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ANZ Marketing Ideas Assignment
ANZ Marketing Ideas Assignment Management practice is the technique that is effective in achieving the ultimate objective by optimum utilization of resources. The better management practices are significantly associated with higher productivity and corporate performance. The latter includes return on capital employed, sales per employee, sales growth and growth in market share. The management practice is divided into four broad areas (Armstrong, 2003). Shop floor operation, questions whether the spirit of lean manufacturing adopted by the company? Performance monitoring questions like how well a company tracks the activities going on inside their firms? Target setting questions like do companies set the right targets for themselves, followed by tracking the right outcomes and taking necessary action if the two don’t match? Incentive setting is practiced to determine are companies hiring, developing and keeping the right resource and providing them with incentives to encourage and succeed?
Management practice is act of getting things done in an effective and economic manner in order to achieve the organization’s objectives (Boynton, 1994). Management practice is also defined as a process of achieving organizational objective while working with others in a changing environment and evaluating performance. Management practice is a systematic way of handling activities with planning (process of establishing goal and suitable course of action to achieve it), organizing (Process of engaging two people in a structured way), leading (process of directing and motivating employees) and controlling (process of ensuring that actual activities is in accordance to planned activities). Management practice plays the role to drive productivity and other performance indicators in a systematic way across the countries. This study will focus on the implications for current management practices when a company steps into the global market from Australia.
The phenomena of globalization describe the process of identifying and entering into the global international markets. The companies often think to enter into the global market because of seasonal fluctuation and uncertainty of the domestic market. Other reasons could be – to minimize the risk of losing clients who seek overseas markets for services, to gain prestige with local customer and to offset increasing cost of import duties, etc.
Implications for current management practices
Everyone wishes for a globalized world where product and ideas can flow freely. Even the most successful domestic company finds it difficult to expand their business globally. Many companies which have stepped into the global international market have underperformed. The reason is mainly market differences and strategic loopholes. The study of relationship between Australian business companies and globalization is of practical importance. This is because many of the Australian companies have failed to perform in overseas markets like Burns Philip, CSR and ANI. To become globally successful one must understand the challenges of doing business overseas i.e. challenge in understanding the difference in culture, language and accounting standards, etc.
When a company enters into global market, diversity is a challenge in any environment. Diversity is not just the characteristic but it is the combination of society, custom and belief. Diversity plays a significant role in the global economics if 21st century. Australian companies entering into the global market need to understand nature of diversity. Business requires understanding of the need of the culture into which the company wants to expand their business. This will help them in merging the international products with domestic one within the ethical code. A global manager entering into the new diversity needs to get himself familiar with the external culture. A manger’s decision could be acceptable to some but to other it may be unacceptable because of diversity (different thinking and methodology).
The management team of a business, managed locally, may face the challenge of experience of business management in a global perspective. The management team of Australian company may have performed exceptionally well in the local market but could underperform in the global market due to lack of experience. The local business must have the experience management team to conduct its business on a global platform. An option is that the management could hire an expert to guide decision making.
Another aspect that the management should look into is to have local connection and contact in the foreign country in which the business wants to expand. Establishing local connection is a valuable asset. The management should start hiring a local marketing firm if the business does not have any local marketing contacts. In addition to this, finding a reliable partner is also of great importance to a business. The management should also focus into establishing a relationship with the distributor whose market they want to enter. This may include engagement with the public relation firms for assistance. Since Australian firm might not have any prior experience in that country, it is challenge to find people who are trustworthy and competent.
The key to success in the market is to understand the requirement and need of the customer and to offer the products and services accordingly. Identifying the need of the customer is a tedious task especially when the people are from foreign country. Australian companies entering the global marked need to know that the customer has problems that need to be solved. The solution is provided with the products and services offered. The solution should be effective and easy to communicate. Also, it is a long and expensive process to build a brand name. Internet and television provide a platform to familiarize people with the brand. But awareness of the brand does not mean that people will prefer it. It becomes even more difficult when a company is trying to build its brand name in a country where the people have used the local product of same type for years or even for generations. Another factor which is often neglected and could adversely affect the business is the marketing message delivered to influence the purchase of the product. Management team should keep in mind that the advertisement could be impressive or say funny for one culture but could be insulting to other. The management should look for effective advertising that requires deep understanding of culture and morals of that country.
The company must have financial management team for global business. Cross border sale management is very important if a company wishes to expand globally. In order to manage cross border sales inn effective manner and to pump up the growth the company or organization must have the potential to account for the currency, company, tax and language requirement. Also the company should be able to manage account, budget, supplier and customer activity and various other business statistics. The vision of the finance management team should be wide and deep to see the details of the ongoing operations and activity globally. The Chart of accounts should be given flexibility to analyze and measure the profit in many different ways. At the same time the company may vary its performance indicators to measure performance and profitability, as the management practice evolve. Also the company can implement a single system worldwide that can give flexibility in accounting and ensure control and consistency.
Concern for ANZ management policies and practice
Australia and New Zealand banking group limited is the third largest bank in Australia. ANZ’s strategy had always been better than the competitor bank, as ANZ always had more corporate focus (Butlin, 1961). In their journey to globalize their business ANZ faced some serious challenges. In 1984 when Australian dollar floated ANZ tried to grab the opportunity and looked to globalize. In this process ANZ purchased an old British colonial bank named as Grindlays bank. This bank was focused on South Asian countries. These countries include India, Pakistan, Bangladesh, Sri Lanka and Nepal. The bank also focused on Middle East and Africa. But Grindlays’ network did not performed for many years. The main reason behind this was continued heavy regulation in India. This regulation restricted the bank and companies to operate freely. So in 1997 Asian Financial Crisis, ANZ sold their business in Middle East and South Asian countries to focus at their local business and their business in East Asia. However, the rapid growth of Indian economics in 2000 made ANZ to regret on its decision.
No company, which had stepped into the global market, is infallible. ANZ being a multinational bank has faced many challenges. ANZ has to deal with the contradiction with government policies of various governments while performing its business operation internationally. The bank intended to serve the community with best facilities. In order to expand the business a company need to live up to the expectation of this customer and also should be capable of providing the customer with an up to date facility which is a challenge in itself. The performance delivery of the bank was also impacted by the political condition and policies. The bank faced serious challenge with the competitor bank when they entered the global market. The bank had to compete with the local bank which had already sustained its brand value within the communities. In this foreign country ANZ had to create its brand name as well as compete with the rival bank in order maintain the smooth functioning of the bank (Jalleh, 2002). Another challenge in the global market was risk management strategyand positive goodwill among the customer. Also motivation of the employee was another concern and was the key to overcome the issue the bank was facing.
In the middle of global financial crisis, stake holder pressure, political change and demographic shifts adversely impacted the overall business environment in the world. The government and business organization were badly afflicted. In this time banking and finance sector supported many organizations and provided economic backbone to them. The only organizations that survived this crisis were the one which had effective crisis management program and techniques, responsible leadership and self-accountability. These factors played a significant role in developing a competitive edge. ANZ saw this as a chance to take advantage of the global financial crisis (Huang, 2012). But the bank had to address the legacy issue while taking advantage of the condition. ANZ’s concern was to establish the real franchise in Asia (Lie, 2000). ANZ had to take up the challenge for the transition from just being a presence in Asia to establishing business in the Asian countries. Another challenge was to strengthen the building strategic advantage in local business in Australia by focusing on growth opportunities and business simplification in this time of global financial crisis.
The efficient management practice at the time of the challenging situation has brought global success to ANZ. ANZ now has strong regional network that extends to Asia Pacific, Australia and New Zealand (Avkiran, 1999). During this successful journey to internationalize the business ANZ showed diversity of ideas and experience. The bank has an ambition of becoming a super-regional bank that provides quality global business to its customers.
Management practices play a very important role in influencing and transforming the competitive landscape of the global economy. They are also required to balance cross-national and intra-national diversity. It helps one to truly understand cross-cultural phenomena which directly or indirectly lead to organization’s growth. Globalization leads to increase in competition. In this management practices play a key role to differentiate between growth of any two organizations or companies (Parker, 1998). Before globalization, the company’s customer base and market is limited to their own country but after globalization, entire world becomes their market and customer base. Efficient management practices are a key to make use of the opportunities available in market and to sustain their growth and performance. ANZ applied the management practice efficiently and it is now one of the best capitalized banks. The distinctive strategy of ANZ is clearly visible in financial management. ANZ had shown a strong performance in expanding its business in the global marker especially Asia as well as growth in domestic market through planned and long term strategy. An approach that is being demonstrated by ANZ has marked its leadership among the banks addressing financial literacy. ANZ need to maintain its commitment. It needs to build upon then over the time. For now, the legacy should be continued to build upon the achievements that ANZ had made till date.