19252773 Bank Al Habib Marketing Management

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I

Marketing and Management of Bank

Al Habib limited


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I

Prepared For

Mr. Attique-ur-Rahman

Instructor of Marketing Management

Visiting Faculty Member of University of

Veterinary and Animal Sciences (UVAS)

Lahore

Prepared By

KHAWAR NADEEM

YASIR LATIF

AMIR HUSSAIN

SARA FARID

FAIZA MUNEER

Students of MBA IISemester (sec B)

Session (2008-2010)

University of Veterinary and Animal Sciences (UVAS)

May 22, 2009


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II

To My Mother And my beloved MSB.Y.L

To My Beloved ParentsK.N

To My Beloved Mother.A.H

To My Beloved Parents.F.M

To My Beloved Father.S.F


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III

First of all thank to whom who is most merciful and kind to all of his creations with out any discrimination

and who make us able to Prepare this report

We are proud on following personalities for being our friends and relatives that

guidance helps us in the preparation of this report

Mr. Musharaf Sidique; who provided us some useful articles related to our topic. Mr. Rehan Khan; who provide us important information about the bank Al Habib. Mr. Chohdree Asif; who provides us the martial related to our project.

In the end Special thanks to our parents and teachers specially Mr. Rahman (Our marketingmanagement instructor) whom unlimited efforts are there in our personality grooming.


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IV

5- Outfall Road

University of Veterinary and Animal

Sciences Lahore

May22, 2009

Mr.Attique-ur-Rahman

Visiting Faculty Member

Department of Livestock Business Management (FLBS)

University of Veterinary and Animal Sciences (UVAS)

5, Outfall Road

Lahore.

Dear Mr. Rahman

First of all we would like to thank to Mr. Rahman who has given us a good opportunity of writing a

report to increase our of writing skill on such an important topicMarketing Plan of Bank Al Habib

In this report we have given the introduction of Bank and history of Bank Al Habib then internal

assessment, management function, internal assessment after these we conclude our topic and given

some important suggestions to Improve the Bank Al Habib.

As it was our first experience of preparing a that kind of report we learnt much more from it, it was a

good experience for us and we hope in future you will provide us more chances of such good

experiences.

Yours sincerely

Student of FLBS (UVAS)

Mr.Yasir Latif Mr.Khawar Nadeem Mr.Amir HussianRoll No. 44 Roll No.58 Roll No.36

Miss.Faiza Muneer Miss.Sara FaridRoll No. 31 Roll No. 42

MBA 2nd Semester (Sec B)


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V

Table of contents

Contents

Introduction & History ............................................................................................................................ 2

Habib Family's Business Units ........................................................................................................... 3

BANKING & FINANCE;................................................................................................................... 3

Departments: ........................................................................................................................................ 13

2-Management function:...................................................................................................................... 15

External assessment: ............................................................................................................................ 22

Internal assessment ............................................................................................................................... 30

4.1- INTEGRATED MARKET COMMUNICATION: .................................................................. 46

CONCLUSION ..................................................................................................................................... 54

SUGGESTION ..................................................................................................................................... 56

Appendix............................................................................................................................................... 57

BIBLIOGRAPHY ................................................................................................................................. 58

GLOSSARY ......................................................................................................................................... 59

INDEX .................................................................................................................................................. 62

Management function ........................................................................................................................... 62


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VI

Synopsis

Introduction & history of Bank Al Habib; The Origin of what is now known as the HabibGroup of companies can be traced to Habib Esmail, and his association with the firm of KhojaMithabani Nathoo, a leading metals dealer established in Bombay in 1841. Habib joined the firm atthe age of 13 for a monthly salary of Rs. 5. Through his hard work and determination he becamepartner at the age of 18 and also became the president of the Copper and Brass MerchantsAssociation.

Bank AL Habib was incorporated as a Public Limited Company in October 1991 and started itsoperations in January 1992. It is a venture of the Habib Group, which owns 50% of the shares - 20 %shares are owned bank AL Habib was incorporated as a Public Limited Company in October 1991

and started its operations by NIT and 30% are owned by the general public. The bank operates in theprivate sector, with 30 branches in the major cities of Pakistan, and has its principle office at Karachi.

Management function; basic management function are four types

Planning Organizing Leading Controlling

External assessment; external shows the external condition that is threat or opportunity for the business

SWOT analysis; SWOT Analysis is a strategic planning method used to evaluate the Strengths,

Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves

specifying the objective of the business venture or project and identifying the internal and external

factors that are favorable and unfavorable to achieving that objective.

In which we check out the strength, weakness, opportunity and threats of the business.

PEST analysis;Economic factors; The Pakistan economy is more controlled economy, then onewhere market forces reign supreme. Several key institutions are stated owned. Thus a discussion of

the economic forces that influence the private organization such as bank Al Habib cannot ignore thesubstantial role played by the government in determining the state of the economy. The biggest

indicator of the heavy role enjoyed by the government was evidence when foreign currency accounts

(FCAs) were frozen on the orders of the ministry of finance in the wake of explosion tests on may

31st 1998.

Social forces; a low saving culture has offset the huge population advantage this is enjoyed by

Pakistan. Also culture is dedicated by the religion, and in Pakistan a significant segment of the

population is loath to accept interest for their deposits due to the negative religious implications of

such an act.

Technological forces: Banks in the developed world have been turning to heavy IT investments,

which differentiate their products, provide response times, enhance accessibility and improve


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VII

customer satisfaction. Though investing in state-of-the-art host banking solution (Fiserv, Kapiti, etc) ,

ATM and POS .

Porters five forces

I. Rivalry Among Competing firms;Bank Al Habib limited is facing a strong competition from other private Pakistani banks like

Metropolitan bank. Soneri bank and Askari Commercial bank. The improved performance of

the nationalized commercial banks (NCBs) is also the threat for the bank Al Habib. Foreign

banks are also competing with the bank for same small medium sized companies. The bank is

overcoming the incentive competition due to its strong reputation as a renowned financial

group in Pakistan and a long history of experience in the banking sector.

II. Potential entry of new competitors;The entry barriers in this market are high. The new banks need permission from SBP so entry

of new banks is restricted.

III. Development of substitute products;The non banking financial institutions including development finance institutions (DFIs),

private sector investment banks (PSIBs), leasing corporations (LCs) and Modarbas are almost

in the same line of business and can be treated to the bank.

Bargaining power of suppliers;

The main suppliers in the banking sectors are depositors. Although the bank is given higher

return then any other bank (12% per annum) to attract the depositors but the low innovation in

the product and also low investment in the marketing sector of the bank may provide

difficulties in coming years.

IV. Bargaining power of customers;The main customers are small traders and exporters based in Karachi and Lahore, majority ofwho deal in textile related commodities. Since the bank is targeting the short-term trade

finance market, the bargaining power of customer is substantial as other banks within the

same sector like Habib bank, Bank Al Falah and Metropolitan are fast catching up with the

Bank Al Habib in providing services to the traders.

Internal assessment;

Marketing mix; in marketing mix define the products of the business briefly, pricing of the Bank AL

Habib, promotional activities of the Bank Al Habib and also the placement of the Bank Al Habib.

IMC; BankAl Habib used the IMC for the promotion of their business in the market. They used theprint media as well as electronic media for the target segment of their customers

Conclusion; BANK Al Habib do well their operation of business. They met their budget effectively

and efficiently.

Suggestion; They should improve interpersonal communication, improve marketing department

easily give the credit to the customer.


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VIII

Introduction:

BankAL Habib was incorporated as a Public Limited Company in October 1991 and started its

operations in January 1992. It is a venture of the Habib Group, which owns 50% of the shares - 20 %shares are owned bankAL Habib was incorporated as a Public Limited Company in October 1991and started its operations by NIT and 30% are owned by the general public. The bank operates in theprivate sector, with 30 branches in the major cities of Pakistan, and has its principle office at Karachi.

Authorization:We have prepared this project on Bank Al Habib for marketing management

instructor Mr. Attique-ur-Rahman.

. Outline:

Firstly in this project we have given the introduction of BankAl Habibthen Managementof the organization, management function, internal assessment, external assessment, conclusionand at the end we give the some useful suggestions for improve the business of the bank.

Problems:In this project we are discussing the problems that are effect the company operational

strength with the help of the external and internal assessment.

Purpose:The preparation of this report has two purposes:

i. Primary purpose is to polish our project making and writing skills.

ii. And secondary purpose is to check our decision making skills about the marketing of theorganization.

Scope:In this report we are discussing only the management function and marketing plan of the

BankAl Habib.

MethodologyFor the purpose of making this project we have collected the data from internet,

interviews and books.

Sources:

For Primary sources kindly see Appendix

For secondary sources kindly see Bibliography

Definition of termsKindly see the glossary for this purpose.


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Limitations:

During the preparation of this report we faced following problems.

Lack of time Loads shading Lack of finance


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University of Veterinary and Animal Sciences (UVAS), Lahore 1

INTRODUCTION

&

HISTORY OF

BANK AL HABIB


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Introduction & History

1.1- Introduction of Habib familyThe history of the House of Habib goes back to middle of theprevious-to-last century when Esmail Ali ofJamnagar, India, set upa small utensil factory in Bombay. His son Habib Esmail, born in1878, founded the House of Habib. Habib was very young when hisfather died, forcing him to join the business of his uncle CassumMohammad, owner ofKhoja Mithabai Nathoo, merchant, andmanufacturer of copper and brass utensils. It was because of hisassociation with Mithabai Nathoo that Habib Ismaeel came to beknown as Seth Habib Mitha.

DAWOOD HABIB

Habib and Sons was formed in the 1920s to trade in cotton, copper, oil seeds, gold bullion and othercommodities and to act as a merchant bank. This in turn led to the formation in 1941 of Habib BankLtd. Bombay, as a public limited company.

1.2- Introduction of Habib groups of companies:The Origin of what is now known as the Habib Group of companies can be traced to Habib Esmail,and his association with the firm of Khoja Mithabani Nathoo, a leading metals dealer established inBombay in 1841. Habib joined the firm at the age of 13 for a monthly salary of Rs. 5. Through hishard work and determination he became partner at the age of 18 and also became the president of theCopper and Brass Merchants Association.

Habib sent his representative to Europe in 1912 and followed that up by establishing branch offices inGenoa and Vienna. Simultaneously, he began business relationship with Japan and China importinghosiery, yarn, glassware and cutlery and exporting cotton.

He started the firm "Habib & Sons" in 1921 and changed the family name to "Habib". His four sonsnamely Ahmed Habib, Dawood Habib, Mohammed Ali Habib and Ghulam Ali Habib joined thebusiness. The firm expanded rapidly - banking remaining a core business.

This in turn led to the formation in 1941 of Habib Bank Ltd. Bombay, as a public limited company.The bank was to become the flagship of the familys industrial and commercial ventures. Prior to the

creation of Pakistan the bank moved its head office to Karachi and played a vital role in providing thebasic banking and financial needs of this new country.

A network of branches and training centers were established in former East and West Pakistan.

When all banks in Pakistan were nationalized in 1974, Habib Bank was one of the largest commercialbanks in South Asia with 875 branches in Pakistan and 44 branches overseas, including 20 in theUnited Kingdom.
http://en.wikipedia.org/wiki/Jamnagarhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Bombayhttp://en.wikipedia.org/w/index.php?title=Habib_Esmail&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Khoja_Mithabai_Nathoo&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Khoja_Mithabai_Nathoo&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Habib_Esmail&action=edit&redlink=1http://en.wikipedia.org/wiki/Bombayhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Jamnagar


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1800 HABIB FAMILY STARTS BUSINESS IN BOMBAY, INDIA

1920 HABIB & SONS ESTABLISHED IN BOMBAY

1941 HABIB BANK LIMITED ESTABLISHED IN BOMBAY

1942 HABIB INSURANCE COMPANY ESTABLISHED IN BOMBAY

1947HABIB FAMILY MIGRATES TO PAKISTAN MOVING HABIB BANK,INSURANCE & OTHER BUSINESS

1967 HABIB BANK AG ZURICH ESTABLISHED IN SWITZERLAND

1974HABIB BANK LIMITED NATIONALISED IN PAKISTAN. HABIB FAMILYINVITED BY LATE SHAIKH RASHID TO ESTABLISH HABIB BANK AGZURICH BRANCHES IN DUBAI

1982 HABIB FAMILY DECENTRALISES BUSINESS UNITS BETWEEN AGROWING FAMILY

1991PAKISTAN GOVERNMENT INVITES DAWOOD HABIB GROUP TOESTABLISH "BANK AL HABIB" IN PAKISTAN

Habib Family's Business Units

BANKING & FINANCE;

Bank AL Habib

Habibsons Bank

Habib Overseas Bank

Habib African Bank

Habib Banking Corporation

Habib Investment Corp. (FZE)

Habib Capital Advisors Ltd

(Pakistan)

(UK & Switzerland)

(South Africa)

(Tanzania)

(Bahamas)

(UAE)

(BVI)

INSURANCE;

Habib Insurance Co.Green shield Insurance Brokers (Pakistan)(UAE & Pakistan)

REA L ESTATE;

Habib Properties FZC

Green shield Developers

Green shield Real Estate Brokers

Gulf Properties International

(UAE)

(UAE)

(UAE)

(BVI)


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OTHER;

Habib Sugar Mills

Habib & Sons

Habib Motor Company

Habib Foods

Habib IT

(Pakistan)

(Pakistan, UK & USA)

(Pakistan)

(Pakistan)

(Pakistan)

1.3- History of Habib group in Pakistan:The House of Habib holds many distinctions in Pakistan's history. Habib Bankwas shiftedto Pakistan on the personal bidding of Quaid-e-Azam Mohammad Ali Jinnah and came tothe aid of the nascent state "even before the Govt of Pakistan was ready to issue appropriategovernment paper" with a Rs 80 million loan when the Reserve Bank of India failed todeliver Pakistan share of Rs 750 million held by it. It is said that Mohammad Ali Habib gavea blank cheque on Llyod Bank to the Quaid-e-Azam who wrote Rs 80 million in it. (An

article in Habib Bank Golden Jubilee Presentation and a letter to the Editor in daily Dawn,September 11, 1991).
http://en.wikipedia.org/wiki/Habib_Bankhttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Mohammad_Ali_Jinnahhttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Mohammad_Ali_Jinnahhttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Habib_Bank


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1.4- Introduction of Bank AL_HABIB:Bank AL Habib was incorporated as a Public Limited Company in October 1991 and started itsoperations in January 1992. It is a venture of the Habib Group, which owns 50% of the shares - 20 %shares are owned bank AL Habib was incorporated as a Public Limited Company in October 1991

and started its operations by NIT and 30% are owned by the general public. The bank operates in theprivate sector, with 30 branches in the major cities of Pakistan, and has its principle office at Karachi.

It is a scheduled bank principally engaged in the business of commercial banking with a network of233 branches including a wholesale branch (in the Kingdom of Bahrain, a branch in Karachi ExportProcessing Zone and four Islamic Banking branches. The Bank has invested in 66.67% shares of ALHabib Capital Markets (Private) Limited.

The principal objective of the company is to engage in the business of equity, money market andforeign exchange, brokerage, equity research and corporate financial advisory and consultancyservices. AL Habib Capital Markets (Private) Limited (the Company) was incorporated in Pakistan asa (Private) Limited Company on 23 August 2005 under the Companies Ordinance, 1984 and startedoperations from14 December 2005.AL Habib Financial Services Limited is a wholly ownedsubsidiary of the Bank. The principal objective of the company is to engage in arranging / advising onfinancial products and services. AL Habib Financial Services Limited was incorporated in Dubai on05 March 2008.Its commercial banking services also include acceptance and placement of funds in the interbank

market; purchase and sale of foreign currencies; trade information and research; remittances and

transfer of funds; purchase and sale of government securities; Sui gas bills collection; and MCB rupee

traveler cheque services.


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V I S I O N

To be a quality financial service

provider maintaining the highest

standards in banking practices.

1.5-Vision statement:


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MISSION

To be a strong and stable financial institution

offering innovative products and services while

contributing towards the National economic and

social development.

1.6-Mission statement:


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1.7- Board of directors:Name Designation Occupation

Ali Raza D. Habib Chairman Businessman

Abbas D. Habib CEO & MD Banker

Anwar Haji Karim Director Industrialist

Shameem Ahmed Director Banker

Hasnain A. Habib Director Industrialist

Imtiaz Aalam Hanfi Director Banker

Murtaza H. Habib Director Industrialist

Qumail R. Habib Executive Director Banker

Syed Mazhar Abbas Director Banker

Tariq Iqbal Khan Director NIT Nominee

A. Saeed Siddiqui Company Secretary Banker


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1.8- Management:General Manager

Deputy General Manager

Assistant General Manager

Senior Chief Manager

Chief Manager

Senior Manager

MGR

Assistant Manager

Officer Grade I

Officer Grade II

Officer Grade III

Sub Officer


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1.9- COMPANY PROFILE:Bank AL Habib Limited

Type

Private

KSE: BAHL

LSE: BAHLTFC

Founded Karachi, 1991

Headquarters Karachi, Pakistan

Industry

Banking,

Capital Markets,

Investment Banking

Products Loans, Credit Cards, Savings, Consumer Banking etc...

Revenue $150 million USD (2005)

Employees 4000

Website www.bankalhabib.com
http://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Private_companyhttp://en.wikipedia.org/wiki/Karachi_Stock_Exchangehttp://en.wikipedia.org/wiki/Lahore_Stock_Exchangehttp://en.wikipedia.org/wiki/Karachihttp://en.wikipedia.org/wiki/Karachihttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Bankinghttp://en.wikipedia.org/wiki/Capital_Marketshttp://en.wikipedia.org/wiki/Investment_Bankinghttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Credit_Cardhttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/Employmenthttp://en.wikipedia.org/wiki/Employmenthttp://en.wikipedia.org/wiki/Websitehttp://www.bankalhabib.com/http://www.bankalhabib.com/http://en.wikipedia.org/wiki/File:Bankalhabib.jpghttp://www.bankalhabib.com/http://en.wikipedia.org/wiki/Websitehttp://en.wikipedia.org/wiki/Employmenthttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/Credit_Cardhttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Investment_Bankinghttp://en.wikipedia.org/wiki/Capital_Marketshttp://en.wikipedia.org/wiki/Bankinghttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Karachihttp://en.wikipedia.org/wiki/Karachihttp://en.wikipedia.org/wiki/Lahore_Stock_Exchangehttp://en.wikipedia.org/wiki/Karachi_Stock_Exchangehttp://en.wikipedia.org/wiki/Private_companyhttp://en.wikipedia.org/wiki/Types_of_business_entity


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1.10- No of branches in Pakistan:no City name No of branches

1 Abbotabad 12 Azad Kashmir 2

3 Bahwalpur 2

4 Burawal 1

5 cakwal 1

6 Dera ghazi khan 1

7 Dharki 1

8 Dinga 1

9 Faisalabad 5

10 Fazilpur 1

11 Gawadar 112 Gharo 1

13 Gujranwala 3

14 Gujrat 2

15 Hafizabad 1

16 Haripur 1

17 Hyderabad 6

18 Hub 1

19 Islamabad 5

20 Jehlum 1

21 Karachi 96

22 Kashmore 1

23 Kasur 1

24 Khanewal 1

25 Khanpur 1

26 Khushab 1

27 Lahore 38

28 Larkana 1

29 Mandi bahauddin 1

30 Mirpukhas 1

31 Muzaffargarh 1

32 Multan 733 Narowal 1

34 Naushero feroz 3

35 Nawabshah 2

36 Okara 1

37 Peshawar 3

38 Quetta 2

39 Rahim yar khan 3

40 Rawalpindi 6

41 Sadiqabad 1

42 Sahiwal 143 Saleh khana 1
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44 Sanghar 2

45 Sargodha 1

46 Sheikupura 3

47 Shikarpur 1

48 Sialkot 1

49 Sukkur 1

50 Sawabi 1

51 Tando adam 1

52 Toba tek singh 1

53 Turbat 1

54 Vehari 3

55 Wah cantt 1

56 Manama Bahrain 1

Total no. of branches:

Presently, the Bank has a network ofTwo Hundred And Thirty Threebranches in all the

major cities of Pakistan and abroad fully automated and computerized and providing wide range of

banking services.

Head office:

Branch Name: Head Office

Address: 126-C, Old Bahawalpur Road

Telephone: (92-61) 544539, 111-786-110

Fax: (92-61) 582471

Telex: 42336 ALHML PK

Main branch:

Branch Name: Main Branch

Address: Mackinnons Building, I. I. Chundrigar Road

Telephone: (92-21) 2412986-89 , 2417065-68 , 111-786-110

Fax: (92-21) 2425423 , 2412028

Telex: 21286 ALHAB PK
http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/


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Departments:

Bank Al Habib limited has the following departments;

Customer services Human resources department Risk management Audit department Quality & services department
http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/http://www.bankalhabib.com/


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2-Management function:

Planning Organizing Leading Controlling

2.1- Planning:

Planning is;

Defining organization goals and objectives. Establishing overall strategies for achieving those goals. Developing a comprehensive set of plans to integrate and coordinate organization work.

Types of planning:

Bank Al Habib us e both formal and informal types of planning;

Informal;

In informal planning, their planning is not written down, short term focus and specific to an

organizational unit.

Formal;

In formal planning, their planning is written down, specific, long term focus and involves

shared goals for the organization.

Goals and objective:

Financial strength and profitability by making profitable advances. Customer satisfaction by providing higher quality of services at an affordable cost. Growth by expending branch network and deposit base.

Short term objective; Profitability

Long term objective;

Profitability To optimize the use of resources
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Process of planning:

Mission:

To be a strong and stable financial institution offering innovative products and services while

contributing towards the National economic and social development.

Strategies:

Strategies of bank Al Habib are giving loans and accepting deposits.

Types of strategies used by bank Al Habib; cost leadership strategy, differentiation strategy, focused

strategy and etc.

Plans:

Plans of bank Al Habib are short-term and long-term advances & deposits.

Programs:

Programs of bank Al Habib are up to one year or more then one year advances, fixed

accounts, and etc.
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Policies:

Policies of the bank Al Habib are profitability, by making profitable advances and cu stomers

satisfaction by providing best services at an affordable cost.

Rules:

The rules are define the upper level management according to situation.

Budget:

Bank Al Habib always met its budget

2.2- Organizing:

Managers work in organization. But what is an organization?

An organization is an arrangement of the people to accomplish some specific purpose. Your colleges,

university, banks, governments departments are all organizations because they have three common

characteristics.

First; each organization has a distinct purpose. This purpose is typically expressed in terms of a goal

or set of goals that the organization hope to accomplish.

Second; each organization is composed of people. One person is working alone is not an organization

and it takes people to perform the work thats necessary for the organization to achieve its goals.

Third; all organizations develop some deliberate structure so their members can do their work.

Purpose of organizing;

Divide work to be done into specific jobs and departments in bankAl Habib. Assign tasks and responsibilities associated with individual jobs in bankAlHabib. Coordinates diverse organizational tasks in BankAl Habib. Establish relationship among individuals, groups and departments in BankAl Habib.

Types of organization;

I. Tall vs. Flat:Bank Al Habib is a tall organization.

II. Multinational vs. National:Bank AL Habib is a multinational organization.

III. Single vs. Branch:Bank Al Habib is a branched organization.

IV. Mechanistic vs. Organic:Bank Al Habib is an organic organization.

V. Big vs. small:Bank AL Habib is a big organization.
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2.4- Control:

Control is the process of monitoring activities to ensure that they are being accomplished as

planned and of correcting any significant deviation.

Importance of control;

Control is very much important because it is the final link in the management functions. It is

the only way mangers know whether organizational goals are being met and, it not, the reasons why.

The value of control function lies in its relation to planning, empowering employees, and protecting

work place.

In Bank Al Habibthe importance of control can not be neglected because its a service base

organization and deals with finance. Every employee in this organization has direct of indirect

interaction with financial activities and finance play the key role in the progress of the bank. Thats

why there is significance importance of a good control over all the activities in the bank for

progressing on the right path.

Process of control:

A three-step process including measuring actual performance, comparing actual performance against

a standard and taking managerial action to correct deviation or inadequate standards.

I. Measuring actual performance:To determine what actual performance is managers must acquire the information about the actual

performance of the workers who are working in the organization and overall performance of the

organization.

In Bank Al Habib managers get prepared statistical and financial reports about the employees and

progress of the bank to see that where organization is going. In statistical reports there is all

mentioned about the progress of employees that which employee have achieve how much targets at

the end of the month which were given by there bosses.

II. Comparing actual performance with standards:The comparing performance determines the degree of variation between actual performance

and the standard performance.

Standards;

In Bank Al Habib following standards are set to compare actual performance!

General standard;

Compliance with law Reasonable assurance and safeguards Integrity, competence, and positive attitude

Specific standards;

Internal control system and all transaction and significant events must be clearly documented,and the documentation readily available for examination.
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Transaction and other significant events are to be without delay recorded and properlyclassified.

Transactions and other significant events are to be authorized and executed only byauthorized persons.

Key duties and responsibilities in authorized and executed only by authorized persons. Qualified and continued supervision is to be provided to ensure that internal controlobjectives are achieved. Access to resources and records is to be limited to authorized individuals and accountability

for custody and use of resources is assigned and maintained. Managers are to; evaluate promptly findings and recommendations reported by reviewers.

Determine proper actions in response to findings and recommendations, and complete, within

established time frames, all actions that correct or otherwise resolve the matters brought to

managements attention.

III. Taking correct actions:Corrective action in the organization corrects problem at once to get performance back on

track.

Management of BankAl Habib revise the results from the comparison of the actual performance with

the standards and then takes the corrective actions to solve that particular problem to ensure the

achievement of targets in the organizations.
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SWOT analysisPEST analysisPORTERs five forces
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External assessment:

3.1- SWOT analysis:

SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses,

Opportunities, and Threats involved in a project or in a business venture. It involves specifying the

objective of the business venture or project and identifying the internal and external factors that arefavorable and unfavorable to achieving that objective.

a)-Strength:

Attributes of the organization that are helpful to achieving the objective.

Strengths of bankAl Habib are as follows:

ATMs at bankAl Habib are secured friendly and easy to access. Youngers account of the bankAl Habib is good source of promotion for bankAl Habib. BankAl Habibs brand name is itself a strength
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BankAl Habib provides online as well as physical training for its employees all over world BankAl Habib have the more then 230 branches in Pakistan There is a huge variety of products and services They do not consume to much capital on the marketing of their product Less risk in their banking system because they are not easily give the credit facilities to the

customer

Brand name is also the strength of the bankAl Habib. Decent way of dealing with the customers. Rapidly expansion of branches in the different cities of Pakistan. To much focus on the development and the promotion of the employees. Proper online banking system. No too much threat of the political environment. Sufficient liquidity position. Do well socially Habib schools 50% concession for the poor peoples Current ratio is above 20% of the total deposits Controlling Standards

b)-Weaknesses:

Attributes of the organization those are harmful to achieving the objective.

Weaknesses of bankAl habib are as follows:

BankAl Habib is not quick to give loans and cards. Not Easy application is for applying for a credit card No marketing for the promotion of their marketing. They are not high risk taker Inbusiness activities but in business the term is used high risk

high profit, low risk low profit

Too much poor Self Marketing Department. Low incentives like bonuses overtime pay etc.

c)Opportunities:

External conditions those are helpful to achieving the objective.

Opportunities that Bank Al Habib can avail are as follows:

There is a lot of cushion available for Bank Al Habib in terms of expanding its network ofbranches up to 230 but all this depends on stability of the Pakistan economic and political

situation
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The opportunities available for Bank Al Habib are financing to SMEs (Small and MediumEnterprises) in Pakistan.

Bank Al Habib can also look for small account holders Bank Al Habib has an opportunity to merge with some other bank to increase the number of

its branches in Pakistan.

Attractive salary packages should be awarded. Marketing department should be started in order to promote the name ofBank Al HAbib. On the job training & coaching sessions can be conducted.

d)- Threats:

External conditions which could do damage to the business's performance

Threats that could affect Bank AL Habib in negative way are as follows:

Day by day competition is increasing not only of the expansion of the banks but also due tothe launching of the new bank in the market e.g. Barclays.

Circumstances of Pakistan are a great threat for the existence of the Bank Al Habib. More and more banks are launching there operations in Pakistan which is increasing

competition for the Bank AL Habib.

The conventional banks those having high growth rate and high market share are alwaysbeing a threat.

Large business parties have fewer attractions in being a client of BAL-IBD, mainly becauseof excessive amount of documentation.


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3.2- PEST analysis:

Political forces;

The events in the last couple of years; the bomb blast of May 28 th 1998 and the subsequent

freezing of the FCAs, the declaration thatRiba

is Un-Islamic, and a volatile political scenario thatsaw the overthrow of the Nawaz Sharifregime, all contributed in highlighting the important role of

government in the local economy. The freezing of the FCAs destroyed the confidence of foreign

depositors. Also, the declaration that Riba is against the Sharia, is likely to cause tremendous

uncertainty in the banking sector. After this Pakistans army totally holds on the government and push

back the economy. Stability under the new regime is also very important for the economy as a whole.

Continuous political changes have disrupted the policies and objectives as each regime brings with it

its own agenda. Organizations need time to adjust to one regime and then work with it towards

economic enhancement. Due the wrong policies of the government the talibanization also develop in

Pakistan and become the international issue in Pakistan and badly affected the Pakistan repute in the

world and promote the uncertain conditions for the business in the Pakistan. Due to this the investors

are not interested in the Pakistan.
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Economic factors;

The Pakistan economy is more controlled economy, then one where market forces reign

supreme. Several key institutions are stated owned. Thus a discussion of the economic forces that

influence the private organization such as bank Al Habib cannot ignore the substantial role played by

the government in determining the state of the economy. The biggest indicator of the heavy role

enjoyed by the government was evidence when foreign currency accounts (FCAs)were frozen on the

orders of the ministry of finance in the wake of explosion tests on may 31 st 1998.

This and the recent efforts by the state bank to artificially lower the interest rates by revising the repo

rates downwards and encouraging lower bids for T-Bill, highlights the overwhelming role of the

government in the economy. Badla rates are a true indication of market rates at which financial

intuitions are willing to lend but the government, under the dictates of the IMF wants to artificially

lower the interest rates so as to provide investment liquidity within the economy.

General Musharafperiod of government putt back the economy of the Pakistan due to the wrongpolicies of the government for the economic growth in the Pakistan. Pakistan economy destroyed

badly in that 10 to 11 years of the government, and investors hesitated to invest in the Pakistan, and

also the load shading is another factor that effect the Pakistan economy badly.

This not the end of the story after this Pakistan economy face lot of problems like bomb attacks in

Pakistan no electricity and the unstable government, due to this the investor are not invest in the

Pakistan and the existing business men finish their business unit due to the loss.

Social forces:

A low saving culture has offset the huge population advantage this is enjoyed by Pakistan.Also culture is dedicated by the religion, and in Pakistan a significant segment of the population is

loath to accept interest for their deposits due to the negative religious implications of such an act.

About 70% of Pakistans population is based on rural areas, thus making it harder for banks to

mobilize their deposits within these regions.

Habib group also started a school system in Karachi for the cherty purpose. They give the funds to the poor person on the daily basis

Technological forces:

Banks in the developed world have been turning to heavy IT investments, which differentiate

their products, provide response times, enhance accessibility and improve customer satisfaction.

Though investing in state-of-the-art host banking solution (Fiserv, Kapiti, etc) , ATM and POS ( point

of sale) networks, visa, MasterCard, and Amex switches, smart cards, telebanking and now internet

banking are common IT investment in the developed world, it is now that these products and services

are gaining faster acceptance in Pakistan.

Bank Al Habib change their technology in IT sector due to the requirements of the current time,

before this they have the poor technology of the IT and un less skilled person in that field but at this

time they replace it with the heavy installation of the IT instruments. They hired new skill employed

and trained them for the efficient and effective work.
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3.3- Porters five forces analysis:

The model of the five competitive forces was developed by Michael E. Porter in his book

Competitive strategy: Techniques for Analyzing Industries and Competitors in 1980.

Porters model is based on the insight that a corporate strategy should meet the opportunities and

threats in the organizations external environment.

V. Rivalry Among Competing firms;Bank Al Habib limited is facing a strong competition from other private Pakistani banks like

Metropolitan bank. Soneri bank and Askari Commercial bank. The improved performance of

the nationalized commercial banks (NCBs) is also the threat for the bank Al Habib. Foreign

banks are also competing with the bank for same small medium sized companies. The bank is

overcoming the incentive competition due to its strong reputation as a renowned financial

group in Pakistan and a long history of experience in the banking sector.
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VI. Potential entry of new competitors;The entry barriers in this market are high. The new banks need permission from SBP so entry

of new banks is restricted. Also the paid up capital requirement is likely to be raised from

Rs.500 million to Rs.1 billion.

VII. Development of substitute products;The non banking financial institutions including development finance institutions (DFIs),

private sector investment banks (PSIBs), leasing corporations (LCs) and Modarbas are almost

in the same line of business and can be treated to the bank. Other substitutes that compete

include the national saving certificates, the stock market, its supporting industry and

brokerage houses.

VIII. Bargaining power of suppliers;The main suppliers in the banking sectors are depositors. Although the bank is given higher

return then any other bank (12% per annum) to attract the depositors but the low innovation in

the product and also low investment in the marketing sector of the bank may provide

difficulties in coming years.

The regulatory bodies could also be the suppliers as they provide guidelines to the bank from

time to time. These include the State Bank of Pakistan (SBP), The Corporate Law Authority

(CLA), The Ministry of Finance and the religious board.

IX. Bargaining power of customers;The main customers are small traders and exporters based in Karachi and Lahore, majority of

whom deal in textile related commodities. Since the bank is targeting the short-term trade

finance market, the bargaining power of customer is substantial as other banks within the

same sector like Habib bank, Bank Al Falah and Metropolitan are fast catching up with the

Bank Al Habib in providing services to the traders.
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MARKETING MIX IMC
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Internal assessment

4.1- Marketing mix:Marketing mix is the heart of the marketing. Marketers make marketing mix decision for

influencing their trade channel as well as their customers. Once they understand these groups,

marketer makes or customize an offering or solution, inform customers recognizing that may other

sources of information also exist set a price that offer a real value, and choose place where the

offering will be accessible.

Product;

Product refers to goods and services you offer to your customers. Apart from the physicalproduct itself, there are elements associated with your product that customers may be attracted to.

Bank Al Habib have the various products which are given below in detail.

Consumer banking Services Investment Islamic Banking Commercial banking Home remittances

Consumer banking;i. Auto loan:

Bank Al Habib APNI CAR- the car financing facility which gives you complete peace of

mind through convenient repayment plans.
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ii. Home loan;

Decent homes are difficult to purchase in todays everchanging world of real estate prices.

Safe and comfortable shelter is the prime necessity for each individual. So let bank Al Habib

with its home finance solution provide you with the means of buying, constructing your ideal

home.

iii. Home buying;Realize your dream with the Bank AL Habib Home Buying facility where you can own your

personal property. This scheme offers you to buy & own your dream home
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iv. Home construction;

Bank AL Habib will help you as our eligible customer to build the house of your dreams!

Eligibility Criteria

Pakistani National

- Salaried or Self Employed

- Minimum 23 to Maximum 60 Years Old

- Minimum Net Salary Rupees 20,000/=

v. Home improvement;

For Bank AL Habib, eligible customers, who wish to renovate their homes to meet the

changing needs of their family?
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Services:

i. Online banking;

Bank AL Habib offers Online Banking Facility to its account holders at branches all over

Pakistan. Cash may be accepted at a branch for crediting accounts at another branch; Chequescan be paid by a branch by debiting the customers account at another branch.

ii. ATM cards;

Now your Bank AL Habib ATM Card is not just an ATM Card Its much more

Bank AL Habib is a founder member bank of 1 Link, the largest shared ATM network

countrywide, giving you 24-hour access to your account from any ATMs. This network will

keep on expanding to give you unmatched and most convenient services.

iii. Debit cards;

Welcome to Cashless Transactions

In keeping with Bank AL Habib's tradition of bringing you the quality services, we now move

one step further, to add more convenience to your banking. Your Bank AL Habib ATM Card

can also work as a Debit Card at thousands of outlets and shops all over Pakistan, displayingthe ORIX Network logo for a maximum of 25000/= per day.
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iv. Telebanking;

Round the Clock Banking

Anywhere Anytime

Bank AL Habib, customer convenience comes first. After successfully launching FREE ATM

Cards and Online Banking. We now introduce yet another facility for all our customers.

AL Habib TeleBanking Service is a fully automated telephone banking service that brings

banking at your finger tips, giving you instant access to the information you need. Now you

can have access to your account without going to the bank 24 hours a day, 7 days a

week, 365 days a yearabsolutely free!

v. Electronic funds transfer;

The InterBank and IntraBank Funds Transfer IBFT is an electronic funds transfer EFT

facility added to the list of our existing ATM Card services. It is an automated solution for

bank to bank funds transfers which enable 1Link ATM Cardholders to avail real time funds

transfer facility from their account to any other account in Bank AL Habib (BAHL) or to any

3rd Party Account in BAHL or participating 1Link Switch Member Banks customer account

using their banks ATM.
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vi. Remittances;

Bank AL Habib Limited offers Funds Transfers in Pak Rupees (Inland Local Remittances) or

in Foreign Currencies, (Foreign Remittances) on request of customer.

vii. Life insurance;

It gives us great pleasure to inform our valued customers that Bank AL Habib has arranged

"Absolutely Free" Insurance Cover to our existing saving accountholders.

viii. Cash management;
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To provide value added services and solutions is part of our mission statement. We know the

complex requirements of corporate when it comes to effectively manage their liquidity/cash

flows. Our Cash organization suite of services/products is geared towards addressing these

business and operational complexities with the objective to streamline a company's

receivables and payables.

Investment:

1. Young savers account;Young Pakistanis, Bank AL Habib has designed a new account specially for you, ...

your own Young Savers Account.

Features;

This is an account for Young Savers of up to 18 years.Visit the nearest Bank AL Habib branch with your parent/guardian to open yourYoung Savers Account. You can open an account with as little as Rs. 5/=

Rate of return on Young Savers Account is expected to be well above the return onnormal savings accounts. Currently indicative rate of return on balances up to Rs.500,000 is 10% P.A and for balances over Rs. 500,000 is 5% P.A, payable sixmonthly.

Young Savers Account will have Internet Banking facility and ATM Debit Cardavailable to your parent/guardian

Young Savers of 16 years and more will also be eligible to receive ATM Cards andcan withdraw money through ATMs, if specifically authorized by theirparents/guardians (certain conditions apply).

Until you the Young Savers are a minor, i.e., below 18 years, the account will beoperated by your parent/guardian. When you attain majority, the balance in theaccount will be transferred to a new account which you will open and operate aftercompleting required formalities, including the concurrence of your parent/guardian.

Bank officers will also visit your school to help you open Young Savers Account andcollect your deposit.
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2. PLs saving account and monthly profit plan;Bank AL Habib offers Two Value Added Savings Accounts which are PLS Savings

Account and Monthly Profit Plan

Features;

PLs saving account:

Profit is paid out to your Account on six-monthly basis. There is NO Minimum Balance requirement for PLS Savings Account. The indicative Return Payable on "PLS Savings Account" deposits with effect from

July 01, 2008 is 5.00 % per annum. Free Life and Disability Insurance cover for accountholders.

Monthly profit plan:

This plan adds to the earning ability of your PLS Savings Account with Bank ALHabib.

Your profit is paid out / credited every month to your Account instead of six-monthlyas in case of PLS Savings Account.

NO Special forms or applications, NO Minimum Balance requirement. The indicative Return Payable on "Monthly Profit Plan" deposits with effect from

July 01, 2008 is 5.00 % per annum. Free Life and Disability Insurance cover for account holders

3. Treasurers call;Corporate societies, trusts and even individuals have large funds which are generally

idle. Such funds can be put to This plan is open to Current Deposited Account. Access to suchfunds requires only a 24 hour notice. Profit is calculated on a daily product basis and creditedto your Account monthly. The applicable rates for the Treasurer's Call Deposited Account,effective January 1, 2005 are: work to earn handsome profits via the AL Habib Treasurer'sAccount.


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4. Growth certificates:Bank AL Habib has now introduced 5 Years Growth Certificates for its customers

which are for a longer tenor at very attractive rates. Receipts may be issued on PLS TermDeposit Receipts clearly marked 5 Years Growth Certificates.
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5. Super saving account;Bank AL Habib has introduced Super Saving account to meet your needs.

Features of Super Saving Account.

Profit is Paid to your account on a quarterly basis. Minimum Deposit in the Account must be 500,000 or above.

6. Her mah munafa imdani main izaffa:AL Habib Mahana Munafa Account

High Returns Reliable and Convenient
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7. Senior citizen account;

High Returns Reliable and Convenient

In case of a joint account the Senior Citizen will be the primary account holder and other jointaccount holders must be between 18 and 60 years of age.

Profit will be paid on the first working day of the next month Up to 90% financing allowed against deposit.. The indicative return payable on "Senior Citizen's Account" deposit effective November 01,

2008 is 11% per annum. Free ATM Card. Profit may be drawn through Cheque or ATM from any branch of Bank AL Habib. Profit is subject to Zakat, Withholding Tax and other Government Levies unless exempted.

Islamic banking:

1. Deposit schemes;

Bank AL Habib Limited, Islamic Banking Branch, invites participation in the following

deposit schemes:

AL Habib Current Accounts AL Habib Saving Accounts AL Habib Term Deposits
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2. Islamic financing;

We also offer Islamic Finance for Individual / Traders / Industries, etc. These finances are offered inthe following forms:

Murabaha Finance Ijarah Finance (Leasing) Diminishing Musharakah Finance3. Declaration of profit;

Declaration of Profit on various Deposits for the Quarter ended March 31, 2009

Commercial banking:

We offer a full range of banking services which include:

Current and deposit accounts for corporate and individual clients. Foreign currency accounts. Finance through loans, and other credit facilities to the corporate, private and public

sectors. Short term finance of foreign trade through Letters of Credit and negotiation of Bills

of Exchange.

Issuance of Guarantees, Bid Bonds, Performance Bonds etc. Acceptance and placement of funds in the inter-bank market. Purchase and sale of foreign currencies. Trade information and research. Remittances and transfer of funds. Sui Gas Bills Collection on Direct Debit basis. MCB Rupee Traveler cheque.
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19252773 Bank Al Habib Marketing Management

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