Report on the Bank of Muscat

Executive Summary of the Bank of Muscat:

Bank of Muscat is one of the largest Bank in Oman. There are number of different people who are successfully availing their facilities. This bank offers all of the modern banking strategies that includes many different branches of ATM  in Oman, Online banking system along with the facility of Mobile banking through which consumers can do their specified or particular tasks in no time by staying at home and even going out of their comfort zone. As we all know that consumers have increased their demands on large scale and they want each and everything to be best. Bank of Muscat is the one that is fulfilling all kinds of needs and try to be best in all ways. This is the report that discuss number of different factors in it like the strategy planning process for this bank that what actions are being involved in it or what are the points that make this bank to run successfully. Then this report covers some of the external environmental analysis in regard to this Bank of Muscat that what are those factors that may affect the working of this Bank of Muscat. Then comes the part which describes elaborately about the different kind of strengths that are affiliated with this Bank of Muscat which makes the working of this bank. So in short this report covers the different factors that are affiliated with Bank of Muscat in detail.

Introduction of the Bank of Muscat:

Expansions with the different regulations facing number of different transformative impacts on the present landscape in all of the banking sector. Banks give all of their efforts as much as possible to get adapted swiftly with different pioneer practices along with the different products which provides certain gaps in a market or to improve the efficiency of operation as well. Different banks are present in the Oman which are giving different facilities to the customers and these banks are also trying to be innovative and use much of the modern technologies for facilitating their valuable customers.   (Faris, 2016)

Such modern kind of the baking covers different areas in it and it includes ATMs, mobile banking as well as online banking. One can use these facilities to make themselves comfort and relaxed. Like all over the world, in Oman as well there are certain different banks that are positively as well as successfully use the internet technology for managing different things and make them easy to facilitate the customers in all of the possible ways. Modern banking is the one which is using the connection of an internet for managing out different things and make connection between users and the bank which they use. They can control different transactions, transfer funds and have a look at them by sitting at home. In such a modern world and as the competition is also increasing day by day in many fields, the case is exactly same for all of the banks as well and all of them have developed their strategies in a successful way so that they can reach out to their consumers in no time and without any difficulty. One things need to be notified here that this kind of the rapid and fast growth of an economy completely depends upon the online banking sector that is particularly relying upon the internet along with different connections of mobile phones.

Here satisfaction of the different consumers is important factor for the success of banking. Through protection for the importance of a satisfaction of consumers in a mind, here is a complete need of the banks for the maintaining a close association with the customers through giving them the services that are high in quality as compared to the other competing banks in the market. Banking industry is one of the high involvement industry. Banks are also getting aware of the fact that provision of the high quality service to the different customers is very important for the survival along with the success as well in today’s global as well as the competitive environment. (Hussain, 2003)

In today’s world, consumers have increased their demands as competition in the market has increased and still increasing rapidly. Every consumer wants different things that makes them relaxed and is also easy to be used as well. Satisfaction of the customers may also have the measurable effect for the retention of consumers along with the purchase and the financial performance too. Therefore in today’s world different banks are looking for different advanced technologies and Bank of Muscat is among them that provides all of the best services to their consumers by all means and to make them happy.

Strategy and planning process of the Bank of Muscat:

Bank of Muscat is one of the most famous services provider in an Oman country having a great impact in the corporate, Islamic along with Investment banking. This bank functions in an Oman below the license of banking that has been issues by the central Bank of Oman. Investments of the different banking activities are also being licensed by the Capital Market Authority of the Oman. Bank of Muscat has the largest network having 152 different branches, 668 ATM along with the cash deposit machines as well. The international operation consisting of a branch in Kuwait along with the Kingdom of Saudi Arabia KSA. Bank of Muscat has the proven record for the excellence in service and then it enjoys 38% of the market share in Oman. Bank of Muscat has also been listed on the Muscat securities Market and is listed on the London, Bahrain and the Luxembourg stock exchanges as well. (Khan, 2017)

Risk management is the process through which this Bank of Muscat identifies some of the key risks by applying some of the consistent techniques of risk measurement, recommending that which risks need to be accepted and which ones to be rejected.

Sustainability Framework of the Bank of Muscat

This sustainability framework for the Bank of Muscat is being designed to pave out the paths for the successful economy, social as well as environmental development.

Support: They aim to support out the social and different humanitarian activities along with the events and different charitable causes for keep on serving all of the local communities.

Accountability: It has been acknowledged that different activities need to support the sustainable development by the endless efforts to effect the society directly or indirectly along with the environment and economy as well. They also aim to develop the different activities for the expansion of positive reach and the incorporation of sustainability into their business practice.

Recognition: They believe in encouraging as well as motivating their employees for undertaking the different voluntary activities. They have specified systems at their place to promote the participation of employees in different activities and benefitting the society, economy and the environment. (Kumar R. R., 2015)

Development: They are also committed for the growth of economy by the sustainable development of their business. They contribute towards this development by working endlessly and closely with all of the different local communities along with applying all these programs in different ways to benefit the society in a positive way.

Their sustainability framework is the result of a leadership along with supporting out the management as well. They have driven out the different principles of the sustainability from the top down and then into the fabric of their working culture or environment. They are being motivated and committed to deliver different values to the economy, society and the environment. This Bank of Muscat is also determined to be one of the International best practice leader and they want to be the top most bank for the customers in providing different services and products that are best from the others in a market. (Kumar V. &., 2017)

External Environment analysis of the Bank of Muscat:

Bank Muscat established in year 1982, it is one of the top leading financial service provider in the Sultanate of Oman. It provides different facilities like Retail banking, Co-operate banking, Islamic Banking, Investment banking, Treasury, Private banking along with the Asset management service. This bank has 149 branches and more than 10,000 poS terminals. External Environment analysis of this Bank of Muscat states or covers different factors. Banking industry in Oman which has evolved generally in a massive way in almost last ten years and they are also becoming competitive in an increasing order. This External Environment analysis include factors:

Political Environment of the Bank of Muscat:

This is a sub-factor one can say and it comes under the complete external environment analyzation. There are number of different factors that are being taken up into consideration that includes the different policies for the tax, political stability, trading agreements, foreign policy and many other in the same way. All of them have a great effect on the performance of this Bank of Muscat in Oman. Political system in the Oman is much turbulent because in this country political environment is quite unstable in different nations which are neighboring this fir. But here in the Bank of Muscat there are minimum disruptions. (Murthy, 2010)

Economic Environment of the Bank of Muscat:

There are multiple economic factors that affect the operations for this Bank of Muscat and this factor includes the disposable incomes, inflation, rate of interest, economic growth and many others as well. All these factors become the great source for the profitability to Bank of Muscat. Landscape of Oman is increasing rapidly and ultimately same is the case with Bank of Muscat as well. This is because of the different kind of developmental plans. The Bank of Muscat has been a beacon for the stability along with the financial prudence in an area. In the past time they have also faced different distress due to number of different financial crisis. (Peterson, 2007)

Socio cultural Environment of the Bank of Muscat:

Socio-culture is one of the important factor that shows a great role in helping out the business to run smoothly and especially in the Banking industry. Same implies to the Bank of Muscat as well as it also comes under the group of banking industry in Oman. This is the factor that helps out the employees to understand the behavior of customers that what do they require or what do they want in an effective manner. Attitude of all the individuals, choice for the carrier, lifestyle, health awareness and some other factors are known to be the vital and major elements that needs to be considered. (Sharma, 2013)

This modern banking especially Bank of Muscat covers certain areas that includes the ATM services, online banking and the mobile banking as well. This bank is using all these technologies in a very effective as well as successful way for managing the things and facilitating the different consumers as well as much as possible. By the use of internet, modern banking is being done that makes a connection easy and feasible among consumers and the different braches of banks. 

Here satisfaction of the customers is the most important part for making banks successful. By keeping the satisfaction of consumers in mind by providing them with services and qualities in comparison to other banks. This bank is famous and most common in providing all of the best services. This bank is completely aware that by providing the high quality services to the consumers it is the source of being successful in today’s world where competition is too much. 

As we all know that all the consumers have become much demanding as competition is increasing day by day on large scale. Every consumers seeks for the technology that is unique and different from the other banks in the society, . These customers also want full attention of the employees from which they are taking the banking services and Bank of Muscat is among them. This bank knows how to deal with their consumers. Satisfaction of the customers have a positive effect on the retention of the customers and the financial purchase as well. Different consumers are completely satisfied by the services which this bank is providing and therefore it is the leading bank in Oman.

Different banks are facilitating the consumers in Oman on large scale and no doubt that each one is best as compared to the other one but when it comes to the Bank of Muscat I believe that nothing can compete the services of this bank that how it satisfies the customers and provide all of the best services to the consumers. Bank of Muscat is the one that comes on the top of the list and customers are really satisfied through their services along with the way how they deal and satisfy their customers by all means. There are many other banks as well that are facilitating the customers on large scale but out of all them, Bank of Muscat is the one that never fails to make their customers get satisfied and help them at every hour or whenever they need them. Their staff members are much cooperated and try to be present always in every situation.

Strengths for the Bank of Muscat:

Bank of Muscat as we already discussed about it in detail that it is one of the largest bank in the Oman and almost every second person living in Oman is the user of this Bank of Muscat. Here we are going to have a look at some of the strengths that are affiliated to this Bank of Muscat and how they play a role as well.

Flagship Final: This is one of the largest bank in the Oman having a very strong presence in all of the banking services. This bank has almost 150 different network of branches in Oman, 2 foreign branches and 2 different representative branches. This bank has almost more than 500 ATM machines from which different customers take unlimited advantage. Customer base for this banking exceeds 1.76 million. This bank also has a working force of more than 3500+ employees. This is not just the end but it is also the recipient of the best bank award that is the Oman from number of different agencies.

Strong financial fundamentals: Bank of Muscat is the one that is maintaining its capital adequacy ratio constantly for almost 16% from last 4-5 years that is known to be one of the healthiest in Gulf-Cooperation Council GCF. This bank also has operating along with the net profit ratio that grows at the CAGR of almost 9.5% and 16.50%. Capital adequacy ratio is the most significant ratio in any of the bank is the healthiest in Bank of Muscat. To compliment it, there are different financial indicators that include the gross deposit, loans and net profit which all of them are in the sound position. Along with this, its assets as well as net profit is more than three times to its nearest competitor that is Bank Dhofar. (Tripathi, 2008)

Successful Islamic Bank Operations: Bank of Muscat has some of the well-established Islamic banking offers that is called as Meethaq. Financial portfolio of this bank has grown successfully by the CAGR of almost 60% in last four years if we look back and compare it with now. This bank has 16 dedicated branches for the niche Islamic banking offerings that are sharia complaint and also offers the comprehensive portfolio of the products. (Baydoun, 2013)

Technology Investments: Bank of Muscat investments in the area of technology over the last one year has its paying off having an increased degree of the sophistication that lead towards the higher efficiency along with the cost savings. It’s some of the digital banking channels like the e-payment along with the web services have not only become the reason of increasing the sales along with the service portfolio but also resulted in making the customer experience much better.

Issues of Change of the Bank of Muscat:

Volatile, Uncertain, Ambiguous and Competitive Environment

            There are certain kinds of environments that makes the workings of the organization impacts differently and it makes the things to be more comfortable for the working of the organization as they are going to make the working easier. Different atmospheres are there that effects on the working of the organization including Volatile, Uncertain, Ambiguous and Competitive environment that faced by different organizations making their workings entirely effective and beneficial both in making the pouter aspects differently and effectively.

Volatile Atmosphere: There are many of the external factors are there that impacts positively and potentially form the outer side of the organization. It means that there are some elements that impacts externally on the environment like competitor’s workings, marketing impacts of competitors that allows the things to work on the basis of the workings and other different things as well. There are many of the things that are going to work on the outer sides externally and internally in terms of making the workings better. In order to achieve the organizations goals, are achieved on prioritization and with short-term coordination as the issues need to be addressed properly and efficiently.  

Uncertain Atmosphere: It is that kind of atmosphere that totally changes the conditions of workings of the organizations and this is making the things to be more reliable and there became many of the factors occurs under the managements concerns that allows the issues to be uncertain for the management to take control on.

Ambiguous Environment: Ambiguity in the atmosphere causes serious problems in the organization and this makes the things very much unclear and unpredictable as this will not be able to manage the circumstances in a way that if you do not take care of the aspects properly then this going to make the workings hard to remove and strong enough to educate the workers on how to tackle such atmospheres.

Competitive Environment: Competition with your competitors helps to get efficient workings and this makes the things more appropriate and better as competition motivates people regarding effective decision makings and realizing on new and innovative ways of working.

Solution Identification of the Bank of Muscat:

This cooperate governance is the system through which different corporations of the business gets controlled or even directed as well. This Corporate Governance structure also helps in specifying the part or role for each of the individual participant in any of the corporation that includes the managers, different stakeholders along with the shareholders as well. Bank of Muscat is the bank in Oman that strongly believes in different ethical values for making out the decision on the affairs of corporate. Through this kind of act, this also helps in providing out the structure by which the objectives of an entity are being set, monitored or even measured as well. They conduct different affairs with the ample amount of customers, investors, employees, vendors and the regulators as well. Bank of Muscat is the one that is operating certain principles of all the good corporate governance steadily while its inception. Corporate governance at the Bank of Muscat has evolved a lot and it has not just evolved through ensuring the compliance with all of the regulatory requirements but to be responsive as well to all the needs of a shareholder. This is the bank that strives for an excellence by number of different objectives along with enhancing the satisfaction to both of its shareholders along with the customers.

Financial services of the flagship provider in Oman, Bank of Muscat is the one that has successfully achieved 100% of the Omanisation in number of different operations, prioritizing the Omanis and giving much importance to them for hiring them at different posts. This is the bank that covered the total number of strength in year 2018 by the number of 3679 employees with ratio of almost 94.67% Omanisation. Human resources strategy is quite notable for this bank in the maintenance of the gender diversification as the almost 48% of the total employees for this bank are women that are fulfilling their different duties by staying on different positions in the bank. This is the bank that is also playing one major role in the development for the talent of Omani and they are solely committed for investing in the improvement of their experts along with the skills that people already have. They try their best to polish it out as much as possible. (Choudhury, 2013)

By looking in the terms of future in regard to the financial institution, this Bank of Muscat is at the position of forefront in causing a contribution in the society and then setting one fine example as well for the corporate sector for developing the social responsibility being the corporate culture. CSR that is the corporate social responsibility along with the sustainable strategy continued through the Bank of Muscat and it is also focused for delivering of the benefits that would be long in different terms to the whole community along with the whole nation as well through creation of the positive effect on the society through covering certain areas like the education system, sports, youth and the health part as well. Bank of Muscat is the pioneer for the initiative of CSR for the banking sector in Oman that is committed solely for the economy, community and the environment as well.

Strategy Implementation of the Bank of Muscat:

Strategy implementation is the execution of different strategies and plans. This is the plan that has been used by the Bank of Muscat so that it can accomplish the long termed goals. This strategy helps to achieve the certain objectives that are being planned by the organization to make it successful in different terms and by doing number of different efforts as well. Strategy implementation can be used by the Bank of Muscat by five different kind of the steps that can make this organization to be successful.

Communication in an appropriate way along with the alignment as well. CEO of the Bank of Muscat can start doing this by communicating their different objectives in a clear and effective way. All these objectives also need to be driven through the vision and values of the Bank of Muscat.

Drive out the accountability. CEO for the Bank of Muscat should be the very first person for creation of the different goals and objectives and then sharing out all the goals with the employees working in the Bank of Muscat.  

Focus need to be created and every employee in the organization starting from the low post to the higher one, everyone needs to be highly motivated and focused as well only then they can achieve or obtain out the goals and make the Bank performance better.

After all this, every individual needs to be action oriented and they also have to track out the progress as well.

Conclusion of the Bank of Muscat:

In such a competitive world, every other bank tries to get better than the other one. Bank of Muscat is one of the largest bank in Oman that is successfully and honestly delivering out their services to the number of different consumers which are a part of this banking system. The management along with the other team members of this bank are committed solely to fulfill their duties and for them customer satisfaction is the top most preference or priority. This bank has the large ratio of employees. In today’s world, consumers have increased their demands as competition in the market has increased and still increasing rapidly. Every consumer wants different things that makes them relaxed and is also easy to be used as well. Satisfaction of the customers may also have the measurable effect for the retention of consumers along with the purchase and the financial performance too. Therefore in today’s world different banks are looking for different advanced technologies and Bank of Muscat is among them that provides all of the best services to their consumers by all means and to make them happy. Different factors have been described in detail  in the report and one can analyze the performance for the Bank of Muscat in detail here.

References of the Bank of Muscat:

Baydoun, N. M. (2013). Corporate governance in five Arabian Gulf countries. . Managerial Auditing Journal.

Choudhury, M. A. (2013). Corporate governance in Islamic perspective. . International journal of Islamic and Middle Eastern finance and management.

Faris, N. A. (2016). Determinants of Financial Banking Stability: An Empirical Study of Commercial Banks Listed in Muscat Security Market.

Hussain, M. (2003). The impact of economic condition on management accounting performance measures: experience with banks. Managerial Finance.

Khan, F. R.-b.-S. (2017). Impact of Social Media On Customers Satisfaction: Bank Muscat–A Case Study. . Ahead International Journal of Recent Research Review,,, 154-163.

Kumar, R. R. (2015). Is Teamwork Effective in the Work Place? An An Analysis of Team Work Environment in the Banking Sector, Sultanate of Oman. . 173.

Kumar, V. &. (2017). An Evaluation of Islamic Banking at Bank Muscat, Oman. Review of Integrative Business and Economics Research,. 254.

Murthy, M. K. (2010). Customer services and satisfaction–A study with reference to customers of bank Muscat. . . Asia Pacific Journal of Research in Business Management, 1-24.

Peterson, J. (2007). Historical Muscat: An illustrated guide and gazetteer.

Sharma, R. P. (2013). Life Insurance Marketing In India: Leveraging the Strengths of Multi-Channel Distribution.  .

Tripathi, P. &. (2008). Higher education mapping of GCC countries: An analytical framework of strengths and opportunities. Higher Education in the Twenty-First Century: Issues and challenges, . 149-161.