped into tangible and intangible factors that enable the business to operate with the industry. The internal business fit, on the other hand, includes all those factors that enable the business to performs that are internally based. The organization has both weaknesses and strength that give the company its competitiveness. The aim of this paper is to explore the strategic management of the Bank of Queensland with some recommendations for improvement. The Bank of Queensland is an Australian bank that was established in 1982 though the history of the bank dates back to 1921. The bank has been operating within Australia and regionally though the bank is headquartered in the Brisbane state of Queensland. The bank offer variety of banking and financial support to its customers with more than 300 branches spread throughout Australia. The bank has business strategic plan and business strategies that are mostly based on building a relationship with customers (Bank of Queensland 2016). Firstly, the vision of the company is to build a long-term relationship with customers within the banking sector. To ensure a greater realization of the banks vision the bank prides on offering high quality and genuine products that meet customers financial needs (Ireland, Hoskisson Hitt 2008). Secondly, the mission of the company is to prove that customers can love a bank. This mission is also grounded in the customer-bank relationship. Thirdly, the core value of the business is built on a company-customer relationship where the bank strives to build a professional relationship with customers through Australia and internationally. This implies that the primary focus is on customers satisfaction with quality banking products offered in the most comfortable environment. Fourthly, the objective of the Bank of Queensland Limited is to offering quality and genuine banking products to the customer in a comfortable banking environment. This objective is coupled with customer focus culture that gives high value to the customer. Finally, the business strategy is to focus on niche segments where customers value a more intimate banking relationship (Zhexembayeva 2014). This banking strategy is based on 4 pillars and these are a customer in charge, theres always a better way, grow the right way, loved like no other and our 4 values of collaboration, integrity, impact, passion. The business strategy work to venture in more customer-oriented areas where customer's needs are not yet satisfied and this will also help the company to grow and reach its overall goal in the banking sector (Bank of Queensland 2016). The external business fit for the bank can be studied under tangible and intangible business fit. Firstly, the tangible business fit can be analyzed in terms of financial capability of the business and location. The financial fit of the business include those securities and financial niche where other banking institutions have not ventured. The bank is venturing into financial solutions within other areas such as banking services for medical professionals. The physical location of the business makes the second set of external business fit as its location in Queensland make the bank easily accessible to its customers. Queensland is the second populated state in Australia with over 4.5 million populations (Song 2012). Secondly, intangible business external fit includes technology, brand reputation, and banking culture. The organization has advanced technology that assists clients in banking to make customers love the bank. The technological fit enables the business to serves customers from any location in Australia and around the world. Brand reputation for the bank is based on the company's longer financial industry presence that dates back to 1921 making the bank one of the oldest bank in Queensland and Australia as a whole. This gives the bank a longer history that enables the organization to dominate banking sector of Australia. Good banking culture characterized by customer focus enables the bank to develop a long customer relationship leading to high profit. In addition, the bank has achieved a customer satisfaction index of 88% within the banking industry of Australia (Cameron 2014, pp 22-27). The Bank of Queensland has various factors that form the organization's internal fit. Internal business fit includes organizational culture, financial fit, human resource and business strategic fit. Firstly, human resource is one factor that enables the organization to operate in the banking sector of the country. The bank has strong team-oriented human resources that are tied to customer focus goal (Hill Gareth 2008, p.11). Secondly, an organizational culture that is based on customer relationship culture is build desire to connect with customers. The bank strives to build a long-lasting relationship with customers through good banking and financial services. Thirdly, the financial fit is another internal environment fit that has been contributing to the success of the business. The bank has numerous financing options that include good financial strategy, technological finance, and varied financial options. Lastly, the banks strategic management and fit also play an important role in the growth and achievement of companys objectives. The bank has good strategic plan and management that is structured to focus on the customer and offer a genuine customer support services. This has been one of the success factors that enabling the business to grow within Australia competitive environment (Mbaskool.com 2017). External and internal business fit has a potential impact on the performance of the business beyond its objectives. Firstly, external business fit an immense impact on the bank's performance in the banking industry. External fit makes the business competes within the banking sector of Australia. In order for the Bank of Queensland performs better beyond the objectives; the bank has to have strategic factors that fit within this industry. Factors such as good niche segment and technological advancement enable the business to perform against its objectives. Niche segment has been one of the driving force enabling the business performs within the banking industry. In addition, the organizations business culture of building a relationship with the customer is the key to the performance of the business. Building relationship with customers, for instance, ensures that customers are retained and offered a quality service beyond their expectations (Grant 2007). The internal business fit, on the other hand, plays an important role in the attainment of the business objectives. A good business strategic plan has been based on the organizations application of culture and core value to serve customers. As stronger leadership has an impact on the performance of the business as it gives the business direction that is used to achieve business objectives. Strong business culture brings together various company employees to focus on the customer and this has a positive impact on the business against the objective (Douma Schreuder 2013). Pest analysis is the analysis of political, economic, social and technological factors. Political environment includes political stability of the country has a high impact on the economy that is related to the success of the banking business. The legal framework within Australia and particularly Queensland enables contract business and licensing of business hence high performance. In addition, anti-trust laws enacted is essential for banking within the country as it encourages lending in banking industry without fear of losses (Song 2012). Economic factors that affect the operation of the bank include good government policies that encourage infrastructure quality within the banking sector is an important economic factor. Australia has a good exchange rate that is coupled with stable Australia currency at and this is a critical factor in the banking industry as it determines the currency trade. The economic growth rate is another economic factor that has an impact on the banking sector as the economic growth rate determines the business growth. Inflation is another economic factor that also has an impact on the bank as the inflation rate currently stands at 1.80%. The interest rate on the other hand currently stands at a very stable rate that allows business within the country (Mbaskool.com 2017). Social factors that determine the performance of the company include population size the state and citizen life style. Queensland is one of the most populated states offering larger population that is ideal for the operation of the bank and this has highly contributed to the wide spread banks branches with the country. The life style of most people living with the state offers opportunity for bank to grow since many people currently prefer being attached to banks. This is coupled with the need for financial support in terms of mortgages and loans. In addition, the desire of most people to own facilities and houses is also driving many people living with the country to look for financial solutions (Porter 2008, pp. 78-93). Technological environment within the company itself is making the company to move far beyond many competitors. The bank has been innovative and this is evidence with its medical finance that is a new niche. Moreover, the company has been investing in banking technologies though it has not reached the desired level as other technological advanced companies. The company has been offering online banking services to customers thanks to the available technologies. The country has been on the verge of becoming technological advance and this is driving force that is making many companies to employ technological policies within their operations (Teich 2008). SWOT analysis Bank of Queensland Strength 1. The bank has good banking technology 2. The organization has received good customer satisfaction rate 3. The bank is one of the oldest banks in Australia 4. The good reputation of over 300 branches within Australia Weaknesses 1. Limited control due to branches owners management 2. The bank has limited international branches Opportunity 1. The country is stable and the growth is at a good pace allowing business 2. Australia has global ties that are good for conducting business Threats 1. High competition in the banking sector of Australia. 2. Low financial demand is affecting the banking sector (Blake Wijetilaka 2015) VRIO analysis Firstly, the values of resources are not high since most resources are regulated by the sector legislation and code of practice. The market is readily available though expansion with the company is difficult due to low customer increase. This has implication in the business since it reduces the chance of expanding the organization. Secondly, the business is not rear except on the medical financial support that is also one of organization portfolio. The rareness of the resources make the business innovative and venture in the most promising business niche. Thirdly, most of products and services that the organization deals in are easily imitable since they consist of common bank financial business. There is one aspect of the organization service that is unique and not imitable. Finally, the Bank of Queensland has a good organization that supports the resources available within the organization. The organizational management enable the organization to venture into a unique niche and exp and its business within Australia (Barney Hesterly 2010, pp.6886). The banking industry in Australia is a market that experience medium pressure from new entrants. There are many different businesses entering the sector though this only affects the banking sector and does not affect other business portfolios. Portfolios such as medical finance are limitedly affected by new entrants. This, therefore, has low pressure on the bank and its operation within the banking industry. Banking sector entrance, on the other hand, has medium pressure though the entry of new firms minimally affects the older firms such as Bank of Queensland due to their dominant presence (Mulcaster 2009, pp 6875). The firm experience low customer pressure as the organization already work towards satisfactory service and products. Though the banking sector of Australia normally has high customer expectations, the bank has worked towards satisfying its customers and this is evidence based on the customer rating. In addition, the organization has a strategy of building their relationship with customers making it difficult to receive pressure from clients especially on the price (Mesly 2017, pp 9). The banking sector has medium supplier pressure as those suppliers requires a fair price for their products and services. The bank has various suppliers that include technology firms and general suppliers with medium bargaining power as compared to other sectors. Moreover, supplier power has little impact on the bank especially on the medical side where only a few suppliers are required (Porter 2008, pp. 78-93.). The threat from substitute is high in the banking industry as many companies offer similar products and services. High pressure is experienced due similarity of products and services offered within the banking sector. The business through diversified products and services ensures that it has those services that have no substitutes. This implies that the bank has services such as medical financing that has few firms (Ghodeswar 2008). There is low pressure due to industry rivalry since banking sector is based on professionalism and is guided by a code of practices. The banking industry is guided by professionalism code of conduct and has a low rivalry. In addition, the bank ventured into another niche with very low rivalry and without players. This is limelight for the company as the organization remains the platform setting organization (Osita, Onyebuchi Justina 2014, pp 2332). Current growth strategy used within Bank of Queensland The three current growth strategy used within the bank include venture in a new and unique niche, customer relationship strategy, and provision of quality and genuine products. The current strategy focus on coming up with new unventured areas which the company explores for growth. The second strategy focuses on building a long-lasting professional relationship with intention of retaining customers and be loved by those customers. Thirdly, the strategy is built on offering quality, genuine and satisfactory product full of customer integrity and truthfulness (Cameron 2014, pp 22-27). The organization has a growth strategy that is based on some key pillars and these are customer relationship, new business niche and quality products and services. Firstly, the business strategy of building a relationship with customer aimed at retaining more customers and obtaining customers satisfaction (Vozar 2013). The business works to prove that banks can be loved by customers in Australia. Secondly, the new business niche that is characterized by new venture areas is another important business strategy that serves to venture into areas with limited competition. This is evidenced by the bank areas of financial venture that is mostly financing medical practitioners and real estate sector. Thirdly, offering quality products and services is another area that is driving the growth of the bank as the bank aims to offer quality products and services thereby becoming a bank with high customer rating in Australia. The bank has been rated high with customers and this is important for bu ilding brand reputation and positioning within the market or industry (Besanko, Dranove, Schaefer Shanley 2012). Recommendations In light all the above evaluation of Bank of Queensland, there are many recommendations that require improvement. Firstly, there is still little technological development of the company as only little technological capability is evidence within the firm. With the current technological demand within the banking sector, most customers require business transaction at their comforts and this can be done through modern technology (Teich 2008). Secondly, the company needs to develop strategies that allow expansion. The banking sector has low expansion capabilities and this needs strategies that increase chances of expansion. Many studies on the Bank of Queensland has confirmed that though the bank is one of the oldest banks, its growth still remains low. Conclusion In conclusion, Bank of Queensland has shown the ability of the bank to be loved through the building of a long-term relationship with customers. The bank has strategy full of integrity, genuine and high-quality products. The organization has ventured into promising medical financing hence receiving high customer rating. In addition, the bank has shown low expansion or growth that need to be improved in future. The company has various company weaknesses and strength leading that gives the company competition ability with the banking industry of Australia. References Bank of Queensland, (2016) About BOQ: A Good Result In A Challenging Environment. Available at https://www.boq.com.au/microsites/annual-reports/2016 [Accessed on 19th April 2018] Barney, J. B., Hesterly, W. S. (2010) VRIO Framework. In Strategic Management and Competitive Advantage. New Jersey: Pearson. pp.6886 Blake, M. Wijetilaka, S. (26 February 2015) 5 tips to grow your start-up using SWOT analysis. Sydney. Available on https://www.brw.com.au/p/entrepreneurs/tips_to_grow_your_start_up_using_eQEF8Pm8l2Q9hME9TBXvVL [Accessed on 10 August 2015]. 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