National Australia Bank Analysis

National Australia Bank Analysis

Organizations neither exist in the vacuum space nor in the world where they can operate freely. They are always surrounded by the critical factors which need to be addressed or else they would not be to overcome the environmental turbulence. This report seeks to address the critical issues surrounding the National Australia Bank. The report begins by analyzing the company general and specific environment. The major general and specific environment factors facing the company include economy and competition respectively. The report recommends that the company should invest more on its international branches to compensate for the economic loss realized in the home country. On the aspect of competition, the report recommends that the company should diversify its products as well reduce the prices on its products and services offered to the customers. Alternatively, the report notices that the company corporate social responsibilities and ethics are helping to build the company reputation and thus the company should uphold to them. Finally, the report finds out the company culture of putting emphasis on people is a good and should be embraced more: A PREVIEWORDER YOUR PAPER NOW

Organization do not exist in the vacuum but in the ever changing and dynamic environment. For the organizations to survive and ensure sustainable growth they have to continuously scan their environments to understand the critical aspects that might hamper their activities. This demands an organization to acquire and utilize information about relationships on trends and events of its external environment.  According to Gomez (2006, p. 22) this information is very useful in helping the management to plan for the future course of action of the organization. This report seeks to carry out analysis of the critical aspects attributable to the National Australia Bank (NAB). The report considered NAB because of the nature of the business undertaken by the company. Bearing in mind that financial institution are highly prone to the economic changes, the report finds NAB a perfect example to be used in analyzing  the company critical aspects.

National Australia Bank  Analysis-Purpose

Like any other financial institution, the National Australia Bank exist to make profit. However, the company also offers not for profit products which help the company customers to grow their revenue.  This is achieved by proving financial advice to the community businesses.  NAB is the Australian largest bank serving more than ten million clients at more than eight hundred locations in Australia and New Zealand as well as other regions of the world. Besides, pursuing the goal of profit making the bank also engages in corporate social responsibility activities like funding the communities’ infrastructure such as roads, hospitals and schools.  According to Grant (2010, p.18) competitive organization should be guided by the mission which will ensure that the company operations are aligned to the target goals. Similarly, National Australia Bank daily financial and banking practices are guided by the values ingrained in the company’s mission statement.  The core value governing the bank in 2016 is that the business should be conducted with observance of the ethics and professionalism to aid the organization attain the highest standards of behavior.  The company’s code of ethics helps in ensuring that the staff maintains the personal conduct at individual level; conflict of interests are eliminated; financial advice to the clients is provided appropriately; fraud prevention and being honesty when dealing with the customers. The bank head office is located at Melbourne Australia with other branches New Zealand and then international branches.

External Environment of National Australia Bank Analysis 

 As discussed in the introduction part, an organization exist in the environment which is highly influenced by other factors. Apart from the internal environment which the company can control, there is an external environment which is beyond the control of the management. External environment can be categorized into classes that is, general and specific environment. The general environment comprises of nonspecific factors in the organization environment that might interfere with the organization activities and operations.  These factors include international dynamics, political-legal, sociocultural, technological and economic. On the other side, specific external factors are those components that affects the businesses which are in a particular industry. This means that the specific factor affect only those businesses which are undertaken almost the same or similar business activities. Like any other business, National Australia Bank has been a victim of both general and specific external factors in the year 2016.

National Australia Bank General Environment-Economic

The business present environment is very critical in determining the business success or failure. If the environment is favorable then there will be increased profit margins due to high consumption rates among the households. On the other side, during the economy crisis only a few and strong businesses will survive.  According to McWilliams & Siegel (2000, p. 605), economy recession will force the businesses to operate at much reduced margin level or at break-even points. The businesses that cannot suit at the two areas and cannot afford to operate at a loss are left with no other option other to close down. Similarly, in the year of 2016, National Australia Bank has found itself entangled in the same dilemma. The stagnation in the economic growth has reduced the rate of investment in the country. This means that the bank has been faced with the a few clients who can secure loans with the company.



Gomez, Peter. 2006. Strategic Management Lectures, University of St. Galen, Aachen.

Grant, RM, 2001. The Resource-Based Theory of Competitive Advantage: Implication for Strategy Formulation, California Management Review as (33).

Mckenna, G., 2016. Goldman Sachs: Three challenges facing the Australian economy in 2016. [Online]
Available at: http://www.businessinsider.com.au/goldman-sachs-three-challenges-facing-the-australian-economy-in016-2-2016-2 [Accessed 13 December 2016].

McWilliams, A., & Siegel, D. 2000. Corporate social responsibility and financial performance: correlation or misspecification? Strategic Management Journal, 21 (5), 603-609

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