Professional Documents
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Alfalah Managerial Policy Strategic Management Slides
Alfalah Managerial Policy Strategic Management Slides
Company Background
Bank of Credit and Commerce and International (BCCI)1972 Habib Credit and Exchange Bank1992 Bank Alfalah on June 21st, 1997 as a public limited company currently operating through 282 branches 48 Islamic banking branches 7 foreign branches in Bangladesh, two in Afghanistan and one in Bahrain
5th largest bank Bank Alfalah holds 6% of the total banking sector assets
Credit Rating
PARCA credited Bank Alfalah as
For long term AA (double A) For short term A1+ (A one plus) The credit rating shows very low expectation of credit risk strong capacity for timely payment of financial commitments in the long term highest capacity for timely repayment in the short term
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
Mission
To provide the new and more innovative products than the other banks to the customers. To take and manage the ideas of the valuable customer for the Bank deliver high quality and quick services to the customers, who are keep great value for Bank Alfalah. Bank Alfalah tries to promote those activities which give the fruitful result to the customers and the stakeholder of the bank
Core Values
1. Customer Relationship
Before we discover we must explore
Core Values(Cont)
4 .Training & Development
Committed to the personal welfare and professional development of all our team members
To create a sound base, and through efficient systems achieve modern banking through out Pakistan By the end of every accounting year there is an increase in deposits. As a result its deposits are increasing day by day. To create unit banking network in all the branches of Bank Alfalah, the end of the year. This means that all the operations of the bank, i.e. deposits to advances, imports, exports, L/C Opening, foreign currency and many more aspects under one roof, so that the customer can be facilitate in one visit. To promote industrial, agricultural and socio economic processes through the active participation of private and public sector in the country. Islamic Banking is one of the goals of Bank Alfalah though it has been initiated in the 2002 and it is very acceptable for general public. However, there is lot of work to do for successful implementation of the Islamic Banking Plan. In this regard the Bank is opening specific Islamic Banking Branch under the supervision of its Islamic Banking Division.
STRATEGIES
efficient modern banking system long-lasting relationships through an assertion to service excellence and providing innovative products Management recognizes that a banking relationship requires compatibility, communication, and cooperation and that each customer deserves nothing less than full attention and available resources to meet their financial objectives
superior personalized service is the most important product The Bank Alfalah team comprises of some of the most highly skilled and professional financial experts in banking industry Keeping in view the unrest among the Islamic Community on the Interest Bearing Banking the Alfalah is in the process of target marketing and gives its full attention to this segment Pakistan Credit Rating Agency, which gave it the AA- and A1+ in the long term and short term respectively
General Banking
Deposit Accounts Lockers Remittance
Karobar Finance
2. Financial Services
Milkiat Finance Quick Finance
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PEST Analysis
Political Environment
Lawyers movement Violence in Karachi The Lal Masjid debacle Militancy operation in FATA, NWFP and Swat its impact on other parts of the country The return of Benazir Bhuttos and her subsequent assassination
PEST Analysis(Cont)
Political Environment
Unstable political situation affect banks policies Talibinization affected our repute in the world Investors hesitate investing in Pakistan
PEST Analysis(Cont)
Economic Indicators
Gross Domestic Product (GDP) inflation Increased balance of payment debt of the government increased Decrease in FDI(Foreign direct investment) Financial crisis made it BAL management difficult to survive
PEST Analysis(Cont)
Socio cultural environment
low saving culture Religious culture and people hesitate to accept interest on deposits 70% rural population and very low literacy rate
PEST Analysis(Cont)
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 like ATM, Master cards, Telebanking, Internet banking and mobile banking
SWOT Analysis
Strengths aim is not to earn profit but also to satisfy its customers Bank has AA and A1+ Credit Rating for long term and short term loans The name ALFALAH is leaving the Islamic and favorable impact on the minds of public BAL is providing the facility of Money Gram
SWOT Analysis(Cont)
Personnel of Alfalah are well trained and highly skilled. Bank Alfalah has a wide network of branches at the ideal locations
SWOT Analysis(Cont)
Weaknesses
BAL is that it is not offering the loan facility to newly established businesses BALs lending procedure is quite complicated BAL is not offering any credit facility for students BAL is charging online charges for transfer of money but some other banks not charging Majority of the workforce consists of young professional, they lack in their experience
SWOT Analysis(Cont)
Opportunities
Bank Alfalah is spreading its network outside the boundaries of Pakistan In addition to excellent routine banking,it offered special products like car, home and credit cards facility which helped in market penetration There is growth trend of islamic banking so BAL has the advantage of having Islamic Banking network and the growth in this particular field
SWOT Analysis(Cont)
Threats
Foreign financial institutions like City Bank, HSBC etc also having strong banking policies may attract customers The political instability is a great threat for BAL Due to economic instability like currency depreciation and inflation, the bank is constantly facing a threat e.g. people have low disposal income and lower deposits in banks.
Analysis of Competition
Market Structure BAL
There are large number of Financial Institutions in the Market like MCB, NBP, HBL, NIB, ABL, UBL, PICIC, KASB, Faysal Bank etc. There is large number of customers in the Market In the Market there are number of substitutes are available National Saving center, Stock exchanges, Government Securities and Advances
threat is companies offering other financial services. e.g an insurance company to start offering mortgage and loan services
Bank Alfalah Limited needs to use more marketing channels such as radio to make the public aware of its products and services. In the presence of intense competition Bank Alfalah Limited has to realize the importance of marketing. There are no incentive schemes for employees of Bank Alfalah like scholarship schemes for employees that want to pursue higher education Bank Alfalah Ltd should continuous to expand its business, by increasing its deposit portfolio through aggressive market penetration strategies.
Bank Alfalah limited has the web site, which has not been updated. The web site is very less informative and it wont leave a good impression on the visitor. So I suggest that it should be updated to meet the requirements of the visitors.
ANY QUESTION
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