Bank Alfalah Final

8/12/2019 Bank Alfalah Final

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PRESENTED BY:

MEHR - UN - NISA

SABA AZHAR

SAMAR SULEMAN

SARA ANJUM

SYEDA QURAT UL AIN KAZMI


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Table of Contents CHAPTER 1

Introduction to BAL

CHAPTER 2

Industrial analysis

CHAPTER 3

Strategic Issues

CHAPTER 4

Competitors analysis

CHAPTER 5

Conclusion and recommendations


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HISTORY

Bank Al-falah Limited (Bank Al-falah) is aPakistan based bank

Engaged in banking and financial services.

Bank Al-falah Limited was incorporated inJune 21st, 1997

Public limited company


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Banking operations commenced from November 1st,1997.

The bank through its subsidiaries provides retail,commercial banking and corporate finance products

and services in

1. Asia Pacific

2. Pakistan

3. Middle East.


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VISIONTo be the premier organizations operatinglocally and internationally that provided the

complete range of financial services to allsegments under one roof


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MISSION

o develop and deliver the most innovative productsmanage customers experience deliver quality servicethat contributes to brand strength establishes acompetitive advantage and enhances profitabilitythus providing value to the stakeholders of the bank


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PHASES

Bank of Credit and Commerce and

International

(BCCI)1972

Habib Credit and Exchange Bank1992

Bank Alfalah1997


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SERVICE FACILITIES

It provides services such as

lending loans

Accepting deposits,

Finance leasing, Credit cards

Money transfer services.

It also offers advances to:

Businesses Trade industry

Agriculture


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ORGANIZATIONAL HIERARCHY

Chief Executive Officer

Co-Chairman Central Management

Committee

Group Heads

Regional Managers

Area Managers

Hub Managers

Branch Managers

Officers Grade I, II, III


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FINANCIAL REVIEW

Stock data Recent stock performance

Current Price

(1/8/2010): 14.171

1 Week 2.9%

13 Weeks 2.7%

4 Weeks -1.6%

52 Weeks -8.5%


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PERFORMANCE OF BANK

ALFALAH


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SABAS TURN


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INTERNAL AUDIT

SWOT ANALYSIS


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STRENGTHS

Confidence of public savings

Fame in the market due to name

Facility of Money Gram

Personnel of Al-Falah

Wide network of branches


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Contd

Developed web system

Online account opening facility

Facilitation through additional services

Rewards and benefits


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WEAKNESSES

Loan facility to newly established businesses

Complication of lending procedures

Credit facility for students.

Online facility to account holders having photoaccount.


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Contd

Young professional

Increased workload

Low salary packages


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OPPORTUNITIES

Spreading of network

Special product offers

Islamic Banking network

On the job training & coaching sessions


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Contd

Work sharing activities for relaxation

Attractive salary packages


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THREATS

Foreign financial institutions

Political instability

Economic instability

Decreased interest rates


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INDUSTRIAL ANALYSIS

Well-developed banking system

Nationalization of banks in 1970

Privatization in 1990s

First bank to privatize.


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PEST


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POLITICAL ENVIRONMENT

Lawyersmovement

Violence in Karachi

The Lal Masjid debacle

Militancy operation in FATA, NWFP and Swat

The return of Benazir Bhuttos and her subsequent

assassination


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TECHNOLOGICAL FACTORS

Banks turning to heavy IT investments

Which differentiate their products

Provide response times

Improve customer satisfaction

Products and services are gaining faster acceptance


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SOCIO CULTURAL ENVIRONMENT

Low saving culture

Religious culture and people hesitate to acceptinterest on deposits

70% rural population and very low literacyrate


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Boston Consulting Group SBUs


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MEHR UN NISAS TURN


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EXTERNAL AUDIT

PORTER FIVE FORCES MODEL


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AVAILABILITY OF

SUBSTITUTES

People have choices of saving or investingtheir money

Homes

National Saving Centers

Stock market


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RIVALRY AMONG EXISTING

FIRMS

Branches of competitive Banks

Islamic Banks Branches

Askari bank 204

Emirates Global Islamic Bank 13Bank Islami Pakistan Ltd 30

Habib Bank Ltd 100

Muslim Commercial Bank Ltd 900

Al Baraka Bank Pakistan Ltd 30

RBS 75


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THREAT OF NEW ENTRANTS

Offering differentiated services

Foreign banks


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BARGAINING POWER OF

BUYERS

Switching cost of different offers

Corporate clients

Switching of financial institutions

Low bargaining power of buyer


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BARGAINING POWER OF

SUPPLIERS

No bargaining power of supplier


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MERITS OF BANK ALFALAH

OUTSTANDING WORK ENVIRONMENT

EFFICIENCY

CUSTOMER SERVICES

SUGGESTIONS ASKED FROM CUSTOMERS

EMPLOYEE BENEFITS


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Contd

COMPUTERIZED WORKING ENVIRONMENT

MAXIMUM SECURITY FEATURES

CREDIT CARDS

BANK ALFALAH AUTO DEBIT SERVICE

NETWORK OF BRANCHES


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DEMERITS OF BANK ALFALAH

OVERCROWDEDNESS

CUSTOMERS GUIDANCE

SERVICES CHARGES


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LIST WEIGHT RATING WEIGHTED

SCORESTRENGHTS

Customer oriented 0.4 4 0.16

Worthiness in

credits

0.1 3 0.3

Brand name 0.2 4 0.8

Money gram 0.02 3 0.06

Competence inmanagement

0.01 3 0.03

Wide network 0.03 3 0.09

technology 0.1 4 0.4

IFE MATRIX


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ContdWEAKNESSES WEIGHT RATING WEIGHTED

SCORE

Huge lending

requirements

0.05 1 0.05

No credit facilityfor students

0.03 2 0.06

Inexperienced

workforce

0.02 2 0.04

Low salary package 0.04 1 0.04

Weighted avg 2.57


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SAMARS TURN


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EFE MATRIXLIST WEIGHT RATING WEIGHTED

SCORE

OPPORTUNITES

Network expansion 0.3 4 0.12

Penetration of new

products

0.1 4 0.4

Expansion in

Islamic banking

0.03 3 0.09

Training sessions 0.05 3 0.15


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contd

THREATS WEIGHT RATING WEIGHTED

SCORE

Competitors

financial

0.3 3 0.9

Political

Instability

0.1 3 0.3

Economic

instability

0.08 2 0.16

Other InvestmentOpportunities 0.04 4 0.16

Total weighted

score

3.02


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STRATEGIC ISSUES OF BANK

ALFALAH

Foreign financial institutions

Economic instability

Different investment opportunities

Political instability

A A S O


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ALTERNATIVES FOR

STRATEGIC ISSUES

Increase deposit portfolio

Adoption of participative management

concept


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Contd

GOALS

Proper and efficient Islamic Banking

System

Increase in annual profits


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SMART OBJECTIVES

SPECIFIC

MEASUREABLE

ATTAINABLE

REALISTIC

TIMEBOUND

POLICIES TO MOTIVATE


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POLICIES TO MOTIVATE

EMPLOYEES

Incentives for employees

Return of educational funds

Superior personalized services

Professionalism among employees


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SARAS TURN


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COMPETITORS ANALYSIS

Banking structure of Pakistan:

Central Bank

Commercial Banks

Investment Banks

Development finance Institutions (DFIs

Specialized Banks

Foreign Banks

Competitors


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Competitors

Muslim Commercial Bank

Union Bank Ltd

Allied bank

Soneri Bank Ltd

Prime Commercial bank


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Contd

The bank of Punjab

Bolan Bank Ltd

Bank Al-Habib Ltd

Askaribank

Faysal Bank


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ASKARI BANKMajor competitor of Bank

Alfalah

Threatening the domination oftraditional players.

Incorporation of Askari Bank

Operations as public limitedcompany.

Stock Exchanges


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STRENGTHS

Non stop banking

Customized solutions

Telephone banking

Ethical concerns and public image

Employee input

Off the job training

Customer oriented banking


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RECOMMENDATIONS

Avoidance of favoritism

Salaries should be increased

Fair distribution of work

Providence of loans to students

Expansion of business

Update website


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CONCLUSION


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Bank Alfalah Final

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