Professional Documents
Culture Documents
Tanvir Sarfaraz
ID-101 0035 030 Sec-12
Mahmudul Hasan
ID-101 0784 030 Sec-12
1
December 12, 2010
Shahid Hossain
Faculty
School of Business
North South University
Dear Sir,
It is indeed a great pleasure for us to be able to hand over the result of our hardship, the
project on Mercantile Bank Limited. This report is the result of the knowledge which has
been acquired from the respective course MGT-210.
We tried our level best for preparing this report. The information of this report is mainly
based on Internet information. Some other details were gathered from a few people of
that company and from a few books. All of us gave our hundred percent for making this
report come together.
We, fervently hope that you will find this plan worth reading. Please feel free for any
query or clarification that you would like us to explain. Hope you will appreciate our hard
work and excuse the minor errors.
Thanking you for your cooperation and giving us so much knowledge, affection while
taking the MGT-210 course.
Sincerely,
Ashik Hossain Chaklader
ID-102 0116 030 Sec-12
Tanvir Sarfaraz
ID-101 0035 030 Sec-12
Mahmudul Hasan
ID-101 0784 030 Sec-12
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Table of Contents
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Mission Statement
Executive Summary
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Right from the beginning, Mercantile Bank limited was always focused
on its goals and objectives. Everyone in the bank knew what they are looking for and
they want to achieve. The bank always is keen to serve the best to the customers and
fulfill their demand. The Bank provides a broad range of financial services to its
customers and corporate clients. The Board of Directors consists of eminent personalities
from the realm of commerce and industries of the country.
Mercantile Bank Limited was always aware that profit is the main
focus of a business. No matter how dedicated a firm is towards its work, if there is
nothing in return, there is no point of giving the best shot. Mercantile Bank Limited
always tries to do everything it is needed to gain profit from the business and giving the
shareholders the most in return.
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Mercantile Bank Limited has its network in all over the country and
currently the bank is operating throughout the nation. Mercantile Bank Limited currently
has 61 branches all across the nation and serving the need of the people of this country.
Its head office is situated in 61 Dilkusha Commercial Area, Dhaka-1000.
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• Consumers Credit Scheme (CCS)
• Doctors Credit Scheme
• Rural Development Scheme
• Lease Financing
• Personal Loan
• Car Loan
• Home Loan
• Overseas Employment Loan
• E T P / Bio-Gas / Solar Energy Loan
• Krishi / Polli Loan
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Organogram
Officer (Off)
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Trainee Assistant Officer (TAO)
Name Designation
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Situational analysis
Customers
companies
competitors
The number of "c's" is sometimes extended to four, five, or even six, with
"Collaboration", "Company", and "Competitive advantage"
External Factors:
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The current inflation rate also has an impact on the business of
Mercantile Bank Limited. In economics, the inflation rate is a measure of inflation, the
rate of increase of a price index (for example, a consumer price index). It is the
percentage rate of change in price level over time. The rate of decrease in the purchasing
power of money is approximately equal. The current inflation rate of Bangladesh is
5.40% and Bangladesh is ranked 149th in the whole world.
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The infrastructure of the country has a tremendous impact on the
attitude of a firm such as Mercantile Bank Limited. Bangladesh is not a big country in
terms of its size and economic power. That restricts the opportunities of Mercantile Bank
Limited to expand its business as per its capability. Although it has the money and
support needed, Mercantile Bank Limited cannot utilize its opportunities to the best
because of the infrastructure of this country.
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Mercantile Bank Limited has a huge pressure on itself to increase the
interest margins, commissions and exchange earnings. The shareholders and directors
pressure to increase the margins, earnings has motivated the bank to fulfill its goals and
objectives.
Internal Factors:
Management Level:
Strategic: Top level managers of the bank set up strategic plans of the bank like MD,
AMD, and DMD.
Operational: Middle level managers of the bank who carries the plans from the top
level managers to the bottom level managers. Examples are SVP, VP
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Technical: Bottom level managers of the bank who implement the plans. Examples are
AO, TAO.
Technology:
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Technology is rapidly changing in the banking sector. From the
beginning, Mercantile Bank Limited has adopted modern hardware and software
technologies to reach services easier and quicker way to the customers. Mercantile Bank
Limited has introduced online banking and SME banking services to the customers. The
bank is giving importance in providing the ATM system. The IT department of the bank
has already deployed 19 ATMs. Mercantile Bank Limited has also introduced the Mobile
Money Electronic Remittance System with mobile payment facilities.
SWOT Analysis
In SWOT analysis:
“S” stands for Strength; in where Diversification of business appropriate.
“W” stands for Weakness; in where Turnaround planning is necessary.
“O” stands for Opportunity; in where Aggressive expansion could be sensible.
“T” stands for Threat; in where Rebuild or Exit step is required.
Strength:
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Mercantile Bank Limited has a dedicated &efficient workforce, which
is one of the biggest strength for the bank. This efficient workforce helps the bank to
achieve the bank’s objectives in terms of new branch opening, new product innovation
for the customer. They do their best to help the bank to be one of the best banks in
Bangladesh. They try to serve and deliver the best.
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Weakness:
Unable to implement branch banking yet:
One of the biggest drawbacks of Mercantile Bank Limited is that the
bank has not been able to implement any branch banking yet. Branch Banking means
engaging in banking activities such as accepting deposits or making loans at facilities
away from a bank's home office. Mercantile Bank Limited’s main problem has been that
the bank has a very strong control over its main branch but looses it when it comes to
other branches specially those branches which are in remote places.
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Opportunities:
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Threats:
Deposit rate in the central bank can fluctuate any time. This is a big
threat for Mercantile Bank Limited.
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Objectives
Strategic Objectives:
Objective 1- To be market leader in product innovation.
Strategy:
Mercantile Bank Limited is trying to be market leader in product
innovation. That’s why the bank has done market research and survey that what an
individual customer wants and is trying to launch different schemes according to that.
The bank has also tried to keep the interest rate according to the customers liking.
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of reaching the entire audience of the medium in which the advertising has been placed;
usually expressed in terms of cost per thousand. Mercantile Bank Limited is working very
hard achieve cost efficiency.
Strategy:
Mercantile Bank Limited is trying to be one of the top three financial
institutions in terms of cost efficiency by managing their cost of transaction, reducing
wastage of money. Mercantile Bank Limited has reduced the advertise costs and trying to
get loans at lower interest rate.
Strategy:
Mercantile Bank Limited wants to achieve positive EVA by increasing
their income and decreasing cost.
Financial Objectives:
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Objective-1 To achieve a return on shareholders’ equity of 20% or more, on average.
Management Issue
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• Departmentalization of the bank.
Organizational Structure:
Organizational Structure of a company means formal and
informal framework of policies and rules, within which an organization arranges
its lines of authority and communications, and allocates rights and duties.
Organizational structure determines the manner and extent to which roles, power,
and responsibilities are delegated, controlled, and coordinated, and
how information flows between levels of management. The organizational structure of
Mercantile Bank Limited is centralized. The decision making power of the bank is
concentrated in the top layer of the management and tight control is exercised
over departments and divisions. The centralization of authority of Mercantile Bank
Limited is placed in the top level of the bank.
Leadership Style:
Leadership style is the manner and approach of providing direction,
implementing plans, and motivating people. The three major styles of leadership are:
• Authoritarian or autocratic
• Participative or democratic
• Delegative or Free Reign
Communication Style:
Communication means the transformation of common
understanding through the use of word and symbols. A communication can be between
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two individuals, can be from one to many or many to one. Communication is the process
that helps the top level of the management to interact with every other level. There are
several types of communication style. Some of those are:
• Downward Communication
• Upward Communication
• Lateral Communication
• Diagonal Communication
Out of these, Mercantile Bank Limited follows the upward communication style. Here
employees from the lower levels communicate with the highest level. Sometimes the top
level managers of the bank take suggestions from the lower level managers.
Departmentalization:
Departmentalization refers to the process of grouping activities of a
company into several departments. Mercantile Bank Limited uses the functional
departmentalization system. Jobs of the bank are combined according to the different
functions of the bank. Mercantile Bank Limited has Finance, Marketing, Human
Resource, Accounting, Management and IT department in their bank.
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Findings and Recommendation
Conclusion
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Mercantile Bank Limited is a very promising name in the banking
sector of this country. It has been evident from all the factual presentations that
Mercantile Bank Limited is committed and resourceful for making a change in the typical
banking system of the country. In spite of some of their problems, the owner and the
visionaries are confident that they can make up a better service and establish a perfect
banking network even in the tough times of Bangladesh’s banking sector.
Bibliography
MLA Style
James H. Donnelly,Jr., James L. Gibson and John M. Ivancevich. September 12, 1997
Irwin McGraw-Hill Fundamentals of Management
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Appendix
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Sources
Books
Fundamentals of Management (10th Edition) James H. Donnelly,Jr.
James L. Gibson
John M. Ivancevich
Management: a global perspective (10th Edition) Weihrich
Koontz
Internet
http://www.businessdictionary.com
http://www.nwlink.com
http://en.wikipedia.org
Newspaper Articles
T.V. News
Personal Interview
Annual Report
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