Strategic Management

Limited

Habib Bank

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Strategic Manage
ment

|L e t t e r

Habib Bank
Limited

of Transmittal

Sir Shebaz Islam

Faculty Member, Strategic Management Iqra
University, Defence View
Karachi
Dear Mr. Islam:
We are submitting here our term report on the mission and vision
of H abib Bank Ltd. Initial pages of this report contains the brief
information

about

product it is

companys

background

and

the

banking

off ering.

All the information provided in the report is comprehensively

discussed with a satisfactory background of valid facts and
fi gures .
If there are any questions or queries you have about the
material presented
appear before

in this report, we will be extremely glad to

you.

Sincerely,
Zafar Ullah Khan
9703 Uzair Ikhlaq
9806
Uzair Siddiqui 9620
Muhammad Arif 5795
Hasan 10231

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Strategic Manage
ment

Sifwat Usmani 10741

Habib Bank
Limited

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3

|E x e c u t i v e

Summary

The purpose of the following report was to conduct survey in Habib Bank
Limited, for our Strategic Management course, and understand the way it
conducts its operation and the strategic posture of the organization. The
survey was conducted through conducting interviews and questionnaires.
Our key area to explore and research was Vision and Mission of Habib
Bank Limited.
HBL established operations in Pakistan in 1947 and moved its head office
to Karachi. Our first international branch was established in Colombo, Sri
Lanka in 1951 and Habib Bank Plaza was built in 1972 to commemorate
the banks 25th Anniversary. HBL was the first commercial bank to be
established in Pakistan in 1947. Over the years, HBL has grown its branch
network and became the largest private sector bank with over 1,400
branches across the country and a customer base exceeding five million
relationships. With a presence in 25 countries, subsidiaries in Hong Kong
and

UK,

affiliates

in

Nepal,

Nigeria,

Kenya

and

Kyrgyzstan

and

representative offices in Iran and China, HBL is also the largest domestic
multinational.
In the following report, we have included the GAP that we found during
our

survey

and

analysis

of

the

organization

along

with

some

recommendations for further improvements for the overall performance of

Bank.

|T a b l e

of Contents

1. HBL History...................................................5
2. Products........................................................6
3. Vision............................................................6
4. Mission..........................................................6
5. SWOT Analysis..............................................7
6. Question & Answer.......................................8
7. Survey........................................................10
8. Recomendations.........................................11
9. Conclusion..................................................11

|H B L

History

HBL established operations in Pakistan in 1947 and moved its head office
to Karachi. Our first international branch was established in Colombo, Sri
Lanka in 1951 and Habib Bank Plaza
commemorate

the

banks

25th

was

built

in

1972

to

Anniversary. HBL was the first

commercial bank to be established in Pakistan in 1947. Over the years,

HBL has grown its branch network and became the largest private sector
bank with over 1,400 branches across the country and a customer base
exceeding five million relationships.
With a presence in 25 countries, subsidiaries in Hong Kong and UK,
affiliates in Nepal, Nigeria, Kenya and Kyrgyzstan and representative
offices in Iran and China, HBL is also the largest domestic multinational.
The Bank is expanding its presence in principal international markets
including UK, UAE, South and Central Asia, Africa and the Far East. Key
areas of operations encompass product offerings and services in Retail
Banking. HBL has the largest Corporate Banking portfolio in Pakistan with
an active Investment Banking arm. SME and Agriculture lending programs
and banking services are offered in urban and rural centers. In UK and
GCC, HBL focuses on trade finance and remittances for South Asian
Diaspora in addition to basic banking facilities.
With a domestic market share of over 40%, HBL was nationalized in 1974
and it continued to dominate the commercial banking sector with a major
market share in inward foreign remittances (55%) and loans to small
industries, traders and farmers. International operations were expanded to
include the USA, Singapore, Oman, Belgium, Seychelles and Maldives and
the Netherlands.
On December 29, 2003 Pakistan's Privatization Commission announced
that the Government of Pakistan had formally granted the Aga Khan Fund
for Economic Development (AKFED) rights to 51% of the shareholding in

HBL, against an investment of PKR 22.409 billion (USD 389 million). On

February 26, 2004, management control was handed over to AKFED. The
Board of Directors was reconstituted to have four AKFED nominees,
including the Chairman and the President/CEO and three Government
of
Pakistan nominees.

HBL has always been a bank and a brand for the masses, with a history
that is inextricably linked with the history of Pakistan itself. As it continues
to grow, both locally and abroad, it strives to embody its brand
personality: honest, approachable, and inclusive. HBL is currently rated
AA+ (Long term) and A1+ (Short term) by JCR-VIS.

|Products
Business
Customers

Corporate Banking
Commercial Banking
Global Treasury
Investment Banking
Islamic Banking
Cash Management

|Vision
|
Mission

Enabling people to
advance with
confidence and
success.

Individual
Customers

Freedom Account
Credit Cards
Deposit Accounts
Banc assurance
Debit
CardFunds
Mutual

To make our customer prosper, our staff

excel and to create value for our
stakeholders

|SWOT Analysis
STRENGTHS
Goodwill & historical
background Professional
and well trained staff
Largest customer base
HBL is Pakistan's largest
commercial bank Wide Branch
Network
20% share of HBL in financial
market Large Balance sheet
size Decentralized authority

WEAKNESSES
Unfavorable union activities
Unfavorable management
conflicts
Checking System is at intradepartment level Weak
marketing policies
Nepotism & Favorism
Infected portfolio still exists as bad
debts Centralized management in
particular areas

THREATS

OPPORTUNITIES

Adverse & unstable government

policies Political instability
Advance technology
Competition from other
banks

Growth in cash management

Expansion in cash management
Faster market growth represents
opportunity to grow and diversify
Restoration of investors confidence
and pick up in private sector
investment flows.
Large deposit base and funds flow
can help to avail related market
opportunities

|Question & Answer Session

with Rafi Ahmed Deputy General Manager HBL

1. How do you know you have achieved your objective as stated in your Vision
Statement?
Existence of the bank throughout country makes customer satisfy that
they are connected with the trust worthy bank and has its brand image,
whenever customers face any sort problem or query so they can provide
their feedback at our call center or online they can login their complains
and through blogging as well. And other than that through performance of
the bank, achievements of targets and day by day increase in customer
base make as believe that yes we are achieving our objective as stated in
our vision statement.

2. How do you communicate the objective of your Vision Statement to your

employees?
HBL has its own institute at its head office by the name of management
development institute where they conduct the training session for their
employees. We generally invite external speakers to come and gave our
employees the brief session about the importance of vision and mission
statement and how to achieve those objectives that are stated in our
statements. Other than that our experienced and senior employees also in
lights the vision and mission importance to their teams or departments,
and bank also gets feedback from their employees to understand either
their employees understand the objective of vision statement or not, if
not, they prefer those employees for the respective training.

3. We can understand the superior value to customer and

employees, but how HBL grant superior value to their stake
holders?
As HBL is a public limited company so shareholders also comes under
stake holder and govt. of Pakistan also has influence on it. And we are not

only customer focus, we show same respect same value to our stake
holders.
Whenever bank increase its profitability or achieve its targets so it would
ultimately benefit our stake holders.
As I am associated with the bank from a very long period of time I can
confidently say that our stake holders are more than satisfied with the
bank. And the reason behind their satisfaction is obviously bank is
providing some sort of value or importance to them.

4. For the achievement of goals stated in the mission statement,

what are the align strategies at HBL?

As you can see that the very first part of our mission is about the
customers to make our customer prosper. And obviously without
customers we cannot survive. As the competition is very tough in the
market so to retain our customers from time to time we develop new
products for them and also facilitate them.
Well talking about the second part of our mission statement to make our
staff excel for our employees as I already discuss we conduct training
sessions in which firstly we update the product knowledge among them so
if any customer comes to them, they can gave the exact product
information to customers.
And value for the shareholder for this thing the best return you give
them this means you are giving best value to them and it is dependent on
the profitability and all the strategies are for the profitability.

5. Do feel like there is a need for change in the banks mission statement?

We have a separate committee by the name of MMC (members of

managing committee) which consist executive management and board of
directors. And one of their responsibilities is work for mission and vision
statement of the organization. HBL current mission statement was made
somewhere in 2005. HBL is now going for maximum centralization,
currently global transaction are centralized.
6. What was the need of revising the mission statement?
The changing environment and the changes in the mind set of customers
and employees highlight the need for the improvement in mission
statement. And as you have noted that our current mission statement is
customer, employees and stake holder oriented. This is one of the
characteristics of a mission statement.

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7. Does the national HBL network & internationally operating

subsidiary branches share same mission or is there a
difference?
Nationally & internationally same mission & vision statement is followed.
Because we give same value to our entire customers, employees and
shareholders. No matter if the culture is different across the country.

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|Survey

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|Recommendation
Their mission statement should reflect in what business they are in
Their mission statement should reflect how they will achieve their goals
Their mission statement should reflect that who their customers are
Their mission statement should reflect their product offering
Their mission statement should reflect where does the firm compete
They are biggest bank their mission statements should include something
about the society development or social responsibility
More Training about mission and vision should be given
More training should be given to functional staff
Advance employee training
IT system improvement as per current & ongoing requirement
More customer facilitation through net, ATM & call center

|Conclusion
Drucker says asking the question, What is our business? is
synonymous with asking the question, What is
our mission?
An enduring statement of purpose that distinguishes one organization
from other similar enterprises, the mission statement is a declaration of
an organizations reason for being. The Importance of Mission
Statements is Well Documented Rarick and Vitton found that firms with a
formalized mission statement have twice the average return on
shareholders equity than those firms without a formalized mission
statement. Bart and Baetz found a positive relationship between mission
statements and organizational performance. Business Week reports that
firms using mission statement have a 30 percent higher return on financial
measures than those without such statements.

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Habib Bank Limited is a big and strong organization with lot of strengths
and few weaknesses as mention above in the recommendation part
which they should overcome for the betterment of their promise and to
achieve their goals.

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