Essays on Marketing Analysis of Commonwealth Bank and Westpac Group in the Banks Sector Case Study

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The paper "Marketing Analysis of Commonwealth Bank and Westpac Group in the Banks Sector " is a perfect example of a marketing case study.   The Commonwealth Bank was established under the Commonwealth Bank Act in the early 1910s. In the early 1930s, it enlarged by merging with the State Bank of Western Australia and State Bank of New South Wales coupled with earlier merging with Tasmania and Queensland. Its initial home loan provision was in the mid-1940s. There was controversy in the late 1950s over the dual functions of Commonwealth Bank led to legislative amendments in its functions.

The Reserve Bank of Australia was established in the early 1960s after the Reserve Bank Act 1959 and assumed the entire central banking activities. The Common Bank act 1959 led to the creation of the Commonwealth Banking Corporation that assumed all savings or trading activities. In the early 1970s, it commenced home insurance provider. It formed its own finance company in the mid-1970s referred to as Finance Corporation Limited. In the late 1980s, it started offering services in investment management and life coverage through full subsidiaries of Commonwealth Life Ltd and Commonwealth Management Services Ltd.

It also acquired a 75% ownership of ASB Bank in New Zealand which it later made 100% in early 2000. It became a public company in the early 1990s through the Restructuring Act of 1990. Business Banking Centres, as well as Customer Service Centres, were opened countrywide in the mid-1990s. In the early 2010s, the Core Banking Modernisation program was initiated. Vision, strategy and financial objective Commonwealth Bank has a vision of excelling at enhancing and safeguarding the financial welfare of businesses, persons and communities.

Its strategic strengths are based on it being a renowned brand, having a huge customer base in Australia and offering a diversified mix of financial products. The bank is among the biggest listed companies on the Australian Securities Exchange and its shares are part of the Morgan Stanley Capital Markets Global Index. Its financial goal is to have a total shareholder return in the top quartile among its Australian listed peers in each five-year rolling period. Total shareholder return is the growth in the worth of the investment in the shares of the Group on the assumption that all dividends issued are reinvested back in shares of the Group. Customer serving divisions The Commonwealth Bank has five customer-oriented divisions which include: Retail Banking Services; Business and Private Banking; Institutional Banking and Markets; Wealth Management and International Financial Services.

In addition, it offers community support through its Commonwealth Bank Foundation that supports developments in education for young Australians. The division of Retail Banking Services offers customer-tailored service that meets the financial requirements of private and small business clients via easy, affordable and convenient banking.

The Institution Banking and Markets division is tasked with managing the Group’ s association with key corporate clients, government clients and institutional investors through the provision of a complete variety of transactional, capital expanding, and risk management services and products with the objective of offering unique insights and exceptional financial market capabilities to their clients.

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