Situational Analysis of Emirates NBD: Marketing, SWOT & CSR

This report provides a comprehensive situational analysis of Emirates NBD, a major financial institution in the Middle East. It begins with an executive summary and table of contents, followed by an introduction outlining the report's objectives. The analysis covers the company's overview, assessing its market position and operations. The marketing environment is examined using the PESTLE framework, evaluating political, economic, social, technological, legal, and environmental factors. Corporate social responsibility (CSR) activities are analyzed using Carroll’s CSR Pyramid. Competitive analysis identifies key rivals, and a SWOT analysis evaluates the company's strengths, weaknesses, opportunities, and threats. The report concludes with recommendations based on the findings and includes references and appendices.

Running head: SITUATIONAL ANALYSIS OF EMIRATES NBD
SITUATIONAL ANALYSIS OF EMIRATES NBD
Name of the Student
Name of the University
Author Note

1SITUATIONAL ANALYSIS OF EMIRATES NBD
2.Executive Summary
The report is based on the analysis of the organization named Emirates NBD which operates
in the financial industry of Middle East. The analysis is based on the background of Emirates
NBD. The external environment has been analysed with the help of PESTLE framework.
Competitive environment of the organization has been analysed in order to analyse its
position in the financial industry. The corporate social responsibility based activities are also
an important part of the analysis which has been made in the report. Internal environment is
analysed by implementing the SWOT based framework. The report has been concluded by
stating that Emirates NBD has been able to operate in a profitable manner in the industry with
the help of its services.

2SITUATIONAL ANALYSIS OF EMIRATES NBD
3.Table of Contents
4. Introduction................................................................................................................3
Analysis of the company................................................................................................3
Task 1 – Company overview......................................................................................3
Task 2 – Marketing environment based impact analysis...........................................4
Task 3 – Corporate social responsibility....................................................................6
Task 4 – Competitive analysis...................................................................................7
Task 5 – SWOT analysis of the company..................................................................8
Task 6 – Comparative positioning and perceptual map based analysis...................10
6. Conclusion................................................................................................................11
7. Recommendations....................................................................................................11
9. References................................................................................................................13
8. Appendices...............................................................................................................16
Appendix 1...............................................................................................................16
Appendix 2...............................................................................................................17

3SITUATIONAL ANALYSIS OF EMIRATES NBD
4. Introduction
The report will be based on the analysis of external environment in which an
organization operates. The ways by which marketing environment of the organization is able
to affect the levels of profitability and revenues is a major part of the report. The company
which has been chosen for analysis is Emirates NBD which is a multinational organization
that has its operations in UAE. The organization has been able to develop a significant share
in the market of its operations. The main aim of the report is thereby to analyse the internal
environment of the organization and the competition which it faces in the industry (Abedifar
et al. 2015). The corporate social responsibility based activities which are performed by the
organization will also be analysed in the report.
Analysis of the company
Task 1 – Company overview
Emirates NBD is a large banking organization which operates in the Middle East. The
organization has been able to develop the largest position in the market in terms of amount of
assets which have been gained by the company in the industry. The organization was
established in the year 2007 with the help of merger between two major banking based
institutions including National Bank of Dubai and Emirates Bank International. The
organization further expanded its operations in many other countries of the world including
United Kingdom, Singapore, Saudi Arabia, China, Indonesia and India (Emiratesnbd.com,
2018).

4SITUATIONAL ANALYSIS OF EMIRATES NBD
The organization operates with the help of greater than 9000 people who represent 70
nationalities. The major objective which has been set by Emirates NBD is based on the
proper development as well as management of the Real Estate and different Real Estate
related projects as well. The major activities which are a part of the objectives set by the
company include, selling, buying, facility maintenance based activities, repair, renovation,
decoration and furnishing. The mission statement of Emirates NBD is based on making the
lives of customers simpler with the help of solutions which are helpful in fulfilment of
financial aspirations (Emiratesnbd.com, 2018). The major marketing based goal of Emirates
NBD is based on providing best levels of services to the consumers. The most objectives of
the organization are based on maintaining the leading position in the financial industry.
Task 2 – Marketing environment based impact analysis
The marketing based environment of Emirates NBD can be analysed effectively with
the help of PESTEL analysis framework. The different trends which exist in the market can
be analysed with the help of this framework.
Political factors – The banking and financial industry has been facing huge levels of
challenges in the current business situation in the Middle East. The expansion related
activities of the organization into new geographical areas is also a major issue which is being
faced by the organizations in the financial industry. Emirates NBD has faced major issues
based on the rise which has been experienced in costs of domestic deposit based rates in the
competitive market. The pressures based on liquidity and funding have been quite evident in
the financial market of UAE. This is considered to be a major reason which is able to affect
the expansion of the organization in other areas of the world (Al Dari, Jabeen and
Papastathopoulos 2018). Rating provided – 3

5SITUATIONAL ANALYSIS OF EMIRATES NBD
Economic factors – The development of economic environment of Emirates NBD is
based on rates of free trade in the country. The local and the international investors are also
provided with encouragement in order to invest in the country. The financial investment
based market in UAE is affected by three major factors which include, inflation, interest rates
and Gross Domestic Product or GDP. The rates of foreign exchange had been affected by the
economic crisis which had occurred in the year 2008. This has played a key role in creating
high levels of difficulties within the country (Almarri and Abu-Hijleh 2017). Emirates NBD
had also faced losses in its operations at the time of economic crisis. Rating provided – 4
Social factors – The performance levels of Emirates NBD had been affected by the
social and cultural factors in the environment. The major forces which need to be considered
for the operations of the banking based sector mainly include, language, religion, population,
ethnic groups, literacy rates. The social responsibilities had been provided high importance
by Emirates NBD. The bank had further consulted with the stakeholders who had shown high
involvement and participation in these activities (Al-Tamimi, Lafi and Uddin 2016).
Initiatives had also been taken by the local government in order to operate in the
environment. Rating provided - 2
Technological factors – Banking industry has been facilitated by the technological
advancement that has taken place in the Middle East. The levels of involvement of financial
sector with technological advancements are also quite high. Internet has been able to play a
key role in proper operations of different financial organizations. Online banking is thereby
quite prevalent in the industry and different banking activities have been facilitated. The
banks have started providing facilities like mobile banking to the consumers (Banerjee and
Majumdar 2018). This has played a major role in providing high levels of convenience to the
consumers. Rating provided - 3

6SITUATIONAL ANALYSIS OF EMIRATES NBD
Legal factors – The auditing based activities of banks have been affected by different
legal authorities. Emirates NBD and its operations have been affected in a huge manner by
the legislation frameworks which are formed by the government. The central bank of UAE
has also announced liquidity management based rules for different banks which operate in the
country. The banks including emirates NBD need to follow the regulations which are
developed by the central bank or the government (Bose and Bandyopadhyay 2018). Rating
provided - 3
Environmental factors – The environment which is prevalent in UAE is hot and dry
in nature which can affect the operations of different organizations. The climate however has
quite low effect on the financial industry and operations of different financial organizations
as well (Hamdan 2016). Rating provided – 1
Decision rule analysis – Sum of different factors – (3+4+2+3+3+1) = 16
Rating = 24/16 = 1.5
The result of decision rule analysis has been able to depict that the operations of
Emirates NBD is highly favourable in the financial industry of Middle East.
Task 3 – Corporate social responsibility
The corporate social responsibility based activities which have been performed by
Emirates NBD can be analysed with the help of Carroll’s CSR Pyramid which is considered
to be a simple framework. The CSR based pyramid of the organization is based on the
profitability based levels. The ways by which the organization is able to comply with the
regulations and laws is also a part of the pyramid. The philanthropic options are further
considered to be the last part of Carroll’s Pyramid. The four major responsibilities which

7SITUATIONAL ANALYSIS OF EMIRATES NBD
form the CSR pyramid include, economic, legal, ethical and philanthropic (Jan and
Marimuthu 2015).
The economic responsibilities were fulfilled by the organization with the help of its
products and services. Emirates NBD has been able to develop the topmost position in the
banking industry of Middle East. The regulations which have been developed by the
government are followed in an efficient manner by the organization. The ethical
responsibilities followed by Emirates NBD are based on the sustainable operations in the
industry. The organization further aims at improving the living based conditions of the
society in which Emirates operates. Ethics are promoted by the organization with the help of
effective experience which is provided to the customers (Kumar 2016). The bank has been
able to reach more than two million people all over the world with the help of its services.
The bank aims at expanding the opportunities and strengthening different communities based
on the social commitments. The Exchanger Volunteer program has been organized by
Emirates NBD in order to fulfil the philanthropic responsibilities. This program is based on
the ways by which the organization aims at serving the community and bringing changes in
the lives of people.
Task 4 – Competitive analysis
The financial industry in which Emirates NBD has its operations is highly competitive
in nature. Different services which are offered by the organization included, personal
banking, home loans, auto loans and credit cards. The two major competitors of Emirates
NBD in the financial industry are First Abu Dhabi Bank and Abu Dhabi Commercial Bank.
The lending based environment which has been created in the Middle East is highly
competitive in nature. The financial industry is based on different local banks which are able
to provide financial services to the customers in Middle East (Naeem and Azam 2017). The

8SITUATIONAL ANALYSIS OF EMIRATES NBD
mature market in UAE has become more competitive and Emirates NBD can increase its
shares in the market with the help of different services.
Task 5 – SWOT analysis of the company
Emirates NBD has been able to maintain its topmost position in the industry in spite
of different issues which have occurred in the financial industry. The analysis of internal
environment can be evaluated in order to decide different factors which are able to affect the
operations. The SWOT framework can be used in order to analyse the internal factors which
are able to affect the levels of profitability and revenues (Nawaz and Haniffa 2017).
Strengths
 The financial base which has been developed by Emirates NBD in the industry
is highly effective in nature. The organization conducts its operations in
different areas which include, UAE, Singapore and Saudi Arabia.
 The organization has developed a leading position in retail banking based
industry.
 The bank offers retail services which include, credit card and private banking.
 The bank has many different business based units which operate in different
areas (Pleshko and Souiden 2015).
Weaknesses The organization has developed a position in a huge domestic area.
 The lack of proper global presence of the bank is considered to be a major
threat.
 The investment which is made by Emirates NBD in the research and
development operations is considered to be highly important in nature.

9SITUATIONAL ANALYSIS OF EMIRATES NBD
 The organization has also faced major levels of challenges based on the entry
of many new companies (Sayani 2015).
Opportunities
 The major focus of business operations of Emirates NBD is based on the benefits
based on spending of the local government.
 The expansion of business activities in international market is able to enhance the
levels of profitability.
 The organization can employ online based platforms in order to increase the levels
of profitability (Sbia and Alrousan 2016).
Threats
 The organization needs to enhance its share in the market in order to improve
the business operations.
 The lending based situation which has been developed in the country is highly
competitive in nature.
 The increase which has been shown in costs of operations is a major factor
which is able to affect the operations of Emirates NBD (Sbia, Shahbaz and
Ozturk 2017).
The internal analysis of Emirates NBD has been able to depict that the company has
been able to establish itself successfully in the industry. However, the organization has not
been successful in developing an international presence of its activities and operations. The
major strength of Emirates NBD is based on the position which is held by the organization.
The major targets which have been developed by the organization mainly include, the small
or medium sized organizations and the large institutions as well (Tabash and Anagreh 2017).

10SITUATIONAL ANALYSIS OF EMIRATES NBD
The strengths of the organization can be used effectively in order to increase its shares
in the financial industry. The growth based opportunities which are created by the
organization can be helpful in reducing the threat based levels. The financial resources need
to be used by the organization in an effective manner in order to enhance the levels of
profitability of the organization. The huge levels of competitiveness which has been provided
by the mature financial market of Middle East can be mitigated with the help of proper
financial resources. International expansion is also considered to be a major opportunity
based on growth in the financial industry (Tlemsani and Al Suwaidi 2016). This will be
helpful for the organization to provide tough competition to the other banks which operate in
the industry including, Abu Dhabi Islamic Bank and Bank of Sharjah. The policy based on
cost-reduction will also play a key role in formation of business based opportunities in the
domestic and the international market. The cost of operations based threats which are faced
by Emirates NBD can be reduced in order to mitigate the threats and further increase its share
in the market as well. The loan based services can be provided to the consumers at lower
rates in order to operate profitably in competitive financial industry.
Task 6 – Comparative positioning and perceptual map based analysis
Emirates NBD has created a position of the largest bank in the financial industry
which has been helpful in surmounting the levels challenges which are faced by the
organization. The market leadership based position which has been formed by the
organization has not been highly affected by the weak economy of Middle East. The
organization thereby holds a unique position in the financial industry with the help of
different loan based products and services that are offered to the consumers. The profits of
the organization have also increased in current business environment due to different
infrastructure based projects (Trabelsi and Trad 2017). The investments which are being

11SITUATIONAL ANALYSIS OF EMIRATES NBD
made by the organization in technology are important factors which have affected the profits
of Emirates NBD.

12SITUATIONAL ANALYSIS OF EMIRATES NBD
The products which are offered by Emirates NBD have been helpful in the
development of topmost position in the banking and financial industry. The products and
services which are offered by the organization are perceived to be high quality by the target
customers. The associations which have been formed by Emirates NBD with the shareholders
have provided value to the operations in an effective manner. The products which are offered
to the consumers by the competitors of Emirates NBD are not able to qualify of better quality
as compared to those which are provided by the organization (Zanella, Oyelere and Hossain
2015).
6. Conclusion
The report can be concluded by stating that Emirates NBD has been successful in
maintaining its position in the financial industry with the help of proper services. The
topmost position of the organization and its financial resources have played a key role in the
ways by which Emirates NBD has mitigated the risks which are faced. The internal analysis
has been able to provide a clear picture of the aspects of Emirates NBD which will play a key
role in the future operations. Positioning analysis of the organization has provided an insight
based on the position which is held by the competitors of Emirates NBD as compared to the
organization. The external environment has played a major role in affecting the profits and
revenues of Emirates NBD. The analysis has been able to depict that the external
environment and financial industry has been able to affect the operations of Emirates NBD in
a huge manner. The organization can further increase profitability levels with the help of
proper increase in research and development and implementation of proper technologies
within the organizational operations.

13SITUATIONAL ANALYSIS OF EMIRATES NBD
7. Recommendations
The levels of growth which have been experienced by the financial industry of
UAE are quite high. Emirates NBD has enhanced the business operations in domestic market
by providing diverse solutions. The realignment of business activities is a major
recommendation which can be provided to Emirates NBD in order to increase its revenues.
The strategic approaches can be implemented by Emirates in order to engage the customers in
organizational operations. The merger and acquisition based policy has been helpful in
developing the revenues in domestic market. The development of online channels can further
increase the levels of revenues. The productivity levels of staff of Emirates NBD need to be
enhanced in order to increase the levels of profitability in the financial industry. Automation
and technology can play a key role in the successful operations of the organization in the
financial industry.

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9. References
Abedifar, P., Ebrahim, S.M., Molyneux, P. and Tarazi, A., 2015. Islamic banking and
finance: Recent empirical literature and directions for future research. Journal of Economic
Surveys, 29(4), pp.637-670.
Al Dari, T., Jabeen, F. and Papastathopoulos, A., 2018. Examining the role of leadership
inspiration, rewards and its relationship with contribution to knowledge sharing: Evidence
from the UAE. Journal of Workplace Learning, 30(6), pp.488-512.
Almarri, K. and Abu-Hijleh, B., 2017. Critical Success Factors for Public Private
Partnerships in the UAE Construction Industry-A Comparative Analysis between the UAE
and the UK. Journal of Engineering, Project & Production Management, 7(1).
Al-Tamimi, H.A.H., Lafi, A.S. and Uddin, M.H., 2016. Bank image in the UAE: Comparing
Islamic and conventional banks. In Islamic Finance (pp. 46-65). Palgrave Macmillan, Cham.
Banerjee, R. and Majumdar, S., 2018. Impact of firm specific and macroeconomic factors on
financial performance of the UAE insurance sector. Global Business and Economics
Review, 20(2), pp.248-261.
Bose, I. and Bandyopadhyay, I., 2018. Balanced Scorecard (BSC) in Retail Banking in UAE:
a Study on Sustainability. Indian Journal of Industrial Relations, 54(1), p.67.
Emiratesnbd.com (2018). About Us | Emirates NBD. [online] Emiratesnbd.com. Available at:
https://www.emiratesnbd.com/en/about-us/?ref=footer [Accessed 29 Nov. 2018].
Hamdan, A.M.M., 2016. Market power versus efficient-structure in Islamic banking industry:
evidence from selected GCC countries. International Journal of Islamic Marketing and
Branding, 1(3), pp.285-295.

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Jan, A. and Marimuthu, M., 2015. Bankruptcy and Sustainability: A Conceptual Review on
Islamic Banking Industry. Global Business & Management Research, 7(1).
Kumar, V., 2016. Evaluating the financial performance and financial stability of national
commercial banks in the UAE. International Journal of Business and Globalisation, 16(2),
pp.109-128.
Naeem, H. and Azam, M.F., 2017. Leadership Styles in the Maintenance Industry of UAE: A
Focus Group Analysis. European Scientific Journal, ESJ, 13(7).
Nawaz, T. and Haniffa, R., 2017. Determinants of financial performance of Islamic banks:
An intellectual capital perspective. Journal of Islamic Accounting and Business
Research, 8(2), pp.130-142.
Pleshko, L.P. and Souiden, N., 2015. The Relationship of Organizational Size to Strategic
Classifications in the Financial Services Industry. In Assessing the Different Roles of
Marketing Theory and Practice in the Jaws of Economic Uncertainty (pp. 14-17). Springer,
Cham.
Sayani, H., 2015. Customer satisfaction and loyalty in the United Arab Emirates banking
industry. International Journal of Bank Marketing, 33(3), pp.351-375.
Sbia, R. and Alrousan, S., 2016. Does financial development induce economic growth in
UAE? The role of capitalization and foreign direct investment. International Journal of
Economics and Financial Issues, 6(2), pp.703-710.
Sbia, R., Shahbaz, M. and Ozturk, I., 2017. Economic growth, financial development,
urbanisation and electricity consumption nexus in UAE. Economic research-Ekonomska
istraživanja, 30(1), pp.527-549.

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Tabash, M.I. and Anagreh, S.A., 2017. Do Islamic banks contribute to growth of the
economy? Evidence from United Arab Emirates (UAE). Banks and Bank Systems, 12(1),
pp.113-118.
Tlemsani, I. and Al Suwaidi, H., 2016. Comparative analysis of Islamic and Conventional
Banks in the UAE during the financial crisis. Asian Economic and Financial Review, 6(6),
p.298.
Trabelsi, M.A. and Trad, N., 2017. Profitability and risk in interest-free banking industries: a
dynamic panel data analysis. International Journal of Islamic and Middle Eastern Finance
and Management, 10(4), pp.454-469.
Zanella, F., Oyelere, P. and Hossain, S., 2015. Are costs really sticky? Evidence from
publicly listed companies in the UAE. Applied Economics, 47(60), pp.6519-6528.

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8. Appendices
Appendix 1

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Appendix 2
High Price
Low quality High quality
Low Price
Emirates NBD
Abu Dhabi Commercial Bank

19SITUATIONAL ANALYSIS OF EMIRATES NBD