8.6 SWOT Analysis 8.6.

1 Factors of SWOT Analysis

SWOT analysis is an effective tool for analyzing of the efficiency and effectiveness of an organization. It is consist of four words which areS=strength, W=weakness, O=opportunity, and T=Threats.

SWOT Analysis

Internal Analysis
Available loan Strength facilities. Good customer relationship . Cumulative Investment plan. Strong portfolio manageme nt. Diversific ation in investme 8.6.2 nt. Strength:

External Analysis

Weakness
Non listed in the Share Market Low quality service Complex procedure Inadequate human resource

Opportunit y
Expanded market Online access Multi-sector Revenue flow Increasing awareness

Threats competiti
on Volatile economy Inappropriat e infrastructur e Involvemen t of Ranks with Leases Government Policy

Stiff

 Available Loan Facilities: In against of ICB Mutual Funds any clients can get 80% short

term loan. So they can fulfill short tern money need without selling Mutual funds.
Good Customer Relationship: ICB maintains good customer relationship by giving

profitable return, timely service and high dividend.

Cumulative Investment Plan: ICB provides CIP certificates instead of dividend. It is

helpful both for the investors as well as ICB. Because ICB gets the money again to its fund and investors get one more certificate.
Strong Portfolio Management: maintaining strong portfolio, ICB generates high profit

that ultimately goes to investors pockets.

Diversification in investment: ICB manages a number of funds to bring diversification in

investment sectors.

8.6.3 Weaknesses:
Not listed in the Share Market: ICB mutual funds are not transacted in the share market.

So these Eight ICB mutual funds are not listed in the share market. Any one cannot buy these mutual funds.

Low Quality Service: Since it is a government corporation, it can not keep pace with the private sectors. At the same time, it needs to maintain a lot of formalities thats why its service is of low quality.

Complex Procedure: in delivering loan to the investors it needs to maintain a lot of

formalities and it also expects to get more assurance when delivering loan to the investors.
Inadequate human resources: The human resources are not sufficient in terms of its

departments. It has to maintain a number of formalities to recruit employee.

8.6.4 Opportunities:
Expanded market: As new industries are coming into the market, capital market is being

large enough and long term financial demand is being created.

Online access: ICB is trying to enter into the online facilities and enriching itself by

introducing online access in its operations.

Multi-sector Revenue flow: Because of offering various financial tools, ICB generates

revenue flows from different sectors.

Increasing Awareness: Todays investors are becoming more aware of capital market.

They participate in the primary and secondary markets.

Strong Brand Value: ICB Mutual Funds have strong brand value among the current

customers. They are unwilling to compare these Mutual Funds with any other Mutual Funds.

5.5 Threats:
Possibility of Amortization of ICB Mutual Fund: As per the rules of ICB the Eight

Mutual Funds will be amortized at the end of this year (31th December 2012). If SEC does not increase Mutual Funds time of amortization time then these Mutual Funds would be vanished.
Volatile economy: The economy of Bangladesh as well as that of the investment company

is tied with that of the overseas. Rise in interest rate and events like terrorist attacks are likely to affect the Bangladesh economy and the margin of leasing companies.
Inappropriate Infrastructure: Share market is passing through a sever crisis of price

falling as a result the overall assets of ICB Mutual Funds is decreasing day by day.

 Alternative Mutual Funds: These days there are some other Mutual Funds other than

ICB Mutual Funds. So there is no more monopoly for ICB Mutual Funds. This has further increased competition.

Government Policy: policy changes connected to the operation of finance companies might create an unfavorable impact on the investment industry especially on Mutual funds. The decision to withdraw the accounting practices accelerated depreciation and extra shift depreciation has decreased the profitability of the leasing companies.