Sunday, April 18, 2010

SWOT ANALYSIS of Askari Commercial Bank


v    Holds a sound repute in the financial circle

v    Personalized services of the staff to the employees

v    Located in the commercial area, so that the customers face no problems in reaching to the bank.

v    Maintaining the healthy correspondent  relationships with foreign banks

v    Provide a record business in exports sector

v    It has a reliable and easy to use internal computer system.

v    All the transactions and information regarded the customer’s deposits has been computerized. Currently, Unibank System is being practiced for this purpose. Now Askari Bank is decided to change the Unibank System

v    ACBL has launched its Mobile ATM Bus Service, which is the Pakistan’s First Mobile ATM Bus Service. No other bank has taken initiative of mobile ATM Bus yet.


v     No advertisement on electronic media has been seen yet.

v     Since, ACBL’s major competitors are Union Bank Limited and Bank Alfalah has started large media campaign, so keeping in view these threats, Askari Bank should emphasize more on its advertisement.

v     some of the employees are burdened with over work.

v     Division of work and description of job is not properly defined to each and every staff member.


v     All the opportunities of the 21st century are to be availed in the information technology. Information technology is the future. Therefore ACBL should emphasize much on IT,

v     ACBL should emphasize on E - Banking. In which Bank can design a universal account like other foreign banks, to enhance online facilities.

v     Askari Bank’s growing business requires an extensive branch network. There are great opportunities for ACBL for the expansion of its business.


v     Askari Bank is facing a strong competition by its major competitors; Union Bank and Bank Alfalah. Business of these banks is also growing with very high pace. So in order to achieve the sustainable growth in a market, ACBL has to remain vigilant about the ever changing environment and the competitors.

v     All the competitors are using different means and methods to popularize their product and services. So ACBL should keep in mind that a customer cannot come to the bank until he know that my demands will be fulfilled over here.

v     ACBL should enhance the Pay Packages given to the employees, because it has been noticed that the competitors of the ACBL are giving more suitable pay package to their employees.

v     ACBL should enhance its Branch Network, in order to capture the market of different areas.

The SWOT analysis of the bank signifies that its strengths overcome its weaknesses and its opportunities are more than its threats. This is positive sign for any Organization             


The global economic environment has changed, creating challenges and opportunities for the world’s policy makers. Now there is a greater awareness that Banks are playing very important role in the economic growth of any country. A.C.B.L, no doubt a positive contributor in this respect but I think there are certain points which bank needs to adopt in order to serve in a more effective and efficient manner.  These points are as under:

1)      A.C.B.L should create business opportunities for themselves. Nowadays there is a  intense competition between the banks. All the banks are expanding with aggressive Askari bank needs to open more branches to capture the market.
2)      Model Banks like Citibank, M.C.B Bank, Standard Chartered Bank are using media very effectively to increase the business of banks.So A.C.B.L should need to use electronic media for its business developments.
3)      The working of the A.C.B.L Tufail Road, Lahore Cantt Branch  is satisfactory rather very good but still these working efficiencies are
far from the standard of modern banking system. Because there are many hurdles and discrepancies in the existing system.
4)      The bank should finance its loans in those projects that are meeting the required standard and should avoid the political pressure.
5)      The bank should bring forward the new talent as fresh knowledge and education is considered very important to increase the efficiency and production.
6)      There is need to make the outlook situations of branches in those manners that can complete the other modern banks in the banking market.
7)      Keeping in view the hard work by the staff members at all levels of management, staff should be given bonus and increment every year. Nepotism should be avoided in this connection.
8)      Separate desk or counter should be established in every branch to provide the information as required by the clients. Normally the Personal Assistant of the Branch Manager act as a Public Relationship Officer.
9)      The environment of the offices should be comfortable so that 
    the client and staff must feel comfort during business in bank.
        Unsecured loan are not to be provided in case of banks directions,  
        their families, companies or firms.
10)  There are some employees untrained which decreases the  efficiency of the bank branch. All the employees should well trained.
11)  Most of the bank employees are sticking to one seat only, with the result that they become master of one particular job and loose their grip on other banking operation. In my opinion each employee should have regular job change.
12)  .People have to wait for re-cashing their cheques and for paying their School Fees, which is not good for reputation of bank, it should be improved.
Promotion should be given to competent persons on merit basis                                                       

SECURITIES FOR ADVANCES a bank may require

No doubt, the advancing of credit involves a great risk for the bank. Therefore, to cover this risk, the bank keeps different tangible and non-tangible securities, before sanctioning the credit facility to a customer. The bankers prefer such securities that carry less risk of depreciation due to market fluctuations and are easily sale able, even under changing market conditions.

Common securities against banker advances are as under:


Pledge is the actual delivery of the movable & tangible property to the lender, as a security for a credit. In a pledge, the possession of movable assets is with bank but the ownership remains with the client. Pledge is against short-term finances and is considered to be the best security for the bank. The commodities that are pledged include generally, raw material, consumables, finished goods and in certain cases work in process (WIP).


For every credit, the bank needs security with margin or cushion. Similar is the case with pledge. For example, if, there is 25% margin requirement then to obtain loan of Rs.1 million, the security that is to be pledged should be of worth Rs. 1.25 million.

Since, in pledge, the possession of the goods is with bank, so bank keeps these goods in the godowns under the custody of Mucaddams.


People who look after the pledged goods for bank are called Mucaddams. If cotton (raw material) is to be pledged by the bank, it doesn’t mean that this cotton will be kept in bank; such type of goods is kept in the godowns of the company. So, to make these goods secure, the bank appoints its own men called Mucaddams to take care of stock.


A letter of credit contains several clauses. The main ones are:

The heading of a credit indicates the type of credit and its purpose. For this purpose, every bank has prescribed its own letter of credit forms.

The fixed amount to which the bank is liable is specially mentioned in the letter of credit.

The documents required are specially mentioned in the credit

A brief description of goods that are required by the importer is given.

Part-shipment means shipment of goods in lots or installments i.e. in more than one shipment.
Trans-shipment means the carriage of goods by more than one vessel or mode of transport.
The credit must specify whether this can be trans-shipped / part-shipped or not.

This is a very important clause and because every credit indicates an expiry date or the validity period. This period is so fixed to provide sufficient time to complete the transaction.

This clause indicates the method for obtaining the reimbursement by the foreign negotiating bank. It will be discussed elaborately in later part.

Human Resource Department of UFONE

Monday, April 12, 2010

Impacts of e commerce on direct marketing

E-commerce is the pre-eminent buzzword of the online business revolution. It captures the excitement and focus of this fast emerging market. But it is more than a slogan or glib party line. At its core it embodies a concept for doing business online.

Impacts of E-Commerce on Business

E-commerce has made a profound impact on society. People can now shop online in the privacy of their own homes without ever having to leave. This can force larger brick and mortar retailers to open an online division. In some cases, it can also force smaller businesses to shut their doors, or change to being completely online. It also changes the way people look at making purchases and spending money. E-commerce has changed the face of retail, services, and other things that make our economy work. Undoubtedly, it will continue to influence how companies sell and market their products, as well as how people choose to make purchases for many years to come. The following are the impact of e-commerce on the global economy.

Impacts on Direct Marketing

Product promotion E-commerce enhances promotion of products and services through direct, information-rich, and interactive contact with customers.

New sales channel E-commerce creates a new distribution channel for existing products. It facilitates direct reach of customers and the bi-directional nature of communication.

Impacts on Direct Marketing

Product promotion E-commerce enhances promotion of products and services through direct, information-rich, and interactive contact with customers.

New sales channel E-commerce creates a new distribution channel for existing products. It facilitates direct reach of customers and the bi-directional nature of communication.

Direct savings The cost of delivering information to customers over the Internet results in substantial savings to senders when compared with non ­electronic delivery. Major savings are also realized in delivering digitized products versus physical delivery.

Reduced cycle time The delivery of digitized products and services can be reduced to seconds. Also, the administrative work related to physical delivery, especially across international borders, can be reduced significantly, cutting the cycle time by more than 90 percent.

Customer service Customer service can be greatly enhanced by enabling customers to find detailed information online. Also, intelligent agents can answer standard e-mail questions in seconds and human experts' services can be expedited using help-desk software.

Corporate image On the Web, newcomers can establish corporate images very quickly. Corporate image means trust, which is necessary for direct sales. Traditional companies such as Intel, Disney, Dell, and Cisco use their Web activities to affirm their corporate identity and brand image.

Other marketing Impacts

Customization E-commerce provides for customization of products and services, in contrast to buying in a store or ordering from a television, which is usually limited to standard products. Dell Computers Inc. is a success story of customization. Today, we can configure not only computers but also cars, jewelry, gifts, and hundreds of other products and services. If properly done, one can achieve mass customization. It provides a competitive advantage as well as increases the overall demand for certain products and services.

Advertisement With direct marketing and customization comes as one-to-one or direct advertisement, which is much more effective than mass advertisement. This creates a fundamental change in the manner in which advertisement is conducted not only for online trades but also for products and services that are ordered in traditional ways.

Ordering System Taking orders from customers can drastically be improved if it is done online. When taken electronically, orders can be quickly routed to the appropriate order-processing site. This saves time and reduces expenses. So sales -people have more time to sell. Also, customers can compute the cost of their orders, saving time for all parties involved.

Markets The physical market disappears as does the need to deliver the goods to the marketplace. In a market space, which is an electronic market, goods are delivered directly to buyers when purchasing is completed making markets much more efficient. For those products that are digitally based-software, music and information-the changes will be dramatic. Already, small but powerful software packages are delivered over the Internet. This fundamentally affects packaging and greatly reduces the need for historical distribution.

New selling models such as shareware, freeware are emerging to maximize the potential of the Internet. New forms of marketing will also emerge, such as Web-based advertising, linked advertising, direct e-mail, and an increased emphasis on relationship marketing. Customer’s convenience is greatly enhanced, availability of products and services is much greater, and cheaper products are offered. All these provide EC with a competitive advantage over the traditional direct sales methods. Some people predict the "fall of the shopping malls," and many retail stores and brokers of services are labeled by some as "soon to be endangered species."

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