Al Arabi Bank: A Detailed Operations Management Analysis

This report provides a comprehensive analysis of Al Arabi Bank's operations management. It begins with an introduction to the bank and its services, followed by an examination of its current activities, including quality of services, inventory management practices, and layout and process design. The report highlights the bank's strengths, such as its large customer base, extensive branch network, and integration of cultural practices. Weaknesses, like a limited global image and past controversies, are also discussed. The report suggests improvements such as creating a Business Process Reengineering team, staff training, and centralization of operations. The report concludes by emphasizing the bank's commitment to quality and its strategic plan, which have contributed to its competitive advantage in the financial industry. The report references several sources to support its findings.

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AL ARABI BANK
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Introduction
The Al Arab bank in Oman is owned jointly and offers financial services. The Al Arabi
bank has more than sixty branches and has four main operations that include retail banking,
support activities, company banking as well as banking for the Islamic religion. (Oman Arab
Bank, Bloomberg, 2017) The bank appointed a new head of retailing function qualified in areas
of project management and other operations that include marketing, digital marketing, and even
sales. He would help in key operation management decisions of the bank hence smoothening its
operations. The operations decisions mainly involve quality of services; sits inventory
management practices, the layout and process designs that contribute to the total performance of
the bank. (online banking to NCR software, 2015)
1. PRESENT ACTIVITIES.
(i) Quality.
Quality is defined by how well the bank offers banking services to its customers. The
bank has digitalized its operations by introducing a robotic system for to offer customers best
quality through ways like reduced response time to customers and resolution times. Furthermore,
there is efficiency in operations, high accuracy as well as speed. Having the automated machines
gives the staff time to focus on offering solutions and better services that help achieve customer
needs. The staff also has more time to become innovative and come up with quality products that
meet or exceed customer expectations. Automation has also helped increase productivity as well
as reduces errors in banking processes. The bank employees dedicate time to communicate with
the customers and understand their needs directly. Transparency has helped the bank reduce
overall costs of operations. Generally, quality involves a reduced time of operations, quick

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customer feedback, transparency, accountability, quality products and improved profits which
the bank seems to meet. (Oman Arab Bank News, 2016)
(ii) Inventory management.
This involves processes that include ordering, use of a company`s stock or assets as well
as its storage. It further involves control of the movement of services and products from the point
of origin to the end user. In this case, the bank is offering services to customers. So it has
automated its activities from the manual way of running bank tasks. It uses a desk software that
has improved mechanisms of being accountable and has visibility for its Information Technology
and bank services as well as the functions that support its running operations (Worall, 2012). The
bank also tracks all its communications and service requests from a single central point and
manages them. The machines also help in loan approval and cards which affect its level of assets.
Other investors in Oman have acquired Al Arabi Bank`s Investment Management Group. The
acquisition included even systems, licenses, the assets, and liabilities of the Al Arabi Bank. The
entire acquisition led to more investments, better asset management as well as brokage. This is
good for the bank because it would make it to a first-class world bank. This way the bank
managed its assets.
(iii) Layout and process design.
The Al Arabi Bank has many branches across the country. This helps it to reconnect and
maintain its customers. The bank has also connected its networks right from the CEO to all
stakeholders through fostering local orientation and having creative processes for its workshops.
The bank has its branches in malls to serve its retail customers, and it would also attract
customers as well as serve the prestigious customers. The bank`s cityscape and the cubical layout
with transparent blue against the skyline also against the mountain backdrop attract even tourists

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who come to Oman. The common barriers of branch entrance fronts have a digital media type of
gable end that allows favorable and warm welcoming scenery are creating a good scenery for its
customers. The bank generally has both welcoming interior and exterior.
There is also some privacy as one gradually passes through different interactions. New
technologies have also been embraced to eliminate barriers between customers and the staff
hence stronger connections that respect the Oman culture.
Embracing digitalization by the bank through sharing screens among the employees and
customers is also a design to enhance customer service. (Cherkaoui, 2017)
The bank has A SMART Service Desk service. It helps the bank offer increased desk
performance service to its customers. It ensures less time is used for logging into its systems.
Less phone call charges are incurred when registering tickets. Feedback to and from customers is
received faster. The system also measures performance against the bank`s defined objectives.
The overall performance of the service above ensures increased profits to the bank, best
customer service, and time management.
The general branch appearances, automated desk service, landscapes, and culture have
enabled a strong customer bond between the customers and the bank due to the personal
experience and improved customer engagement.
Ways to improve.
The bank can improve their internal processes efficiency. This can be done through
creating a Business Process Reengineering team (BPR). This will help oversee the activities of
process re-engineering at any level of the bank. This will help improve overall efficiency and
performance of the bank.

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Activities that don’t add value to the overall effectiveness and efficiency of the bank
should be eliminated so that quality services are offered, and staff dedicates all their time to
improving customer experience.
In order to improve bank effectiveness of already existing processes, the staff also need
to be trained so as to improve their knowledge for every level of the bank. There should be a
checklist to ensure no errors in the bank`s processes and also be able to investigate the precise
cause of any problem in the bank and how it can be solved or how to prevent the occurrence of
such errors.
Operations of the bank should be centralized. This will free the staff from direct sales. An
all-round employee concept should be initiated for all operations so that results are the same.
Departments will also be free from operational duties (Rath et al. 2014).
2. STRENGTHS AND WEAKNESSES OF THE BANK.
Strengths
It is one of the largest banks in Oman.Large banks have more customer loyalty. So for
the bank to use this to its advantage, it should use the flowing capital to innovate ways of serving
their customers in an improved way. The bigger the bank, the better it enjoys economies of
scales when purchasing products or even when making decisions of the country as it largely
impacts a country`s economy. The bank should, therefore, ensure that the economy of the
country is uptight to have better performance. (Avraham, E. and Ketter, 2012, Oman Arab Bank
senior management , 2015)
 The bank has over sixty branches in Oman.

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If the bank has so many branches all over Oman, then it has a lot of flowing capital. The
bank should take advantage of the capital to improve its performance by digitalizing its branches
for better customer services and retain them as well. (Oman`s Ominvest scraps, 2014)
 It is a huge financial backbone in Oman whereby it offers investment
opportunities for development, trade and modern banking.
The bank should use this to its advantage by employing people from all over Oman who
bring into the bank different innovative ideas and skills so that the general performance of the
bank and flow of operations it's improved.
 It has a big asset base.
Due to its huge customer base, the bank should invest in better operational machines,
training its employees for better customer approach and better office layouts to attract more
customers.
 It is all over the globe, and people know about it.
It has created adequate public awareness. When a large population of people knows about
the bank, it’s appropriate that it works on improving quality of its services so that more people
attracted to it and became its customers.
 It includes cultural practices in its strategic decisions.
It ensures that the Oman culture is presented in its layout hence attracting those who love
the Oman culture and retaining them as customers as a result of good customer service.
Weaknesses
 It does not have a good global image.

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The bank does not have a good image maybe it is because it is more of the Islam Religion
even in its name. With this, it has acquired the loyalty of the Islamic people so it should take
advantage of this by meeting the needs of its customers. This will ensure that its target customers
are loyal and stick to the bank hence more profits.
 It has had previous controversies.
Yes, the bank has had its controversies but overcame them, and it did not collapse. So it
should use this as an advantage by using it as an opportunity to convince more people to use the
bank for their banking services. (Katzman, 2015.)
Conclusion
The Al Arabi Bank has ensured the good operations management decisions relating to the
areas in question. Having quality as one of its major key interests and investing resources to
ensure it is achieved has made it one of the largest bank in the world. (Jamaldeen,2012) The way
it has ensured good layout in its branches to attract customers has given it an upper hand in
financial institutions competition industry. The proper inventory management has ensured
efficiency and improved performance of the bank. Its corporate strategic plan has helped the
bank achieve both improved customer service and competitive advantage.

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REFERENCES
Avraham, E. and Ketter, E., 2012. Media strategies for marketing places in crisis. Routledge.
Cherkaoui, T., 2017. Back to the Future: Sparta, Athena, and the battle for the Arab public
sphere. Pacific Journalism Review, 23(2), p.112.
Jamaldeen, F., 2012. Islamic finance for dummies. John Wiley & Sons.
Katzman, K., 2015. Iran, Gulf Security, and US Policy. Congressional Research Service Report,
p.27.
Oman Arab Bank. March 22, 2016. News. Retrieved from www.barraljissah.com
Oman Arab Bank., 2014. Annual Report.
Oman Arab Bank., 2017. Bloomberg. Retrieved from www.bloomberg.com
Oman`s Ominvest scraps, O. 2014. Arabian Business. Arabian Business.
Rath, D.P., Mishra, R.N., and Al Yahyaei, A.I., 2014. Concentration and Competition in Oman’s
Banking Sector Implications for Financial Stability’ (Vol. 2014, p. 136). CBO Working
Paper.
Worrall, J., 2012. Oman: The “Forgotten” corner of the Arab spring. Middle East Policy, 19(3),
pp.98-115.