Concept of Strategic Management Development

Question: Discuss about the Concept of Strategic Management Development. Answer: Introduction This report has highlighted the concept of strategic management development within a company. In this respect, this study has focused to the strategic development of NAB of Australia. This study has also tried to focus to the research areas of the mentioned organisation. In this purpose, this report is helpful to evaluate the mission, vision and the definite competitive advantage of the NAB. NAB is familiar as the nationalised bank of Australia. In addition, the background of this organisation has enhanced the essence of the study (Abubakar and Tasmin 2012). On the other hand, this report has discussed the existing strategies from the point of stakeholders such as workers, investors, suppliers and the consumers etc. Again, in this report, the environmental analysis has been explained. Lastly, this study is helpful to understand the organisational within the company, which will help the readers to understand the core valuation of the organisation (Augusto de Matos, Luiz Henrique and d e Rosa 2013). Research areas Mission, vision and competitive advantages According to Amdemikael (2012), the mission of NAB of Australia is to provide the definite solutions for the present as well as the future necessities of its consumers. This will be helpful to develop and maintain the long term relationship with its customers and aimed to the strength of greater quality activity. In addition, NAB focuses on the positive development of the culture and the regions. On the other hand, NAB always tried to create the working environment more friendly and helpful, which reflects its employees not to switch to the other organisation. In the words of Goyal and Joshi (2012), NAB can identify the necessity of the profitability, which is assumed t be important for the long run success. In order to discuss the vision of NAB Australia, it can be mentioned that this organisation is looking for success in its business. In this connection, NAB aimed to make its business different from the other organisations. It is known that its major vision is to perform the responsibility based on their proposed strategy and follow the appropriate approach to meet the corporate responsibility. As per the statement of Haiss (2013), competitive business is helpful to put the selected organisation in a superior business position. One of the competitive advantages of NAB is it can turn the employees loyalty into the competitive advantage. In addition, NAB has the strong and greater market position in Australia. NAB is able to specialise in several distribution platforms based on the consumer requirements as well as on the value potential. Moreover, another competitive advantage of NAB can be discussed as the implementation of the specialised products along with the delivery of the products and services within proposed time (Uzkurt et al. 2013) Past using strategies In the words of Kroszner and Strahan (2014), NAB has adapted some definite strategies. These strategies were NAB could control the capital gains tax. Hence, in case of selling of assets and making of capital gain at the end of the financial year, then NAB could include the capital losses in order to offset the previous capital gain. Moreover, NAB was capable to control the flow of cash effectively, and then it would be possible to include the forward expenses (Uzkurt et al. 2013) Current strategies As per the current scenario, Liikanen (2012) mentioned that the present strategy follow by NAB is to maximise their cash flow by restructuring of the asset purchases. Therefore, NAB asset financing specialists arrange to structure the management for the repayments to control the tax and the cash flow requirements. This will in turn reduce the operating cost and improve the productivity. In addition, NAB allows to develop the buying as well as the selling agreement. This will be beneficial by assuring the business ownership and it will be converted in case of death or the disability. Background of the company National Australian Bank has specialisation in the market capitalisation. In this context, Liikanen (2012) mentioned that NAB was positioned by 21st largest banking organisation as per the world market capitalisation measurement. In addition, NAB hold the 41st ranking based on the world total asset measurement. In case of financial performance of this organisation, it can be observed that total revenue earned by NAB is A$ 20.176 billion in 2015 whereas total net income and the total assets were A$ 6.357 billion and A$ 945 billion respectively by 2015 (Singh and Malhotra 2015). Discussion of the strategies, which were criticised In order to discuss the strategies of the stakeholders, first it is necessary to identify the organisations stakeholders. The consumers, employees, investors, suppliers are recognised as the stakeholders of the organisation. As per the statement of Mols (2013), consumers of NAB are able to get the essentials rights with the help of delivery of higher consumer experience as well as can apply the relevant lending practices. On the other hand, in the point of the workers of the organisation, the organisation always aimed to recruit efficient and good employee (Perez, Martinez and Del Bosque 2013). In addition, NAB tried to motivate its personnel in order to invest their focus on the consumers of the organisation. The employees can diverse along with an inclusive the working force. In this respect, NAB develops the skills and capacities of its workers. In the points of Perez, Martinez and Del Bosque (2013), the suppliers of NAB require to comply by considering of reliable global principles and regulation in the connection of unethical behaviour, corruption and the other business practices. The suppliers also need to construct the estimated action plans in order to increase the diversity. They can abide by the global labour standards in terms of international labour organisation. On the other hand, the suppliers are eligible to adopt the equivalent sustainability rules in order to control the sustainability risks (Nab.com.au. 2016). Moreover, the relationship manager of NAB is able to control internal procedure to manage its stakeholders. This relationship manager of the organisation can admit the risks throughout the operation procedure. These risks can be controlled with the help of the enterprise risk policy, governance risk principles and the environmental social policy (Liikanen 2012). Performance of the environmental analysis PESTEL analysis: Political The political environment of Australia or the Australian government make an impact of the tax policies. In addition, government can involve in case of the trading agreements (Kroszner and Strahan 2014). Economical This will reflect the countrys economic factors and these will in turn influence organisation. International economic shortages and this will decrease the disposable income (Riasi 2015). Social Include the activities of consumers as well as the social and cultural environment in order to enter to the target market. Technological Increase of the utilisation of e-commerce. Ecological Increase of ecological agendas and the concern of the community. In addition, identification of the ecological opportunities within the market is necessary to understand (Singh and Malhotra 2015). Legal Modification of the laws of the advertisement, global inconsistency. Specific environment Consumers Australian Traders, Citizens of Australia, who are treated as the bank account holders Partners Global leader Verifone systems and Inc. NAB also maintain partnership with merchant consumers (Sullivan 2013) Industry Banking sector Unions Stakeholders and the financial sector of Australia Competitors Westpac Banking Corporation, Commonwealth bank of Australia etc. Suppliers Investment organisations and the higher bank of Australia (Uzkurt et al. 2013) Internal environment Process Quality activity deployment, Pareto chart procedure etc. System Acceptance of deposits, making of loans etc. Employees Total number of employees are 35063 Management Operate the function of wealth management, risk management, relationship management (Wu 2012). SWOT analysis Strength Knowledge and experience of the group of the organisation reflects to operate the function optimally. Weakness Uninterested workers, higher debt, tax burden. Opportunity Additional and the positive factors, which is able to leverage the advantage of the business Threats Extended droughts are supposed to be threats of NAB (Wu and Shen 2013). Discuss the organisational culture According to Augusto de Matos, Luiz Henrique and de Rosa (2013), the organisational culture of NAB has followed five types of core valuation such as passionate for the consumers, aimed to win, respect the consumers, be bold, follow the appropriate thing etc. These valuations are able to give the shape to the consumers. The management of the organisation also helps to learn and develop the opportunities, diversities, flexibilities etc. In case of the passionate for the consumers, Abubakar and Tasmin (2012) mentioned that NAB always tried to consider the clients difficulties and deliver the appropriate solutions. Under the organisational culture, NAB Australia aimed to maintain the long-term relationship with the consumers and the suppliers. In addition, NAB also tried to achieve the goals of the business. Again, in order to make the business different from the other banking organisations in Australia, NAB always tried to be accountable for its new activity. In this purpose, they allow to ask the difficult questions as mentioned by Amdemikael (2012). Furthermore, to make the business more successful and significant, this specified banking organisation focused to the valuable conversation with its consumers and this will be beneficial to represent the respect and the courage. NAB aimed to the adaption of several inclusive cultures. Lastly, NAB takes the appropriate decisions for the consumers and the communities (Augusto de Matos, Luiz Henrique and de Rosa 2013). Goyal and Joshi (2012) opined that under the organisational environment, the responsibility performed by NAB will be helpful to enhance the business. Instead of this, community involvement is assumed to be effective as it aimed to develop the social and the economic wellbeing as well in the future. The workplace of NAB includes the effective flow of the financial support within the community sector (Haiss 2013) Conclusion This study has discussed the strategic development of NAB Australia. This study is helpful to develop the organisational and the corporate strategies. Among these strategies, this study has discussed some past adapted strategies and newly adapted strategies. These strategies reflect to understand the function of the NAB. The mission and vision of the organisation has been described. In this purpose, it can be stated that the mission of NAB is to maintain of long term relationship with the consumers. On the other hand, the vision of this organisation is to make the business successful. In addition, the competitive advantage of this definite company has added the essence of the study. Moreover, this study is also helpful to identify and understand the stakeholders requirements in this purpose. This will also helpful to determine the role of the stakeholders such as employees, suppliers and the consumers etc. In addition, this study has highlighted some important analytical tools such a s PESTEL analysis, SWOT analysis etc. These analytical tools tried to estimate the opportunities and threats of the organisation. Lastly, this report is helpful to discuss the organisational culture to understand the core valuation of the selected organisation. Recommendation In order to improve the performance of NAB, it can be recommended that this particular organisation can adapt the strategic management program. As per this program, the senior bankers and the other members can get the opportunity to reassess as well as can explore the activities. In addition, the organisation can construct new techniques for the development of strong and the strategic management. In this occasion, NAB can develop the strategic positioning as it considers new competition for the further growth. The function of the asset management and the private banking is needed to be explored. On the other hand, the management and the other member of this organisation can learn the big data analysis and can also update the new ideas in order to achieve the consumer-centricity. Furthermore, in order to expand the asset and liability, the workers can lean new techniques and approaches. The company can be more successful if it can adapt the product building strategy. This strategy wil l be beneficial, who opens new bank savings account. Therefore, in this connection, it can be suggested that if NAB can follow all of these discussed strategies or techniques, then the organisation will be more successful. References Abubakar, A.A. and Tasmin, R.B.H., 2012. The impact of information and communication technology on banks performance and customer service delivery in the banking industry.International journal of latest trends in finance and economic sciences,2(1). Amdemikael, A., 2012.Factors affecting profitability: An empirical study on Ethiopian Banking Industry(Doctoral dissertation, aau). Augusto de Matos, C., Luiz Henrique, J. and de Rosa, F., 2013. Customer reactions to service failure and recovery in the banking industry: the influence of switching costs.Journal of Services Marketing,27(7), pp.526-538. Goyal, K.A. and Joshi, V., 2012. 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