Strategic Management Research and Integration

This assignment focuses on the evolving landscape of strategic management research. It examines how the field is expanding and the ongoing efforts to integrate various perspectives and approaches within strategic management. The assignment likely requires students to analyze recent research articles, identify key trends, and discuss the implications for future research directions in this dynamic field.

Running head: CORPORATE LEVEL STRATEGY
Corporate Level Strategy
Name of the Student:
Name of the University:
Author Note:

2CORPORATE LEVEL STRATEGY
Executive Summary
The main aim of the assignment is to understand the operations and functions of National Bank
of Kuwait. The study provides brief explanation of existing vision statement, mission statement,
strategies and objectives of National Bank of Kuwait. The current segment even develops
existing vision and mission statement for National Bank of Kuwait. Several tools are used for the
study to find external and internal environment factors. Competitive Profile Matrix had been
designed in the study that compares National Bank of Kuwait with other local banks that is based
in Kuwait such as Gulf bank of Kuwait and Kuwait Finance House. Internal Evaluation Factor
Matrix and External Evaluation Factor Matrix are explained in the study that highlights
strengths, weakness, opportunities and threats of National Bank of Kuwait. At the end of the
study, it is recommended that formulation of strategy is mentioned in the report as to how
National Bank of Kuwait needs to compete in this competitive world. The main objective of the
report is to formulate a strategy where the emphasis will be to provide a solution to the existing
problem. The problem can be solved when National Bank of Kuwait implement ERP system in
their operations and use latest technology to compete with the competitors.
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Table of Contents
Introduction......................................................................................................................................3
Existing Vision Statement of National-Bank of Kuwait.................................................................3
Existing Mission Statement of National Bank of Kuwait...............................................................4
Existing Objectives of National Bank of Kuwait............................................................................4
Existing Strategies of National Bank of Kuwait..............................................................................4
Developing vision and mission statement for National Bank of Kuwait........................................5
External opportunities and threats of National Bank of Kuwait......................................................6
PESTLE analysis of National Bank of Kuwait................................................................................6
Competitive Profile Matrix..............................................................................................................8
External Factor Evaluation Matrix................................................................................................11
Internal Strengths and weakness of National Bank of Kuwait......................................................12
Internal Factor Evaluation Matrix.................................................................................................12
Recommending long-term objectives and specific strategies to achieve them and comparing
recommendations to actual strategies planned by National Bank of Kuwait................................13
SWOT Matrix................................................................................................................................16
SPACE matrix...............................................................................................................................17
How recommendations can be implemented and what results are expected and identification of
any issue related to management, marketing, finance or accounting, research and development.17
Recommended procedures for strategy review and evaluation.....................................................18
Conclusion.....................................................................................................................................19
Reference List................................................................................................................................20
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Introduction
The background information that is mentioned in the given report is about strategy
formulation for National Bank of Kuwait. The main aim of the study is to elucidate about
developing mission and vision statement of the National Bank of Kuwait after aligning with the
existing vision, mission, objectives and strategies. The main objective of the study is to discuss
external environmental analysis by using tools such as PESTLE analysis and External Evaluation
Matrix. The study even explains regarding internal environmental factors that govern banking
sector by using tools such as Internal Evaluation Matrix. SWOT Matrix and SPACE matrix had
been highlighted in the study that explain attributes to understand the functioning of National
Bank of Kuwait. The scope of the study is to compare banking operations among the famous
banks in Kuwait such as National Bank of Kuwait, Gulf Bank of Kuwait and Kuwait Finance
House.
Existing Vision Statement of National-Bank of Kuwait
The Vision Statement of National-Bank of Kuwait is to become trusted bank of choice
that will build on core principles, people and knowledge (Barney 2014).
Existing Mission Statement of National Bank of Kuwait
The Mission Statement of National-Bank of Kuwait is to convey world class products as
well as highest service quality to the potential clientele. In addition, the bank believes in
attracting, developing and retaining best banking talent in the region. The bank supports the
communities where they conduct their operations. National-Bank of Kuwait aims at adhering by
the core values of passion, knowledge, conservatism as well as passion and integrity. National-
Bank of Kuwait believes in providing superior returns to their shareholders (Trigeorgis and
Reuer 2017).
Existing Objectives of National Bank of Kuwait
To enhance relationships and channels of cooperation between the association members
as well as coordinating activities for their common personal interests
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To improve the professional, cultural as well as social levels of the association members
employees (Bettis et al 2014)
To support as well as encourage activities of the Kuwaiti society (Bettis et al 2016)
To support as well as develop level of banking performance in the state of Kuwait in
order to satisfy the requirements of the national economy and reinforcing the monetary
and financial systems of the country (Stead and Stead 2013).
Existing Strategies of National Bank of Kuwait
The New Chief Executive of National-Bank of Kuwait had found ways to enforce
strategies of regional expansion as well as developing an Islamic finance business. The bank
keep their international and regional strategy on track and focus mainly on countries for
leveraging the strong franchise in order to get benefit from the strong economic outlook as well
as further growth opportunities that are available in and across the world (Rothaermel 2015).
Developing vision and mission statement for National Bank of Kuwait
Developed Vision Statement of National-Bank of Kuwait will be to provide best
customer experience to future generations of Kuwait here and abroad and compete in the various
markets (Bettis et al 2015).
Developed Mission Statement of National-Bank of Kuwait will be to become leading
financial services group with a worldwide existence that commit to a whole range of quality
products as well as services that will create worth and enrich lives of clientele, human resources,
communities and the shareholders as a whole (Rees and Smith 2017).
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External opportunities and threats of National Bank of Kuwait
Opportunities of National-Bank of Kuwait Threats of National-Bank of Kuwait
Infrastructure leasing finance Stiff competition from global banks
Finance to other sectors in order to boost the
exports as well as economy
Unrest in Gulf region
Finance to power business as well as airline
companies (Dévényi 2016)
Petroleum products now account for more than
90% export income and that is approx 80% of
government income. In that case, Kuwait’s
financial system is very susceptible to mainly
global oil markets as well as US strategy (Peppard
and Ward 2016)
PESTLE analysis of National Bank of Kuwait
Political factors- Kuwait is a legitimate dominion where the country is headed by Emir. Kuwait
claims itself to be democratic but it is not true in actual sense. It is because Prime Minister and
most of the cabinet ministers are appointed by Emir and originate from the ruling family
(Morden 2016). Democracy means that the Prime Minister will be appointed by the normal
people. In addition, Kuwaiti Government does not recognize political parties as well as most of
the assembly and pro-government independents but de facto where there are different political
parties. Politics in Kuwait remains complex by nature. Here, the Emir remains the ultimate
executive authority. All the important decisions will be taken through internal negotiations
within the ruling of Al Sabah family. Banking sector in Kuwait is demanding and they face high
rivalry from domestic banks. There is high entry barrier as it is a expensive affair to begin a new
bank by taking into account the resources as well as expertise staff members needed in the
process (Durand, Grant and Madsen 2017).
Economic factors- Kuwaiti banking sector is one of the powerful in the MENA region that
benefits from the vigorous monetary outline as well as strong support instrument and limited
rivalry from other foreign banks. Kuwait is a small and comparatively open economy with
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established crude oil reserves of more than 96 billion barrels. The world economies had
witnessed an economic slowdown that had triggered by the US subprime crisis. To that, it is
noted that International Monetary Fund had projected the fact that world economy might recede
at a rate of 1.3%. Kuwait entered into a pact with other GCC countries for establishing a
monetary union for better integration of GCC economy (Mitchell and Leiponen 2016). The
structure of banking structure in Kuwait is fairly concentrated where National Bank of Kuwait is
more than twice the size of the next largest bank in terms of assets as well as deposits. There is
excessive intervention from the government in general for the banking sector on matters relating
to administrative control, bail-outs as well as subsidized loans and equity injections. One of the
features of Kuwaiti bank is that they have mixed nature of ownership. It is not the case with
National-Bank of Kuwait as the bank is totally owned by the private sector where the
administration is a investor in the rest of the banks (Eden and Ackermann 2013).
Social factors- Kuwait have a drastic social structure in terms of prosperity and inheritance. On
top, there is ruling family of Al Sabah and then the old Kuwaiti merchant families. At Kuwait,
social mobility is quite inactive due to the enriching inheritance government initiatives and
clannishness (Jenkins, Ambrosini and Collier 2016).
Technological factors- Kuwaiti government is on its way to execute a metro system with 69
stations in and across the nation. There are only 4 state owned broadcasters and one Satellite
channel. It is noted that Kuwait does not produce any of the high-technological solutions and
there are non renewable energy sources in use. It is predicted that Kuwait government is slowly
moving towards high technology development (Hubbard, Rice and Galvin 2014).
Environmental factors- Kuwait has desert climate that is well-known for its dryness as well as
hotness.
Legal factors- In accordance to Kuwaiti Government, they do not allow any foreign business to
institute a branch or perform any of the profitable property in their nation (Foss and Hallberg
2014).
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Competitive Profile Matrix
The Competitive Profile Matrix is one of the tools that compare any firm with its rivals or
competitors in order to reveal their relative strengths and weakness. Most of the firm uses
Competitive Profile Matrix for better considerate the external setting and competition in any
specific business (Hill, Jones and Schilling 2014). This particular matrix highlights the key
competitors of a company and compares it by using critical success factors of that industry. This
analysis help in understanding the relative strengths and weakness against the competitors so that
the company knows about the areas of improvement and which areas to protect
In this study, competitive profile matrix will be used to find out the competitors of
National Bank of Kuwait. The three main competitors of National Bank of Kuwait are Kuwait
Finance House and Gulf bank of Kuwait. After identifying the competitors of National Bank of
Kuwait, it is then required to reveal relative strengths and weakness with their competitors.
National Bank of Kuwait should use Competitive Profile Matrix to better understand the external
environment as well as competition present in the banking sector in Kuwait (Frynas and Mellahi
2015).
Competitive Profile Matrix
National Bank of Kuwait Gulf bank of Kuwait Kuwait Finance House
Critical
success factors
Weight Rating Score Weight Rating Score Weight Rating Score
Technology 0.13 4 0.52 0.13 2 0.26 0.13 1 0.13
Best rates 0.08 3 0.24 0.08 2 0.16 0.08 2 0.16
Product
Innovation
0.05 4 0.2 0.05 2 0.1 0.05 3 0.15
Improving
Quality of
service to
clients
0.04 3 0.12 0.04 2 0.08 0.04 2 0.08
Brand Image
or recognition
0.14 4 0.56 0.14 3 0.42 0.14 3 0.42
Size of the 0.08 3 0.24 0.08 2 0.16 0.08 2 0.16
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company
Location and
convenience
0.05 4 0.2 0.05 2 0.1 0.05 4 0.2
Increasing
deposits
0.07 3 0.21 0.07 3 0.21 0.07 2 0.14
Expanding the
base of
banking
services
0.02 4 0.08 0.02 2 0.04 0.02 3 0.06
Capital
Preservation
0.11 3 0.33 0.11 1 0.11 0.11 2 0.22
Humanitarian1
and social
services
0.15 3 0.45 0.15 3 0.45 0.15 3 0.45
Raising the
rate of profit
0.08 4 0.32 0.08 2 0.16 0.08 2 0.16
Total 1 3.47 1 - 2.25 1 2.33
From the above table on Competitive Profile Matrix, it is understood that National Bank
of Kuwait is the strongest players in the banking sector in Kuwait with relative strengths in
expanding base of banking, best interest rates, and rate of profits and brand image or recognition.
On the other hand, Gulf bank of Kuwait prevails in humanitarianly and social services,
increasing deposits and brand image or recognition. Kuwait Finance House prevails in product
innovation and brand image or recognition. Here, Gulf bank of Kuwait is weakest of all that does
not have relative strengths on comparing it with closest competitors (Hill and Jones 2013). It is
essential for the companies to create their strategies based on strengths and weakness and make
an effort to improve their ratings in the most significant areas.
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External Factor Evaluation Matrix
External Factor Evaluation Matrix
Key External factors Weight Rating Weighted
score
Opportunities
Infrastructure leasing finance 0.04 4 0.16
Finance to other sectors in order to boost the exports as well as
economy
0.09 3 0.27
Finance to power companies as well as airline companies 0.11 2 0.22
New trends can increase market size 0.09 3 0.27
New products and services are possible 0.06 4 0.24
New technologies are available at reasonable costs 0.05 2 0.1
New trade agreements between countries are possible 0.06 3 0.18
venture capital 0.05 4 0.2
Threats
Stiff competition from global banks 0.11 4 0.44
Unrest in Gulf region 0.02 3 0.06
-increase in labor costs 0.05 4 0.2
growing competition and lower profitability 0.04 3 0.12
New market entrants 0.05 3 0.15
increasing rates of interest 0.07 3 0.21
Total 1 2.82
Internal Strengths and weakness of National Bank of Kuwait
Strengths Weakness
Stable management team and skilled workforce Presence only in MENA countries
Clear and focused strategy Corporate and investment banking services
Consistent profitability High loan rates possible
High asset quality Future profitability
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Strong capitalization
Innovation and monetary assistance provided
Long serving Executive team and unrivaled track
record
Internal Factor Evaluation Matrix
Internal Factor Evaluation Matrix
Key Internal factors Weight Ratin
g
Weighted
score
Strengths
Stable management team and skilled workforce 0.11 4 0.44
Clear and focused strategy 0.12 3 0.36
Consistent profitability 0.12 2 0.24
High asset quality 0.05 3 0.15
Strong capitalization 0.11 4 0.44
Innovation and monetary assistance provided 0.07 2 0.14
Long serving Executive team and unrivaled track record 0.06 3 0.18
0.11 4 0.44
Weakness
Presence only in MENA countries 0.11 4 0.44
Corporate and investment banking services 0.05 3 0.15
High loan rates possible 0.07 4 0.28
Future profitability 0.02 3 0.06
Total 1 3.32
Recommending long-term objectives and specific strategies to achieve them and comparing
recommendations to actual strategies planned by National Bank of Kuwait
Long-term objectives
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To target current and existing customers for meeting their needs and expectations
To get updated information system so that there will faster operations at National Bank of
Kuwait
To deal with diverse types of information and new products
To expand market locally and internationally
To maintain cost of data that is a costly affair and need urgent attention by National Bank
of Kuwait
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Strategies to achieve the above long-term objectives
It will be easy to target existing and current customers if National Bank of Kuwait
conducts market research by appointing individuals in the Research and Development
Team. Market research will help in understanding the current needs and expectations of
the customers from the bank. Appointing members in the Research and Development
Team is a costly affair but is productive at the same time. In order to have proper
information on customer retention and acquisition, market research will properly help in
solving the issue in the bank.
The old system that is presently operated by National Bank of Kuwait is not updated and
slow. The old system actually has different information systems for each of the
department. Hence, National Bank of Kuwait should adopt ERP system to get access to
additional server capacity without any extra maintenance cost.
National Bank of Kuwait should focus mainly on providing innovative products that is
unique by nature and that can easily help in competing with the local competitors. The
products should be unique in terms of accessibility and affordability. They should
provide full spectrum of innovative as well as unrivalled investment services to
corporate, individuals and institutional clients.
The only weakness or drawback of National Bank of Kuwait is that they have strong
presence only in MENA countries. National Bank of Kuwait does not have international
presence and this need proper attention. National Bank of Kuwait should focus on
innovative activities so that they are well-recognized and popular in banking sector.
National Bank of Kuwait had been awarded as Safest Banks for the year 2017 and this
demonstrates ongoing effects of global political uncertainty as well as ripple effects on
entire world. National Bank of Kuwait enjoys highest credit ratings in the MENA region
and but need recognition internationally as well. The ratings supports by National Bank
of Kuwait in terms of conservation, strong capitalization as well as prudent lending
policies as a whole.
Comparing recommended long-term objectives and specific strategies against the actual
strategies planned by National Bank of Kuwait
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Strengths
Clear and focused strategy
Consistent profitability
High asset quality
Weakness
Presence only in MENA countries
High loan rates possible
Opportunities
Infrastructure leasing finance
Threats
Internal Factors
External Factors
Positive Negative
CORPORATE LEVEL STRATEGY
On comparing both long-term objectives and specific strategies, it is recommended to
National Bank of Kuwait to plan out several long-term objectives and strategies so that they can
retain their existing financial position. National Bank of Kuwait is one of the largest financial
institution and leasing bank in the Middle East. It is important for the bank to be more flexible in
their operations and more productive by nature to meet the needs and expectations of the
customers. National Bank of Kuwait should deal with diverse types of information as well as
new products at the same time. They should expand the market locally as well as worldwide as
well (Harrison et al. 2017).
SWOT Matrix
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SPACE matrix
X- axis
Internal Strategic Position External Strategic Position
Competitive (-6: worst, -1: best) Industry (+1: worst, +6: best)
-1: Service Quality
-1: Market share
-3: Brand and image
-2 Product Life Cycle
+6 Barriers to entry
+4 Growth Potential
+5 Access to financing
+5 Consolidation
Total X axis score- 3.00
Financial (+1: worst, +6: best) Environmental (-6: worst, -1:
best)
Y Axis
+5 Return on Assets
+4 Leverage
+6 Liquidity
+5 Cash Flow
-2 Inflation
-1 Technology
-2 Demand Elasticity
-4 taxation
Total Y axis score- 2.75
How recommendations can be implemented and what results are expected and
identification of any issue related to management, marketing, finance or accounting,
research and development
National Bank of Kuwait could not expand its market share globally as the bank has
strong presence only in MENA countries (Goetsch and Davis 2014). The bank even could not
target the current as well as potential customers in an effective way. There was slow speed of
information flow that was present between human resources, clientele as well as business
enterprise. The decisions made by the management used to offset market changes and it were
equally slow and costly affair. Maintaining cost of data was pretty much higher that need urgent
attention by National Bank of Kuwait. Different issues can be resolved if National Bank of
Kuwait started implementing ERP system in their operations as it is technically advanced and
solve issues that current prevails in the bank. This bank had old system that had different
information systems for each of the departments. Hence, new system will help in bringing all the
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departments closer and there will be easy flow of information. Implementing new system will
easily overcome most of the shortcomings or issues especially in case of protection costs. The
new system can simply promote as well as get access to additional server capacity that will be
added without any extra maintenance cost. The system itself is too costly and National Bank of
Kuwait had already invested too much time and money. But, the bank should try out ERP system
to make work easier and smooth. The new system will successfully meet the needs as well as
expectations of the customers. The new system can easily identify the most profitable customer
and potential customers in an effective way. The new system enhances effective business
operations as well as reporting and decision-making process. The new system ensures that there
is a need to maintain data quality as well as high availability (Gamble and Thompson 2014).
Recommended procedures for strategy review and evaluation
It is recommended to National Bank of Kuwait for selecting use of IT strategy like core
system changes by building an SOA driven incorporation stage as well as delivery of Business
Intelligence system as it is one of the part of a fluid information architecture. In addition, it is
suggested to National Bank of Kuwait for implementing a new Operational Data Store as it is
one of the effective data warehouse that help in consolidating data from different business
enterprise. It will help National Bank of Kuwait with the ability to drive all other enterprise that
includes Business Intelligence Systems as it supports all decisions. Furthermore, SAP business
objects software should be selected by National Bank of Kuwait as it covers operational
reporting where the distribution of vendor will have access to be in line with the needs of the
banks.
Conclusion
At the end of the study, it is concluded that National Bank of Kuwait was awarded for the
title of Best Bank in Kuwait as well as Middle East. The bank is ranked in the 100 most
successful banks in and across the world and third among Arab banks. There is need for an ERP
system at National Bank of Kuwait as it will help the bank to be more flexible in actions as well
as generate productivity in activities by coordinating business process in integrated manner.
Implementing ERP system will help National Bank of Kuwait to focus upon efficient resource
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management as well as customer service. This ERP system can be upgraded very easily and have
access to additional server capability that can be added without a great deal of preservation. In
addition, the new scheme will help at the time of data integration from legacy systems for mining
purposes and lead towards getting access to flexible and dynamic at the time of dealing with
various types of information and new products in the most appropriate way. This ERP system
will help the bank to increase their marketplace locally as well as internationally and beyond the
Arabian Peninsula and Middle East.
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