ARAB BANK-PALESTINE

Pros and Cons for alternative strategies

Strategy 2 – related diversification

Open an Investment bank

Pros: High opportunity in the growing economy, transferring of the experience, enhance competitive position

Cons: Costly, barriers to entry, and other governmental limitations

Pros and Cons for alternative strategies

ARAB BANK-PALESTINE

Strategy 1 - Product development:

Introduce mobile banking service:

Cons: Convenience, Higher levels of customer service and satisfaction, Customer loyalty

Pros: Customer resistance to change , cost of training of new employees

Offering increased interest rates on saving accounts:

Pros: Will increase the demand of saving accounts, Growth in market share, customer loyalty, and customer satisfaction

Cons: High level of deposits could be costly

The Strategy-Formulation Analytical Framework

STAGE 2: THE MATCHING STAGE

STAGE 3: THE DECISION STAGE

Conclusion

- The Arab bank holds a competitive position among its competitiors.

- The bank should adopt market penetration, product development, and related diversification strategies.

- Introduce Mobile banking

- Increase promotion

- Offering higher rates on deposits

- Launching an Investment bank

Those will increase:

- Customer loyalty

- Quality of customer service

- Competitive position

Implementation

(strategy 1- Product development)

To implement this strategy:

- Special Telecommunications System must be installed.

- Experts must be hired to work on it.

- R&D team to develop services.

- Marketing efforts should be increased.

STAGE 3: THE DECISION STAGE

THE STAGE 2: THE MATCHING STAGE

The QSPM Matrix (Cntd.)

STAGE 2: THE MATCHING STAGE

STAGE 1: THE INPUT STAGE

STAGE 2: THE MATCHING STAGE

Outline

About the Arab bank

- About the Arab bank

- Vision, Mission, and Values

- Stage 1: IFE, EFE, and CPM

- Stage 2: SWOT, SPACE, BCG, IE, and GS

- Stage 3: QSPM Matrix

- Pros and Cons for alternative strategies

- Conclusion

- Implementation and recommendations

- Established in 1930 in Jerusalem by 7 investors

- 43 branches in the Arab world

- 600 branches worldwide, 30 countries

- BOD composed of 11 members and headed by Sabih Al Masri (Chairman)

- Stock price is 9.39 JD according to ASE

- Arab bank for social responsibility "Together" supports SOS village, plus "Usool" program.

- Has 16 other competitor, BoP and CAB are the

main rivals

STAGE 1: THE INPUT STAGE

STAGE 2: THE MATCHING STAGE

STAGE 1: THE INPUT STAGE

STAGE 2: THE MACHING STAGE

Vision, Mission, and Values

Modified vision:

Our vision is to sustain our leading role as the best financial institution in the Arab world and to be recognized as being among the best financial service providers in the world.

Thank you...

Presented by:

Majdoline Sakakini

Hiba Ismail

Ghassan Hasan

Modified values:

Modified mission:

Our mission is to provide the highest quality banking services to serve our clients, corporations, and government agencies to help them achieve economic success in addition to financial security through the offering of the variety of products and services including Consumer Banking, Corporate and Institutional Banking (CIB), and Treasury. Our aim is to generate sustainable growth for our stakeholders and to build a place where employees can gain knowledge to grow and be satisfied with their work. Through a series of 600 branches worldwide we strive to hold up an exceptional set of values and be active and responsible members in the societies we serve along with maintaining technological advances in the banking sector.

Integrity - We show respect and value to all individuals.

Simplicity - We deal with people and issues openly, directly and respectfully.

Sustainability - We seek to sustain growth and development.

Trust - True to our history, we will always protect the interest of our customers.

Commitment - We are fully committed to the region, dedicated to the people and economies.

Citizenship - We are active corporate citizens, fostering the growth and advancement of our communities.

Service Excellence - We strive to deliver world class service and a great customer experience. In addition, we seek to offer diversified products and services including consumer banking, corporate and institutional banking, and treasury.

Customer Focus - Our customers come first and everything is centered around their needs.

Transparency - We value open and clear communications, earning us confidence and trust from our customers, shareholders and employees