NAB VCE Business Management Unit 3 AOS 1

• Concise NAB-Specific Summary for VCE Business Management Unit 3 AOS 1

NAB’s Business Structure

• National Australia Bank (NAB) is a Public Listed Company (Ltd), listed on the Australian Securities Exchange (ASX).
• NAB has more than 50 shareholders.
• Shareholders have limited liability.

NAB’s Business Objectives

• NAB aims to make a profit by generating revenue from banking services.
• NAB aims to increase its market share, holding 14.6% of the home loan market as of February 2024.
• Investments in digital banking and automation are used to improve efficiency.
• Improving effectiveness focuses on customer satisfaction, where NAB is ranked second among Australian banks.
• NAB Provides loans, savings, credit, and investments to fulfill a market need.
• NAB supports UN Sustainable Development Goals (SDGs), including sustainability, climate action, and fair work, to fulfill a social need.
• NAB aims to meet shareholder expectations by ensuring profitability and dividend returns.

NAB’s Key Stakeholders & Conflicts

• Shareholders are interested in high profits and dividends, which can conflict with employees' desires for better pay.
• Managers are interested in strong leadership and business success, which can conflict with customers over fees.
• Employees are interested in fair wages and job security, conflicting with the implementation of automation that replaces jobs.
• Customers are interested in low fees and good service, which can conflict with hidden charges.
• Suppliers are interested in reliable payments, which can conflict if NAB switches to cheaper suppliers.
• The community is interested in ethical banking, which conflicts if NAB prioritizes profit over ethics.
• NAB wrongly charged customer fees from 2007-2019, leading to Federal Court action.

NAB’s Management Styles

• Autocratic management style is rarely used in NAB.
• Persuasive management style is used in compliance and risk management decisions.
• Consultative management style involves employees providing input before decisions are made.
• Participative management style is the main approach at NAB, focusing on a flatter structure and teamwork.
• Laissez-faire management style is used in specialized innovation teams.
• NAB's participative approach encourages collaboration, empowerment, and a supportive workforce through its Diversity & Inclusion Policy.

NAB’s Management Skills

• NAB trains leaders in clear communication.
• The business encourages team-based decision-making through delegation.
• NAB sets long-term strategies for business and sustainability through planning.
• NAB’s Distinctive Leadership Program develops leadership skills.
• Decision-making balances profit, ethics, and customer service.
• Diversity and teamwork are fostered through interpersonal skills.
• NAB’s leadership program develops coaching, teamwork, and feedback skills.

Relationship Between NAB’s Management Styles & Skills

• Autocratic style requires decision-making and planning skills.
• Persuasive style requires communication and interpersonal skills.
• Consultative style requires communication and decision-making skills.
• Participative style requires leadership, delegation, and interpersonal skills.
• Laissez-faire style requires delegation and planning skills.
• NAB’s participative style relies on strong leadership and interpersonal skills.

NAB’s Corporate Culture (Official vs. Real)

• The official culture promotes ethical banking, diversity, and a customer-first approach.
• The 2019 Royal Commission exposed misalignment in the real culture, leading to the CEO's resignation.
• The current culture shift focuses on trust, ethics, and customer protection.
• NAB removed sales-based incentives to avoid unethical sales pressure.
• Customer-first policies, such as financial hardship support and fraud prevention, were introduced.

Final Takeaways

• NAB is a Public Listed Company with strong participative management.
• Key objectives include profitability, efficiency, sustainability, and customer service.
• Stakeholders face conflicts, such as profit vs. employee wages and customer fees.
• Management style and skills impact decision-making, leadership, and efficiency.
• NAB revamped its corporate culture to align with ethics and transparency.

Concise summary of National Australia Bank (NAB)'s business structure as a Public Listed Company. Key objectives include profit, market share growth, efficiency through digital investments, and customer satisfaction. NAB also focuses on fulfilling market and social needs, aligning with UN Sustainable Development Goals.