National Bank of Pakistan Mission and Vision Statement Essay Example

organization's policies and important goals that employees should strive to achieve. This statement is presented in a specific and achievable manner. It advises employees to follow the best international management practices and advises stakeholders to maximize their values.

This text is about the flexibility of a statement to respond to market and environmental changes. It also discusses the importance of a PESTEL analysis, which is a scan of the external macro-environment in which an administration exists. The analysis helps understand the political, economic, socio-cultural, and technological environment that affects the administration. It can be used to assess market growth or decline and determine potential strategies for a business. The text then goes on to list and explain the various factors that are analyzed in a PESTEL analysis, including political factors (government regulations, trade limitations), economic factors (cost of capital, buying power), social factors (consumer demand, market size), and technological factors (barriers to entry, automation). The text concludes with a mention of a PESTEL analysis specifically conducted for NBP, focusing on political factors such as denationalization policy and deregulation.-

-

-

-

ECONOMICAL:
-

-

-

-

SOCIAL & CULTURAL:
-

-

-

-

-

-

TECHNOLOGICAL:
-

-

-

-

Strategic analysis tools

Strategic Analysis is: The procedure of conducting research

on the concern environment within which an administration operates and on the administration itself, in order to formulate strategy.A SWOT analysis is a commonly used tool to gain a theoretical understanding of an organization's operating environment and its interaction with the environment. This analysis aims to enhance the efficiency and effectiveness of the organization by enabling intelligent deployment and redeployment of its resources. The SWOT analysis helps in identifying and comprehending the strengths, weaknesses, opportunities, and threats associated with a specific project or business activity.

To begin, the initial step involves establishing the project or business activity's objective and recognizing the crucial internal and external factors that contribute to its achievement. Internal strengths and weaknesses are typically found within the organization, while external opportunities and threats are commonly encountered. SWOT Analysis is a term representing strengths, weaknesses, opportunities, and threats. Strengths and weaknesses pertain to an organization's internal aspects, whereas opportunities and threats concern its external components.

Strength

• NBP is a highly profitable organisation.
• NBP is the only bank that provides a 10-month progress wage history.
• NBP utilizes the fastest methods of money transportation.
• High liquidity is a strength of NBP.
• Peoples have more confidence in NBP due to strong authorities support.
• NBP is a very sound financial institute.
• NBP plays a role in national economic development.
• NBP has more deposits than any other commercial bank.
• Professional assurance is provided by NBP.
• The hard work of staff is recognized through incentives.
• NBP has
  

an intellectual commitment to change.

Failing

• NBP has a well-experienced staff, but their training capabilities are not up to the demands of the fast-changing banking environment.
• The customer relations of NBP staff are weaker compared to other private banks.
• Long-term contacts are not maintained with clients.
• Most of the staff comes from families with strong political backgrounds, making it difficult to remove or penalize negative behavior.
• The technical training of staff is negligible, for example, in the absence of a computer operator, there is no trained substitute available to record daily transactions.

The organization lacks flexibility and does not encourage creativity. The lower staff is uncooperative compared to other departments. The manager has ineffective control. The manager has limited discretion to provide incentives and value-added services to clients. There is a lack of commitment and professionalism among employees, who are always in a hurry to leave the bank. They also start their operations late. The organizational culture is not cooperative or friendly. The manager and top management show favoritism towards certain staff members. The technology management level in the department is very low. Technology is not well-maintained due to a lack of technically trained staff. Many tasks are still done manually instead of using software like MS Word and MS Excel. The job distribution is not satisfactory.

The lack of efficiency and workflow interruptions are immediate consequences of the outdated filing system. A lot of time is wasted searching for even week-old documents. Additionally, staff spend more time in meetings than necessary, and bank meetings are often delayed due to staff unavailability.

There are no efforts made to collect outstanding debts, and there is no system for complaints and suggestions. Customers visiting the bank for various services are not received warmly, resulting in a loss of revenue. There is a lack of proper research and development, preventing effective planning and strategy development based on micro and macro environmental data. While fiscal audits are conducted, operational audits do not receive adequate attention. There is no process to encourage creativity among middle and lower-level management. The absence of professional bodies is a major weakness. Instructions are not consistently conveyed in a professional manner.
On the other hand, there are opportunities for new marketing strategies and investments in new projects. The field of microfinance holds great potential for NBP.

• Denationalization of NBP.
• There is a good chance to utilize educated young talent to enhance business.
• Progress is the main area with significant profit potential for the organization.
• A wide range of products and product line can enhance business.
• Renting business.
• Hiring new MBAs and fresh talent to control administrative expenses.

Threat

• The biggest threat to operational success is better competition from other banks offering higher returns to clients.
• Nearby banks like Union Bank, Habib Bank, Muslim Commercial Bank, and Standard Chartered Bank have become online while NBP lacks this feature.
• Cannibalization of profits is also a threat as NBP branches are located very close to each other, competing for the same customers.
• Increasing dissatisfaction among customers is a major threat to NBP, with many expressing dissatisfaction with
  

service delays.

They believe they are not given bonuses and not given proper attention to have a say in the meetings. Hard-hitting interest groups are emerging which poses a constant threat to NBP. Formation of new private financial institutions and expansion. Consolidation of some financial institutions. Political pressure. New products from private Pakistani and Foreign Banks. Quality of human resources. This approach is widely used for competitive analysis. It is due to the intense competition among companies, there are five main competitive forces. It is a very powerful force among the competitive forces, the strategies pursued by one company can only be successful to the extent that they provide competitive advantages over the competitor. These competitive strategies may be lowering prices, best quality series.

The NBP, known as the "Nation's Bank," provides its clients and the nation with low charges for demand bill of exchange, telegraphy transportation, mail transportation, and other extra services. Competition in an industry can increase when new houses can easily enter. However, restrictions such as arthritis, duties, patents, etc., can prevent new companies from entering the concern. In Pakistan's well-established banking industry where banks offer quality services at low charges, there is no threat to NBP from potential entry. As a public sector bank, NBP cannot be overtaken by new banks. This is the third factor impacting competition. Furthermore, there may be other substitute products in this industry such as saving strategies offered by GPOs in Pakistan that compete with banks.

If GPOs lower their rates, more individuals will choose to stay in GPOs because of

the reduced cost. The increased rates seen in private accommodations are a consequence of high demand, resulting in limited room availability. To exemplify this point, consider the utilization of ATMs as an alternative to conventional check counters for cashing checks. Nonetheless, it is important to mention that the National Bank of Pakistan (NBP) does not provide this specific service in the mentioned area.

To maintain competitiveness in this sector, possessing an advantageous position is vital. The market's level of competitiveness is greatly influenced by the bargaining power held by providers, which becomes especially significant when there are multiple providers present. In the banking industry, the clients who provide funds serve as the providers. Therefore, banks must offer superior services, high quality, utmost safety measures, and affordable fees in order to allure clients.

NBP excels in this industry as it offers high-quality services to its clients and charges low fees for remittals. This enables them to outperform their competitors. Additionally, when clients are large or make bulk purchases, their ability to negotiate becomes a significant factor influencing the level of competition. The number of clients in Pakistan's banking sector is currently quite substantial.

Banks offer a variety of products and services to their customers, including NBP which has a large customer base. Therefore, it is crucial for NBP to provide excellent services and products in order to attract customers. A stakeholder can be an individual, group, or organization that has a direct or indirect interest in the actions, goals, and policies of an organization because they may be affected by them. In a business entity, key stakeholders consist of creditors, clients, managers, employees, government (and its agencies), owners (stockholders),

suppliers, unions, and the community from which the business acquires its resources.

Stakeholders of National Bank of Pakistan

Even though stake-holding is typically self-legitimizing (those who judge themselves to be stakeholders are de facto so), all stakeholders are not equal and different stakeholders are entitled to different considerations. For example, a firm's clients are entitled to fair trading practices but they are not entitled to the same consideration as the house's employee.
Being a very large organization, National Bank of Pakistan has a large number of stakeholders. A list of stakeholders of NBP is provided below.

• Stockholders have the ability to elect managers during a specified general meeting.
• The elected members of the Board of Directors create organizational strategies.
• The State Bank of Pakistan regulates all banks and monitors the operations and planning of NBP.

Influence of Stakeholders

The stockholders, board of directors, employees, State Bank of Pakistan, depositors, creditors, government, commercial banks, other businesses, and unions all play a role in influencing the operations and planning of NBP. Stockholders have the ability to elect managers during a specified general meeting. The elected members of the Board of Directors create organizational strategies. The State Bank of Pakistan regulates all banks and monitors the operations and planning of NBP.

This regulation greatly affects the bank's system. Employees have the power to influence the system through their productivity and efficiency. If employees are more motivated and determined, they can achieve the organization's future goals more effectively, making it a profitable institution.