Contents

• Introduction 2
• Oman Arab Bank 3
• Statement of Issue 4
• Analysis of the Factors leading to the Issue 4
• Poor Growth Strategy 5
• Poor Systems and IT Infrastructure 6
• Inefficient Human Resource Performances 8
• Integrated Solution to the Issue 9
• Conclusion 13
• References 15

Description

Organizational processes and strategies are highly influenced by internal and external forces, which needs to be regularly analysed to bring effective changes in the organizational components. The structure and system are the main internal elements, which influence strategy formulation and also influence the human resource practices. The elements in the external environment include competition, increasing customer demand, political and social conditions. The organizations have to bring effective changes in the structure, system, human resource practice and strategies to overcome the external forces such as competition and customer demand, which constantly vary. Organizations which fail to respond to the changing environment end up losing business, incur financial losses and lose their reputation in the market. Since the competition is intense the organizations have to be highly responsive to the changing demands and increasing competition.
Oman Arab Bank is one of the established banks is a result of acquisition of Arab Bank Plc operating in Oman. The bank since its establishment in Oman has been focusing on corporate banking and investment banking, which has provided the back with increased returns and hence it has continued to focus on that. But the competition in Oman is increasing with Bank Muscat having spread its network increasingly in the region. Also, the customer’s demands are increasing. The bank has failed to provide effective services due to poor strategy, system and IT infrastructure, which has not only affected the business but also the human resource, which has resulted in disappointed customers and dissatisfied employees. The report analyses the factors leading to this business issue using various management frameworks and also provides recommendations using the frameworks.