Essays on Strategic Communication Strategy of the National Australia Bank Case Study

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The paper "Strategic Communication Strategy of the National Australia Bank" is a good example of a marketing case study. STRENGTH - The bank has some branches that are spread in many places in the world which will shield it from any collapse. The bank has a wide customer network that provides the bank with the necessary finances for operations. The bank has four divisions that consolidate its position and provide it with an opportunity to reduce their maximum loan-to-value ratio from 80% to 70% for foreign nationals. Weakness Poor risk control management process leaves the bank vulnerable to creditors who may end up not paying. The provision of the mortgages to older people often may lead the bank to lose financial resources especially when they die due to old age. The bank has a high cost of superannuation structure that would instigate the mergers from other banks who will end up offering better rates when compared to the National Australia Bank. Opportunities The increase in interest rates will encourage people to save more instead of investing in property. The company has one of the largest customer bases in Australia compared to the other banks. Threats The bank is exposed to policy changes in the mortgage and lending industry. The housing bubble faces a chance of declining in the future, in the instance that the banks in the sector decide to institute stringent measures on the loan applicant.

The slowdown in loans will have a negative impact on the banks reduced rates. The increase in the number of private lenders in the industry will reduce the customer base for the company hence reducing their revenue. Risk analysis Organization The housing bubble project is a high-risk project if it is not effectively implemented.

According to the risk analysis, the organization has a high risk and high probability rating of the risk from their customers. The customers that the company provides them with loans can easily default on the payments placing the bank in a precarious situation. Additionally, the bank faces a high-risk rate from the implementation of the government policies in the company. The changes in governmental policies with respect to mortgage affect the policies of the bank. The changes in interest rate have an immense impact on the rates that the bank offers to its clients.

have a high chance of defaulting payment of the loans that they are being offered. The situation will place the bank in a precarious position which in the worst-case scenario will result in the bank closing some of their branches in Australia. The reason for this is that the bank has not instituted proper risk control measures with respect to managing their loan provision mechanism to its customer. The case study compares the bank with private lenders who have perfected the risk control mechanism when providing loans to their customers. Housing Bubble The housing bubble refers to the opportunity where the real estate industry is growing at a rapid rate.

There is more demand compared to supply resulting in the collaboration between the real estate industry and the banks to ensure that the industry continues to grow progressively. The banks provide loans to eager customers who want to buy houses or purchase mortgages at a specified interest rate. The rush for home acquisition is what is referred to as a housing bubble. It does cause immense revenue inflow on the people who take part in it.

REFERENCE

LIST

Krugman, P. and Wells, R., 2009. Macroeconomics.

Ranta, J.A., 2016. Measuring strategic communications (Doctoral dissertation, UNIVERSITY OF SOUTH CAROLINA).

Al-Deen, H.S.N. and Hendricks, J. eds., 2013. Social Media and Strategic Communications. Springer.

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