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 trulythe Nation’s 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

Strengths…..

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.

ORGANIZATION CULTURE:

Government’s bank:

In commercial banking system NBP is only the government bank. They make their policies according to the government’s 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 government’s bank, it is enjoying the customer’s 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 challan’s, 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.

Weakness….

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.

Opportunities…..

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 government’s 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.

Threats……

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.

THE END…..