tCoursetCode:tMGN514tCoursetTitle:tInternationaltEnvironmenttandtManagement

CoursetInstructor:t

AcademictTasktNo.:t03tAcademictTasktTitle:tNationaltAustraliatBank

DatetoftAllotment:t05/03/2019tDatetoftsubmission:t10/04/2019

Student’stRolltno:tA01tStudent’stReg.tno:t11806503
EvaluationtParameters:t

LearningtOutcomes:t(Studentttotwritetbrieflytabouttlearningstobtainedtfromtthetacad
emicttasks)
Atcompanytworkttotmaintainttheirtpositiontintthetmarkettandtwhattarettheirtstrategytandtexp
ansionttype.
Declaration:
ItdeclaretthattthistAssignmenttistmytindividualtwork.tIthavetnottcopiedtittfromtanytothertstu
dent’stworktortfromtanytothertsourcetexcepttwheretduetacknowledgementtistmadetexplicitly
tintthettext,tnorthastanytparttbeentwrittentfortmetbytanytothertperson.
Student’stSignature:t
P.DtVENKATESH

Evaluator’stcommentst(FortInstructor’stusetonly)
Evaluator’stSignaturetandtDate:
GeneraltObservations SuggestionstfortImprovement Besttparttoftassignment

MarkstObtained:t_______________tMax.tMarks:t______________

t
 tNATIONALtAUSTRALIAtBANKt

Introductionttotthetcompanyt(Products/Servicestandtfinancialtstability):t

NationaltAustraliatbankt(NAB)tistonetamongtthetfourtlargesttmonetarytestablishmentstint
Australiatinttermstoftcapitalisation,tearningstandtcustomers.tNABtwasthierarchicalttwenty
tfirsttlargesttbanktwithintthetworldtmeasuredtbytmarkettcapitalisationtandt41sttlargesttb
anktwithintthetworld

NationaltAustraliatbanktmaintheadquarterstaretlocatedtintthetMelbourne,tAustralia
ThetNationaltAustraliatbanktclustertcouldtbetatmonetarytservicestorganisationtwithtovert
12,400,000tcustomerstservedtbytfortyt2,000temployees,tWHOtaddtquitet1,800tbranchest
andtrepairtCentrestglobally.
NationaltAustraliatbanktint2018t34tlargesttbanktintworld
ThetNABtoperets4.412tATMstacrosstAustralia,tNewtZealandtandtAsiatservingt12.7tmilliont
customers.tTodaytFortalmosttonethundredtsixtytyears,ttheythaventbeentservingttotcusto
merstwithttheirtservicet900tlocationstintaroundtthetworld
NationaltAustraliatbanktOURTRANGETOFTPERSONALTPRODUCTSTTransactiontaccounts,tSa
vingstaccounts,tCredittcards,tNABtPersonaltLoan,tHometloans

We’retAustralia’stlargesttbusinesstbank.tOurtfocustistontsmallttotmediumtbusinessestandt
investors.tWe’retpassionatetabouttprovidingtspecialisedtfinancialtproducts,tmarkettinsight
standtadvicettothelptourtcustomerstthrivetacrosstdifferenttindustries.

NABtistantinclusivetplacetfortinnovationtandtinspiration.tOurtteamtistonetoftthetlargesttin
tAustraliatandtconnectstwithtalltbusinesstareastacrosstthetenterprise.

NATIONALtAUSTRALIAtBANKtREVENUE=t5,554t$m
NATIONALtAUSTRALIAtBANKtASSETS=t806,510$m
NATIONALtAUSTRALIAtBANKtInteresttincomet=t28,543$m
NATIONALtAUSTRALIAtBANKtOthertincome=t5,596$m
 Historytoftenteringtintotforeigntmarkettandtcomparativetperformancetwit
htthetnearesttcompetitortintforeigntmarket:t

ThetfirsttbankttotbetstartedtintAustraliatwastthetBanktoftlatesttSouthtWales,tthattwas
tstartedtintstatetcapitaltint1817,twithtEdwardtSmithtastitstcashiertandtsecretary.tthro
ughouttthetnineteenthtandtearlyttwentiethtcentury,tthetBanktstartedtbranchestthroug
houttAustraliatandtOceania:tattMoretontBayt(Brisbane)tint1850,tthentintVictoriat(185
1),tNewtZealand(1861),tSouthtAustraliat(1877),tAustraliantstatet(1883),tstatet(1901),
tPapuatislandt(1910)tandtTasmaniat(1910).t

 ThettoptfourtbankingtintAustraliatbytcapitalizationtareatunittCommonwealthtBank,tW
estpactBankingtCorporation,tAustraliatandtNewtZealandtBankingtclustertandtNation
altAustraliatBank.

NationaltAustraliatBanktwastfashionedtastNationaltbusinesstBankingtCorporationtoft
AustraliatLimitedtint1982tbytthetmergertoftcommercialtbanktoftarchipelagotandtthere
foretthetbusinesstfinancialtorganizationtoftstatetcapital.tThetensuingtcompanytwastaf
terwardtrenamedtNationaltAustraliatBanktlimitedtthetNABtexpended.t
Thentaboutt160tyears,thelpingtcustomerstwithttheirtservices.t30,000tpeopletservingt
9,000,000tcustomerstattmoretthant900tlocationstthetexpansiontovertensuingtyearst
RepresentativetofficestweretestablishedtChicago-1982,Beijing-1982,dallas-
1983,seoul-1983,kualatlumpar-1984,sanfranciso-1984,Athens-
1984opentthetbranchtbutt1989ttheythavetclosetthetbranchtfortsometreasons.tFrankf
urt-1985tthethavetopentbranchtbutt`1992tTheythavetclosetthetbranch.tAtlanka-
1986tBangkok-1986tTaipei-1986tshangal-
1988ttheythavetopentbutttheythavetclosetint1990,tHouston-1989tNewtdelhi-1989t
TheythavetopenttheretbranchtintdifferenttplacestfortandtexpendingttheretbusinesstT
hetNABtGrouptwithtovert12,400,000tcustomerstservedtbyt42,000tworkers,twhotwork
tintmoretthant1,800tbranchestandtServicetCentrestglobally.t
Thent12.7milliontretailtcorporatetcustomerstincludingt2.5tmilliontwealthtmanagement
tNABtfunctionstint(Australiat,newtZealandt,Asiat,Indiat,Chinat,japan,tSingaporet,andt
sometothertcountries)tthetNABtbankthast1700tofficestandt4.412atmstglobally
ThetbanktsharestlistedtontthetAustraliantsecuritiestexchangetthetNABtisthavet50tsaf
esttbanktintthetworldtaccordingttotglobaltfinancetmagazinetintAugustt2015tandtnatio
naltAustraliatbankthadttotaltA$955.052tbillion,tassetstloanstoftA$532.784tbillion,tand
tdepositstoftA$489.010tbilliontNABtbankthastatgoodtrevenuetintAustraliat
tWhentittcomparettotworldtThetNABtbanktourtlargesttmonetarytestablishmentstintAu
straliatintthetmarkettcapitalization,tearningstandtcustomers.tNABtwastgradedt21tlarg
esttbanktwithintthetworldtmeasuredtbytmarkettcapitalisationtandt41tlargesttbanktwith
intthetworldtastmeasuredtbyttotaltassetstint2014,tfallingttot49tlargesttintMarcht2016a
ndt26tlargesttBANKtINt2017tandtint2018t34tlargesttbanktintworldt
whentwetcomparettotforeigntmarkettthetNewtZealandthastatgoodtgrowthtintforeignt
markett6.7%tgrowthtcomparettotremainingtcountriestoftforeigntmarkets.tIntNewtZeal
andtthetnabtwastworkingtgoodtandtdevelopingtdayttotdaytthetcompetitortintNewtZea
landtfortNABtbanktwastANZtBanktNewtZealand(Establishedtint2004),tASBtBank(Fo
undedtint1847),tBanktoftNewtZealand(establishedtint1861),tKiwitbank(establishedtin
t2001),tCo-
operativetBank(Establishedtint1968)tthistaretthetcompetitorttotNABtbanktintNewtZea
landtthetNABtbanktstartedtittservicetint1861tintthetsametyeartBANKtoftnewtZealandt
hastalsotstartedtittservicestfortthetcustomerstbuttNABthastatgoodtskillstsotthattwaytt
heythavetsustainabletintthetmarkett.
ButtwhentittcomettotworldtlargesttbanktthetNABtistint34tpositiontint2018tandtremaini
ngtbankstintnewtZealandtdidtnottreachttot100tpositiontalso.

Expansiontplanstandtfuturetstrategiestoftthattcompanytrelatedttotinternat
ionaltmarket:t
ThetNABtBANKtusestsometMarketingtmixturetandtanalysestthetbrand/companytthat
tcoverst4Pst(Product,tPrice,tPlace,tPromotion)tthist4PsthelptNABtBANKtsellingtstrat
egy.tThetarticletelaboratestthetrating,tadvertisingt&tdistributiontwaystemployedtbytth
e-corporate.

Overtthetlastt5tyearstNATIONALtAUSTRALIAtBANKthastembarkedtonttotformtbanki
ngtfairertintAustralia,twithtatcommitmentttotstaytfeestandtchargesttruthfultwhereastc
onjointlytservingttotcustomerstwinttheirtmonetarytgoals.tit'stthistkeytattitudetthattNAB
thopestaretoftentthetdistinctivetdistinctiontbetweentitselftandtthereforetthetdifferenttm
ajortbanks.tintlinetwithtthetNABtAnnualtReporttfort2015/2016,tthetbankthastaimedtto
tunleashtatlottoftclienttcenteredtproducttandtservicestastatmethodttotattracting
tnewtcustomerstandtretentivetexistingtones.tThroughtstrongertdeposittproduct,tlesst
complicatedtproducttofferingstandtatspotlighttontclienttservice,tNABtistmakingtantatt
emptttot"removetclienttpaintpointstandtbuildtitteasiertfortindividualsttottrytandtdotbusi
nesstwithtus"taforesaidtnewtappointedtchieftexecutivetofficertSainttAndrewtThorburn
.tThistapproachtseestNABttaketthetaggressivetpositiontoftdeedtcontendertcustomers
tandtprovidingtatbettertservicetleveltwhiletcompetitorsttargettworthtaddingttotexisting
tcustomers.
Duringtthistyear’stAdobetDigitaltsellingtconferencetintstatetcapital,tNAB’stheadtoftdig
italtcontent,tdigitaltandtdirecttbank,tChristHo,tsharedthowevertthetbankingtclustertha
stoverhauledtitstdigitaltstrategytthroughtnewttechnology,t
Overtthetpastteighteentmonths,tNABthastshiftedttotatreplacementtwebtsitetcontentt
managementtplatform.tthetchoicetwastregardingtbeingtatlottoftresponsiveton-
line,tprovidingtindividualstwithtthetpropertdigitaltbusinessttools,treducingtintprogresst
prices,tandtmakingtdigitaltchoicestfortthetlongtrun,tthetcorporatetselectedtAdobetexp
ertisetManager,tatparttoftthetsellingtCloudtsuitetoftsolutions
Foreigntexchanget(oftentcalledtFX)tsolutionstaretnottonlytforthugetorganisations.
tAnytbusinesstthattcarriestouttmonetaryttransactionstintantexceedinglytcurrencyt
aparttfromtAustraliantbuckst(AUD)tmusttmanagetitstinterchangetrisk,tsignificantly
tintvolatiletmarkets.tHeretareatunittatnumbertoftthetthingstwherevertinterchanget
choicestmighttsupporttbusiness:
Youtimporttortexporttmerchandisetandtyourtinvoicestortreceiptstareatunittquotedt
intforeigntcurrencies
Youthavetloanstintforeigntcurrencies
Youthavetoverseastassetstortinvestmentstintforeigntcurrencies
You'retchangingtprofitstintantexceedinglytforeigntcurrencytintotAustraliantbucks
Youtpaytortreceivetanytforeigntcurrencytamounts.

Ontthettechnologytfacet,tNABtconjointlythadttotoutlinetthetexplanationstfortmodifi
cation,twhichtwastthetrealisationtthattthetpresenttoperativetmodeltwasn’ttplannin
gttotbetadequatetfortmanagingtcustomerstdigitallytint2tort3tyears’ttime.tThistcom
pelledtthetteamttotformtattechnologicaltdetourtintforeigntmarket

It’stvitalttotgraspteachtthetadvantagestandtriskstoftincreasingtatbusinesstinternat
ionally.tastantexample,tintsometcountries,tthetlead-
timetbetweentinitialtcontacttintANtexporttmarkettandtatagreementtmaytbetyears.
Aretyoutablettotaddresstthetchangestandtregulatetyourtbusinesstaccordingly?tH
eretsquaretmeasuret5tinquiriesttotraisetoncetincreasingtyourtbusinesstoverseas.
ts
DOtYOUtHAVEtENOUGHtCAPABILITY?
HAVEtYOUtTAKENtCULTUREtINTOtACCOUNT?
DOtYOUtHAVEtACCESStTOtSUFFICIENTtCAPITAL?
HAVEtYOUtCONSIDEREDtALLtADDITIONALtCOSTS?
WILLtYOUtNEEDtTOtHIREtMOREtSTAFF?

Accessttotshortttermtfinancetresolutionttotstaytyourtbusinesstrunningtswimmingly
ThetoptionttotfinancetinteithertAustraliantdollartortdifferenttmajortexchangetcurrencie
s
Paymentttermstthattaligntalongtwithtyourtcommercialismtcycle,tfromtseventdaysttota
thundredtandteightytdays
AccessttotourtdedicatedtTradetTeamttotassisttyoutperceivetyourtincometcycletandtc
hallenges,tandtprovidetthetcorrecttsolutionstfortyourtbusiness
tPESTLEtAnalysistwitht2tcompanytspecifictrecenttnews:t
PESTELtstandstfort-tPolitical,tEconomic,tSocial,tTechnological,tEnvironmentalt&tLegal

PESTELtanalysistprovidestgreattdetailtabouttoperatingtchallengestNABtBANKtmacrotenviro
nmenttothertthantcompetitivetforces.tTheytcantimpacttindividualtfirm’stcompetitivetadva
ntagetortoveralltprofitabilitytlevels

PoliticaltFactors

PoliticaltfactorstplaytatbigtroletintdecisivetthetfactorstwhichtwilltimpacttNABtLimited'stlong
truntprofitablenesstintatverytsuretcountrytortmarket.tNABtrestrictedtistworkingtintBankstin
tadditionaltthantdozentcountriestandtexposetitselfttotdifferingttypestoftpoliticaltatmospher
etandtformtoftgovernmenttrisks.tThetbringthometthetbacontsuccesstintsuchtatdynamictBa
nksttradetacrosstnumeroustcountriestisttotdiversifytthetsystematictriskstoftpoliticaltatmosp
here.tNABtrestrictedtwilltcloselytanalyzetthetsubsequenttfactorstbeforetcomingtintotortfina
ncetintatverytsuretmarket-

 PoliticaltstabilitytandtimportancetoftBankstsectortintthetcountry'steconomy.
 Risktoftmilitarytinvasion
 Leveltoftcorruptiont-tespeciallytlevelstoftregulationtintBankstsector.
 BureaucracytandtinterferencetintBankstindustrytbytgovernment.
 Legaltframeworktfortcontracttenforcement
 Intellectualtpropertytprotection
 Tradetregulationst&ttariffstrelatedttotBanks
 Favoredttradingtpartners
 Anti-trusttlawstrelatedttotBanks
 Pricingtregulationst–tArettheretanytpricingtregulatorytmechanismtfortBanks
 Taxationt-ttaxtratestandtincentives
 Wagetlegislationt-tminimumtwagetandtovertime
 WorktweektregulationstintBanks
 Mandatorytemployeetbenefits
 IndustrialtsafetytregulationstintthetBankstsector.
 ProducttlabelingtandtothertrequirementstintBanks
 EconomictFactors

ThetMacrotsettingtfactorstliket–
trate,tsavingstrate,tchargetpertunit,texchangetratetassociatedteconomictcycletconfirmtmix
ture|thetmixture|thetcombination}tdemandtandtaggregatetinvestmenttintanteconomy.tw
hereastsmalltsettingtfactorstliketcompetitiontnormstimpacttthetcompetitivetadvantagetoft
thetfirm.tNationaltAustraliatBanktrestrictedtwilltusetcountry’steconomictissuetliketratetoft
growth,tinflationt’steconomictindicatorstliketBankstindustrytratetoftgrowth,tshoppertoutla
ytetcttotforecasttthetexpansiontmechanicaltphenomenontoftnottsolelyt--sectoryname--
tsectorthowevertadditionallytthattoftthetorganization.tEconomictfactorstthattNationaltAus
traliatBanktrestrictedtoughtttotcontemplatetwhereastconductingtPESTELtanalysistsquaret
measure

 Typetofteconomictsystemtintcountriestoftoperationtwhatttypetofteconomictsystemttheret
istandthowtstabletittis.
 GovernmenttinterventiontintthetfreetmarkettandtrelatedtBanks
 Exchangetratest&tstabilitytofthosttcountrytcurrency.
 Efficiencytoftfinancialtmarketst–
tDoestNationaltAustraliatBanktLimitedtneedsttotraisetcapitaltintlocaltmarket?
 InfrastructuretqualitytintBankstindustry
 ComparativetadvantagestofthosttcountrytandtBankstsectortintthetparticulartcountry.t
 SkilltleveltoftworkforcetintBankstindustry.
 Educationtleveltinttheteconomy
 Labortcoststandtproductivitytinttheteconomy
 Businesstcycletstaget(e.g.tprosperity,trecession,trecovery)
 Economictgrowthtrate
 Discretionarytincome
 Unemploymenttrate
 Inflationtrate

SocialtFactors

Society’stculturetANdtmannertoftdoingtthingstimpacttthetculturetoftatcorporationtintanta
tmosphere.tSharedtbeliefstandtattitudestoftthetpopulationtplaytatgoodtroletinthowevert
marketerstattNationaltAustraliatBanktrestrictedtcantperceivetthetshopperstoftatgiventmar
kettandtthetwayttheytstyletthetsellingtmessagetfortBanksttradetshoppers.tSocialtfactorstt
hattleadershiptoftNationaltAustraliatBanktrestrictedtoughtttotanalyzetfortPESTELtanalysist
squaretmeasuret-

 Demographicstandtskilltleveltoftthetpopulation
 Clasststructure,thierarchytandtpowertstructuretintthetsociety.
 EducationtleveltastwelltasteducationtstandardtintthetNationaltAustraliatBanktLimitedt’stin
dustry
 Culturet(gendertroles,tsocialtconventionstetc.)
 Entrepreneurialtspirittandtbroadertnaturetoftthetsociety.tSometsocietiestencouragetentre
preneurshiptwhiletsometdon’t.
 Attitudest(health,tenvironmentaltconsciousness,tetc.)
 Leisuretinterests
 TechnologicaltFactors

tAtfirmtmustn'ttsolelytdottechnologicaltanalysistoftthettradethowevertconjointlytthetspee
dtattthatttechnologytdisruptstthatttrade.tSlowtspeedtcantoffertlongertwhereastquicktspee
dtofttechnologicaltdisruptiontmighttprovidestatfirmtverytlittlettimettotcopetandtbetprofita
ble.tTechnologytanalysistinvolvestunderstandingtthetsubsequenttimpactst-

 RecentttechnologicaltdevelopmentstbytNationaltAustraliatBanktLimitedtcompetitors
 Technology'stimpacttontproducttoffering
 ImpacttontcosttstructuretintBankstindustry
 ImpacttontvaluetchaintstructuretintBankstsector
 Ratetofttechnologicaltdiffusion

LegaltFactorst

Intvarietytoftnations,tthetlegaltframeworktandtestablishmentstaren'ttstrongtenoughttotshi
eldtthetbelongingstrightstoftatcompany.tAtfirmtoughtttotrigorouslytjudgetbeforetgettingti
ntotsuchtmarketstbecausetittwilltresulttintfelonytoftorganization

 Anti-trusttlawtintBankstindustrytandtoveralltintthetcountry.
 Discriminationtlaw
 Copyright,tpatentst/tIntellectualtpropertytlaw
 Consumertprotectiontandte-commerce
 Employmenttlaw
 Healthtandtsafetytlaw
 DatatProtection

EnvironmentaltFactors

Beforetgettingtintotnewtmarketstortbeginningtatreplacementtbusinesstintexistingtmarkett
thetfirmtoughtttotrigorouslytvaluetthetenvironmentaltstandardstthattsquaretmeasuretnee
dedttotcontroltintthosetmarkets.tatnumbertoftthetenvironmentaltfactorstthattatfirmtough
tttotcontemplatetbeforehand

 Weather
 Climatetchange
 Lawstregulatingtenvironmenttpollution
 AirtandtwatertpollutiontregulationstintBankstindustry
 Recycling
 WastetmanagementtintBankstsector
 Attitudesttowardt“green”tortecologicaltproducts
 Endangeredtspecies
 Attitudesttowardtandtsupporttfortrenewabletenergy
NationaltAustraliatBanktLimitedt(ASX:NAB):tIstIttAtSmarttLongtTermtOp
portunity?
t

SincetNationaltAustraliatBanktrestrictedt(ASX:NAB)tfreetitstearningstintSeptembert2
018,tanalysttagreementtoutlooktseemtcautiouslytoptimistic,twithtprofitstforeseenttote
xtendtbyt15%tnexttyeartrelativettotthetpastt5-
yeartaveragetratetoftthree.2%.tPresently,twithtlatest-twelve-
monthtearningstattAU$5.8b,twetmusttalwaystseetthistgrowingttotAU$6.7btbyt2020.td
uringtthistarticle,tI’vetdefinetatnumbertoftearningstgrowthtratesttotgranttyoutatwaytoft
thetmarkettsentimenttfortNationaltAustraliatBanktwithintthetlongtterm.tReaderstthatth
avetantinteresttintunderstandingtthetcorporatetontthetfartsidetthesetfigurestoughttto

NABteyestpartnershipstwithtIsraelitgroupsttotfurthertbigtdatatstrength

NationaltAustraliatBanktistintdiscussionstwitht2tIsraelitartificialtintelligencetandtbiometricstte
amstregardingtwaystthatttotanytthetbank’stmassivetknowledgetcapabilitiestandttotshieldtcust
omerstfromtrisingtsortstoftmonetarytcrime.
NABtistmullingtatrelationshiptwithtthetbiosciencetspecialisttclusterttotanytdeveloptthetwaystt
hattittidentifiestsuspecttbehaviourtbytcybertcriminals,tandtit'stalreadytruntatpilottprogramtwit
htthetclustertthat'sthoweverttotbetdiscovered.

SparkbeyondtchieftoperatingtofficertAmirtHaramatyttoldtatrecentttradetdelegationttotI
sraeltsponsoredtbytthetAustraliantIsraeltChambertoftCommercetthattthetcompanytw
ast"closettotworkingtwithtNAB".

References:
thttps://www.smh.com.au/business/banking-and-finance/nab-eyes-partnerships-with-israeli-
groups-to-further-big-data-strength-20190405-p51baa.html

https://simplywall.st/stocks/au/banks/asx-nab/national-australia-bank-shares/news/national-
australia-bank-limited-asxnab-is-it-a-smart-long-term-opportunity/t

https://www.relbanks.com/worlds-top-banks/market-cap

https://accr.org.au/politics/nab/

https://www.nab.com.au/about-us

https://aws.amazon.com/solutions/case-studies/national-australia-bank/

https://www.nab.com.au/