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Chapter 7

SWOT Analysis

CHAPTER 7 SWOT ANALYSIS


On the basis of SWOT analysis, one can analyze the present status and performance of an organization and can make conclusions and recommendations. ACBL has some unique factors like being backed by Army Welfare Trust (AWT), an organization working for the benefit of the retired army officers, which adds to its value. The formal SWOT analysis constitutes of four different solid parts.

7.1

Strengths

ACBL benefit from a few points, which ultimately makes its backing strengthened. Some of these points are as follows: 1. ACBL has a large number of clients with both huge and medium deposits. ACBL has large number of army officer as their clients and year-by-year the army officers client increases. Alongside theses clients Askari Bank also dealing with other civilians as their clients. ACBL believes in maintaining customers with no discrimination between the status, thus maintain equity between their customers.

2. ACBL believes in hiring active and inspired candidates. Experience is not an important requirement for recruitment. The qualification, criteria for selection of employee is MBA, MPA or any other related degree from reputed universities. At ACBL Peshawar Branch, most of the management has communication skills in local as well as foreign languages.

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3. ACBL offers various kinds of accounts with varying features and interest rates. From small accounts to large accounts the profit increases gradually. Its Master card also gives privileges to its customers. ACBL ATM is also a valuable service. Maintain the foreign currency accounts is another factor that attracts customers who wants to make transactions in dollars or pounds or deutsche mark, etc.

4. The bank has established the new BBS System, which stands for Basic Banking System. It has made all the branches of the ACBL online, which means that they are interconnected with each other and in full coordination.

5. ACBL is a renowned bank all over the country. Its branches are spread across all the regions of the country. Thus, enabling customers to make transaction more easily locally or out side the country. It also has agency arrangements in areas where it does not have any branch. This presence of ACBL in the region makes its reliability and its name is generally considered a name of quality and trust. 6. The support of Army Welfare Trust (AWT) with ACBL has alleviated the financial position of the bank. It has increased the operational efficiency and has resulted in reduced risk. The better financial position has opened the way for access to capital markets. As the bank has expanded, the bank is now enjoying economies of scale. 7. A pleasant operational atmosphere develops the efficiency of the staff and also boosts the employees motivation. Fortunately at ACBL Peshawar Branch employees are in good relations with each other. The burden of work is generally willingly shared between the employees of 51
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SWOT Analysis

the Bank. When any of the employees is on a short leave so other subordinate takes his work with care.

7.2 Weaknesses
Weaknesses, like strengths are a part of almost every organization. These weaknesses points out the potential areas of improvements and make the organizational behavior intelligent. A cumulative effort to overcome these flaws makes success possible. During the internship period the weaknesses that generally surfaced and were visible at ACBL Peshawar Branch are as described below in detail. 1. The root problem at ACBL Peshawar Branch, which is normally ignored, is that it is understaffed. Thus several departments are over loaded with extra work. This overburdens the employees, which leads to frustration and anger, provoking several other problems. 2. Performance appraisal is generally considered a motivational as well as evaluative tool. At ACBL its use is normally made in an exploiting fashion. Evaluation is made on the basis of the achievements of market targets. Unfortunately the market targets are always unachievable. Thus employees face the condition of being called inefficient at times. This is an annoying factor for some of the employees, which leads towards de motivation and anxiety. 3. Work distribution at ACBL Peshawar Branch is unbalanced. Some departments like remittance and export department used to be under extra load of work. On the other hand lending department had comparatively a small amount of work. Over burdening some employees creates resentment in their hearts for their fellow employees with less work. 52
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4. Long queues at cash counter are regular sight at ACBL Peshawar Branch during the first section of banking hours. It is quite a shocking view for a new visitor who enters the bank. This presents and unsophisticated look. 5. The outlook of an organization plays important role in portraying its image to customers. The ACBL Peshawar Branch has a structure that is simple and not enough eye-catching that will attract customers. The interior of the bank gives a crowded look. The atmosphere is professional. Though it is centrally heated and air conditioned, so as to provide customer and staff with better working condition in every climate. There is less seating arrangements in the bank for both the employees and the customers. 6. Internees at ACBL are not paid a stipend for their internship. They normally are provided with support and encouragement, which has its effect on their performance. With no stipend the motivational level of the internees is stumpy.

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6.3 Opportunities
Success, more than anything is all about converting into opportunity what everybody else considers danger Opportunities, when exploited properly reap profits and earn success. They are almost always a matter of time. They are to be sought, picked and made use of, before any body else gets up and do so. Its just about being smart and accurate. ACBL also have some opportunities it can utilize and obtain good market position. Some of the opportunities ACBL can make use of are hinted below. The post September 11, 2001 conditions have turned fruitful for Pakistans economy. The United States of America giving its consent in relaxing foreign debt policies and providing Pakistan with additional loans without interest are factors, which have boosted Pakistans economy. Thus the forthcoming picture seems one with economically more stable Pakistan. In this period Pakistani nationals living in foreign are bringing money back home. Foreign investors are getting encouraged to bring money and invest it here in Pakistan. New NGOs are taking birth. Several countries companies are coming to Pakistan to help the Afghan people.

6.4

Threats

Threats are the unseen, futuristic, probable events that can occur and prove dangerous in consequences. Every organization is faced by some category of threats in its operations and functions. Opening new outlets, altering existing policies, designing fresh marketing strategies, bringing change in physical structure, almost every activity that an organization does face some kind of threats, just like the benefits it seeks. ACBL also faces some threats, which can just prove minor assumed fears; as well as can become events with grave consequences. The prevailing condition indicates the following as the possible threats.

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1. The growing tension between Pakistan and India since the summit failure, last year has reached a precarious point now. The increase in armed forces on both sides of the border has led the business activities to a gradual cease. A war between the two countries would prove hazardous to the economies of both the countries. Not only ACBL but also the whole banking industry will collapse. 2. The government must maintain the law and order situation in order to attract foreign investor. The suicide bomb blast in Karachi, which killed almost 15 French engineers, created an atmosphere of being unsafe amongst the foreigners residing in Pakistan. Incidents like these enormously affect the economies of countries. If the foreign investor wont feel safe in Pakistan, then how come it is possible that he will invest money here? 3. ACBL also faces competitors in the market. UBL, Union and SCG Banks are already online. These three banks also enjoy sound financial backing and come from a rich background. Also working are other foreign banks like Bank Alfalah, Emirates Bank and Faysal Bank. Various domestic banks like MCB and others have also shown improvements. To survive amongst all these competitors, ACBL needs to keep in touch with modern technology, keeping flexible and customer oriented policies, and adopting the latest trends of banking.

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