Analyzing NBAD's Business Environment: Structure, SWOT, and PESTLE

This report provides a comprehensive analysis of the business environment, focusing on the National Bank of Abu Dhabi (NBAD). It begins with an overview of different organizational types, the growth of the international business environment, and the complexities of various business structures. The report delves into the size and scope of NBAD, detailing its products, services, and organizational structure, including a comparison with another company, Information Systems Associates FZE. It further examines NBAD's organizational structure, followed by PESTLE and SWOT analyses to identify its strengths, weaknesses, and the impact of macro and micro-environmental factors on its business objectives and decision-making processes. The report concludes with a critical evaluation of these factors, providing insights into NBAD's position within its industry.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Overview of different types of organisations and growth of international business
environment............................................................................................................................1
D1. Critical analysis of the complexities of different types of business ...............................3
2. Size and scope of different organisations with services and products...............................4
3. The organisational structure of NBAD and business environment of a public company with
its advantages and disadvantages...........................................................................................7
4. PESTLE analysis of National Bank of Abu Dhabi..........................................................10
5.. SWOT analysis for National Bank of Abu Dhabi to identify major strengths and
weaknesses...........................................................................................................................11
6. Critical evaluation of impact of macro and micro environment on business objective and
decision making of chosen organization..............................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

Illustration Index
Illustration 1: Organizational structure chart of NBAD..................................................................7
Illustration 2: Organizational structure/chart of EWS.....................................................................9

INTRODUCTION
The business environment refers to all environmental factors that are influence to the
organisation and these factors will be either internal or external factors. In these factors, it
includes all types of elements that can influence employees, staff members, customer's
preferences, suppliers, stakeholders etc. (Apăvăloaie, 2014). In other words, business
environment is the sum of all internal and external factors that can influence a business.
In this context, there is a company, National Bank of Abu Dhabi which is situated at Abu
Dhabi, United Arab Emirates. It provides various banking services like project financing,
corporate banking, loans, treasury, property management, etc. to its clients. The report covers
different types of organisations with their size and scope. Further, it includes SWOT and
PESTLE analysis of this organisation and also provides the interrelationships among these
external factors. Lastly, it covers present inside and outside analysis and its influence on the
process of decision making by the management team.
MAIN BODY
1. Overview of different types of organisations and growth of international business environment
The organisation is a well-managed and structured group of people in which their work is
properly managed in order to achieve a common goal. It is a social unit or association of people
and they work together towards achieving one or more than one goal and mission (Botha, Kourie
and Snyman, 2014). There are some types of organisations that are given as below: Voluntary Organisation – It is a special type of organisation in which a group or an
individual enters into the contract as a volunteer to make an organisation or body. It
includes some characteristics like its membership neither prescribed nor genetic, it has a
special autonomy from the state and it is being self-governed by the unpaid trustees like
temples, churches, mosques, etc. Private Organisation – These kinds of organisations has been determined as the
partnership, corporation, agency or an association that is not governed by public or any
public body. It maintains and controls its selective members by operating a particular
federal property (Bryman and Bell, 2015). These types of business are free from any
control and interfere from government or by its activities. For example: transportation
work, banking services and schools.
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 Public Organisation – This organisation purely focuses on public and its impacts on the
human society as well as human life. It works for public welfare and includes non-profit,
governmental and non-governmental organisations (Carroll and Buchholtz, 2014). For
example: The Great Angelina Private Salon, NMC private hospitals, etc.
 Profit Organisation – This kind of organisation has a particular motive that is to make
profit and money as much as possible. It is opposed to non-profit organisation that
majorly focuses on its goal to provide help to society. Such organisations use several
sources and tactics to make higher profits.
Legal structures – People generally makes a group or entity legally and follow rules as well
as acts. It is the special entity that includes government, corporation, partnership and any type of
political or civil association of people which is governed by law (Charter, 2017). The legal
structure of an organisation is divided into three categories which are as follows: Proprietorship or Sole Trader – In this type, an individual is the owner of that
unincorporated organisation and they run or operate the business in the right way with
their control, management in order to achieve special objectives. All the business profits
and incomes are seen as personal income. The main demerit of sole trader is that there are
unlimited individual responsibilities of business owner for all taxes, claims and debts
against the organisation and possible actions of business upon the proprietor's change or
death. Partnership Firms – In such type, there are two or more than two persons who work
jointly and achieve a common business goal. All the participants are known as partners
and they are an agent for partnership. They have a right of borrowing money, hiring staff
members for their business and operating organisation in the right way (Crane and
Matten, 2016). In this type, profits are also taxed as personal income and all the
participants are still responsible for firm's taxes and creditors. Company – It is a special type in which people are grouped in a systematic structure and
it incorporates under its special act or law. It is bound in this law and a company cannot
conduct any work which is not prescribed. Companies are normally of two types that are
described as under :
◦ Private company – In this kind, company has minimum two members with a
minimum subscribed capital as may be prescribed in their memorandum of
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association (Hair and et.al., 2015). It also has directors that are minimum two and its
members cannot increase more than 200. There is a compulsion that every private
company should compile “private limited” word at the end of its title.
◦ Public company – It is authorised by central government and it has minimum seven
persons and maximum is unlimited. Its members have a right of transferring their
shares to other members. This type of company should compile only “limited” word
at the end of its title name.
D1. Critical analysis of the complexities of different types of business
Growth of international business environment: The environment of international business is
tremendously effects of the modern economy. It refers to the transactions of activities that carry
out across national borders to accomplish the requirements of an individual, organisation as well
as nations (Hamilton and Webster, 2015). There are some elements and modes of international
business that should be compiled by an organisation: Price moderation and inflation – The inflation rate depends on economy of that nation.
There are various factors that influence the economic activities. An international
organisation has benefit of exports and things which are imported by it are profitable for
the whole nation. Diversification – It is a different factor that relies on the growth of an organisation. There
is a huge demand for products that affect the business climate (Kolk, 2016). It is one of
the method for to diversify a company’s risk that seen in abroad markets or international
market, as an answer for covariant petition. Such markets provide vacillate to an
organisation by furnish outlets for excess manufacture capacity.
 Profit and sales revenue – In the foreign market, there are a huge share of profits of the
total organisations and it has wisely cultured markets overseas (Apăvăloaie, 2014). Many
companies sell their products and services to outside the nation because it provides a
huge profit for the company as well as nation.
2. Size and scope of different organisations with services and products.
The scope and size of an organisation are determines by its structure which is a
systematic process used to define a special hierarchy in side that organisation. This is refers as
the functions and task with its process. The organisational structure is created for establishing the
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technique for assists and run the company in the right way towards achieves desired
organisational goals and targets.
In the organisational structure, it defines the body of that company and it is usually
provides by the management team of that organisation (Botha, Kourie and Snyman, 2014). In
addition to this, there are four types of organisational structure that are divisional, functional, and
flat and matrix. In this context, there are different private, public and voluntary organisations,
these are as follows:
Chosen organisation – National Bank of Abu Dhabi. (Public sector)
It is the first and greater bank in Abu Dhabi which is situated at 1 NBAD Tower, Abu
Dhabi, and United Arab Emirates in 1968. Currently its premises and headquarter at Al Maryah
Island. It is the first UAE bank to expand international business and open its branch at Cairo,
Egypt in 1975. After its expansion, the management also introduce many new branches in
different countries in the world for example it opened its financial services at Oman and Sudan in
1976, at the UK in 1977 at France and USA in 1979.
 Products and services - In its business activities, there are a whole range of corporate,
investment banking, wholesale, wealth management, retail and private banking (Bryman
and Bell, 2015). It also provides property management, brokerage, financing, leasing and
wealth management.
 Scope and size – It has $225 billion as its assets in 2015 and it emerged with many
entities and known as first bank in that country. Currently it is the largest bank in the
North Africa and Middle East. Its market capital is $32 billion. Its 71 % shares are
owned by the ADIC group and 21 % are owned by different individuals balance share are
owned by the corporate, government and private sectors.
 Several objectives, mission and vision – It is a brand which mission and vision are
inspired by the strengths of both FGB and NBAD (Carroll and Buchholtz, 2014). Its
objectives are to provide better financial services to its potential clients in order to
achieve competitive advantages.
 Legal structure and stakeholders – In this organisation, the CEO of acting group is
Abhijit Chodhary and for Deputy group Abdulla Mohammed Saleh Abdul Raheem. The
stakeholder of this organisation majorly ADIC corporation and some share in the hand of
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different individuals and few are owned by private and government agencies. In addition
to this, there are some information about its legal structure is as under :
◦ Superior Managing Administrator & Group General Counsellor in Legal &
Compliance Division - Samer Abdelhaq
◦ Head of Global Markets & Senior Managing Director - Mahmood Al Aradi.
In private sector – Information Systems Associates FZE.
The Information Systems Associates also known as ISA and it is an aviation software
house serving airports, airlines and many travel agents. It was establishes in 2005 and its current
Chief Executive Officer is Nader A. Shukralla and it is a private company (Charter, 2017). It is
situated at Sharjah UAE as well as it has a Research and Development centre at Colombo Sri
Lanka.
 Products and services – The company is provides various services like technological
software that use at many airports, revenue management, e business suits, airlines and
ground as well as crew operations. All these services are renders across the world in
different nations and earn profits. Its software is Java based and there are three types of
products aeroMART, aeroLINE and aeroPORT which are provides for different types of
system for example computer reservation, agent booking, departure control, ground
operations and crew management services.
 Scope and size – It has a huge range of its services and products that catered to the
Airports, Airlines, Tourism and Travel industry and made remarkable achievement since
its origin with reaching many targets along the way and set ambitious design for its better
future (Crane and Matten, 2016). In its scope, it provides a modern online reservation
system.
 Several objectives, mission and vision – It is a company that objectives is provides
service for aviation domain experts and give on demand delivery. It also wants that
renders best-of-breed technology mixture for the worldwide aviation and travel sector.
Mission – To get organic growth and development through quality, innovation and
commitment.
Vision – the technology choice for airline and travel industry.
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 Legal structure and stakeholders – There are many stake holders of this company that
are Mahan Airlines, Syrian Arab Airlines, Fly Me, Dallo, Air Arabia and many more. Its
CEO is Nader A Shukralla.
In voluntary sector's organisation – Emirates Wildlife Society World Wild life Fund.
It is the leading Arabian Gulf based Non-Governmental Organisation that is committed to
providing help to society and people so that they live in harmony with nature. It is situated at
Environmental Agency, Abu Dhabi United Arab Emirates (Hair and et.al., 2015). This company
is established by the patronage of Sheikh Hamdan bin Zayed Al Nahyan the chairman of
Environment Agency in that nation.
 Products and services – It is the best NGO in UAE and provide healthy environment for
its strong economic growth and thriving society. Its major works are designed to protect
the country's natural heritage like land, seas, biodiversity with its different plans,
research, awareness and education to make sure alignment to future growth and
development as well as sustainability.
 Scope and size – It is an association works with the World Wildlife Fund that is most
reputable and world's largest self-directed conservation organisation (Hamilton and
Webster, 2015). It has more than five million members and supporters with a global
network that work actively in over hundred nations.
 Several objectives, mission and vision – Its mission is to preserve the natural heritage of
UAE and to more promote sustainable lifestyle. It has a main objective is to create
sustainable future in the UAE
 Legal structure and stakeholders – It is an active NGO in the Emirate from 2001 the
EWS WWF has implemented and initiated many protections and education projects in
that region. It has made stake holders relationships and partnerships that utilize in
conservation issues.

3. The organisational structure of NBAD and business environment of a public company with its
advantages and disadvantages.
The organisational structure or chart is a systematic diagram that shows a relationship
and reporting hierarchy of an organisation. It is uses in variety of sectors in different ways. It
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also shows the work duties and improves line of communication (Kolk, 2016). This organisation
follows the functional organisational structure for conducts its business activities in better way.
There are four types of organisational charts that are matrix, divisional, flat and functional top
down chart.
The National Bank of Abu Dhabi company conducts many organisational functions for
example– human resource, finance, production, research, administration, marketing,
development and many more in order to achieve competitive advantages in its target market.
Relationship among various organisational functions – The main works of this organisation
are divided in to different functional lines (Moore, 2016). All the organisational structure is
interconnected with it and it allows to each employees to concentrate on their vision and mission.
In this context, all the organisational functions for example render various types of loans, fix
deposits and other financial services are too much useful for the company. It also uses in the
growth and development of this organisation.
Major merits and demerits of interrelation in between various organisational functions –
The company is organised by its functional group staff members according to their various
activities in the NBAD.
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Illustration 1: Organizational structure chart of NBAD
(Source – Types of Organizational Structures, 2018)

Advantages -
 The main important advantage of different functions of organisation is specialization in
each department. Every work is allotted to any functional department and it will be
accomplished in the specific professional style. It is also beneficial in leading with more speed and efficiency of any task. It enables
management team to segregate their work according to each functions and by using this
they would be able to avoid duplication of work.
Disadvantages -
 The main demerit is that there are many departments in this NBAD Company so there is
no reach of staff members of a department meeting and helping another department
employees (Savrul, Incekara and Sener, 2014).
 The second main disadvantage is many functions needs the intervention of two or more
departments so delayed arises due to lack of communication and coordination.
Business environment of Emirates Wildlife Society World Wild life Fund (voluntary
organisation): It is a company, work for social welfare and public health with focusing on
impulsive action on biodiversity conservation, climate change and wildlife trade (Smith, 2016).
In addition to this it also provides environmental education and relation with the government and
business communities to increase sustainable practices. The organisational structure of this
organisation is as below:
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Interrelationship on different organisational functions of this organisation – In this EWS
Company, there are many functions that conducts by the management of this organisation. These
functions are defining the role of managers, fixation of responsibility, identify the authority,
maintain the coordination, utilisation of human resource in proper way, managing the required
fund and many more (Solomon and et.al., 2016). All such functions are interconnected and
related to business objectives. In context to this, the management should follow its strategies
made for its business activities. The organisational functions are the major specialisms and it
classified in different departments for examples accounting, marketing, production, sales and
many more departments. The Emirates Wildlife Society has work according to its plan and all
the managers of this company have sufficient knowledge and skills in order to achieve its
organisational objectives and goals.
Critical analysis about NBAD and EWS:
As per the view of, Savrul Incekara and Sener (2014) the NBAD is a publicly controlled
organisation that work is provides finance and banking services to its client and the EWS is an
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Illustration 2: Organizational structure/chart of EWS
(Source - Proposed CRDB Organizational Structure, 2018)