Managing Value Change Value Change in Bank Sector

Question: Describe about the Managing Value Change for Value Change in Bank Sector. Answer: Introduction The aim of the project is to manage the value change in the banking sector of Australia. The company that is chosen in order to carry out the project are CommonHealth Bank, Westpac and National Australia Bank of the banking sector in Australia. The demand chain analysis, value proposition, supply chain analysis, and the enterprise value of the chosen companies are evaluated to analyse the value chain and their competitive advantage. The value chain analysis helps to understand the position of the companies operating in the banking industry with respect to each other. Background of the companies The CommonHealth bank is a multinational bank that operates in New Zealand, USA, UK, Fiji and Asia. The government of Australia founded the bank in 1911, which has its headquartered in Sydney. The bank earns revenue of A$24.578 billion as per the annual report of 2016 (Commbank.com.au. 2016). The other company discussed in the study is Westpac, which is also called Westpac Banking Corporation. The bank has its headquarter located in Westpac place in Sydney. The bank was founded in 1982 through a merging of two old banks namely Commercial Bank of Australia and Bank of New South Wales. The company in 2002 after which the company merged with St, Georges, acquired BT financial group. In order to achieve the single view of information for its customers, the company introduced Oracle Database machine and Exalogic Elastic Cloud (Westpac.com.au. 2016). The National Australia Bank (NAB) is another largest bank in the nation in terms of serving the number of customers and market capitalization. There are more than 1590 branches of the bank and over 12.7 million customers (Nab.com.au. 2016). Demand chain analysis Commonwealth offers a wide range of products to its customers such as the loans for home, credit cards, transaction and personal loans. The company also supplies a large range of products such as business loans, equipment, and other agribusiness products. Customers are allowed to either invest directly or chose other ways of investment (Milberg and Winkler 2013). The company aims at increasing the financial literacy with the help of the online forums. On the other hand, Westpac considered sustainable strategy in the demand chain of the business. While improving the financial condition of the company by enhancing the efficiency, Westpac goes through financial risk. Improving the financial position indicates improving the capital, process of funding, and the liquidity position of the company (Cattaneo 2013). Individuals are able to carry out projects with the help o the guidelines provided by the company through follow-up process. NAB tends to offer its customers new products and services. The company ensures that the demand of the customers is met by effective delivery of the products. The company implements high-quality technology to determine that the supply made by the company matches the demand of the customers (Healy and Palepu 2012). It is important for NAB to ensure that the technology used is efficient and innovating to support future sustainability. Value proposition of the company CBA has various market opportunities even after expanding its business globally. The company has an opportunity to expand over the large areas of Asia other than depending on the small areas in Australia. The use of innovative technologies will help the company to enhance the value of banking and insurance services (Monczka 2015). The company allows online services to the customers that help the company to create value proposition. Customers are able to carry out banking activities without facing the trouble of long queue. Similarly, Westpac has the opportunity of expanding its business all over the world. There is a need to increasing the number of services offered by the company. In order to reduce the dependency on the market, the operating market needs to be increased by opening more branches over the globe (Hollensen 2015). Westpac allows added benefits to the women and the students of the nation. The students are able to achieve loans at a less interest rate. These extra benefits offered by the company attract more customers towards the company. NAB on the other hand provides excellent credit rating to its customers. The company has specialised experts who are eager to help and guide the customers to choose the correct scheme for themselves. There are wide range of investment services offered to the customers from which the appropriate scheme can be selected. These options provided to the customers create value proposition for NAB. Supply chain analysis In order to deal with the process of delivering products and services to the final customers, Commonwealth bank uses an approach that is effective in focusing the areas of financial practices, customers, community and environmental stewardship (Fearne 2012). The customers are therefore secured with the money. While conducting overseas business, the company minimises the problem of converting the currencies (Grant 2016). The supply process is analysed properly to ensure the high quality of the products. The supply chain of Westpac ensures that the business activities with the suppliers are highly sustainable. The company adopts strategies that make the existing and the potential suppliers understand the company in a better manner (De Backer and Miroudot 2014). The company assesses the right of the suppliers continuously. NAB intends to maintain the value of the goods and services offered to the customers. The goal of the company is to increase the sustainability of the companys supply chain, which is obtained through group supply establishment. As the vendors have strong environmental and social performance, the company builds the business with the vendors (Becker 2015). Westpac avoids late delivery by diverting the suppliers of the company (Morden 2016). The enterprise value of the company The market value of the companies is analysed using the enterprise value of the individual company. The enterprise value of the company includes the debt and the equity (total cost) of the companies. The enterprise value of Commonwealth as per 2016 was A$223,256 million, and the value of Westpac is $194,765 million. On the other hand, CAB has an enterprise value of $183 million. Conclusion The value chain analysis helps the companies to determine the performance position of their performance. From the analysis, it can be inferred that Commonwealth Bank of Australia enjoys a higher performance level in the banking industry. Westpac comes as the next leading bank in the sector while NAB falls under Westpac as per the value chain analysis. Competitive advantage of the three companies: All the three banks of Australia enjoy the competitive advantage in the banking sector. The lasting value of the services offered by Commonwealth Bank provides a comparative advantage to the company. A sustainable relationship is thus ensured between the customers and the Company. Westpac has high customer satisfaction, that provides the company competitive advantage. NAB achieves the competitive advantage from the support of the customers of the company. The bank charges less amount of account free from the customers. References Becker, J., Thome, I., Wei, B. and Winkelmann, A., 2015. 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