Strategic Communication Strategy of the National Australia Bank - Case Study Example

Title: Students Name: Course: Instructor’s Name: Date: 1. SWOT ANALYSIS 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. 2. 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 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 their customer. The case study compares the bank with private lenders who have perfected the risk control mechanism when providing loans to their customers. 3. 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 the eager customers who want to buy houses or purchase mortgages at a specified interest rates. The rush for home acquisition is what is referred to as housing bubble. It does cause immense revenue inflow on the people who take part in it. According to Krugman and Wells, 2009 housing bubble is often affected by the fluctuation in the interest rates. When the interest rates are low customers tend to borrow more and invest in tangible long term investment like housing. Contrary when the interest rates decline the customers borrow less the banks hold their resources resulting in the decreases in the housing bubble. In other words the housing bubble follows a cycle of boom, recession, depression and recovery. The public is often involved in the assessment of the housing industry. Their needs have to be factored in to ensure that the houses will be demanded by them. The customers are consulted through online questionnaires and push messages. Furthermore, when the government is engaging in housing projects it often involves the public through conducting open forums where they can give their own point of views. Collaboration is the third aspect of the matrix it deals with the involvement of the public during the housing building process. The involvement of the public falls into two category directly by giving them jobs in the projects and indirectly by providing a forum for them to contribute their view points. The involvement of the public eliminates instances of them rejecting the project after it has commenced. The last aspect of the matrix deals with empowering the public and other partners to take part in the housing project. The partnership provides the housing industry with an opportunity to grow despite the high cost incurred in the construction of houses. The partnership goes a long way to reduce the cost of the houses making them affordable to the citizens of Australia. 4. Template form 5. Organisation: National Australian Bank Issue: In the case study the housing bubble is one of the major issues that are more of a threat than an opportunity for the company. The opportunities that the bank standards to gain from the housing bubble include: increase in their customer base, revenue increment and continuous expansion. The opportunities will only be possible if the threats and risks that the bank is exposed to are properly managed. It is a threat due to the rapid changes in monetary and lending policy due to the shift experienced in the business cycle. Additionally, the government to ensure that they protect he citizens from exploitation by the bank tend to institute stringent measures that may restrict the loan provision hence reducing the cash inflow during the recession. Furthermore, in the case study the government plans to institute policies that will result in the decline in the interest rates this has a ripple effect on the spending rates of the customers. The higher the interest rates the customers are often cautious of taking up loans and engaging in investment opportunities. Most customers prefer to hold their money and assess the situation before selecting a field to invest. On the other hand, the decrease in the interest rates results in the cash flow in the economy which does promote the growth and expansion of the housing bubble. Additionally, the bank faces a high threat from the organized private lender who manages a small customer base which makes it easier for them to control the risk that they incur on loan provision. The process of loan assessment in banks is quite hectic with the increase in the private lenders who provide loans with ease the bank will face a risk of losing its large customer base in Australia. Another threat to the housing bubble industry is that the industry rapidly fluctuates. The fluctuations open a dangerous situation for the company. For example, the bank has decided to institute its maximum loan-to-value ratio from 80% to 70% for foreign applicants the other banks holding their interest rates constant may benefit more in the case the market plummets Reputation goal Centered on delivering quality customer service based on the 12million customers that the company. Relationship goal Bridging any gap that is present between their customers, shareholders, employees and the government. Task goal Formulation of a strategy to ensure that the threats discovered through the risk analysis can easily be reduced to provide the bank with a chance to achieve the outlined opportunities in the SWOT analysis Key public Customers Approach and reasoning. Customers form the basis of the bank operations. They are the ones whom the bank is targeting with loans for them to purchases the mortgages for the houses. The housing bubble is enhanced by the customer desire to have a home for them, and the easiest way is through purchasing a mortgage from the bank or taking a loan to purchase a home. Awareness objective Focuses on providing customers with information. Strategy one: the use of open forums Tactic: Organizing an annual forum where the bank can engage with the customers explaining to them the products they are offering, the loan assessment process and the duration they have to complete payments. Strategy two: Instituting a 24-hour customer service Tactic: The bank needs to set up a customer care service that is properly trained in the various activities to provide the customer with feedback on their inquiries. Strategy three: Emailing the clients Tactic: They can email the clients monthly to update them on the mortgages and their loan payments structures to provide them with an opportunity to take part in the housing bubble. Acceptance objective Focuses on making their customers accept the benefits that they can accrue from the housing bubble project hence capturing their interests. Strategy one: Educational Campaigns Tactic: the banks need to organize a semi-annually educational tutor where they go to their target customers to provide them with sufficient information on the housing bubble. The bank taking the initiative to educate the people provides them with optimism that the project is viable. Strategy two: Advertising some of their customer's success stories on the housing bubble issue Tactic: the bank can carry out in-house advertisement where they advertise the success stories for the customers in the banking hall. The customers will be attracted to make inquiries on the housing bubble projects. Secondly, the bank can focus on the use of external advertisement by contracting media houses to air the stories this will attract more customers to take part in the bubble through the company. Strategy three: Provision of brochures and pamphlets to their customers Tactic: they can be printed and placed in the banking hall for the customers to pick them for themselves or the tellers can provide them to the customers at the counters when making their transactions. Action objective Making the customers take the imitative to participate in the housing bubble Strategy one: Risk analysis of the clients Tactic: carrying out a monthly risk assessment of their operations to ensure proper functionality of the bank. Additionally, it enables them to tackle the various threats highlighted in the organizational issue encouraging the prospective customers to take part in the housing bubble project with the assistance of the NAB bank. Strategy two: Shorter process to acquire the mortgages and loans Tactic: Having software that analysis the credibility of the customers will speed up the loan and mortgage acquisition. The bank needs to employ a company that deals with software development to design suitable software that will meet the needs of the bank. Strategy three: Favorable interest rates Tactic: Deals with instituting a sound interest rate based on the fluctuations in the market to attract customers to the bank. Public two Government Approach and reasoning. The government does institute policies and through the federal bank introduce fiscal measures that stand to benefit the expansion of the economy. The policies affect the housing bubble either to the bank's benefits or demerits. Awareness objective The NAB bank needs to ensure that they are always having knowledge on the policies instituted on their industry by the government. Strategy one: Following the government parliamentary proceedings Tactic: Provides the bank with an opportunity to anticipate the policy that will be implemented hence giving them ample time to institute changes that will favor them. Strategy two: Following the shifts in the business industry closely Tactic: The business cycle undergoes four major stages recession, depression, recovery, and boom. For instance, the cycles provides the bank with an opportunity to institute sound interest rates on the government policies. Strategy three: Reading newspapers Tactic: the business aspect of the newspapers provides the banks with an opportunity to assess how the other banks are responding to the government policies hence providing them with an opportunity to implement sound strategies. Acceptance objective To make the bank management aware of the governmental policies Strategy one: bank being flexible to institute changes in their structure Tactic: involves the employment of a more decentralized structure to facilitate rapid institution of policy changes within the shortest time frame. Strategy two: hiring a financial advisor who has a sharp acumen. Tactic: Deals with getting financial consultants to be part of their employee staff. Action objective To implement the governmental policies to the benefit of the bank shareholders and its customers Strategy one: the responsibility of ensuring that they are part of the policy-making process. Tactic: to ensure that they have a representative in the committee formulated to represent the private sector. Their involvement provided them with an opportunity to impact the policies proposed by the government positively Strategy two: ensure that they are flexible to employ new policy changes. Tactic: through the employment of visionary leaders within the management fraternity who prefer Democratic leadership to supervisory. The leaders will also be able to anticipate the changes on time hence providing the bank with an opportunity to be reflexive on the changes in the economic arena. Strategy three: Inclusion of real estate evaluators and agents Tactic: The bank needs to work closely with the real evaluators and agents by either integrating them as partners or employees within the bank. It provides the bank with an opportunity to comprehend the policies that they need to comply with to actively take part in the housing bubble project. Public three Employees Approach and reasoning. The employees form the backbone of the bank they take part in different activities that will facilitate the achievement of their activities on the housing bubble. Awareness objective To make the employees aware of the housing bubble issue Strategy one: Memos Tactic: The provision of memos from the senior management is essential in highlighting the issue to the employees. Strategy two: Meetings Tactic: the employees can take part in monthly meetings where the management has an opportunity of engaging them in handling the housing bubble issues. Strategy three: Provision of notes Tactic: the bank can print hard copy notes or soft copy notes highlighting the issue of the housing bubble and the anticipated role that they want to play. It provides the employees with an opportunity to read on the issue at their own free time. Acceptance objective To involve the employee in the implementation of the housing bubble issue Strategy one: Inclusion of the employees in committee dealing with the issue Tactic: the inclusion of employees from the lower levels provides them with an opportunity of accepting the issues and will assist the bank in tackling the threats it faces. Strategy two: Having a suggestion box where the employees can drop their suggestions Tactic: the suggestion box needs to be located in strategic places within the bank and emptied weekly. Strategy three: Removal of hierarchical barriers Tactic: Institution of flexible policies that allow the upper management to interact with all the employees. The provision of a cordial environment provides the employees with an opportunity to feel free to tell the senior management their opinions on the housing bubble project. Action objective To implement sound decisions with the involvement of the employees in the success of the housing bubble issue Strategy one: Seminars Tactic: employee participation in seminars provides them with an opportunity to learn more about the housing bubble issue. Hence they will contribute towards the implementation of sound organizational policies. Strategy two: Training Tactic: Encouraging their employees to further their education through providing them with incentives will enhance their understanding of the housing bubble among other issues affecting the bank. Strategy three: Participation in workshop Tactic: Interactions with other employees from other banks provides them with an opportunity to exchange sound policies that will be beneficial for the bank in implementing sound policies. Public four Shareholders Approach and reasoning. The shareholders are drawn to an organization that guarantees them a return on their investment. Hence, they form an integral part of the operation of the bank since their investment is what keeps the bank operational. Awareness objective To make them aware of the housing bubble issue and what they stand to gain from its implementation. Strategy one: Emails Tactic: the shareholders need to be provided with a monthly email highlighting the housing bubble issue and ways the bank is handling it. Strategy two: Annual General Meetings Tactic: the organization of the annual general meeting provides the bank with an opportunity to interact with all the major and minor shareholders. They can then be provided with an opportunity to give their input on the housing bubble issue. Strategy three: Phone calls Tactic: The major and key shareholders can be informed weekly on the progress the bank is making on the housing bubble project. Acceptance objective To include them in the implementation of the housing bubble project with the aim of eliminating any resistance from this front. Strategy one: Educational campaign Tactic: Providing them with material on the housing bubble and the impact on their investment will educate the shareholders on the importance of being part and parcel of the project Strategy two: Provision of audio on the success projects that they stand to gain from the initiative Tactic: the airing of the success stories from their customers and the projected increase in their investment will increase their faith in the project. An audio presentation is quite effective. Strategy three: protection of their investments Tactic: the bank management needs to provide a clear strategy on ways the shareholders’ investment will be enhanced through them investing in the housing bubble project. The presentation of figures will increase their optimism in the project. Action objective To strategize a direction for the implementation of the housing bubble project. Strategy one: Inclusion in committees Tactic: The inclusion of the representatives of the shareholders in the committees provides the bank with an opportunity of not facing any opposition in the policies that it does institute. Strategy two: Provision of financial statements Tactic: The semi-annual financial statements have to be emailed to the shareholders to inform them of the progress they are making. Strategy three: Providing them with their accrued returns Tactic: The provision of the accrued returns increases the optimism of the shareholders that the bank is strong to handle the shifts in the housing bubble projects. 6. THE IA3 The article tackles the issue of housing bubble and the participation of the National Australian Bank in ensuring that they attract their customers to tithe housing bubble deals with the increase in demand of the population to get their homes. The bank does provide loans and mortgages to ensure that the customers can fulfill their goals. The actors in the issue are the: customers, shareholders, employees and the government. The customer’s interest is centered on them getting suitable interest rates to invest in the housing industry. On the other hand, the shareholders want to be guaranteed that they investments will accrue returns. The employees, on the other hand, want to be guaranteed that the project will not pose a risk to their jobs. Finally, the government interest is centered on the protection of the citizen interest through the institution of policies that will protect them from escalating interest rates from their banks. All the actors meet in one common arena the bank's general meeting. The meeting is inclusive of the key stakeholders of the National Australian Bank who have been discussed in the article. The information that moves within the arena focuses on the following aspects: the viability of the project, the interest rates that the bank provides to their customers, and the ways the bank plans to implement the government policies in the project, finally what the bank stands to gain and lose with them taking part in housing bubble issue. The assets required by the stakeholders include; financial resources, sound decision and a guarantee when the customers take up take up the mortgages. 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. Read More