Strategic Analysis and Recommendations for Bank of Maldives

This case study provides a strategic management analysis of the Bank of Maldives (BML). It includes an executive summary, introduction, and an overview of BML's vision, mission, and stakeholders. The analysis section comprises SWOT and PESTEL analyses to assess internal and external factors, alongside Porter's Five Forces and BCG Matrix to evaluate the competitive landscape. Core competencies are identified, and tools like GAP analysis and the 7S model are applied. Strategic mapping, Blue Ocean Strategy, and the Ansoff Matrix are employed to formulate strategic recommendations for product and market development, and diversification. The report concludes with suggestions for strategy implementation, offering a comprehensive understanding of BML's strategic positioning and potential growth strategies.

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Strategic Management for Bank of Maldives
Strategic Management: Case study Bank of Maldives

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Strategic Management for Bank of Maldives
Executive Summary
The strategic management is a continuous managing planning procedure which looks forward to
development of strategies for making an organisation grows all over the nation and abroad. The
strategic plans are utilised for development of business strategy (Flanigan, 2016). An
organisation has to take from my services are intended for sale and how these would be sold to
and where. It also has to consider the set of required resources for implementing the strategies. It
is important for a business to have its own strategy for outperforming the competitors. Currently,
the business environment is extremely dynamic and competitive. As a result the businesses that
operate in a market should be eager to gain competitive advantage by applying successful and
useful strategies. The competitive strategies for the bank of Maldives (BML) have been given in
this report.

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Strategic Management for Bank of Maldives
Table of Contents
Executive Summary...............................................................................................................................2
Introduction............................................................................................................................................4
Vision......................................................................................................................................................4
Mission....................................................................................................................................................4
Stakeholders............................................................................................................................................5
Analysis.................................................................................................................................................5
SWOT analysis........................................................................................................................................6
PESTEL Analysis....................................................................................................................................8
Analysis of Core Competency...............................................................................................................10
Porters Fives Forces..............................................................................................................................11
BCG Matrix...........................................................................................................................................12
Application of tools.............................................................................................................................13
GAP Analysis........................................................................................................................................13
7s Model................................................................................................................................................14
Strategic Mapping.................................................................................................................................15
Blue Ocean Strategy..............................................................................................................................15
Ansoff Matrix........................................................................................................................................16
Recommendations................................................................................................................................16
Product Development............................................................................................................................16
Market development..............................................................................................................................17
Diversification.......................................................................................................................................17
Implementation of strategy..................................................................................................................18
Conclusion...........................................................................................................................................20
References............................................................................................................................................21

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Strategic Management for Bank of Maldives
Introduction
The strategy management procedure for bank of Maldives considers few major steps to form
strategies which are as given below:
- Identifying the objectives of the strategic management, ‘
- Assisting the business situation,
- Making decision for appropriate business strategy,
- Applying an appropriate business strategy,
- Evaluation of the effectiveness of the strategy applied (Bankofmaldives.com.mv, 2017).
Vision
The vision statement is an image of the business for the upcoming, its inspiration and basis for its
entire management strategy (Hitt, 2011). It shows the part where the bank of Maldives wants to
go. By the vision statement, the BML lays stress on many aspects such as innovation, providing
respect to other people and getting the same in return Great communication and integrity.
Mission
The mission statement involves description of all the objectives of the business and is based on
the stakeholders of the bank. Mission statements usually involve information of every key
stakeholder like worker, client and shareholder. The mission statement of the bank of Maldives
covers that the business is created on mix of different interest of various stakeholder teams. One
of the aims been mentioned in this mission statement is to be a leader by providing high quality
of services and commitment towards the staff members (Maldives, 2017). In this mission or
objective would be beneficial for lots of stakeholders as the clients will get high-quality goods
and services, shareholders will get huge dividends and the workers will get high salaries etc.

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Strategic Management for Bank of Maldives
Stakeholders
Stakeholders of the bank of Maldives include:
 Clients: these are the major stakeholders because on the basis of clients only the bank
survives. BML has to provide great facilities to its clients and maintains the top-notch
relation by respect, simple & quick services etc.
 Shareholders: BML focuses on giving utmost advantages to the shareholders and also looks
forward to maintain great relation with them. The yearly general meeting of the bank is
utilised for having effective meeting with the shareholders with respect to concerns, topics
any problems which are related to the general membership (Neuenkirch, 2011). The webpage
of this bank also gives the details which are needed by the shareholders.
 Workers: the workers are major stakeholders of the bank. The BML has different operations
and various departments (Obejas, 2016). The bank offers training schedules to workers so
that they are familiarised with the policies of the bank and their working practices. There are
different pay packages and growth opportunities provided to the workers.
 Suppliers: in the current environment it is significant for great relation to be there among the
suppliers and the business (Shifaza et al., 2013).
 Government: there can be a high impact on the banks therefore bank of Maldives has to abide
by the laws and regulations created by the government. In this case the government is 51%
shareholder of the BML. So it is important for the government to provide with complete
support to the bank.
Analysis
This report has a complete PESTEL analysis been performed to make out the external
environmental impacts and SWOT investigation maintained to recognize the interior and exterior

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Strategic Management for Bank of Maldives
environmental facets. With the intention of evaluating the competitive arrangement of the Bank
of Maldives, Porter’s Five Forces analysis has been performed with competitive position study.
The strategic analysis of the bank is all regarding the study of strengths of the business, its
position and its weakness and different external factors that might have impact on the position of
the business. The strategy of the bank provides with the overall picture which shows how the
banks performances and activities are linked to the external world. By using the strategy, the
complete direction of the bank is set up. There are different tools which are utilised for analysing
the situation of the bank.
SWOT analysis
The above stated swot analysis can be utilised by the bank for reducing the negative influences
of the environment and for encouraging the positive impacts of the internal and external factors
which impact the bank.
Strengths
 The bank is financially stable and well capitalised. This has allowed the banks for performing
relatively better than other financial networks of Maldives.
 It has the biggest networking with 25 branches and 37 ATMs in the Maldives.
 Since the government has 51% of the shares of this bank there for assistance
from government is ascertained (Narang, 2012).
 The bank is a major beneficiary from the loyal depositors who are more than 260,000 (BML,
2017).
 since the government has over 51% of the shares of this bank there for assistance
from government is ascertained

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Strategic Management for Bank of Maldives
 There are more than 750 employees working with the bank and it has the most efficient
method of recruitment and selection
 The bank has been one of the leaders for customer satisfaction approaches, for continuous
three years.
 The bank is known for making transactions easier for its clients
 BML uses the updated technology with respect to electronic banking for issuing the cards
and POS terminals.
 It is one of the biggest and trusted businesses of the country with maximum number of
transactions and a great client relationship.
 This bank has been in business for around three decades and therefore it is a well-known
brand of the nation
Weaknesses
 Even though there is huge number of employees still very less number of employees
manages the day to day transactions and customer issues.
 Maldives is experiencing the deficit of US dollars there for all the expatriates who work here
are remunerated in Maldivian Ruffiya (MVR). Maldives find it difficult to bite the dollars
from bank of Maldives because there is a shortage of dollars and as there have been imports
for each and everything therefore businesses have to transfer the funds to suppliers. The
shortage of dollars is a major issue in Maldives.
Opportunities
 The bank can utilise its capabilities for attaining the goals and developing competitive
advantage.
 It is a financially stable bank so business can be expanded to different islands.

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Strategic Management for Bank of Maldives
 If the shares are sold to the public market, the customer base would be increased and there
would be improved capital for provision of great services.
 Government can also help this bank for development and for their daily transactions which
take place with the Swiss bank.
Threats
 The BML has recently stopped giving all kinds of cards to the clients.
 There had been economic crisis in Maldives.
 The business faces competition from other small banks.
PESTEL Analysis
Political Factors
In Maldives, the government doesn't have impact on lots of businesses. However the bank of my
dreams is a business that has been created by the government so that decisions are taken as per
the political factors. Majority of the businesses in this nation of private nature however there
have been new rules set up for the tertiary sector businesses. So the involvement of the political
parties is on avoidable and political changes have to be monitored very carefully. Since any
change in the political arrangement or new party coming up in the country affects the laws which
are created by the government therefore it has a high influence on the involvement of the
political parties is on avoidable and political changes have to be monitored very carefully. Since
any change in the political arrangement or new party coming up in the country affects the laws
which are created by the government therefore it has a high influence on the climate of the
business (Young, 1999). Also it has to be considered that BML is one of the largest service
industries of Maldives and it is the key bank of the nation therefore the business. Also it has to be

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Strategic Management for Bank of Maldives
considered that BML is one of the largest service industries of Maldives and it is the key bank of
the nation therefore political factors has a huge impact on the business.
Economical Factors:
The country's development was fast after the Tsunami and inflation has been under control. This
country has mixed economy with different businesses like tourism, fishing and many other kinds
of industries. Because it's a mixed economy therefore the bank gets assistance
from government too. There are lots of competitors in the market such as HSBC and bank of
Ceylon. However the majority of people see the bank of Maldives as the major bank since it is
the oldest one in the nation and it is controlled by the government. The high number of
transactions is carried out in the capital city yet competitors give huge competition. The issue of
US dollar being in deficit is a major issue but the competing bank HSBC has the best dollar
providing facilities.
Social Factors
The economy of Maldives is based on the society where expenses are more and savings are less.
This generally happens in case of young people where everything is for fun and enjoyment. Each
person in Maldives usually has a bank account and therefore the number of bank transactions is
huge. All the government employees must hold a bank account with BML and all the
government based transactions are carried out through this bank. There are certain and banking
Islands which are also served by the BML by its services known as Dhon. Bank also acts as a
facilitator of infrastructure growth therefore it helps in enhancing the living standard of the local
people of Maldives.
Technological factors

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Strategic Management for Bank of Maldives
Technology is important for getting competitive benefits and is a big factor of globalisation. It is
easier to communicate and transfer huge amounts of information by use of databases and
electronic media. The technical advancements have brought in reduction of cost and improve the
quality of goods and services. It is important that businesses are aware of the modern technical
advancements so that they stay ahead of the competitors. The bank of Maldives uses latest
technology for implementing business procedures, managing risk, and providing great level of
customer services. These services include online electronic banking, Internet banking, ATM
banking, mobile services and many other similar facilities. The bank is completely computerised
and all the services are quickly provided to the clients. It is also important for this bank to stay in
touch with the technical update so that the best of services are provided to the customers for their
convenient, comfortable living. Technology is one of the biggest concerns in the contemporary
world and it is important that best of services are provided by using this technology so that
competitive advantage can be created against the market competitors.
Analysis of Core Competency
The core competencies are the strengths and capacities which are important for the bank for
retaining its competitive advantage (McNeil, 2002). The senior management of this bank account
only focus on each and every activity of the bank therefore there is a cold set for the management
which on which it has to pay attention. This goal is very influencing towards the competitive
advantage. The "competencies are the highly important value developing skills in the bank of
Maldives and a major areas of expertise which are different from other businesses. The skills are
important for the bank of Maldives so that this bank rose in the long run (D’Aniello and Hertlein,
2017). These skills are those which are held with only this bank, making it different from its
competitors. Even the competitors find it difficult to properties competencies and therefore the

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Strategic Management for Bank of Maldives
customer loyalty is also high to words this bank. The customer care also has a huge influence on
the business operations because this is such competency which the competitors cannot copy
(Wilke and Ritter, 2006).
Porters Fives Forces
The five forces analysis is used that there are five critical aspects which are the determinants of
competitive power of the business. These are explained in terms of the bank of Maldives as
below:
 Threat of new entrants: the number of businesses which exist in the market might not always
be the right way to know about the industry and new entrants also act as threats. This threat is
highly dependent on barriers to entry (Administrative Section, 2009). This bank is the single
local bank of the nation and there are different banks such as HSBC, Habib bank, State bank
of India and many other which do not have then single branch. The BML has lots of branches
in the capital city and the remote islands. The entry to banking industry of Maldives is
highly difficult due to lack of economies of scale and high requirement of capital to be
invested.
 Threats of substitutes: when the substitute product is available in the industry then the
business can lose its clients and profitability. In this case there are no close substitutes and
therefore it is a kind of monopoly which is enjoyed by the bank of Maldives.
 Bargaining power of suppliers: the bargaining power of suppliers is lower because the bank
is the major buyer which uses of you dominant suppliers such as all brothers business,
rainbow etc.
 The bargaining power of buyers: again this is also lower as the bank is the only business
which takes care of the needs of clients all over the nation and there are numerous branches.

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Strategic Management for Bank of Maldives
There are different competitors also available in the nation like HNB which has single branch
in the capital City of Maldives
 Intensity of rivalry: since the bank is market leader of other banks of this country
therefore there is very less competition and very less rivalry (Ntuli, 2017). This bank
provides with higher level of differentiation of goods and services, rather than
its competitors. The bank has a great pricing strategy and great customer care therefore it is
capable of maximising its revenues and attaining the high level of customer satisfaction
(Schliephake and Kirstein, 2013).
BCG Matrix
The BCG matrix approach is based on the concept of product life-cycle that can be utilised for
data mining the significance that would be permitted to the product portfolio of the bank. It is
useful for ensuring the long-term value creation that the portfolio of goods and services offered
by the bank is rightly done (Williams, 2010). There are four categories of this matrix.
 Dogs: these need to be killed because they do not generate any money and also consume
huge amount of cash of the business.
 Question marks: these are the problems which have future growth prospects and also which
need huge amount of investment (Marren, 2012). Online banking and mobile banking hour?
Items for the BO Question marks: these are the problems which have future growth prospects
and also which need huge amount of investment. Online banking and mobile banking are the
question marked Items for the BML.
 Stars: these have huge chances of growth for the bank and these are the bank accounts, loan
opportunities and different facilities offered by the BML (BCG, 2015).