PRESENTED BY:

MEHR - UN - NISA SABA AZHAR SAMAR SULEMAN SARA ANJUM SYEDA QURAT UL AIN KAZMI

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

HISTORY
Bank Al-falah Limited (Bank Al-falah) is a Pakistan based bank Engaged in banking and financial services. Bank Al-falah Limited was incorporated in June 21st, 1997 Public limited company

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.

VISION
To be the premier organizations operating locally and internationally that provided the complete range of financial services to all segments under one roof

MISSION
To develop and deliver the most innovative products ,manage customers experience, deliver quality service that contributes to brand strength ,establishes a competitive advantage and enhances profitability, thus providing value to the stakeholders of the bank

PHASES
Bank of Credit and Commerce and International (BCCI)1972 Habib Credit and Exchange Bank1992

Bank Alfalah1997

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

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

FINANCIAL REVIEW
Stock data Recent stock performance

Current Price (1/8/2010): 14.171

1 Week
13 Weeks 4 Weeks 52 Weeks

2.9%
2.7% -1.6% -8.5%

PERFORMANCE OF BANK ALFALAH

SABAS TURN

INTERNAL AUDIT
SWOT ANALYSIS

STRENGTHS
Confidence of public savings
Fame in the market due to name Facility of Money Gram

Personnel of Al-Falah
Wide network of branches

Contd
Developed web system
Online account opening facility Facilitation through additional services Rewards and benefits

WEAKNESSES
Loan facility to newly established businesses
Complication of lending procedures Credit facility for students.

Online facility to account holders having photo account.

Contd
Young professional Increased workload Low salary packages

OPPORTUNITIES
Spreading of network Special product offers Islamic Banking network

On the job training & coaching sessions

Contd
Work sharing activities for relaxation Attractive salary packages

THREATS
Foreign financial institutions
Political instability Economic instability

Decreased interest rates

Contd
Investment opportunities High growth rate and high market share

INDUSTRIAL ANALYSIS
Well-developed banking system
Nationalization of banks in 1970 Privatization in 1990s First bank to privatize.

PEST

POLITICAL ENVIRONMENT
Lawyers movement Violence in Karachi The Lal Masjid debacle Militancy operation in FATA, NWFP and Swat

The return of Benazir Bhuttos and her subsequent assassination

Contd
Unstable political situation Talibinization Investors hesitation

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.

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

SOCIO CULTURAL ENVIRONMENT

Low saving culture Religious culture and people hesitate to accept interest on deposits 70% rural population and very low literacy rate

Boston Consulting Group SBUs

MEHR UN NISAS TURN

EXTERNAL AUDIT PORTER FIVE FORCES MODEL

AVAILABILITY OF SUBSTITUTES
People have choices of saving or investing their money Homes
National Saving Centers Stock market

RIVALRY AMONG EXISTING FIRMS

Branches of competitive Banks Islamic Banks Askari bank Emirates Global Islamic Bank Bank Islami Pakistan Ltd Habib Bank Ltd Muslim Commercial Bank Ltd Al Baraka Bank Pakistan Ltd RBS

Branches 204 13 30 100 900 30 75

THREAT OF NEW ENTRANTS

Offering differentiated services Foreign banks

BARGAINING POWER OF BUYERS

Switching cost of different offers Corporate clients Switching of financial institutions Low bargaining power of buyer

BARGAINING POWER OF SUPPLIERS

No bargaining power of supplier

MERITS OF BANK ALFALAH

OUTSTANDING WORK ENVIRONMENT EFFICIENCY CUSTOMER SERVICES SUGGESTIONS ASKED FROM CUSTOMERS

EMPLOYEE BENEFITS

Contd
COMPUTERIZED WORKING ENVIRONMENT
MAXIMUM SECURITY FEATURES CREDIT CARDS BANK ALFALAH AUTO DEBIT SERVICE NETWORK OF BRANCHES

DEMERITS OF BANK ALFALAH

OVERCROWDEDNESS CUSTOMERS GUIDANCE
SERVICES CHARGES

IFE MATRIX
LIST STRENGHTS Customer oriented 0.4 4 0.16 WEIGHT RATING WEIGHTED SCORE

Worthiness in credits Brand name Money gram

Competence in management Wide network technology

0.1
0.2

3
4

0.3
0.8

0.02
0.01

3
3

0.06
0.03

0.03 0.1

3 4

0.09 0.4

Contd
WEAKNESSES WEIGHT RATING WEIGHTED SCORE

Huge lending requirements

No credit facility for students Inexperienced workforce

0.05
0.03

1
2

0.05
0.06

0.02

2 1

0.04 0.04 2.57

Low salary package 0.04 Weighted avg

SAMARS TURN

EFE MATRIX
LIST OPPORTUNITES Network expansion Penetration of new products Expansion in Islamic banking Training sessions 0.3 0.1 4 4 0.12 0.4 WEIGHT RATING WEIGHTED SCORE

0.03

0.09

0.05

0.15

contd
THREATS Competitors financial WEIGHT 0.3 RATING 3 WEIGHTED SCORE 0.9

Political Instability Economic instability

Other Investment Opportunities

0.1 0.08
0.04

3 2
4

0.3 0.16
0.16

Total weighted score

3.02

STRATEGIC ISSUES OF BANK ALFALAH

Foreign financial institutions
Economic instability Different investment opportunities

Political instability

ALTERNATIVES FOR STRATEGIC ISSUES

Increase deposit portfolio Adoption of participative management concept

IMPLEMENTATION OF ALTERNATIVES
The best alternative is: Participative management concept should be adopted, where ideas from the employees should also be taken, not only for developing products but also on service, efficiency, employee morale etc. in order to improve them.

Contd
GOALS Proper and System efficient Islamic Banking

Increase in annual profits

SMART OBJECTIVES
SPECIFIC MEASUREABLE

ATTAINABLE
REALISTIC TIMEBOUND

POLICIES TO MOTIVATE EMPLOYEES

Incentives for employees
Return of educational funds Superior personalized services Professionalism among employees

SARAS TURN

COMPETITORS ANALYSIS
Banking structure of Pakistan: Central Bank Commercial Banks

Investment Banks
Development finance Institutions (DFIs Specialized Banks

Foreign Banks

Competitors
Muslim Commercial Bank Union Bank Ltd Allied bank Soneri Bank Ltd Prime Commercial bank

Contd
The bank of Punjab Bolan Bank Ltd Bank Al-Habib Ltd Askaribank

Faysal Bank

ASKARI BANK
Major competitor Alfalah of Bank
Threatening the domination of traditional players.

Incorporation of Askari Bank

Operations company. as public limited

Stock Exchanges

Contd
Providing good value to its shareholders.
Share price : 12% Number of branches Number of ATMs Net markup income

STRENGTHS
Non stop banking Customized solutions Telephone banking Ethical concerns and public image Employee input Off the job training Customer oriented banking

RECOMMENDATIONS
Avoidance of favoritism Salaries should be increased

Fair distribution of work

Providence of loans to students Expansion of business Update website

CONCLUSION