“Principles of Management (MGT503)”
Assignment No.2 Marks:20
“Planning and Decision Aids”
Introduction:
Recent decade has witnessed remarkable changes in the banking industry around the world. Despite of global recession, the banking sector in Pakistan has made significant progress in recent years; and the degree of competition in this sector is also increasing rapidly.
Question:
By considering this entire scenario, you are required to conduct the SWOT Analysis of any bank and fill in the format given at page 2.
Guidelines:
�� Choose any one bank from the following list
�� Visit the nearby bank branch and meet with any bank official
�� Get information from the bank official and find out bank’s internal strength and weakness
�� Also identify opportunities and threats for the bank that are existing in its external environment
�� Remember that you have to perform the SWOT Analysis for the Bank (the whole organization) – not for that particular branch.
List of Banks:
• Habib Bank Ltd.
• MCB Bank
• The Bank of Punjab
• The Bank of Khyber
• Standard Chartered Bank
• Bank Al-Falah
• Allied Bank Ltd.
• National Bank
• Or any other commercial bank
Note:
�� The given information about bank branch and contacted official will be verified before marking the assignment. Also, without this detail your assignment would be considered invalid and graded zero.
�� Provide only three strengths, three weakness, three opportunities and three threats that you find the most important.
�� No theoretical details and explanations are required.
�� Copying is strictly prohibited. Assignment copied from website of bank or from any other source will be graded zero
Solution Format:
Bank Name:
Branch Address:
Name, Designation
and Phone # of
Contacted Official:
SWOT ANALYSIS
Strengths:
1.
2.
3.
Weaknesses:
1.
2.
3.
Opportunities:
1.
2.
3.
Threats:
1.
2.
3.
Important Tips
1. This Assignment can be best attempted from the knowledge acquired after
watching video lecture no. 1 to lecture no 22 and reading handouts as well as
recommended text book).
2. Video lectures can be downloaded for free from Online VU Lectures
Schedule
Opening Date and Time May 27, 2011 At 12:01 A.M. (Mid-Night))
Due Date and Time June 01, 2011 At 11:59 P.M. (Mid-Night)
Note: Only in the case of Assignment, 24 Hrs extra / grace period after the above mentioned due date is usually available to overcome uploading difficulties which may be faced by the students on last date. This extra time should only be used to meet the emergencies and above mentioned due dates should always be treated as final to avoid any inconvenience.
SOLUTION:
SWOT Analysis of Bank Alfalah
Since its establishment in 1992, Bank Alfalah has grown to nearly 200 branches throughout the middle east. The bank has established itself as a reputable lender with opportunity for growth. A SWOT analysis can aid in understanding what strengths, weaknesses, opportunities, and threats may affect this business in coming years.
1. Strengths
o The core strength of Bank Alfalah is in providing Halal banking services. Halal is Arabic for, "that which is permissible"; Halal banking follows traditional Muslim laws. With a strong market in middle eastern countries. Their position in the oil rich middle east gives them a strong home market. Additionally, Bank Alfalah notes that they have a strength in correspondent banking, a form of banking that uses partner banks to transfer funds between different regions of the globe.
2. Weaknesses
o Bank Alfalah's adherence to Halal standards may be a strength in some markets, but it is a weakness in the west that makes moving outside of its home region market difficult. Specifically, adhering to Halal standards means that Bank Alfalah cannot offer the same range of products as conventional banks.
3.Opportunities
o With the growth of Islam in the western world, Bank Alfalah has the opportunity to expand beyond the middle east and into markets in the United States and Europe in order to offer Halal banking services. Bank Alfalah notes that Islamic banking is currently growing at twice the rate of conventional banking throughout the world.
4. Threats
o The main threat to Bank Alfalah is the threat posed by western banks who are able to engage in less restrictive sources of revenue generating. Bank Alfalah freely admits that they do not offer the full range of products of conventional western banks. These banks may pose a threat to them in their home market and will certainly pose a threat if they choose to expand into western markets.
::::::::::::::::::::::::::::::::::::::::::::::
SWOT ANALYSIS:
Strenght:
1. Strong Pay Structure
2. Account EI Has 30 Years Work Experience
3. Select People From Top Universities
4. Retention Program
5-Strong Financial Position
6-Highly Qualified Employees
7-Conducive Environment
8-Govt. Support and Encouragement
9-Fastest Growing Financial Institution
10-Huge Expansion Plan
11-Young and Energetic Workforce
12-Islamic Banking Division
Note: only three streghts are required m mentioning 12 here so select as u like
Weaknesses:
1.Waiver of charges
2.Inexperienced workforce
3.Over work Load on Employees
4-Employees are not very much Motivated
Opportunities:
1. Rapidly Growing Economy
2. Increased Interest Rates
3Mega Projects Financing
4-Huge Demand for Consumer Financing
5-Merger with UBL
6-Growing Trend of Islamic Banking
7-Spending Practices of Mass
Threats:
1. Uncertainty of Economy
2. High Rate of Inflation
3Trend of Mergers
4-Privatization of Banks
5-Risk of Defaults
::::::::::::::::::::::::::::::::::::::::::::::::
SWOT Analysis of Bank Alfalah
Since its establishment in 1992, Bank Alfalah has grown to nearly 200 branches
throughout the middle east. The bank has established itself as a reputable lender with
opportunity for growth. A SWOT analysis can aid in understanding what strengths,
weaknesses, opportunities, and threats may affect this business in coming years.
1. Strengths
o The core strength of Bank Alfalah is in providing Halal banking services. Halal is Arabic
for, "that which is permissible"; Halal banking follows traditional Muslim laws. With a
strong market in middle eastern countries. Their position in the oil rich middle east gives
them a strong home market. Additionally, Bank Alfalah notes that they have a strength
in correspondent banking, a form of banking that uses partner banks to transfer funds
between different regions of the globe.
2. Weaknesses
o Bank Alfalah's adherence to Halal standards may be a strength in some markets, but it
is a weakness in the west that makes moving outside of its home region market difficult.
Specifically, adhering to Halal standards means that Bank Alfalah cannot offer the same
range of products as conventional banks.
3.Opportunities
o With the growth of Islam in the western world, Bank Alfalah has the opportunity to
expand beyond the middle east and into markets in the United States and Europe in
order to offer Halal banking services. Bank Alfalah notes that Islamic banking is
currently growing at twice the rate of conventional banking throughout the world.
4. Threats
o The main threat to Bank Alfalah is the threat posed by western banks who are able to
engage in less restrictive sources of revenue generating. Bank Alfalah freely admits that
they do not offer the full range of products of conventional western banks. These banks
may pose a threat to them in their home market and will certainly pose a threat if they
choose to expand into western market
SOLUTION:
SWOT Analysis of Bank Alfalah
Since its establishment in 1992, Bank Alfalah has grown to nearly 200 branches throughout the middle east. The bank has established itself as a reputable lender with opportunity for growth. A SWOT analysis can aid in understanding what strengths, weaknesses, opportunities, and threats may affect this business in coming years.
1. Strengths
o The core strength of Bank Alfalah is in providing Halal banking services. Halal is Arabic for, "that which is permissible"; Halal banking follows traditional Muslim laws. With a strong market in middle eastern countries. Their position in the oil rich middle east gives them a strong home market. Additionally, Bank Alfalah notes that they have a strength in correspondent banking, a form of banking that uses partner banks to transfer funds between different regions of the globe.
2. Weaknesses
o Bank Alfalah's adherence to Halal standards may be a strength in some markets, but it is a weakness in the west that makes moving outside of its home region market difficult. Specifically, adhering to Halal standards means that Bank Alfalah cannot offer the same range of products as conventional banks.
3.Opportunities
o With the growth of Islam in the western world, Bank Alfalah has the opportunity to expand beyond the middle east and into markets in the United States and Europe in order to offer Halal banking services. Bank Alfalah notes that Islamic banking is currently growing at twice the rate of conventional banking throughout the world.
4. Threats
o The main threat to Bank Alfalah is the threat posed by western banks who are able to engage in less restrictive sources of revenue generating. Bank Alfalah freely admits that they do not offer the full range of products of conventional western banks. These banks may pose a threat to them in their home market and will certainly pose a threat if they choose to expand into western markets.
::::::::::::::::::::::::::::::::::::::::::::::
SWOT ANALYSIS:
Strenght:
1. Strong Pay Structure
2. Account EI Has 30 Years Work Experience
3. Select People From Top Universities
4. Retention Program
5-Strong Financial Position
6-Highly Qualified Employees
7-Conducive Environment
8-Govt. Support and Encouragement
9-Fastest Growing Financial Institution
10-Huge Expansion Plan
11-Young and Energetic Workforce
12-Islamic Banking Division
Note: only three streghts are required m mentioning 12 here so select as u like
Weaknesses:
1.Waiver of charges
2.Inexperienced workforce
3.Over work Load on Employees
4-Employees are not very much Motivated
Opportunities:
1. Rapidly Growing Economy
2. Increased Interest Rates
3Mega Projects Financing
4-Huge Demand for Consumer Financing
5-Merger with UBL
6-Growing Trend of Islamic Banking
7-Spending Practices of Mass
Threats:
1. Uncertainty of Economy
2. High Rate of Inflation
3Trend of Mergers
4-Privatization of Banks
5-Risk of Defaults
::::::::::::::::::::::::::::::::::::::::::::::::
SWOT Analysis of Bank Alfalah
Since its establishment in 1992, Bank Alfalah has grown to nearly 200 branches
throughout the middle east. The bank has established itself as a reputable lender with
opportunity for growth. A SWOT analysis can aid in understanding what strengths,
weaknesses, opportunities, and threats may affect this business in coming years.
1. Strengths
o The core strength of Bank Alfalah is in providing Halal banking services. Halal is Arabic
for, "that which is permissible"; Halal banking follows traditional Muslim laws. With a
strong market in middle eastern countries. Their position in the oil rich middle east gives
them a strong home market. Additionally, Bank Alfalah notes that they have a strength
in correspondent banking, a form of banking that uses partner banks to transfer funds
between different regions of the globe.
2. Weaknesses
o Bank Alfalah's adherence to Halal standards may be a strength in some markets, but it
is a weakness in the west that makes moving outside of its home region market difficult.
Specifically, adhering to Halal standards means that Bank Alfalah cannot offer the same
range of products as conventional banks.
3.Opportunities
o With the growth of Islam in the western world, Bank Alfalah has the opportunity to
expand beyond the middle east and into markets in the United States and Europe in
order to offer Halal banking services. Bank Alfalah notes that Islamic banking is
currently growing at twice the rate of conventional banking throughout the world.
4. Threats
o The main threat to Bank Alfalah is the threat posed by western banks who are able to
engage in less restrictive sources of revenue generating. Bank Alfalah freely admits that
they do not offer the full range of products of conventional western banks. These banks
may pose a threat to them in their home market and will certainly pose a threat if they
choose to expand into western market
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