Unit 407: International Business Strategy Of ANZ Banking Corporation

Name: Stephen Catterall
Student ID: 864309
Unit 407 – International Business Strategy (Blended MBA, 2014) Assignment
Report for senior management evaluating how well ANZ Banking Corporation, is currently performing, and recommending how it can improve its international business performance with a view to its further expansion into the China (PRC) market.
Chair: Dr. Vanaja Karagiannidis
Date: 25th August 2014
Word Count: 2,649

Table of Contents
1 Executive Summary 4
1.1 Project Summary 4
1.2 Procedures Used 4
1.3 Problems Identified 4
1.4 Results 4
1.5 Recommendations 4
2 Introduction 6
2.1 ANZ Growth Strategy 6
3 ANZ Approach to International Trade 6
4 Market Entry 7
5 Trade Limitations and Barriers 7
5.1 Foreign Ownership Restrictions 7

3 ANZ APPROACH TO INTERNATIONAL TRADE
ANZ will leverage on the opportunities provided by The Asian Century, (ANZ Banking Corporation, 2012). The bank will need to respond to the competitive pressures of, and not only restricted to, the other banking pillars of Australia to enter and be successful in this market, but other global banks wishing to take competitive advantage of Asia’s growth opportunity, this report has a particular emphasis on its strategic planning for continued growth in its PRC operation.
Integration socially, economically and politically within the region will be of paramount importance. ANZ realise the importance of local influence within PRC, however they need to expand and embrace this area in more detail.
It is ANZs aim to be a “Super Regional Bank” in the Asia Pacific region which allows for cross boarder seamless financial services and solutions to their client base.
ANZ has extremely good core competencies which it can export to PRC in order to give it a competitive advantage in this area, (Porter, 1990).
4 MARKET

• Are my tax and compliance obligations any better than mainland China?
• How does ANZ manage the scale of the opportunity?
• As a new entrant, is the FTZ a cost-effective way to conduct business?
It is stated that Shanghai is likely to rival New York as a financial center and will serve as an international hub, (ANZ Banking Corporation, 2012). It is not known if the FTZ will be a replacement for Hong Kong or Singapore? This will have to be assessed, especially as the current disagreement between UK and PRC regarding Hong Kong and its proposed governmental legislation, this may be seen as preparing the way ahead for this region and removing Hong Kong as a financial hub? 8.6 CHALLENGE 4 - SKILLS SHORTAGE
There is a skills shortage within the PRC banking sector, a problem for is a lack of key talent at the local level, many are recruiting externally but this then causes the problem of increasing salaries, (PWC, 2012). As the financial sector in PRC grows, there will be a high demand for skilled personnel, this will place increased burden on salaries and benefits as local PRC banks seek to retain staff.
At a managerial level there are perceived skills shortages in the areas