institution report on commercial bank of qatar
Commercial Bank of Qatar (Report)
I worked in the main headquarters in the Commercial Bank Plaza and developed a lot of insight into the various functions of the institution.
Mission/ Objectives: The bank is founded on a simple promise that everything is possible. It is a premise that is inspired by the sense of future possibility while focusing on the present financial needs.
Internal and External Organization
Internal Organization (Management): The Bank of Qatar gets managed by a board of directors led by Sheikh Abdullah, who is the Chairman. Mr. Abdulla Saleh is the Chief Executive Officer, and Hussein Ibrahim is the managing director. It consists of 9 non-executive members and 13 executive members.
Departmental structure: There are departments such as the Finance department that deals with financial reporting managing and accounting. The operations department incorporates Information Technology, security, and property services. The organizational effectiveness department is involved in performance management, talent development, and training; the audit department, marketing department and the risk department.
`Functional structure: The bank provides the following key services: enterprise, corporate and private Banking, Sadara privileged banking, printing cheques, deposits, corporate premium services, giving mortgage, investment advice, and insurance brokerage services. Since it is a Commercial Bank, it deals with mainly Retail and Wholesale banking. Through wholesale banking, it provides an array of commercial and investment banking services and products to SMEs. As far as the Retail Banking function is concerned, it provides conventional personal banking services and products to retail customers in Qatar
The value chain model is a systematic way of examining all the activities performed by the firm and how they interact. The value chain represents an organization as a chain of activities for transforming inputs into outputs that customers value (McIvor 2005). It includes primary and support activities. According to McIvor (2005), primary activities are those directly involved in creating and adding value to a customer. They include inbound logistics, operations, outbound logistics, marketing, sales, and service. The inbound logistics function is in the customer service and reception departments of this bank. The outbound logistics function in this industry is done by bringing services to customers directly at their convenience by, for example, opening up branches. This bank has 12 branches countrywide.
The sales and marketing are done through mainly advertising of its products. Operations in this Bank is concerned with activities that take place in back office department that encompasses finance, risk, credit, accounts and legal departments. Support activities enhance the primary activities and include the following: procurement, technology development, human resource management and firm infrastructure (McIvor 2005). About technology, the bank also provides mobile banking services and online savings accounts. The bank has outsourced its suppliers. In the human resource department, it trains with some of the leading universities and business schools in the world. The bank has also invested in infrastructure slowly as seen by the construction of the Commercial Bank Plaza, the former structure that was seen in the Middle East to have a full, transparent curtain glass system.
External structure: PESTEL analysis enables one look at either the success or failure or both of the business depending on political, economic, social, cultural, technological, environmental, and legal factors (Doke 2007). Politically, the bank has a strong relationship with the government. The Qatar Investment Authority invested 16.7% in the Bank, and that its largest depositors are Government related entities. There are also Benefits from the resilient Qatari economy. Currently, the economy is experiencing growth in the service, utilities, and industrial sectors.
It takes part in corporate social responsibility programs and sponsors events. Examples include the Masters Golf tournament taken as a global prestigious golf tournament. Again, there is Grand Prix Moto GP, which is also a car racing sporting event. This aspect is an indication that the Bank is keen on the promotion of excellence in sports and fulfilling its national duty of promoting Qatar as an international harbor of sports.
It also engages in charity practices such as supporting the Qatar Society for Rehabilitation of People with Special Needs and Foundation for Elderly People in Qatar. It has also established a full-service Ladies’ Branch granting. This is a lending and loaning scheme against gold for feminine that do not have access to other assets was also introduced. The technological advancements have been perceived positively. Some of the technological advancements include services such as online banking and use of ATMs.
The Qatar economy relies heavily on oil and gas that accounts for nearly half of its GDP and almost three-quarters of the government revenue. It is one of the world’s fastest growing and highest per capita income countries. Being such an industrialized country with heavy investment projects, the banking sector gains a lot from this due to the liquid money flowing into the economy and hence the heavy need for the banking industry.
We shall refer to two of the five forces that include competitive rivalry and threat of new entrants (Porter 1980). The banking market is a perfectly competitive market in Qatar. It, however, has some of the best banks in the world, as well as the fastest-growing presence abroad. This aspect is due to government banking regulations.
Qatar’s investment liberalization policies are moving forward on a gradual basis, with the need to protect local companies from foreign competition that threatens the business. Foreign investment gets limited to 49 percent of the capital for most companies. A partner, who is of Qatari descent, is required to hold at least 51 percent of the capital.
Marketing: The company has focused on marketing and major infrastructure investment hence creating a strong brand. Therefore, they are in a position to capture the corporate business and other forms of business. As the banking market is very competitive, the bank engages in heavy advertising and differentiation of products and services
It mainly uses sports events as a marketing tool for its products. The bank sponsored events such as Qatar Masters golf tournament and the Grand Prix Motor GP of Qatar. Additionally, it is the major partner in the upcoming 2022 world cup in Qatar. The bank is also engaged in supporting cultural activities that sell the country’s image abroad as well as its own. This is shown by its collaboration with the Katara cultural village that is a regional harbor of arts and culture.
Stakeholder analysis: A stakeholder analysis is a method of scanning the external and internal environment of the organization with the sole purpose of understanding that individuals, companies or institutions we must relate to, what expectations they hold for us, hence predicting our dealings with them. There is an exclusive strategic partnership with Katara cultural village, offering bank customers priority access to any of Katara’s events and the funds raised being reinvested in Katara. The commercial bank has a successful diversification strategy shown by a strategic alliance with the National Bank of Oman as well as the United Arab Bank in the UAE.
It also signed an agreement with Qatar Development Bank to finance small- and medium-sized enterprises in a bid to balance the interests of the Qataris of today and tomorrow while at the same time striving to maintain the best of traditional values. The bank formalizes all its transactions with suppliers by drawing service level agreements. There is also the use of technology in operations. This way it is more efficient.
HRM/Personnel: Qatar Commercial Bank has over 12 branches countrywide branches with over 1100 staff. Employees earn highly competitive rewards package including salaries, performance-based bonuses and preferential rates on some of the Commercial Bank products. During my placement, I was given enough training to test my abilities and skills. I was also able to attend a wide variety of courses. Adequate supervision was provided only through detailed instructions notably; the bank uses a bureaucratic style of leadership where everything is done according to standard or procedure. It was named by Gulf Business as one of the top 10 companies to work for in Qatar.
It trains with some of the leading universities and business schools in the world such as London Business School. The bank has overtime worked towards boosting the career progression of some of its prominent leaders as well as build and enhance a serious foundation of its staff.
Conclusively, the bank proves to be a strategic asset to the fast-growing Qatar economy.
It provides technically the best working environment that enables one grow professionally.
Doke, L., Hatton, E., & Smortfitt, R. (2007). Entrepreneurship. Cape Town, South Africa: Pearson.
McIvor, R. (2005). The outsourcing process: Strategies for evaluation and management. Cambridge: Cambridge University Press.
Porter, M. (1980). Competitive strategy: Techniques for analyzing industries and competitors. New York: Free Press.
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