Strategic Development Within An Organization Essay


Discuss about the Strategic Development within an Organization.



NAB or the National Australia Bank stands in the 21st rank in the list of the largest banks in the world regarding its market capitalization and the 41st largest bank as measured in 2014 by total assets. Formed after merger of National Bank of Australia and the Commercial Bank Company of Sydney, NAB stands as one of the four largest financial organizations in Australia measured in terms of customer and capitalization (NAB, 2016). The following is a detailed analysis of the strategic development within National Australia Bank tracing the growth from the early stage to the present times.

The following discussion proposes to focus on the compound annual growth rate of NAB depending on the trends the company has been following since the early stage of the merger. As the annual report of NAB reveals the organization had notable offshore expansion over the following years.

The following analysis focuses on the previous growth as well as the present growths in order to trace the strategic development through a systematic general, environmental, and SWOT analysis along with the strategies and leadership programs that has influenced the growth rate through the employees.

Mission and Vision of the Company:

The official website of NAB enlists a number of their important values with a target to be the most respected bank in Australia and New Zealand. To achieve the vision the duties, the put particular importance to fulfill is first to provide their customers the best experience in the banking industry, maintain the quality of their services and products and ensuring rapid improvement in productivity (NAB, 2016).

Strategies Used in the Past:

Previously the company strategies to expand the offshore lead to buying and tie-ups with several banks abroad. E.g. in 1987 buying the Clydesdale Bank, in 1990 the Yorkshire Bank, etc. however this resulted in much success leading the bank to choose its vision to be the "the world's leading financial services company". (The Conversation, 2016) NAB took up the strategy to achieve "growth organically and through well-considered acquisitions". The venture brought NAB a wide peripheral boundary-expanding offshore (The Conversation, 2016).

Current Strategies:

In present times NAB’s strategies like “Bank breakup campaign”, “more space less squeeze” campaign in different times came to news. Campaigns like “more space less squeeze”, promoting 0% balance transfers for a year brought significant success; “bank breakup” campaign in 2011, aimed to set themselves apart from the “Big 4” bank group. The bank announced the lowest rate of interest and the lowest mortgage rate (0.02%). However, the application of the rate was held by RBA’s reduction in the rates. The campaign gained much popularity yet failed to fulfill the promised target causing much negative impact. (Financial Review, 2013)

The Bank's announcement in 2011 to ‘break up’ with the ‘Big 4’ bank group invited much criticism, especially from the bank critics. The present CEO committed to their customers lowest rate of interest through the announcement. However, such stunt invited much criticism as well, as mentions Josh Fear, “Any company that tries to position itself as a responsible corporate citizen is appealing to a growing awareness among Australians that there are bad corporate citizens out there that should be avoided” (The Sydney Morning Herald, 2011). NAB’s failing to reach the expected target brought much criticism as well as in an article in the Australian Financial Review criticized such a step mentioning to change their slogan into “More take and less give" (Financial Review, 2013).

Another serious criticism NAB has faced its financing the fossil fuel companies. As revealed in an article, since 2008, Nab has contributed almost 11.2 billion dollars to the industry almost 38% of the total contribution (Market Forces, 2016). Many Australian communities responded against the practice leading to the creation of ‘fossil-fuel-free’ superannuation and investment products to exclude NAB investment (The Sydney Morning Herald, 2015). Many of the customers moved their account to banks with lesser emissions quality. Such protests led the shareholders to ask NAB to reduce the finance for the industry.

General Environments (PESTLE) analysis:


Political contact has been on the supporting end for NAB. NAB very strategically includes a number of major political connection in their contact. As they reveals in their official website NAB believes in the democratic process leading to their participation in public activities hosted by political parties. At the same time, their stakeholders include a number of political personalities. From that point of view political connection to a great extend supports the positive growth of NAB.


Economically NAB is one of the four largest financial institutions in Australia. Moreover, NAB stands in the 21st position in the list of world’s largest banks in terms of market capitalization. At the same time the merger of the National Bank of Australia and the Commercial Bank Company of Sydney reportedly has resulted in a growth. Economically NAB stands in a convenient and supportive position that proves to be supportive of NAB’s rapid growth.


Social responsibility counts to be a very important aspect of NAB. They count their CSR to be ‘good business’ (NAB, 2016). Strategically and skillfully planned duties and their maintaining help the organization to attract more stakeholders resulting in more voluntary participation as well as a considerable profitability of the company.

At the same time, NAB’s social responsibility extends towards the wellbeing of the marginalized communities as well which besides of sympathetic ground attracts customers on the ground of trust and responsibility (Forbes, 2009).


The official website of NAB gives all possible information to the queries of the curious as well as interested customers regarding their contacts strategies and social responsibilities as well as the products and service offered. This simple system strategically enables experience of the interested people through ‘simple’, ‘agile’, ‘stable’ ,and ‘secure’ technological services (NAB, 2016).


NAB provides a lot of legal services to its customers. Their websites lists a variety of legal banking facilities like risk management, financial planning, insurance, various payment and transaction solutions for swift and hassle free banking facility. (NAB, 2016)


NAB takes up a strategic and sustainable approach to their business. Recognizing the impact of their operation NAB adopts a more eco friendly approach in their business like complying with the environmental law and voluntary commitments, resource management, taking care of the environmental risks by assessing and profiling (NAB, 2016). However, NAB’s financing of the fossil fuel industry invited great protestations that included many customers leaving the bank. This resulted in a negative impact of the bank (Market Forces, 2016).

Specific Environmental analysis:


NAB is one of the four largest financial institutions in Australia. At the same time it stands as the 21st largest in terms of market capitalization and 41st in terms of its asset management. The same the experience of a standard banking experience helps it creating a strong customer base.


The market reputation and an already existing reputation for the brand name ensure a partnership in several segments like education, management, media. These strategically made partnership with several organisation such as IEEE, Devoncroft as education partners (), Advanced Television, Cinematographer as media partners (NAB, 2016) gives NAB a worldwide exposure through various activities and programs. Presently Telstra's partnership with NAB for SME digital marketplace has ensured their reaching to more people through digital media. (NAB, 2016)


NAB’s official website lists a number of industries they cover through their Banking expertise. Industries like Agribusiness, Healthcare, Real estate, education, corporate and industrial along with banking helps them reaching a significant growth at the same time reaching their targeted position.


The FSU (Financial Sector Union) ensures the workers wellbeing along with the officers in charge and in quite deft in handling solving and reaching for a right solution for their members. NAB’s approach to workplace relations is ensured by the FSU during the enterprise bargaining process. (FSU Australia, 2016)


NAB runs a healthy competition with the other three financial institutions in Australia: Commonwealth Bank, Westpac, and ANZ (Nab,2016). Such competition leads them to several innovative marketing strategies as well as unique product to serve the customers. Though initially failed, the ‘Bank Breakup' campaign promised to provide the lowest rate to mortgage customers, earning for them considerable public exposure throughout the world. Such competition prevents stagnation in their policies and progress pushing them towards their Target.


NAB’s Supplier Diversity Program provides them a good deal of market exposure for it serves to their social responsibility as well as it is included as a initiative to help the marginalised communities. Besides NAB comprises of a number of reputed companies in their supplier list such as Deloitte, FIS Australasia, Workwear group ensuring a standard quality in their Banking expertise. (nab, 2016)

Internal Environmental analysis Process:


NAB follows a number of key concepts in their marketing management that ensures a systematic completion and maintenance of the activities and works. The board of directors is given absolute freedom and responsibility for the governance of NAB. Their administration system lists a number of key duties which ensure a switch and standard banking experiences like integrity of external reporting, Risk management, and compliance, strategic analysis, performance reviews, etc. (NAB, 2016)


NAB encourages ‘ideas’ and ‘dreams’. The employees are encouraged for social responsibilities and individuals are responsible for managing their own work and life wellbeing. The employees are given several special benefits through programs like WorkLife NAB,Staff Club discounts etc. at the same time the employees receive special financial and banking services discounts which ensure job satisfaction and increases employee’s consistency. (NAB, 2016)


NAB runs through a systematic management process following specific key concepts. The Board of Managers are responsible for the governance of the organization and implementation of the rules and terms ensuring a swift maintenance of the workplace environment.

SWOT analysis:


A reputation and good impression of the brand name and a significantly good position in terms of financial measuring are the main strengths of NAB that attracts a number of new customers as well as help to retain the existing one with their banking experience. The customer base invites a good generation of revenue and income through interests. Moreover, NAB lists a good record of accomplishment in terms of customer satisfaction with their multiple products and services of comfortable personal and business services that count in their strong points.


The most important drawback NAB is facing in current times is the controversies it has invited. Especially as discussed in Task 2, the protest against the greenhouse gas emission has already caused several customers to leave NAB settling for banks with less emission investment portfolio (The Sydney Morning Herald, 2015). Moreover, the present issue regarding misselling has raised issues regarding trust. NAB’s inability to retain the trust of the customer in present times counts in the weaknesses (NEWS, 2016).


The reputation of the brand and the significant position that are the strengths NAB can open provisions for expanding to new countries. As well as the strong asset management section will give the bank opportunities for further significant flourishment. Strategic positioning which has been a strength of NAB can provide opportunities to posit itself as one of the growing banks of the world.


The changing government rules for finance sector as well as financial crisis like recession counts to be the only threats a Bank can face. NAB is no exception for that. Besides the controversies circulating NAB can prove to be a threat to their reputation (Financial Review, 2011).

Core Values of the Company:

The company website lists a number of values to ensure swift service and absolute customer satisfaction like ensuring quality in their work, providing the best service to the customers, professionalism and ethical approach to their actions, growing profit for the stakeholders, etc.

Leadership and Culture:

In the timeline of emergence to the growth, there are several CEOs who have influence the employees as well as the company's strategy and culture. The first one definitely is the present CEO Andrew Thorburn. Many strategies under his leadership have taken the organization to a different level, becoming one of the four largest financial institutions in Australia. Another important CEO to name for the progress and growth of the Company is the former CEO Don Argus. Whereas it is Don Argus who led to an overseas expansion of the organization through several campaigns for organic “growth through well considered acquisition” (The Conversation, 2016), in the time of Thorburn the company enjoyed the position in the ‘’Big 4’ bank group, and the 21st position in the list of world’s largest Bank and targeting to be the most respectable bank of Australia (NAB, 2016).


Since its emergence in 1982 till its growth to be the 21st largest bank in the world in terms of market capitalization and 41st in asset management the company has seen quite a long time in their progress. However, the unique marketing strategies, strategic tie-ups, activities and involvements in social and major political scenario along with strong leadership and management system has earned for the company this respect. The organization has enjoyed good leadership under some capable CEOs to dream now to be the most respected Bank in Australia.


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