STRATEGIC MANAGEMENT

STRATEGIC MANAGEMENT HABIB BANK LIMITED PAKISTAN

Project Report

Submitted to: Sir Fazl-e-Muqeem Prepared by: M.Athar Jamil BBA-B08-018 Course: Strategic management

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Table of contents
DECDICATION..03 ACKNOWLEDGEMENT...04 EXECUTIVE SUMMARY....05 Chapter 1 INTRODUCTION.06 1.1 History.....06 1.2 Present Status...06 1.3 Privatization...07 1.4 Economic Landscape..07 1.5 Financial Highlights...08 1.6 Future Outlook....08 1.7 STRATEGY....09 1.7.1 Vision..09 1.7.2 Mission...09 1.7.3 Objectives OF HBL.09 1.7.4 Values.09 1.8 HBL Culture ....10 1.9 HBL HIERARCHY....11 1.10 PRODUCTS AND SERVICES....12 Chapter 2 ANALYSIS OF INTERNAL ENVIRONMENT..13 2.1 Organization Structure and Design.13 2.2 Decision Making and Policy Making14 2.3 Organizational culture.18 2.4 The Environment20 2.5 Corporate Social Responsibility 22 Chapter 3 STRATEGIC MANAGEMENT ANALYSIS23 3.1 HBL STRATEGIES..23 3.2 STRATEGYS ANALYSIS25 3.3 SWOT ANALYSIS.26 3.4 STRATEGIC MANAGEMENT28 CONCLUSION29

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DECDICATION

With the help of Allah almighty and the prayers of my parents and teachers I was able to complete this project well in time. Without their prayers and guidance I would not be able to complete it so I would like to dedicate my project to them. God Bless Them.

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ACKNOWLEDGEMENT

This report is the combination of sincere hard work and dedication. While working on this project I came across very cooperative personals both in HBL and university. With the help of whom I was able to complete my project. I would thank Sir Fazl-eMuqeem, his competent suggestions and guidance helped me in defining goals, objectives and in finalizing this report in different aspects. I would also thank Mr. Arshad Barlas Branch head HBL (G-13) for being cooperative and providing assistance throughout my project. I will highly appreciate suggestions for improvements in this report and its contents from everyone, especially from teachers as I strongly believe that nothing is perfect in this world and there is always a room for improvement.

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EXECUTIVE SUMMARY
This report reflects the Strategic management efforts done at HBL and their outcomes on Global level. It shows that how strategic management is helping HBL Bank in creating, maintaining and retrieving the information when required. It starts with companys general overview, the brief history, Values of HBL, the organogram, the challenges the product lines and detail information regarding different automated systems used by them in taking timely decisions. The report consists of my best efforts which I did in gathering information regarding Strategic management at HBL Bank. This report elaborates that HBL is clearly the first choice of everyone who believes in qualitative approach of banking. It pertains environment of highly responsible workforce. Bank is enjoying a healthy market share and taste of good status in terms of its operative features and customer support. HBL is experiencing a good reputation and reasonable mark up with respect to prevailing market mark up with assurance of satisfaction and support. The management style is a kind of participative management in which employees are encouraged to share their ideas in decision making which enables bank to utilize knowledge, skills and abilities of its employees and meets its objective efficiently and being more innovative. As the motivation and reward system of HBL bank are also up to the expectation of employees so that employees are very much satisfied and it helps them to retain their valuable workforce. Ultimately the report projects that HBL inherits strong organizational culture having values for leaders as well as for employees and the organizational behavior is up to the mark for any company in Pakistan.

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Chapter 1 INTRODUCTION
Bank is an important institute of an economy. In modern times a strong banking system is necessary for economic prosperity of a country. Banks are necessary for maintaining a sound financial position of Government and for running trade and industry.

1.1 History
Habib Bank Limited (HBL) was established on 25th August 1941; just one year after the historic Pakistan resolution was adopted in Lahore for carving an independent homeland for the Muslims of subcontinent. It was founded with the blessing of Quaid-e-Azam (Great Leader) Mohammad Ali Jinnah, the architect and founder of Pakistan. HBL is proud of the fact that the Quaid-E-Azam demonstrated his faith and confidence in HBL by opening his personal account in our Bombay branch in the year 1946. The first prime minister of Pakistan Quaid-e-Millat Liaqat Ali Khan, on the independence day of Pakistan (August 14, 1947) appreciated the service of the bank in these words. I wish every success to HBL and hope that it will continue to play an important and useful role in the industrial and commercial life of the Muslim nation The commitment of HBL towards the cause of the economic uplift of Pakistani people was successfully tested when the subcontinent was partitioned in 1947. The new born country faced serious financial difficulties. Habib Bank joined hands with the government of Pakistan and placed all its services at their disposal for nation building activities. Throughout the decades, HBL has held the mantle of a dynamic leader, by adding value to the lives of its customers. It was HBL that introduced products such as Debit Cards, ATMs, Travellers Cheques, etc., to the Pakistani market. Management at Habib Bank caters to the needs of millions with our quality products & services. Today, Habib Bank is truly the bank of the people, providing its customers convenience and satisfaction all over the world. Habib Bank Plaza, the second tallest building in Pakistan, is the proud symbol of HBLs leadership in Pakistans corporate arena.

1.2 Present Status

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The Habib Bank Group is leader in Pakistans services industry. Today, HBL has more than 1,400 branches all over Pakistan and presence in 25 countries across five continents. With a revamped customer oriented philosophy, HBL are pursuing new avenues of leadership through innovation, as HBL gear up to face the challenges of the new millennium. A huge network of 1425 domestic branches, with largest bank in Pakistan and 55 international branches have enabled HBL to provide comprehensive services that meet customer needs. This has ensured thriving client relationship that forms the backbone of the Banks operations. Today, HBL plays a central role in Pakistans financial and economic development. It has come a long way from its modest beginnings in Bombay in 1941 when it commenced operations with a fixed capital of 25,000 rupees. Impressed by its initial performance, Quaid-e-Azam Mohammad Ali Jinnah asked the bank to move its operations to Karachi after the creation of Pakistan. HBL established itself in the Quaids city in 1943 and became symbol of pride and progress for people of Pakistan. Habib Bank has a pioneer in providing the innovative banking services. These have included the installation of the first main frame computer in Pakistan followed by first ATM and more recently internet banking facilities in 1425 domestic branches.

1.3 Privatization
The year 2003 was marked by the implementation of the Government of Pakistans program for privatizing the Bank. Amongst the qualified bidders, the Agha khan Fund for Economic Development (AKFED) offered the highest bid, which was accepted by the Government of Pakistan in December. HBLs privatization is the largest in Pakistans history and management takes great pride in fact that the bidding took place within four months of the commencement of the due diligence process in September 2003. With this change the anticipates further progress as AKFED brings considerable expertise in international finance and business and is familiar with conditions in Pakistan, where it already has extensive operations in various fields.

1.4 Economic Landscape

The country is now in the process of warming its relations with the neighbours. Consequently the political stability has translated into direct economic benefit for Pakistan. G.D.P. growth has exceeded. The capital market performance has been, once again, very impressive and KSE has performed at par with all other stock markets of the world.

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The banking sector has played an important role in sustaining this growth: consumer financing has enhanced purchasing power and created new demand while the low interest rates has contributed to making exports price competitive. The state bank of Pakistan (SBP) has played a supportive monetary policy role to sustain and improved the current growth improved current growth momentum.

1.5 Financial Highlights

HBL now ranks amongst the top corporate entities in Pakistan in terms of profitability. This large jump is also reported profit the net interest income and profit growth of the bank has been achieved in an environment that can be termed unique for the sector in Pakistan. The improved economic fundamentals have allowed the government to slash its borrowing requirements and this , combined with substantial inflows of remittance , has resulted in a large build up of excess liquidity in the banking sector.

1.6 Future Outlook

For a bank to deliver quality services, it is imperative that technology be an integral part of all aspects of its operations. At Habib Bank, strategy has been to utilize cutting edge technology to serve customer efficiently and in a cost effective manner. HBL strive to accomplish this while maintaining a strong personalized approach in our customer relationship. HBL embarked on an ambitious plan in 2009 to revamp its technology platform. The technology initiative includes:

HBL corporate website has recently been revamped and now provides a customer friendly, information rich and technologically advanced environment to its clientele. Enhancement of the Banks communications network to provide online connectivity to:

Online inter-branch funds transfer Alternate delivery channels e.g. POS terminal ATM network for cash withdrawal, fund transfer, payment of utility bills etc E-commerce Internet banking PC based banking for corporate customers Automation of treasury and trade finance

More than 200 branches, corporate centers and regional offices in over 30
cities throughout Pakistan

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More than 100 ATMs covering most of cities Over 1000 nationwide point of sales terminal. Habib Banks corporate email users
Implementation of a Virtual Private Network (VPN) yielding the following benefits:

Centralized processing of batch branches offering daily consolidation of data for customer service and risk management Implementation of technology in HBL international centers as with our other areas of operations, HBL recognized that at international centers too, technology is a key consideration for bank to ensure the competitive edge and maintain effective internal control. To that end significant steps have been taken towards automation and offering technology related faculties at our overseas centers.

1.7 STRATEGY 1.7.1 Vision

HBL's vision statement is to be a leading financial institution and their focus is on improving performance in each of their businesses to achieve consistent and superior returns for their highly valued clients. And their focus is also on enabling people to advance with confidence and success.

1.7.2 Mission
To increase the profitability of our customers through investing in financially sound and profit earning projects, to make our customers prosper, our staff excels, and creates value for shareholders. Along with this opening new horizon and fresh perspective of trust, dependability and service through 1439 branches and 112 overseas offices with a comprehensive range of financial products.

1.7.3 Objectives OF HBL

Following are the main Objectives of HBL: To earn profit for the bank itself and for its shareholders. To promote and boost up business sector inside the country. To provide employment opportunity to the people. To help in development and industrialization of the country. To provide loan and advances to help out in self employee schemes.

1.7.4 Values

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HBLs values are the fundamental principles that define its culture and are brought to life in its attitudes and behavior. It is companys values that make its unique and unmistakable. Company values are defined below: Excellence: This is at the core of everything HBL does. The markets in which HBL operates are becoming increasingly competitive, giving their customers an abundance of choice. Only through being the very best - in terms of the service HBL offers, its products and premises - can it hope to be successful and grow. Customer focus: HBL understands fully the needs of its customers and adapts its products and services to meet these. HBL always strives to put the satisfaction of its customers first. Progressiveness: HBL believes in the advancement of society through the adoption of enlightened working practices, innovative new products and processes, and a spirit of enterprise. Humility: HBL encourages a culture of mutual respect and treat both our team members and customers with humility and care. Integrity: For HBL, integrity means a synergic approach towards abiding our core values. United with the force of shared values and integrity, HBL employees form a network of a well-integrated team. Meritocracy: At HBL on every level, from selection to advancement, leadership has designed a consistent system of human resource practices, based on objective criteria throughout all the layers of the organization. They are, therefore, able to achieve a specific level of performance at every layer of the organization. Team Work: HBLs team strives to become a cohesive and unified force, to offer customers a level of service beyond expectations. This force is derived from participative and collective endeavors, a common set of goals and a spirit to share the glory and the strength to face failures together. Culture of Innovation: HBL aims to be proactively responsive to new ideas, and to respect and reward the agents, leaders and creators of change.

1.8 HBL Culture

HBL has created a challenging environment that encourages creativity and commitment. HBL focused on attracting, developing and retaining the best talent in the marketplace. HBL dynamic culture offers diverse growth opportunities across Pakistan and in 55 countries around the world. 10

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HBL fosters a work environment where employees can realize their potential whether locally or in the international arena. Thus, enable its employees to achieve their professional goals while keeping in synch with the banks overall objectives.

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1.9 HBL HIERARCHY

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1.10 PRODUCTS AND SERVICES

HBL provides a large range of products and services to its business and individual customers some of which are as follows. 1.10.1 PRODUCTS HBL Muhafiz Rupee Travellers Cheques HBL Auto Finance HBL Flexi Loans for salaried personnel HBL Lifestyles Financing Scheme HBL i-Card HBL House Financing Loans HBL Easy Access HBL Fast Transfer Haryali Agricultural Loans HBL E-Bank

1.10.2 SERVICES Retail banking Commercial banking Corporate banking Phone banking Islamic banking Cash management Asset management Agriculture loans Commercial banking Corporate banking Islamic banking Investment banking Working capital Procurement of inventory Procurement of machinery Expansion of production facilities Import of raw materials Exports Guarantees Project finance, Debt capital markets & syndications Equity capital markets & advisory.

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Chapter 2 ANALYSIS OF INTERNAL ENVIRONMENT

2.1 Organization Structure and Design

The HBL is divided in main group in its organization structure. The one which performs the core business activities and the second which perform the support activities to achieve the business object effectively and efficiently. Further division of these groups is given below.

HBL is an organization that provides opportunities for its staff to have a challenging and rewarding long-term career. To this end the Human Resource Group (HRG) encourages and motivates its employees to excel in the responsibility that they have in the organization. At HBL it is believed that creativity and innovation comes from talent, knowledge and experience and it is our endeavor to provide and maintain an environment which not only nourishes these strengths but also provides

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opportunities for the staff to have a career which has multidimensional growth opportunities. In doing so, HBG has been restructuring and redesigning the overall structure of the organization, which includes rationalization, cutting down the decision layers, improvement in staff training and hiring professionals and MBAs at entry-level management. The overall direction of HRG has been towards nurturing the strengths of the human capital to its maximum with a defining principal to help create a progressive environment and sustain a thorough commitment of our staff towards focused customer service. HRG therefore recognizes the need to proactively invest in staff training and develop courses on a regular basis. Under the umbrella of our Management and Organization Development Division (MODD) our Management Development Institute (MDI) with its three fully equipped chapters at Karachi, Lahore & Islamabad regularly conducts and outsource technical and personal development courses for our all level of staff enabling them to meet the challenges of the ever-changing business requirements and customer needs. During 2009, 529 courses, workshops, skill development clinics and seminars in the disciplines of Service & Attitude, Market Research & Selling, Management & Communication, Credit & Finance, I.T. & e-Banking, Treasury & Trade Finance, Global/ Domestic Banking Operations and on other diverse subjects were conducted by In / Ex-House professionally skilled, qualified and certified faculty and industry experts for 10,233 people of senior / middle line management & staff carving 1,334 days training days. There is no budget limit for Training and Education at Habib Bank. HR Group aims to maintain and further improve the service-oriented culture and to make employment not only satisfying but also enjoyable. Omnipotent or Symbolic View of management In HBL, managers are also responsible for the success or failure of the organization but there are also some factors that have great effect on organization and that type of affairs are out of control of managers.

2.2 Decision Making and Policy Making

Decision making process at HBL has following points: Centralized

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All major policies, plans, rules and regulations and controls etc. are devised by head office of Habib Bank Ltd in Karachi. Then these policies are conveyed to the regional heads and branch heads.

Decentralized All routine matters are decided at branch level by the respective heads of departments with permission of branch head. If any problem or matter is beyond limits of branch, then it is referred to the Regional Head quarter. 2.2.1 Decision Making Process:

Identification of a Problem

Identification of decision Criteria

Allocation of weights to criteria

Development of alternatives

Analysis of Alternatives

Selection of Alternative

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Implementation

Evaluation 2.2.2 Management Functions: In HBL the management functions are performed as follow Planning In HBL, decision making is highly centralized because all the decisions and plans are made at the top level of management. Organizing No autonomy is provided to HBL employees. HBL strives to become a cohesive and unified force, to offer the customer, a level of service beyond their expectations. This force is derived from participative and collective endeavors, a common set of goals and a spirit to share the glory and the strength to face failures together. And there is also a high degree of interaction among department managers. Leading The leadership approach established in HBL is team leadership and the positive attitude of HBL employees towards their job is because of increasing employee job satisfaction. Controlling HBL impose external control on its employees and the criterion used by management to evaluate the employees is their performance. Annual reports are sent to the top level management about each and every employee which evaluates their performance. 2.2.3 Mangers Decisions: Mostly at HBL, managers decisions are Rational and intuition base. Role of Intuition: Experiencebased

Values or ethics- based

Affectinitiated

Intuition
Subconscious mental processing Cognitivebased

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Types of Problems Usually the middle managers face structured problems and they have the authority to deal with them without consulting the top managers. Apart from this programmed or more complex problems are solved by the top executives. Management Styles and Policies At the moment is the management is following the revamping and reengineering policies. The VSS (voluntary Separation Scheme) is offered to the employees to reduce the number of employee which is first toward reshaping of under new management. Collective Participation in Decision-Making Department heads meet frequently with each other and discuss problem with each other if any. They seek advice from each other and also the branch head is also available to all department heads to review or control the functions of bank. Employee Participation The management is receptive to new ideas like for marketing some facility or improving any procedure, etc. Delegation of Power Delegation means giving the authority to lower management. In Habib Bank Limited, top management makes the major decisions. So there is a centralized control. These are limits of authority approved for different levels of management at branch level. The branch operation manager and chief manager, takes active part in the decisionmaking. The lower level employees can make routine decisions relevant to their work. 2.2.4 Control Function: There is a strict control in Habib Bank Limited. There is strict diligence over the activities of the branch by the regional head quarter and Head office. Both keep themselves completely informed by the activities of branches through different types of reports. Rules and regulations are strictly followed. Policies are

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implemented through the supreme authorities at each branch. Too keep the works going; back up of each critical or important seat is given. Few authorized officers duly sign most of documents. Head office, State Bank of Pakistan and external auditor conduct annual audit to check that bank operations have been satisfactory completed. Accounts department strictly controls expenses. Employees are instructed and encouraged to abide by the rules and follows the policies of bank. Each employee, who operates computer, has his own password and access to other passwords is prohibited.

2.3 Organizational culture

At HBL, management has created a challenging environment that encourages creativity and commitment. In our pursuit of excellence, they are focused on attracting, developing and retaining the best talent in the marketplace. Our dynamic culture offers diverse growth opportunities across Pakistan and in 25 countries around the world. HBL fosters a work environment where employees can realize their potential whether locally or in the international arena. Thus, HBL enables employees to achieve their professional goals while keeping in synch with the banks overall objectives. 2.3.1 Dimensions of Organizational Culture

Attention to Detail Innovation and Risk Taking Outcome Orientation

Organizational Culture People Orientation Aggressiveness

Stability

Attention to Detail

Team Orientation

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The employees in HBL are expected to exhibit precision, analyses and attention to detail. Outcome Orientation In HBL the managers not only focus the results or the outcomes but also how the outcome is achieved. Innovation and Risk Taking HBL aim is to be proactively responsive to new ideas, and to respect and reward the agents, leaders and creators of change. Team Orientation HBL strives to become a cohesive and unified force, to offer you, the customer, a level of service beyond your expectations. This force is derived from participative and collective endeavors, a common set of goals and a spirit to share the glory and the strength to face failures together. Stability The organization tries its best to make such decision which should not have any adverse affect on the status of the organization.

2.3.2 The Source of Culture HBL has a strict rule and regulations and employees learn culture by managers, trainings are conducted, books and different workshops are organized for the employees.

Top Management Organization Founder Selection of Employees Organizations culture

Socialization

How Employees learn culture In HBL, the employees learn culture by stories and by rituals.

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Innovative culture HBL has innovative culture. HBL promotes the new ideas and appreciate its employees for giving new and innovative ideas. That helps the employees in achieving their goals and, they try to show their best at job. Customer-responsive culture HBL has customer responsive culture. The employees of the HBL are continues in their desire to please the customers and provide good service to their customers and satisfy the needs of customers.

Focus on individual development HBL focus on individual development, HBL try to create the good culture, in which every employee can adjust, work properly, learn the new thing and give best. Trust and openness In HBL, top management have full trust on their employees. Mostly employees are honest and they Employees Empowerment In HBL, managers have trust on their employees and they want that their employees also try to make decisions at their own job level. Toleration of Employees Expression In HBL, there is no toleration of employees expression. They want work and

2.4 The Environment

Competitors Customers Organization

Suppliers

Political groups 21

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HBL has good relationship with their customers, suppliers. Managers try their best to great good environment with them and solve problems in well manner. The general environment effects on HBL economic. HBL work in legal way, all the decisions of the managers are legal and they give benefit to their customers, stakeholder, stockbroker and employees. HBL fulfils the demographic conditions; HBL is introducing new types of accounts of different age groups, level of education income of family location. Now in HBL, there is a bit change of technology.

2.4.1 Stakeholder relationships HBL have very good relation with his stakeholder and try to provide them better facilities and fulfill their need in proper and good manner. Employee Unions Shareholde rs Communities Suppliers Customer Social and Political Actions Groups

Organization

Competitors Trade and Industry Associations

Media

Governments

2.4.2 Socioeconomic view In HBL, managers try to maximize the profits for the organization but as well as they make decisions and plans for protecting the society. They focus on development and welfare of the society. Social responsibility HBL make the goals and plans for society that gives benefit and they try to do right ethical decisions in a legal way. Social Obligation HBL fulfill its economic need in legal way. Social Responsiveness

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HBL make changes in it functions as the society change. They change with environment and provide the best services. 2.4.3 Value-Based Management Shared Organizational Values Build Team spirit

Guide Managers Decisions and Actions

Shape employee Influence Behavior Marketing Efforts 2.4.4 Managerial Ethics In HBL, there are also some rules that tell what is good or what is bad for organization while taking a decision. 2.4.5 Work specialization HBL has a high degree of work specialization. It gives jobs to its employees according to their capabilities and their skills. So that they can give their best at their work in the specific field assigned to them. 2.4.6 Departmentalization HBL has functional departmentalization. Chain of Command In HBL, the decisions are made by top level managers and then these decisions extended to the employees at the lower level and they work according to these decisions to maintain this continuous chain of command. Formalization The structure of HBL is highly formalized because of high level of standardized jobs and because their employees behavior is guided by the rules and procedures made by their management.

2.5 Corporate Social Responsibility

Corporate social responsibility is managerial obligation to take actions that protects the welfare of society.

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HBL international branches particularly their subsidiary in the UK was instrumental in mobilizing substantial funds from generous donors to the presidents relief funds. HBL has sports division. It has provided jobs to players as a social responsibility so the players in the field of cricket tennis football, badminton may achieve desired goals of nation. HBL flexi loans can help finance your Children schooling paying the way for their secure & prosperous future.

Chapter 3 STRATEGIC MANAGEMENT ANALYSIS

3.1 HBL STRATEGIES 3.1.1 CORPORATE STRATEGIES
Strategic Path From the very beginning the main focus of the management of HBL is the implementation of growth strategies. During the entire period of continuous straggle they adapted almost all types of strategies according to situation and market demand of that time except restructuring of defensive strategies. HBL never faced any type of liquidation, bankruptcy, sale or removal of any business unit. Their main strength is to avoid insecure financing. It is big organization that ever during their dark periods of straggle; they never lose their market share. If we talk about GROWTH STRATEGIES they are as followed Incremental Growth HBLs key areas of operations encompass product offering and services in retail and consumer banking. They introduce their products to expand their clients base by bringing innovation and improving the channels of distribution. They put their all efforts to reduce the business and make their services accessible for all customers. International Growth

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With a presence in 25 countries subsidiaries in Hong Kong and the Uk, affiliates in Nepal, Nigeria, Kenya and Kyrgyzstan and representation offices in Iran and China. HBL is also the largest domestic multinational. The bank is expanding its presence in principal international markets including the UK, UAE, SOUTH AND CENTRAL ASIA, AFRICA and the far EAST. Merger HBL merged Standard Bank in earlier times

3.1.2 CORPORATE LEVEL STRATEGIES

HBL has following corporate level strategies . Growth strategy: HBL has adopted growth strategy by expanding its operations. HBL actually have different products and services for both individuals and business customers. HBL product and services for individual customers are credit cards, debit cards, and deposit accounts. HBL product and service for business customer are commercial banking, cash management and asset management. Related Diversification: HBL has also adopted related diversification strategy, because at first function of HBL was only accepting deposit and advancing loans but now HBL has many related functions like flexi loans, ATM and credit cards.

3.1.3 BUSINESS LEVEL STRATEGY

Cost Leader Ship strategy: At business level HBL has adopted cost leadership strategy in a way that cost of advancing loans is less as compare to some other well reputed banks like Alfalfa, bank Al habib, MCB. Differentiation Strategy: At business level, HBL has also adopted differentiation strategy by introducing some new products into the market earlier to other banks like debit cards.

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3.1.4 DIVISIONAL LEVEL STRATEGY

Following are the main divisional level strategy fallowed by HBL To establish sound relationships with top industrial groups and various multinationals. To make the bank customer focused To increase the no of online branches To increase the ATM network to further improve the bank market shares. To implement the performance appraisal process to provide motivation and merit oriented culture in the bank To improve extensive tanning to the employees in the process, products, marketing and selling skills. Upgrading skills level of employees. Evaluation of vision and mission HBLs all strategies are directly matched with its vision with is; ENABLING PEOPLE TO ADVANCE WITH CONFIDENCE AND SUCCESS. They are successful in providing their desired value & importance to their internal as well as external customers. HBL proved that its objective is not to bring profit only but to enhance the satisfaction and improve the life style of their stakeholders also.

3.2 STRATEGYS ANALYSIS

3.2.1 Bouston Consulting Group Model HBL is found in the upper left-hand quadrant of BCG matrix. It offers excellent profit and growth opportunities. It can generate enough cash to fund its own expenses. Sometime only National Bank in Pakistan Creates Problem for HBL but overall it is dominant. 3.2.2 Miles & Snow HBL is a combination of Defender & Prospector Analyzer. It is having stable and predictable environment and pursues low- cost opposition, focusing on efficiency through standardized jobs, formalization and centralization. Environment of HBL is dynamic they focus on innovation & adaptation. They prefer to invest in R & D and marketing to advertise their products either through TV ads or some others sources. 3.2.3 Porters model If we talk about HBL in porters perspective, they are implementing BEST-COST PROVIDER STRATEGY. They give their customer more value for the money they are spending to satisfy them in a props way. They focus on innovation as well as low 26

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cost. It is also because they believe if they facilitate their customers, ultimately will get return in future. HBLs products cover all the customers belonging from various classes. A salaried person having 3 to 5000 and rich industrialist are entertained equally in HBL. 3.2.4 Intensive Strategies HBL focused on all 3 Strategies in Different periods to get more return. Now days they think the need to implement market pares-ration Strategy Because of growing number of banks opening in Pakistan. HBL played an important role to flourish the banking sector by introducing their products all over the world especially in Pakistan. In this process of wide coverage they follow market development strategy. 3.2.5 Diversification Strategies HBL is mainly focus on related Diversification to provide services and contribute in high self esteem of their customer.

3.3 SWOT ANALYSIS

3.3.1 Strengths: The staff of the bank is skilled, well trained and competent. HBL is having Centralized decision making. HBL is the Pioneer in introducing the ATM in the country and are widely used in the business transactions. HBL is the fourth largest bank in Pakistan, having 1449 branches divided in to 19 regions. HBL is having extensive branch network throughout the country .it has now 680 online branches in Pakistan. The reserves of bank are higher. Employees are the valuable assets of HBL. HBL has the fastest mode of home remittance of 3 days. HBL provide courteous services to its customers. Every 10th Pakistani is the account holder of HBL. I have also observed that the employees of the bank are dealing with their clients so friendly as if it is their own problem. 3.3.2 Weaknesses: 27 Marketing department of HBL is not so effective.

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Bad debt rate is very high. Poor system of recovery. Sense of insecurity in employees due to downsizing. HBL has become victim of political, legal and socio cultural pressure. Employees are not satisfied due to unfair promotion system. There is not a right criterion for promotion; many vacancies are filled at approach basis. Advances of HBL are also very low with respect to its competitors. Non popularity of travelers cheques, deposits of having a large network of branches. Administrative cost is very high. Employees have lethargic attitude especially in main branches. 3.3.3 Opportunities: IT can establish their branches online. Bank can open more branches in foreign countries in order to make it more stable and strong. HBL is the oldest bank in the country; people can rely on that bank. The presence of more technical and professional staff can help the bank in making progress especially in marketing department. Although ATM and online banking has started but can be make more effective by applying its own ATM network. Steps should be taken to increases banks deposits and as these are less than other competing banks such policies should be adopted to attract customers and the rate of deposit can increased. There is an opportunity to open an entirely separate section for ladies which is a new idea and will attract female customers. HBL has also an opportunity to expand its tale banking and internet banking facilities in order to serve the customer more efficiently. 3.3.4 Threats: Profit is becoming low due to higher cost. Poor policies of HBL as compare to other banks are also a threat for HBL. Financial environment is changing day to day, new technologies are introduced by foreign banks that provide customer efficient and quick service. Due to low entry barriers, there are more competitors, so the global competition has increased.

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Branches are not paying sufficient role in competition due to manual system. Because of unfair promotion system and absence of proper and recruitment techniques competent persons may move to other banks. The working condition and the outlook of the building can be a threat for HBL. Growing global technological advancement. Loss of confidence of overseas customers due to freezing of accounts.

3.4 STRATEGIC MANAGEMENT AND SWOT ANALYSIS

Process

Opportunity threats

External Analysis

Identify the organizations mission, goals and strategies

SWOT Analysis

Formulate strategies

Implement strategies

Evaluate

Internal Analysis
Strengths weakness

This analysis makes the managers aware of the organizations external and internal affairs and helps them to grip opportunities and exploits the resources. Strengths

An old and well established organization Customers are loyal

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It is a well known organization. Good reputation

Weakness

Organization is quite behind in the field of IT. Its employees lack IT knowledge. Out of 1400 branches only 600 branches provide online banking facility. Overstaffing is serious problem for the organization.
Threads

Other banks have high and new IT technology. Other banks offer different valuable packages to the customers.
Opportunities

Our Internship Program offers promising students with the exciting

opportunity to apply their classroom learning experience to real life corporate assignments.

HBL provide good opportunities for the employees in developing their

careers.

HBL is an organization that provides opportunities for its staff to have a

challenging and rewarding long-term career.

CONCLUSION
HBL is clearly the first choice of everyone who believes in qualitative approach of banking. It pertains environment of highly responsible workforce. Bank is enjoying a healthy market share and taste of good status in terms of its operative features and customer support. HBL is experiencing a good reputation and reasonable mark up with respect to prevailing market mark up with assurance of satisfaction and support. HBL bank management is competent enough to set the strategies in order to compete with their competitors and attract more customers.

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STRATEGIC MANAGEMENT

The management style is a kind of participative management in which employees are encouraged to share their ideas in decision making which enables bank to utilize knowledge, skills and abilities of its employees and meets its objective efficiently and being more innovative. As the motivation and reward system of HBL bank are also up to the expectation of employees so that employees are very much satisfied and it helps them to retain their valuable workforce. Overall it is concluded that HBL inherits strong organizational culture having values for leaders as well as for employees and the organizational behavior is up to the mark for any company in Pakistan.

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