Bank Of Maldives Case Analysis

Bank of Maldives (BML) is the leading financial institution in Maldives. Their vision is “To be the best managed company in the Maldives, with the highest standards of corporate governance and customer satisfaction as well as the best shareholder returns. Their operation mainly depends on three strategic pillars such as Customer Service, Support for Business and Financial Inclusion. Their corporate strategy is focused on being a professionally managed, customer-oriented organization which follows international best practices (Porter, 2008). They are targeting to actively participate in community development and to create long term value for their stakeholders. Source: Annual Report, 2015
In considering human resource strategy of Bank of …show more content…
Due having diversified product range, bank will able to manage external shocks in effective manner. For example, if there is lower demand from corporate level customers, they can cover that loss from the gain of SME sector customers. Since, even one sector got affected very badly from the external factors organization will not get affected since it does not have customers at a high percentage from a single sector. Further, bank has well established and more accessible branch and ATM network across the island. Therefore, consumers have opportunity to access their service without having any barriers even in rural areas. On the other hand, company has high skilled labour force. Therefore, they are providing more customer friendly service since it will create loyal customer base. In considering location of branches, most of them are available in busy business areas, therefore, consumers can easily access to office premises. The attractiveness of branches is also identified as strengths by the author (Sekhar, …show more content…
The inflation rate of Maldives has increased from 1.80 percent in December of 2016. It implies that, consumers have to pay higher interest rate when they are borrowing money from banks. It will create favorable situation for bank. However, due to having higher interest rate the disposal income of consumers will reduce and it will limit the personal saving within banks. Therefore, it will reduce income source of bank and bank has no money to invest and lend to customers. In considering unemployment rate of Maldives, it has decreased from 1 percent (Statistical Pocketbook of Maldives 2015). It shows that, more people are working and they have income sources. Then they can save more money and it impact over saving deposits of the bank. In considering exchange rate movement, in 2016 the exchange rate of to dollars. Then, Maldives ban can earn higher income from foreign investment and will create loss of local investment (Bowhill,