SOWT/PESTLE analysis Essay Example

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РЕSТLЕ Anаlysis


  • The banking sector is greatly influenced by the Australian government policies and the Reserve Bank of Australia

  • The policies could affect the banking sector either positively or negatively

  • For example, formulation of the policy that prohibited mortgage fee for home loans led to increased interest of customers to take loans from banks

  • The credit card reforms posed a threat for Westpac’s bid to successfully implement Business Process Management

  • ‘Four Pillar Policy’ of the Australian government prevents the four major banks from acquiring one another or merging.

  • The government’s Innovation Agenda will be beneficial to Westpac


  • To boost domestic economy followingthe global financial crisis, financial institutions reduced their interest rate

  • Constant low interest rate is a detrimental indication of the Australian financial institution’s situation

  • The Australian economy has recovered at a faster rate compared to the other leading world economies

  • It is doing relatively better than its competitors

  • Westpac needs to devise innovative strategies to take advantage of on the improving economic conditions in both the financial and non-financial sectors and enhance its profitability and attractiveness to its shareholders.

  • The government will be in a better position to impact the economy positively, once it has a good control over financial institutions

  • The Australian administration supports banking by students

  • It encourages banking that allows for investment in other financial sectors thus uplifting the economy

  • Australia’s population is ageing and the percentage of people aged 85 and over is expected to increase as time progress

  • These people are more involved in their societies than generation Y

  • Westpac’s Retirement Village and Aged Care unit concentrates on loaning to the aged.

  • This will enhance return on investment since this population’s market is expanding


  • Technology has great impact on banks

  • Anywhere banking is for example advocated instead of branch banking

  • Mobile banking is now real

  • Credit cards are used in paying bills

  • Maximum security is needed with the advancement in technology

  • The need to set up expensive equipment is avoided as BPM will allow access of facilities and financial information from personal computers

  • Procedures and laws oversee the banking system in Australia

  • The ‘four pillars’ policy is the most prominent regulation

  • It is a policy that averts any amalgamation and acquisition among the big four banks in Australia.

  • It aims at keeping the struggle of the banking industry.

  • The increasing rivalry will eventually lead to lesser interest margin and hence it is a threat to Westpac

  • The four-pillar policy allows Westpac to borrow from international institutions

  • The company also has a chance to make a name in the international market and procure higher profits.


  • Global warming and climate change has negatively affected agriculture and livestock-sustaining capacity in Australia

  • This negatively affects the rural customer base of Westpac

  • Adoption of maintainable policies by Westpac would encourage the rural customers to adopt green measures

  • This will enhance their productivity and protect Westpac’s capital and customer base.

SWOT analysis



A leader in terms of ATMs and branches in Australia

Faces high competition from other leading banks in terms of retail banking

A leader in institutional banking in Australia

Number of branches still not so many compared to other major banks

One of the world’s socially responsible banks

Second largest business banking lender in the country

A large pool of employees and customers



Innovation and high technology focus may assist in coming up with new banking products and services

Influence of the regulatory and credit limit changes

Attaining license to operate in other nations can help in international expansion and new market development

Deteriorating New Zealand and Australian will affect the bank negatively (Keating, 176).

Starting operations in rising economies to leverage on the growing economies

Works cited

Keating, Byron, et al. «In pursuit of a sustainable supply chain: insights from Westpac Banking Corporation.» Supply Chain Management: An International Journal 13.3 (2008): 175-179.