Post on 03-Jun-2018
8/12/2019 Bank Alfalah Final
1/62
8/12/2019 Bank Alfalah Final
2/62
8/12/2019 Bank Alfalah Final
3/62
PRESENTED BY:
MEHR - UN - NISA
SABA AZHAR
SAMAR SULEMAN
SARA ANJUM
SYEDA QURAT UL AIN KAZMI
8/12/2019 Bank Alfalah Final
4/62
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
8/12/2019 Bank Alfalah Final
5/62
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
8/12/2019 Bank Alfalah Final
6/62
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.
8/12/2019 Bank Alfalah Final
7/62
VISIONTo be the premier organizations operatinglocally and internationally that provided the
complete range of financial services to allsegments under one roof
8/12/2019 Bank Alfalah Final
8/62
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
8/12/2019 Bank Alfalah Final
9/62
PHASES
Bank of Credit and Commerce and
International
(BCCI)1972
Habib Credit and Exchange Bank1992
Bank Alfalah1997
8/12/2019 Bank Alfalah Final
10/62
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
8/12/2019 Bank Alfalah Final
11/62
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
8/12/2019 Bank Alfalah Final
12/62
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%
8/12/2019 Bank Alfalah Final
13/62
PERFORMANCE OF BANK
ALFALAH
8/12/2019 Bank Alfalah Final
14/62
SABAS TURN
8/12/2019 Bank Alfalah Final
15/62
INTERNAL AUDIT
SWOT ANALYSIS
8/12/2019 Bank Alfalah Final
16/62
STRENGTHS
Confidence of public savings
Fame in the market due to name
Facility of Money Gram
Personnel of Al-Falah
Wide network of branches
8/12/2019 Bank Alfalah Final
17/62
Contd
Developed web system
Online account opening facility
Facilitation through additional services
Rewards and benefits
8/12/2019 Bank Alfalah Final
18/62
WEAKNESSES
Loan facility to newly established businesses
Complication of lending procedures
Credit facility for students.
Online facility to account holders having photoaccount.
8/12/2019 Bank Alfalah Final
19/62
Contd
Young professional
Increased workload
Low salary packages
8/12/2019 Bank Alfalah Final
20/62
OPPORTUNITIES
Spreading of network
Special product offers
Islamic Banking network
On the job training & coaching sessions
8/12/2019 Bank Alfalah Final
21/62
Contd
Work sharing activities for relaxation
Attractive salary packages
8/12/2019 Bank Alfalah Final
22/62
THREATS
Foreign financial institutions
Political instability
Economic instability
Decreased interest rates
8/12/2019 Bank Alfalah Final
23/62
8/12/2019 Bank Alfalah Final
24/62
INDUSTRIAL ANALYSIS
Well-developed banking system
Nationalization of banks in 1970
Privatization in 1990s
First bank to privatize.
8/12/2019 Bank Alfalah Final
25/62
PEST
8/12/2019 Bank Alfalah Final
26/62
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
8/12/2019 Bank Alfalah Final
27/62
8/12/2019 Bank Alfalah Final
28/62
8/12/2019 Bank Alfalah Final
29/62
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
8/12/2019 Bank Alfalah Final
30/62
SOCIO CULTURAL ENVIRONMENT
Low saving culture
Religious culture and people hesitate to acceptinterest on deposits
70% rural population and very low literacyrate
8/12/2019 Bank Alfalah Final
31/62
Boston Consulting Group SBUs
8/12/2019 Bank Alfalah Final
32/62
MEHR UN NISAS TURN
8/12/2019 Bank Alfalah Final
33/62
EXTERNAL AUDIT
PORTER FIVE FORCES MODEL
8/12/2019 Bank Alfalah Final
34/62
AVAILABILITY OF
SUBSTITUTES
People have choices of saving or investingtheir money
Homes
National Saving Centers
Stock market
8/12/2019 Bank Alfalah Final
35/62
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
8/12/2019 Bank Alfalah Final
36/62
THREAT OF NEW ENTRANTS
Offering differentiated services
Foreign banks
8/12/2019 Bank Alfalah Final
37/62
BARGAINING POWER OF
BUYERS
Switching cost of different offers
Corporate clients
Switching of financial institutions
Low bargaining power of buyer
8/12/2019 Bank Alfalah Final
38/62
BARGAINING POWER OF
SUPPLIERS
No bargaining power of supplier
8/12/2019 Bank Alfalah Final
39/62
MERITS OF BANK ALFALAH
OUTSTANDING WORK ENVIRONMENT
EFFICIENCY
CUSTOMER SERVICES
SUGGESTIONS ASKED FROM CUSTOMERS
EMPLOYEE BENEFITS
8/12/2019 Bank Alfalah Final
40/62
Contd
COMPUTERIZED WORKING ENVIRONMENT
MAXIMUM SECURITY FEATURES
CREDIT CARDS
BANK ALFALAH AUTO DEBIT SERVICE
NETWORK OF BRANCHES
8/12/2019 Bank Alfalah Final
41/62
DEMERITS OF BANK ALFALAH
OVERCROWDEDNESS
CUSTOMERS GUIDANCE
SERVICES CHARGES
8/12/2019 Bank Alfalah Final
42/62
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
8/12/2019 Bank Alfalah Final
43/62
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
8/12/2019 Bank Alfalah Final
44/62
SAMARS TURN
8/12/2019 Bank Alfalah Final
45/62
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
8/12/2019 Bank Alfalah Final
46/62
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
8/12/2019 Bank Alfalah Final
47/62
STRATEGIC ISSUES OF BANK
ALFALAH
Foreign financial institutions
Economic instability
Different investment opportunities
Political instability
A A S O
8/12/2019 Bank Alfalah Final
48/62
ALTERNATIVES FOR
STRATEGIC ISSUES
Increase deposit portfolio
Adoption of participative management
concept
8/12/2019 Bank Alfalah Final
49/62
8/12/2019 Bank Alfalah Final
50/62
Contd
GOALS
Proper and efficient Islamic Banking
System
Increase in annual profits
8/12/2019 Bank Alfalah Final
51/62
SMART OBJECTIVES
SPECIFIC
MEASUREABLE
ATTAINABLE
REALISTIC
TIMEBOUND
POLICIES TO MOTIVATE
8/12/2019 Bank Alfalah Final
52/62
POLICIES TO MOTIVATE
EMPLOYEES
Incentives for employees
Return of educational funds
Superior personalized services
Professionalism among employees
8/12/2019 Bank Alfalah Final
53/62
SARAS TURN
8/12/2019 Bank Alfalah Final
54/62
COMPETITORS ANALYSIS
Banking structure of Pakistan:
Central Bank
Commercial Banks
Investment Banks
Development finance Institutions (DFIs
Specialized Banks
Foreign Banks
Competitors
8/12/2019 Bank Alfalah Final
55/62
Competitors
Muslim Commercial Bank
Union Bank Ltd
Allied bank
Soneri Bank Ltd
Prime Commercial bank
8/12/2019 Bank Alfalah Final
56/62
Contd
The bank of Punjab
Bolan Bank Ltd
Bank Al-Habib Ltd
Askaribank
Faysal Bank
8/12/2019 Bank Alfalah Final
57/62
ASKARI BANKMajor competitor of Bank
Alfalah
Threatening the domination oftraditional players.
Incorporation of Askari Bank
Operations as public limitedcompany.
Stock Exchanges
8/12/2019 Bank Alfalah Final
58/62
8/12/2019 Bank Alfalah Final
59/62
STRENGTHS
Non stop banking
Customized solutions
Telephone banking
Ethical concerns and public image
Employee input
Off the job training
Customer oriented banking
8/12/2019 Bank Alfalah Final
60/62
RECOMMENDATIONS
Avoidance of favoritism
Salaries should be increased
Fair distribution of work
Providence of loans to students
Expansion of business
Update website
8/12/2019 Bank Alfalah Final
61/62
CONCLUSION
8/12/2019 Bank Alfalah Final
62/62
http://images.google.com.pk/imgres?imgurl=http://richardwiseman.files.wordpress.com/2009/05/question-mark3a.jpg&imgrefurl=http://richardwiseman.wordpress.com/2009/05/&usg=__w1kt9mHBTE25kSaBZUn3inqShQ4=&h=375&w=300&sz=9&hl=en&start=6&tbnid=RcKEWbm16NCR_M:&tbnh=122&tbnw=98&prev=/images%3Fq%3DQUESTION%26gbv%3D2%26hl%3Den%26sa%3DG