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the performance of Dubai Islamic Bank

Dubai Islamic loan company is a lender that offers services related to Islamic sharia. In the entire year 2009 the total revenue gained by the bank was 5, 133 (million AED) when compared with the report of FY 2008 the web revenue had lowered by 2. 6%, and the total profit acquired by the bank was 1, 207. 49 (million AED) a net loss of 22. 31% when compared with the FY 2008, with the full total investments of AED 90. 14 billion in the entire year 2010, the bank stands among one of the major Islamic banks on earth, currently the loan company has a person base of 1 1. 2 billion which is quite appraisable customer foundation in comparison to other banking institutions.

The show price of DIB is computed to 2. 22 AED (per share) modified latest to 31st march, 2011, the net value of the marketplace cap is examined to 8, 429 (million AED), the organization value is assessed to 7, 450 (million AED), and the web shares fantastic is assessed to 3, 797 (million AED).

The net capital foundation of Dubai Islamic standard bank matters up to AED 10. 53 billion by December 2010, which is 17. 2% higher than the previous year?

B. Strategic posture

1. Mission

the Dubai Islamic loan company is currently providing services like retail banking, private banking, johara banking, corporate and business banking, mobile bank, phone bank, online banking, sharia mother board services, framework trade money, treasury and investment, task funding, syndication services, riches management services, business banking, investment banking, contracting fund services, and real property finance. The DIB is included in every these services because they would like to expand their opportunity in conditions of bank and investment services in nearly every field, so as to contend with other players available.

2. Objectives

The company's main goal is to create its market all over the world also to expand them as much as possible, and increase its customer base so as to increase their earnings and recognition in the global market.

3. Strategies

The main objective of DIB is to diversify and control organic development, as growth in virtually any sector is crucial for a corporation especially a banking corporation where the opportunities are limitless for any organization DIB is focusing majorly on the diversifying of its business, which strategy is very much indeed steady with the missions that is stated by the bank.

The other strategies of DIB includes growth of its branches and the increase in its overall customer platform, this plan of DIB helps DIB to expand its trade in other countries of the world too. The upsurge in overall customer bottom part is an evident strategy of any banking firm as the revenue and revenues received by any banking firm is dependent on the issue that more the clients the bank has the more is its revenue earned.

4. Policies

The major insurance policies of DIB includes conversions of key Islamic monetary policies into company practices for the need of mankind and also to welfare them with the Islamic procedures, the regulations of the DIB is regular with the quest, goals and strategies of the corporation as the finish individual of any firm is the buyer itself, and when the consumer is unhappy with the company's insurance policies and services then every strategy of this company is vain, as well as the company's policies are steady with every exterior and inner environmental features.

The company's major strategy includes the enlargement of branches and the addition of new customers to the company's customer foundation; these policies reflect the business's international and global trading strategy.

2. Commercial governance

A. The plank of governance

The board of governance of the corporation involves H. E. Mohammad Ibrahim abdulrahman alshaibani as the chairman, H. E. Sheikh Khalid bin zayed al nehayan as the vice chairman, ahmad Mohammad saeed bin humaidan as the director, saeed Mubarak Abdulla Mohammad al muhairi as the director, abdulrahman hareb Rashed alhareb as the director, tariq humaid matar mohammad al tayer as the director.

They each is the external employees of the organization i. e. they are really non-executive people of the corporation i. e. they don't be a part of any decision making techniques of the corporation. This group of executives contains the very best management of the company.

The interior or the senior management members of the coporation are made up mainly of Abdulla ali al hamli as the chief executive officer, ahmed fathy al-gebali as the principle financial officer of the organization. These persons are the area of the older management i. e. they have got influence in all the decisions making and strategy making discussions and techniques.

These executives include the inner management or the senior management of the business and involved in major decision making functions of the corporation.

All the internal and the exterior members of the corporation that is mentioned above especially the non-executive participants keep significant part in the securities.

The securities are publically performed by some of the major acquisitions are organised by many other peoples and companies, also the stock is traded on the market, with some of the board members acquiring major shares of the organization.

Some board people are the everlasting board members of the corporation and they are in the non-executive band of the corporation and therefore they are the permanent members of the business, but the older management customers are not-permanent associates of the organization, the principle financial official of the corporation is the hottest member on the plank of directors as he previously joined the company in the entire year 2011 itself.

The top management includes chairman itself and the other directors of the company, though the non-executive users don't take part in some decisions however in major decisions like acquisitions and budget related conversations their participation is must.

B. Top management

The top management of the business include H. E. mohammad Ibrahim as the chairman, H. E. sheikh khaled bin zayed al nehayan as the vice chairman, ahmed mohammad saeed bin humaidan as the director, saeed Mubarak Abdulla Mohammad al muhairi as the director, abdulrahman hareb Rashed alhareb as the director, they all are area of the non-executive mother board.

But the major part in the decision making plans are taken by the senior management group or the top management group i. e. the CEO and the CFO of the corporation.

The board people of the organization have a substantial knowledge of the international market and of market insurance policies and as the key individuals are experienced enough therefore they contribute a substantial amount of knowledge to the corporation and in so doing taking the corporation to the next level.

The company's older management is highly skilled and can handle taking the business to a fresh level, the CFO for ex lover. had joined the corporation in the entire year 2011 itself, the CFO's account implies that he has a good managerial base, he had did the trick for boubyan bank as a CFO and different other investment houses, thereby he had gained enough experience and he had served for most companies therefore his skills must be tremendous.

The company's mature management acquired developed a systematic strategy to be implied, some of them are global acquisitions and extension of business.

The company's mature management interacts with the low level managers and the board of directors quite frequently because they are keen to make new strategies and decisions for the company and they believe in including everyone along the way of decision making.

The company's decisions are very ethical as the company's main motive is by using the coaching of Islam for the welfare of mankind in economical terms.

The top management is very skilled and is expected to survive the company in future and to manage up with any issue affecting the corporation.

3. External environment: opportunities and threats

A. natural physical environment

Apart from bank the lender is also employed in products and services like textile products, aluminum fixtures, automobiles.

Products like Aluminium accessories and textiles depend on the sustainability of the surroundings i. e. textiles are produced from cotton and other natural basic products and light weight aluminum are obtained through mining therefore the climate of the area plays an essential role in the introduction of products of DIB. Apart from the climate one more natural pressure that affects the production of DIB's products is availability of water in sufficient number, and natural disasters. The opportunities for DIB in these sectors are limitless however the only thing that matters is that that they could apply their strategies into their products and services.

All these makes have different impacts in several countries of the world for former mate. climatic and weather conditions are different in several countries of world, for ex. in Africa and Asia where weather are ideal for the progress of cotton and jute products, in addition natural disasters and calamities also will depend on the positioning of the developing plants of DIB for former mate. in countries like Japan, and Hawaii where earthquake and volcanoes are regular. Solar winds and sun spots also affect the crop as it destroys the crop.

B. societal environment

The major factors that are influencing the product developing are economical makes, technological forces, politics forces, and socio-cultural pushes.

The economic forces are the pressure that defines a corporation's electricity in the market in terms of income and talk about price, therefore financial makes are also very important causes that effect the processing of products and services.

The technological makes are also one of the main forces which affect a company's creation of products and other scientific procedures. The other forces that impacts a company's processing of products and services are political forces, they are the forces which comes into play when the business had to make major politics decisions about its company when trading in own country or in other country. The socio cultural forces will be the forces define the surroundings that surrounds the business, i. e. in UAE the socio cultural environment are different whereas if DIB will setup its branches far away of world like India, or USA then they have to face a complete different environment and that will influence the lender.

All these pushes varies at other areas of the world as the technological advancement of one country can be very good and DIB may take the best use of that, and the politics forces also is determined by the type of country they may be working with for ex. whether the country is an democracy, monarchy, anarchy etc. all these forces plays an extremely vital role in the introduction of a company in any country, especially for DIB it is an essential factor and the strategies of DIB will include techniques to tackle with political situations far away. Socio-cultural is by way the most crucial aspect for DIB as DIB is dependant on the teachings of Quran and is convinced in its concepts, therefore there may exist a collection between them and customers when the bank runs in non-Muslim country.

C. job environment

There are six major makes that drive a company's industry competition these are:

Threat of new entrants: these makes change from country to country, these forces are of high risks because there were chances always that new entrants gets into the market, and when the quality of products and services provided by them are proved to be good then naturally the more aged players must suffer, pretty much.

Bargaining ability of buyers: the bargaining electric power of buyers depends from country to country and regarding to situation, this force is scored as a medium pressure as few buyers bargain on products i. e. good in quality.

Threat of swap products and services: the threat of alternative products and services are always high as any company will come up with an idea of better substituted product, and if that product is preferable to the business's product then your company must suffer.

Bargaining vitality of suppliers: bargaining ability of suppliers is high as the provider is the person whose quality of natural material decides the entire quality of product.

Rivalry among contending companies: the rivalry among competing companies is of medium type as the rivalry depends on the number of competitors in the market and the quality of products they produce.

Relative electricity of unions, governments, special interest groupings, etc. have a higher affect on the company as the business's trade at any place is subjected to the fact they have good or not so good relationships with the federal government of that country.

D. Summary of external factors

Socio-economic and process environment are the main for the business also to the industry where it happens to be competing.

Sustainability issues will be important for the company in the foreseeable future.

4. Internal environment: power and weakness

A. corporate and business structure

The decision making power is centralized around one group of person that happen to be known as the most notable management of the company.

The company is organized based on all these factors like functions, tasks, and geography.

The structure of the organization is just about clear as there is merely one major group of decision makers which is constituted under the very best management of the business.

The company's current composition consists of highly skilled international level CEO's and CFO's and as the company's main target and strategy are steady with the development of the company, therefore the present structure of the company is steady with the firm's international procedures.

This kind of structure can be seen in similar organizations as every company has a top degree of management that makes a decision all the strategies and procedures for just about any company.

B. commercial culture

The culture of DIB is well emerged culture and is composed of shared beliefs, prospects and worth.

The current culture of DIB is very much constant with the corporation's current targets, strategies, regulations and programs as the major aim of the organization is to broaden their business.

Environmental balance means too much to DIB as a few of their products are related to environment and other natural factors their work culture is identified by the environmental objectives.

The corporation established fact for its banking essentials and current position on the planet, the bank is one of the very best banks in this world to offer bank services related to Islamic sharia. The lender is internationalizing itself i. e. it is broadening their trade in other countries of the world.

The culture is somewhat not very constant with the employee's history i. e. they will prefer those peoples who is convinced in Islamic sharia concepts and regarding to them who've Islamic ethics. Thus much diversity in history is not came across in the lender.

The lender usually works in Muslim founded countries like UAE, Pakistan, Iran, Iraq etc. therefore it does not have much problems in this countries, but if we must consider other countries that is not Muslim oriented then the corporation might find some problem in coping in the culture of that country.

C. commercial resources

1. Marketing

A. the current marketing purpose of the company is to extend their market all around the globe, and to raise the volume of customers. Strategies that DIB is applying to complete this purpose are obvious and are steady with the aims and strategies of the company and aren't implied just for mere implications.

The 4p's i. e. product, price, place, advertising are the areas where the loan provider is doing exceedingly well, however there have been an ir-regulation performance of the bank for ex. the net income of the bank is 2, 696 (AED m) in 2005, 4, 577 (AED m) in 2006, 6, 083 (AED m) in 2007, 5, 270 (AED m) in 2008, and 5, 133 (AED m) in '09 2009. The marketplace of the lender is not very big in today's situation but it does very good in Muslim countries and regarded as one of the best muslim banks in the world. The lender is getting its market in the muslim countries and loosing it in non- muslim countries. A higher percentage of earnings were gathered from the developed region as the number of prosperous customers who may take benefit of the assistance provided by DIB is more in developed areas.

The bank or investment company is not regular considering the income generated because of it in the five year period from 2005-2009. The existing and past performance of the organization is the bottom for its future performance; the lender must make strategies to increase their performance.

Company's marketing performance is very good though they are really facing a competition from leading banking institutions like abu dhabi commercial standard bank, emirates NBD loan company.

Though the DIB works on Islamic key points but the managers of DIB is still using traditional marketing techniques in terms of product lifecycle, market segmentation, general market trends etc.

Usually DIB don't have to face different culture it is therefore not very problematic for them to market them in other locations or countries.

Marketing director considers all the major areas of environmental sustainability when coming up with decisions, a marketing manager's role is very critical in strategic making process as he has to suggest marketing policies when trading in some other country.

2. Finance

The corporation's current financial purpose is to increase their online revenue collected, all the financial strategies, goals, and policies derive from this truth. These fact is clearly explained and implied just not for the sake of showcase but carrying out as well. These financial strategies if implied will be proved to be beneficial for the business.

The company's efficiency ratio increased to. 43 in line with the stats of sep-2010, your debt to capital percentage increased by a ratio of 9. 91 in line with the data of sep-2010, the earning per share of the company increased by way of a percentage of 0. 07 in line with the data of sep-2010. The earnings per share increased by the ratio of 0. 32. the operating cost of the company went up by 33. 88% of sales.

The investors expect that the price of the shares will go up in today's fiscal calendar year. The craze in the company's financial stability is unstable i. e. it was never been regular. No factor was reported when claims were determined in continuous versus reported us dollars.

The past fads will surely impact the near future performance of the company as the new CFO will develop strategy that will deal up the web loss. The fund of the company is by much considered good however the company can very well utilize their resources to raise the financial balance.

The company is facing task from some of Dubai's lead Muslim banks in conditions of finance, the financial managers are nowadays using traditional funding concepts and techniques to solve their funding related problems.

The finances of the company is different in several parts of the earth with respect to the economy of that place for ex lover. developed and producing regions.

Financial manager's role is very important in the tactical management process, as funding is the most crucial section in a banking sector.

3. Research and development

The company besides concentrating on its banking services is also indulged in primary areas like textiles, and light weight aluminum accessories. These strategies are designed to boost the products and services of the company and also to increase their business. These strategies are constant with the corporation's quest, objectives, strategies and plans.

The technology that they use to implement their policies plays a great role in making processes.

The R&D of the company's new services provides company a competitive edge, the go back from the services and services is not much because it is the hottest field in the company's yard.

The R&D of the company depends on environmentally friendly and climatic conditions of this country, company's scientific discontinuity takes on a vital role because the technology plays the most essential role in the making processes.

The R&D manager plays a very role in the company's tactical management process.

4. Procedures and logistics

The company's current developing/service aims, strategies and policies are clearly implemented and implied from performance and budget, the business's policies and strategies are in accordance with the business's main plans, strategy, and goals. The company has to face problems in the external and internal environment regarding logistics and operations.

The corporation handles their products with suppliers who provide them with the recycleables, international export of materials is done in products and services. The business is currently engaged in flexible developing, machines are of new technology. Transportation facilities are available in most of the parts.

The developing and logistics of the business is damaged by the many factors like natural disasters and climatic conditions.

Operations manager are employing new technology and services to judge and improve current technology.

5. Human learning resource management

The corporation's current HRM practice is to utilize their human resource to expand the business's business and also to raise the customer bottom, along with producing and developing services.

The net gain per staff is 175, 151 AED of the DIB, it is known as a descent income therefore it is clear that the business is very conserve towards their workers and do good care of them.

The HRM of the business has the capability to increase their online profit and impact other factors favorably.

The corporation is paying the employees greatly and they're providing them with other bonuses too, but other competitors are also conserved related to their employees.

The HRM administrator is utilizing the resources to the highest and frequently created strategies to do well in future like interesting their recruiting in other products and services, and launch of new posts.

The company doesn't seems to have a diversify labor force from all around the globe, but whatever they have got with them they are simply taking care of them quite efficiently.

Outsourcing plays a very important role in HR planning, as outsourcing provides manpower to complete objectives and tasks related to the business. Furthermore the HR manager plays an essential role in the strategic management process, as every strategy requires manpower and the best use of human resources.

6. Information technology

The organizations current IT targets, strategies and procedures includes modernization of all solutions in the framework of IT, which strategy is very well relative to the modern era where the company is working.

The company has an effective repository management system and analyst who can make changes in the repository whenever required.

After the utilization of modernized technologies it's very much predictable that the business will do well in the future regarding the advantages of the software's used.

All the key bankers in Dubai is deploying it as an instrument for performing procedures and for services therefore DIB is facing a cut-throat competition in this field and will need to have to look after for new scientific services and tools.

DIB has got a location in the world's internet repository and the info is perfectly conveyed regarding the company on the internet.

IT administrator is playing an essential role in expanding the company's strategies as, many functions in the organization is dependent on IT.

D. Synopsis of interior factors

Marketing, human source of information and financing are the core-competencies for the business at present. The distinctive competencies of the organization is its IT and logistics and procedures.

Finance, marketing and individual resource are the most crucial factors that the business are employed in presently. Human reference is the functions that are most well suited for outsourcing.

5. Analysis of tactical factors

A. situational analysis

The main research that affects the business's present and future performance will be the financing performance, marketing, individual reference and the sustainability issues.

B. review of mission and objectives

The current objective and objectives are appropriate for the business's progress but somewhat because the net profit, revenue generated and the show prices of the business is reducing, therefore they have to have a look at its fund and marketing areas.

If the funding and marketing parts are thoroughly assessed an corrected then your corporation will increase larger momentum in the foreseeable future.

6. Tactical alternatives and suggested strategies

A. Strategic alternatives

The current strategies if revise will prove to be very beneficial for the company.

The recommended strategies will surely help the company to boost their performance.

The recommended commercial strategies are stability, growth, and retrenchment.

The recommended business strategies are cost command and differentiation.

The corporate strategies can help the company to keep the stability, but the corporation would have only static expansion i. e. development at a poor rate.

The business strategies are however suggested taken into account the cost lowering and utilizing methods, they'll surely help the financing section of the company, but however risk could not be studied if we implement these strategies.

B. recommended strategies

The main strategic options that the business has are:

To utilize and to execrate almost all of their power.

To outwit their weakness.

To make the almost all of their opportunities.

And to manage their threats available.

These strategies should be first integrated on walk out first of course, if end up being affective they could be used further and prove to be of great use for the business for both long term and short-term.

7. Implementation

Instituting TQM would help the company to keep up better account of their services and functions.

Software professional who offers just a little idea about funding, marketing and system evaluation can develop this software.

As this is a high level program therefore the CEO should be the responsible for the program.

The programs are economically feasible as it could not cost much, instead it can help the company in a variety of cost-reduction processes. And in addition help retaining their repository and accounts.

The software should maintain beta phase first and then new inclusions will be produced depending on requirements.

8. Evaluation and control

The company comes with an up to date information system that helps these to observe every activity in the corporation and also provide sufficient reviews on execution activities and performance.

The tools that the company uses can give accurate information about everything about the earnings, loss, talk about prices etc.

The information i. e. conveyed is timely and is perfectly implemented.

The corporation is using benchmarking ways to evaluate its functions and activities.

Appropriate expectations and methods are being considered while conformance of the advised strategic programs.

Reward system is a benefit for any worker in an company therefore appropriate rewarding system is taken into account in the organization.

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