SWOT Analysis Of Project :

A Case Study of National Bank of Pakistan (NBP) 19 April, 2012

Subject: Strategic management

Presented By

MOHAMMAD YASIR-------------------Roll, no----58. MOHAMMAD JUNAID KHAN------Roll, no----80. MOHAMMAD FAWAD QASIM------Roll, no---82.

M.Com 3rd semester(Evening) section A

About NBP:

National Bank of Pakistan is the largest commercial bank operating in Pakistan. Its balance sheet size surpasses that of any of the other banks functioning locally. It has redefined its role and has moved from a public sector organization into a modern commercial bank. The Bank's services are available to individuals, corporate entities and government. While it continues to act as trustee of public funds and as the agent to the State Bank of Pakistan (in places where SBP does not have a presence)

Mission:

NBP will aspire to the values that make NBP truly the Nations Bank, by: Institutionalizing a merit and performance culture Creating a distinctive brand identity by providing the highest standards of services Adopting the best international management practices Maximizing stakeholders value

Vision:

To be recognized as a leader and a brand synonymous with trust, highest standards of service quality, international best practices and social responsibility

SWOT Analysis

ORGANIZATION CULTURE:
NBP's organization culture was very

friendly and interesting. Employees has created a very cooperative environment among each other. They have created loyalty toward the organization by deviating their future efforts and energies. The employees take the organizational problem personals and try their best for the
prosperity of the organization.

Governments bank:

In commercial banking system NBP is only the government bank. They make their policies according to the governments rules and regulations. It enjoys its position in the market of banking system in Pakistan. Government of Pakistan also facilitating the National Bank of Pakistan.

Customer satisfaction

Because of governments bank, it is enjoying the customers satisfaction. Customers feels secure their money in NBP.

Online banking:

There is also strength of NBP that 130 branches are online. It helps the speedy services giving to the customers. There is also help in checking the balances and daily transactions just at one key press.

INDUSTRIAL POLICIES:
NBP helps the government on the implementation of

its industrial policies with respect to economic growth of the country.

BEST RESEARCH APPRAIAL TEAM:

Before the project financing NBP has the research

appraisal team that justifies the economic and financial feasibility of not project in the future. That is the strength is the scare that it helps the organization from any loss that is to over in the future in case of

failure of the project.

Wide area of services:

They provide the wide area of services. They offer no. Of services relating to the banking system like, pension to retired government employees, traffic challans, fees received of AIOU, farms of AIOU, utilities bills, deposits, sales tax , withholding tax, property tax, and various loan schemes.

LENIENT POLICY WITH THE CLIENTS:

This is one of the best policies of NBP

that it does not kept rude behavior with this client if they make late in their repayment of loan. But it has adopts lenient way in dealing with them, it helps its customers in the repayment making rescheduling and restructuring of their
loans.

LESS ATTENTION TO THE RURAL DEVELOPMENT:

NBP's portfolio shows that it has made project financing only in the major cities of Pakistan. But a reasonable attention is needed in the project financing of the rural based industrial project of the country.

POOR ADVERTISEMENT:
I keenly observe this that as compared to other banks. NBP is very poor in advertising itself and institution, which works a lot in the development of the country, but unfortunately in the business community most of the people are in award of it.

Lack of communication between employees:

During the internship in NBP I found the problem of lack of communication between the employees and management. They have not very much understanding with each other and not share the work of each other.

POOR NETWORK:
NBP has only 1250 branches all over the Pakistan and in major cities of Pakistan in which other competitors has their branches

NBP don't have:

- The formalities involved in getting loans are time

concerning and complicated enough. - It is observed that most of the loans, which have been granted on political basis, are either default or their loans are

forcefully written off.

- It is seemed that the recovery system of NBP is not

effective that's why number of defaulters are increasing at the growing age.

- Political interference in the recruitment system.

- Uncertainly among the employees due to threat of

downsizing.

Punishment is not very strong for employees:

Punishment threat is not very strong for employees. Some employees are not very professional in their field but top management not takes the action against such employees.

Public dealing is not very effective:

Public respect is not very effective in NBP. Employees are not taking care of the customers, especially in pension and bills department.

Staff shortage:

There is also weak point for NBP that staff is very short and more staff is required to meet the needs of the branch work. They help from internees.

SPONSOR THE I.T BASED PROJECTS:

This is the best opportunity available to all banks and NBP as well, to sponsor the IT and computer based projects because the coming century is the century of information technology as new a days all the business community is

diverting its attention towards this field.

Growing banking system:

Nowadays banking system is growing quickly so NBP have opportunities to improve the standard and get the more share in the market.

NBP have government back:

In growing era there is a chance for NBP to improve itself and increase the shares in the market because it is most trustable due to governments bank.

Increase in economic activities:

The economic activities are increase nowadays, so banks are contributes more in economic activities. Banks are played role in trade and commerce. So the business of commercial banks is increase.

POLITICAL INFLUENCE AND INSTABILITY:

This is the major threat for any business organization in Pakistan because the political officials influence NBP in financing those projects which are not viable or write off those loans which are still able to pay, this political influence cause many problems in daily business thus profitability of NBP. Political industrial is even a threat for NBP in the sense that once the policies and

procedures are approved by government.

LACK OF MODERN BANKING TECHNIQUES:

NBP is following fifty years old style of banking, in the computers of NBP symphony word processor is still used. Which is the oldest word processor due to this the deposits are looking to be corded, because of the provision of credit cards and other such services by its competitors both local and foreign banks is proving to be limiting factor in the deposit

mobilization efforts of the corporation.

Increase in no. of banks:

Increase in no. of banks is a threat for National Bank of Pakistan. No. of private banks (commercial and private) are operating their business and provide the same facilities. So increase in no. of banks is a threat for NBP.

The whole structure change to online :

NBP have wide network of branches. Only 130 branches are online, so it is very difficult and time consumed to convert all branches to online system. So there is also risk involves that if one commuter of one branch suffers in problem, all system and all commuters of all branches must be turnoff.