Business Strategy for Al Bilad Bank
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Question 1
Elements of e-business strategy
Bank Al Bilad is recognized in Saudi Arabia to provide all Islamic people with banking opportunities compliant with the Sharia. For the bank to safeguard the interests of the community, it adopts various elements of its business strategy framework. The first element enacted by the Al Bilad bank is strategy definition. This includes strategic decision-making, strategic planning and implementation. It also ensures that the business has a picture which motivates its energy towards the expected goal. The second element that the bank always considers is analysis. Bank Al Bilad performs business analysis protocols to examine various external factors affecting the bank, evaluate the in-depth analysis of the activities and the effect of future solutions to the community. The study puts into account customers, actors, transformation processes, environmental differences and the owner. The third element of an e-business strategy framework of the bank is the definition of strategic objectives. This is an elaboration of what the business should engage in to fulfil its set goals. The bank intends to venture into information technology infrastructure and the digital transformation project while protecting information and assurance of business continuity. The company also uses the swot analysis model to evaluate whether its aspirations can be achieved in a given period
Question 2
Swot analysis
Swot analysis is an evaluation tool that’s done by business enterprises to understand the internal and external factors that boost their operations or inhibit its effectiveness. Similar to other organizations, the bank has strengths, weaknesses, threats and opportunities
Opportunities
Al Bilad has a lot of options in Saudi Arabia. Firstly, due to its vast provision of products and services, the bank can expand its borders and have a broad market. Secondly, the advancement of technology has boosted its e-business strategy, making it easier to for the firm to surpass its goals. These opportunities if well utilized, could lead to a more sustainable and productive bank.
Threats
In the expanse of the various options in the market, a company can have its significant setbacks due to the risks presented in the industry. Competition is a major external factor that can reduce the efficiency of Al Bilad bank operations due to similar banks in Saudi Arabia. Advanced technology compromises the safety of highly classified information in the bank.
Strengths
Al Bilad bank is known to have a strong financial status backed by the Sharia Department in its policies. Also, the bank provides a variety of products that the community can benefit from. In addition to that, innovation in the major sectors of the bank has proved to strengthen the quality of the services offered.
Weaknesses
Despite the measures done to raise the bank’s efficiency, it continues to impact its sustainable growth and development. This is as a result of a wide variety of services to be given and a lack of specialization. Furthermore, Islamic culture does not fully support some of its operations.
Question 3
Forces of Industry framework
The five forces of an industry framework examine the correlated relationship of the various factors of the industry to analyze the degree of competition and development of a business strategy.
These factors include the power of the buyer, supplier power, the threat of new entrants, threat of substitutes and industry rivalry.
There is a low level of entry of new entrants in the banking industry in Saudi Arabia. Al Bilad invested a high initial capital which would be a hindrance for new entries. Also, customers are loyal to the Al Bilad bank, which would make it hard for new entries to get customers.
The second force is the threat of substitutes which is high because there are similar firms that provide the same products and services offered by the bank. They, therefore, have an alternative. Al Bilad has an advantage over them due to a firm brand name. However, this is mobile due to the changing trends in the economy.
Industry rivalry poses a high risk to the bank. The bank is surrounded by small and large companies which provide quality products and services. This implies that the bank should implement measures to outmatch its competitors.
The power of the buyer and the power of the supplier is also high because customers have an alternative from other banks. However, this is controlled by the implementation of a loyalty program and its uniqueness of products to the Islamic culture.
Question 4
Business canvas model of Al Bilad
A business canvas model is a tool that shows the basic mechanism of the activities done in a business organization. It focuses on how a firm creates, delivers and captures value in its operations. Also, it’s an integral part of a business analysis procedure. The aspects include vital partners, key activities, value propositions, customer relationships and customer segments.
| Key partners | Key activities | Value propositions | Customer relationships | Customer segments | |
| Business Analysts
Technology Accessors
The bank has come up with a team of professionals to promote the efficiency of the bank’s operations. This entails It experts, research analysts and investors in conjunction with the executive board. |
Customer Retail banking
Cooperate banking activities Treasury activities Technologically based banking services |
Vast provisions of products and services
Efficient customer care service Low-interest rates
Each bank has its mechanism to deliver value to its customers. A well-thought portfolio is a significant boost to providing value. |
Self-service
Service automation Customer loyalty incentives
Meeting the needs of the customer and offering good quality services motivates the loyalty of the customer. This strengthens the bank’s brand name. |
Cooperate customers (borrowers and depositors )
Retailer customers (borrowers and depositors)
The implementation of various business strategies has aided the bank to access a wide field of customers. It has also boosted service delivery and customer loyalty to the bank. |
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| Key resources
Huge product portfolio Physical and IT impairment
The bank is endowed with government and social support. The bank receives significant donations from many companies, and this ensures fast delivery of services. This is due to the uniqueness of its products. |
Channels
ATMs Mobile devices Call centres |
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| Cost | structure | Revenue streams | |||
| IT costs
Development expenses Social responsibility costs Sustainability costs
Social expectations of a quality delivery come with expenses that the bank cannot evade. For each category, the bank must use a considerable amount of money for the smooth running of its operations. |
Interest income
Service income
The bank charges money on cash saved and borrowed and also from some of the services it offers to its customers. |
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References
Master of Professional Business Analysis Retrieved 2018-07-07
https:www.ru.nl/english/masters/business-analysis-and-modelling
Kathleen B Hass, Richard Vonder Horst, Kimi Ziemski (2008) From Analyst to Leader: Elevating the role of Business Analyst Management Concepts