hey Kadafi, please see attached file and contact me if you have any questions, thank you

Running head: STANDARD CHARTERED BANK IN OMAN

STANDARD CHARTERED BANK IN OMAN
Author
Institution

1

STANDARD CHARTERED BANK IN OMAN

2

History of the Bank
Standard Chartered Bank stands to be one of the top international banks operational in
Oman. The bank was opened in the year 1968 staring with an initial employee capacity of 140
employees. With its inception, the bank brought a significant shift in the financial sector in Oman
as Standard Chartered Bank introduced cash management services, making Standard Chartered
Bank the first international bank to provide such services. This also led to the introduction of direct
sales in Oman. From there, the bank has undergone significant growth and progress, seeing that in
the year 2010, Standard Chartered Bank was listed as the Best Foreign Bank, an award by EMEA
Finance. Over the years, Standard Chartered Bank has taken advantage of the blooming retail
businesses in Oman, leading to the opening of branches all over Oman. In the year 2009, there was
an opening of Priority Banking Center, Ruwi.
The mushrooming of different branches has been an irrefutable evidence of the strong
business growth and strategic expansion that characterizes the bank in Oman. The year 2008 was
a significant period that evidenced the bank’s growth and outstanding performance in the
marketplace. During this period, the bank market a 26% rise in income as well as a rise in the
Operating Profit Before Tax by 13%. In terms of numerical metrics, the bank recorded an income
of $13.7 billion and an operating profit before tax of $4.57 billion. Efficient business strategies
and a conservative approach with respect to risk management have characterized the bank’s
business operations culture, having proven to be the driving force of the bank’s success in Oman.
With time, the bank introduced new products and services that it offered to its customers.
Currently, the bank provides a pool of products and services targeting different customers in the
market as competitive rates.

STANDARD CHARTERED BANK IN OMAN

3

SWOT Analysis
Strengths
Taking a look into the SWOT analysis of the bank in Oman, the bank focuses on merchant
and personal banking as its core operational strategy in meeting customer needs in the banking
sector. As the bank offers complete banking as well as other financial solutions, all services
provided are targeted towards interesting different enterprises and individual investors in Oman.
Standard Chartered Bank in Oman has an upper hand in the banking sector and financial market
on the basis of the various strengths it boasts of. One of the strengths characterizing the bank
include an extensive global employee base which stands at about 80, 000 employees. The huge
scale of the employee base sends a positive signal to customers both in Oman and across the world.
With respect to Standard Chartered Bank in Oman, more than 70% of the employees are Omani
citizens. This is significantly consequential, as it promotes community development and economic
growth through employing locals.
In addition to this, the bank is well known for its community development initiatives
through its constant sponsorship and involvement in numerous sports and social events both in
Oman and across the globe. This is a key advantage to the bank as it enhances the bank’s public
relations both locally and globally. An organization’s reputation is a top metric that influences its
success. With the banks, involvement in community development, a good reputation is inevitable
which influences the success of the bank’s business practiced in Oman.
Looking at another irrefutable strength, the bank in Oman offers a wide range of products
and services to its customers. This facilitates for extensive market coverage with reference to
present and emerging needs in the Omani market. There is a saying that says diversity is strength.

STANDARD CHARTERED BANK IN OMAN

4

In this regard, the bank offers different products and services which have been tailored to meet
different needs of different customers in the Omani market. Financial products and services offered
include Corporate Finance, Priority and International Banking, Transaction Banking, Personal
Banking, Private Banking, Financial Markets and SME banking. An extensive range of products
and services offered is an integral component of the bank’s success in Oman.
The bank is also known for its aggressive advertising, relentlessly engaging in activities
that enhance the bank’s publicity in Oman and other countries around the world. Increased
reputation has come as a result of intensified investments in bank’s advertisement. This has been
key in widening the bank’s customer base and public relations, hence building customer
confidentiality and trust level in the bank’s products and services. Economic growth strategies by
the bank have been also tailored to facilitate social and environmental development. This is a
strength that has greatly enabled the bank to gain preference in the market among customers. The
endeavor has successfully passed a message to customers that the bank is not only concerned with
its economic growth and that of the society, but also environmental wellbeing and societal
development. This has been possible through taking part is sports events as sponsors and other
similar activities. Finally, the bank is known to be the leaders of banking services in Asia Pacific
and Africa. This is a key factor that enhances customer trust, confidentiality and preference in the
bank.
Weaknesses
In spite of the numerous strengths, the bank in Oman is not short of weaknesses that at
some point have been stumbling blocks to its optimum growth and progress. One of the
weaknesses is that Standard Chartered Bank lacks a strong emphasis on small enterprises. This

STANDARD CHARTERED BANK IN OMAN

5

critical putting into consideration that Oman has numerous existing and emerging small enterprises
that would be a significant market base for the bank’s growth in Oman.
In addition to this, the bank has a poor penetration in emerging markets where there is a
huge market that has not yet been exploited. In this regard, the bank stands to have a restricted and
constricted market which is already saturated with extreme competition. It is important for any
business to stabling a strong market presence in the early stages prior to inception of other
competitor businesses. At the event where the bank would focus on verging into these markets,
the untapped potential would be a fuelling factor to the bank’s economic growth and escalated
profits. Such emerging markets in the Asian continent include India and China.
Opportunities
On the other hand, the bank has opportunities at hand that depict untapped potential.
Opportunities are the breaking points and channels to exponential growth and business expansion.
One of the potential opportunities is a possibility of economically viable mergers and acquisition
in Oman. There are smaller financial institutions in Oman that have curved out a strong market
niche in the services and products provided. In this regard, the bank would consider mergers or
acquiring some of these institutions so as to scale up strategies and resources, consequently
widening its customer base. This move would also help in alleviating the extreme competition
present in the Omani market by acquiring institutions that would otherwise be competitor
institutions in the market.
Another opportunity that could be utilized by the bank is an exponentially growing Forex
market. With a significant increase in international trade and transactions in Oman, the Forex
market has experienced a significant growth which is a goldmine that the bank would explore.

STANDARD CHARTERED BANK IN OMAN

6

Oman is encountering an increasingly expanding international trade. Consequently, intensive
foreign exchange is inevitable leading to a significant growth in the Omani Forex market. Investing
in delving into Forex market would prove to be a fortune for...