Introduction
The macro business environment plays a significant role in determining the sustainability and profitability of business organizations across different fields. Adverse changes in the business macro environment negatively impact businesses, for example, a decline in profit margins (Akpoviroro & Owotutu, 2018). Business organizations have been challenged by the outbreak of pandemics in the recent past to rethink and reorganize their internal operational processes to remain profitable and increase the survival of business organizations amid the crisis (Pazarbasioglu et al., 2020); Salunkhe et al., 2021). Therefore, managers have had the challenge of scanning their external environment, establishing their business threats opportunities, and redesigning their business strategy to navigate the threats and capitalize on the new opportunities. Besides, human resource managers have had to develop human resource strategies and practices that are unique to the needs of their organizations in order to address the threats posed by the changing external environment and improve the efficiency of their organizations (Salunkhe et al., 2021).
Beyond Bank Limited is a public limited company that provides services such as personal banking, business banking, community banking, and financial planning for other organizations (Beyond Bank, 2022). The facility was incorporated on 27 April 1997 and has served the diverse society of Australia to date. Beyond Bank aims to create and return value to its customers by promoting their financial freedom, thus changing their lives. Notably, Beyond Bank Limited has recorded impressive revenue. For instance, in 2022, the facility recorded revenues of about $ 219000000 (Beyond Bank, 2022). The company has an employee base totalling about 580 employees, forming its solid human resource base.
STEEPLED Analysis
The business environment plays a significant role in determining the performance of a business. The business environment is classified into micro and macro environments. The microenvironment is generally all the internal affairs of a business that determine or influence its performance and efficiency. On the other hand, the macro environment implies all the external factors surrounding the business organization that influence and determine its survival and operation within a particular jurisdiction. The macro-environment consists of economic, demographic, social-cultural, political, and ecological forces that directly and indirectly affect the performance of a business. This study applied the STEEPLED analysis (refer to appendix) to determine the forces in the external environment of Beyond Bank Limited, thus determining the possible threats and opportunities posed by the macro environment to the business.
Business Threats
From the STEEPLED analysis, several threats are identified from Beyond Bank Limited. First, business regulations influenced by governments and legal bodies influence business operations in the banking sector (Hillier et al., 2008; Smales, 2015). For instance, structural regulations may increase Beyond Bank Limited’s operational costs, limiting banking activities (Smales, 2015). A massive operations cost may consume a significant amount of revenues the company generates, which would otherwise be used in expanding the company or providing additional loan services to its customers. Secondly, incorporating modern technology into the banking sector threatens job safety for employees as most services and transactions are operated by machines with minimal human assistance. Modern technology has introduced vulnerability among customers as scammers and fraudsters can hack and penetrate the customer’s accounts. The increased cases of cybercrimes warrant robust strategies to safeguard the privacy and safety of customers transacting online (Beyond Bank, 2022). Third, pressure from international organizations to divest in unsustainable business projects creates uncertainty for Beyond Bank Limited. Besides, the continued funding by Beyond Bank towards non-environmentally friendly projects risks sanctions from international organizations on the company (Nizam et al., 2019). In addition, high competition from other financial institutions threatens the company’s market share and pricing quality. Increased competition would further result in low-profit margins, thus threatening the survival and sustainability of the company.
Business Threats
Increased borrowing habits and high spending rates among consumers in Australia have provided Beyond Bank with a reliable customer base to offer more loans and mortgages. Besides, the consistency of the cash flow rate across the population in Australia has resulted in the stability of the revenues generated by the company annually (Australian Bureau of Statistics, 2023). Similarly, the positive ties between Australia and foreign countries can be capitalized by Beyond Bank Limited to help expand to other territories, particularly those with similar exchange rates and policies as Australia (Babazadeh & Farrokhnejad, 2012). This way, the company can reach a broader market, thus generating more revenue and living up to its values. Consequently, the entry restriction for new financial players in Australia gives Beyond Bank Limited the advantage of serving more clients and maintaining its customer base (Smales, 2015). As such, this advantage ensures steady revenue generation for the company, thus promoting its sustainability. As the profit and revenue remain protected, the management of Beyond Bank Limited can focus on expanding and growing the business. In addition, modern technology in the banking sector can be harnessed to promote customer loyalty and satisfaction (Beyond Bank, 2022). Ideally, the new technology can be applied in personalized banking services where customers receive personalized advice and products on their mobile gadgets from the company (Pazarbasioglu et al., 2020).
Business Strategy
As seen from the evaluation of Beyond Bank’s external environment, there are several opportunities and weaknesses that the company should evaluate and solve in order to boost its performance. There is a need to establish a team of employees dedicated to studying and analyzing various government regulations targeted at the banking sector (Smales, 2015). As mentioned earlier, there is a tendency for government regulation to evolve and change from time to time, which could result in fines and sanctions if the company does not comply with the law (Hillier et al., 2008; Smales, 2015). As such, the human resource manager at Beyond Bank Limited company should select a team of employees whose primary role involves reviewing government regulations and recommending action plans for the company to implement in compliance with the government’s requirements (Wu et al., 2020).
Besides, Beyond Bank Limited should reduce the organization’s operational costs by increasing employee involvement in digital banking services. The improved involvement of employees in digital banking services would significantly increase the revenue per employee, thus resulting in higher productivity of the human resource base. Consequently, Beyond Bank Limited should focus on financing projects and programs that are environmentally friendly. By promoting environmentally friendly, the company will be able to evade sanctions from national and international organizations, thus creating sustainability for the company as a business value (Nizam et al., 2019). Therefore, the company’s future competitiveness will not be compromised and will gain legitimacy to operate and expand to new territories.
Beyond Bank Limited should establish new business fronts to grow their sources of revenue. For example, the company should diversify its products and services outside the customary crediting unions and building societies. Instead, the management should develop long-term growth strategies such as expansion into international regions (Babazadeh & Farrokhnejad, 2012). As part of the growth strategy, the management should prioritize customer needs and customize their products and services to meet their customers’ needs, thus placing the company ahead of its competitors. Similarly, adopting modern technology in digital banking will serve as a strategy to counter competition from other financial institutions by enabling the company to reach a broader client base.
Human Resource Strength
Beyond Bank’s human resource base comprises highly skilled employees who can drive the company through the highly competitive business environment. The human resource manager at human resource business partners constantly identifies top talent in the market with capacities to thrive in the competitive business environment (Iheriohanma & Austin-Egole, 2020). Occupants of the human resource department at Beyond Bank Limited have sufficient knowledge and skills to evaluate government regulations regarding financial institutions. As such, the company can evade fines and legal risks due to strict compliance, thus maintaining acceptable ethical standards (Oates & Dias, 2016). Continuous learning and skill development are the primary goals championed by Beyond Bank Limited to ensure career progression for the employees. As such, comprehensive training and skill development programs are a top priority in the human resource department. Beyond Bank promotes workplace diversity and tolerance for different perspectives, thus promoting innovation and enhancing a robust organizational culture (Pham et al., 2021).
Human Resource Weaknesses
The low employee-to-client ratio is a primary weakness of Beyond Bank Limited company’s weaknesses. As mentioned, the company comprises about 580 employees, slightly below 600 employees, who serve about 60000 customers (Beyond Bank, 2022). The massive workload on employees results in fatigue and significantly drains their morale. Besides, Beyond Bank sources its employees through outsourcing with senior human resource business partners (Iheriohanma & Austin-Egole, 2020). Therefore, Beyond Bank lacks a human resource manager who supervises the employees’ daily activities (Beyond Bank, 2022). The absence of a human resource manager deprives employees of an opportunity to consult their superiors on arising matters. It could lead to a loss of direction among the employees as they discharge their mandate. Besides, the lack of a present human resource manager limits activities such as on-the-job training, thus depriving the employee of further skill development.
HR Strategy for Beyond Bank Limited
There are several human resource strategies that Beyond Bank can utilize to improve its performance and efficiency. The company ought to establish an in-house human resource manager to oversee the day-to-day activities of each employee within the department. For instance, an in-house human resource manager would consistently evaluate the skill gap of each employee and design appropriate training programs to help develop the skills of the company’s employees. Job training is crucial in ensuring that employees provide value to the customers by enhancing their reliability and efficiency in handling customer issues in the banking sector. An in-house human resource manager would also develop a reliable workforce plan that ensures that the number of employees available at the organization matches the company’s growth rate. The workforce plan would significantly reduce the employee-to-client ratio, thus reducing the excess workload on employees and improving employee morale and productivity. Beyond Bank Limited should invest in modern recruitment digital platforms powered by artificial intelligence to source top-quality employees for the company. Procurement of highly qualified employees would increase the competitive power of the organization, thus improving its efficiency and sustainability amid stiff competition from other financial institutions. The human resource strategies are summarized as follows;
HR strategy 1: Establishing an in-house human resource manager at Beyond Bank Limited.
HR strategy 2: Design of appropriate training programs and skill development activities for employees
HR strategy 3: Development of a workforce strategic plan
HR strategy 4: Application of modern digital recruitment platforms
Appropriated HR Practices for Beyond Bank Limited
In order to achieve the above-mentioned human resource strategies, the following human resource practices ought to be accomplished.
Establishments of Human Resource Managers
Beyond Bank Limited should adopt an organizational structure that includes a human resource manager in the hierarchy of the organization structure. The human resource manager should monitor the employees’ achievements and targets for the facility’s daily operations (Mahapatro, 2022). During the recruitment of human resource managers, the recruiting body should ascertain that the candidate has sufficient skills and knowledge related to the banking sectors that can be passed on to junior employees.
Training and Skill Development
Beyond Bank Limited should enrol their employees in digital training programs that teach them various digital banking models. Besides, employees at Beyond Bank Limited should be trained in computer skills, for instance, cyber security, to help intercept cyber intrusion by scammers and fraudsters, thus ensuring safety for customers transacting online (Mhlanga, 2020).
Development of Works Strategic Plan
The human resource managers should calculate the employee-customer ratio to determine the number of employees required to serve the facility’s growing customer base. A sufficient workforce plan should relieve employees’ access workload by balancing the employee-customer ratio, thus facilitating the recruitment of additional employees to fill the vacant positions in the institution.
Use of Modern Digital recruitment platforms
Human resource managers should consult outside professional organizations to aid the institution with modern recruitment platforms to facilitate the recruitment process. Employees recruited through these digital platforms are expected to be highly qualified, translating to better efficiency and competitiveness for the institution (Iheriohanma & Austin-Egole, 2020).
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Appendix
STEEPLED Analysis
| Environment | Description |
| Social Cultural | Over the years, the population of Australia have shown significant characteristics that directly affect the performance of Beyond Bank Limited. Statistics produced by the Australian Bureau of Statistics show that South Australia have a population of about 1.7 million people and is projected to increase to 2 million by 2038(Yadav et al., 2020). The high population is significant for any business organization as it provides a market for goods and services. The Australian Bureau of Statistics further notes an increase in the number of older adults between 65-79 years, projected to increase by 40% by 2041. Therefore, in the coming years, there will be a consistent growth in the number of individuals above 40 years of age. In addition to the indigenous population increase, Australia has recently experienced a massive inflow of immigrants from various countries worldwide (Pham et al., 2021). As a result, society in Australia has been significantly diversified, resulting in the development and adoption of different languages within the country, thus promoting linguistic diversity. |
| Technological | Technology has been a source of competitive power and a source of efficiency in service delivery for many businesses across the world. Incorporating technology has significantly reduced operational costs and enabled businesses to grow their market share by adopting online marketing tools to reach their clients. In Australia, financial institutions have incorporated machine learning, artificial intelligence and blockchain technology to help promote efficiency in their service delivery. The new technology has significantly challenged the traditional banking service delivery, majorly operated manually by employees. Besides, new technology has been used to run efficient customer relationship management systems (CRM), enabling businesses to collect real-time customer feedback, thus easing decision-making. However, the creativity brought in by applying new technology has resulted in severe cyber security concerns, including fraudsters who illegally hack and penetrate customers’ accounts, thus threatening the safety of customers accessing banking services online. |
| Economic | The recent COVID-19 pandemic resulted in a negative financial decline for households across Australia. As a result, most individuals who had previously acquired loans from various financial institutions defaulted due to job loss. However, after the pandemic, loan defaulters and non-performing loans significantly reduced as the economy opened up and individuals secured jobs. The post-pandemic era has been characterized by increased loan applications across Australia, resulting in more customers for financial facilities such as Beyond Bank Limited. There has also been a stable moderation of loan interest by the Reserve Bank of Australia, whereby interest rates on loans have been maintained at 4.1% (Remeikis, 2023). Modifying these interests has stabilized the revenues for financial institutions like Beyond Bank Limited and encouraged citizens’ borrowing and investment. |
| Environmental | Recently, there has been global concern about adverse climatic changes effected by human activities on the environment. Government and non-governmental organizations have partnered to develop mechanisms and strategies to protect the environment, thus mitigating adverse climatic change (Nizam et al., 2019). the need for partnering with other agencies in initiatives to protect the environment has been incorporated into many business organizations’ corporate social responsibility programs. Thus, business organizations have invested part of their revenue in programs promoting the public good. Beyond Bank Limited has not fully embraced green financing, significantly providing leverage for its competitors. However, Beyond Bank Limited has acknowledged the environmental crisis by establishing corporate environmental performance programs through increasing funding for sustainable products and promoting efficient use of limited resources across Australia. |
| Political | Several political factors have impacted how Beyond Bank operates and performs in Australia. For instance, the electioneering periods and government transitions have resulted in uncertainty in the banking sectors (Smiles, 2015). Ideally, each successive government comes up with a set of unique regulations, thus interrupting the stability of the banking sectors as they cope with new market policies. International ties between the Australian and foreign governments significantly impact the banking sector. The foreign exchange rates determine the annual profits of the banking facilities across Australia. Thus, the stability of foreign ties and exchange rates determine the profitability of Beyond Bank Limited. |
| Legal | The banking sector of Australia is governed by the rule of law prescribed by the Banking Act of 1958 and the ASIC Act of 2001. Australian Prudential Regulation Authority has continually barred other financial players from entering the Australian financial market. As such, Beyond Bank has enjoyed less competition as the regulation has ensured few new financial players in the market. Compliance with regulatory rules for financial institutions is mandatory, as sanctions such as fines are imposed on individuals who fail to comply with the stipulated laws. |
| Ethical | Beyond Bank Limited is co-owned by its customers and thus has a responsibility to support and provide programs and services that are morally and ethically upright. Beyond Bank, therefore, is obligated not to support harmful programs, such as the production of tobacco, weapons and gambling (Oates & Dias, 2016). Balancing between profit and purpose enables Beyond Bank Limited to be attractive to its customers and employees. |
| Demographic | As mentioned earlier, the population across Australia is rising owing to immigration and high life expectancy, increasing the number of older adults between 65-70 years. The ageing population has increased the demand for healthcare services for retirees. Immigration has resulted in cultural diversity in Australia, leading to more opportunities for multicultural communities. There is also a significantly low unemployment rate across Australia, estimated at 3.7%, evidencing the presence of a skilled labour force available for businesses seeking to expand across Australia. |
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