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Assignment No. 1
MGT503 (fall 2011)
The external environment refers to the forces and factors outside the organization but
they are directly related to the organization's performance. Take any multinational
organization working in Pakistan and briefly discuss how external environment affects
its performance. Include at least four such factors.
Solution:-
I would like to choose ABN AMRO BANK and effects of Enternal environment on
it. There are a number of challenges that have emerged following the most
recent Macroeconomic developments in the domestic and global economy.
These are what I would like to call as external challenges.
S. No Factor Effect on the Organization
1
Interest Rate Variations
Depends upon KIBER (Karachi Inter Bank Exchange Rate) So
ABN EMRO BANK cant select a fix interest rate whole year & tats
cause variation in I.R.
2 Consumer-Durable
Demand
The robust growth of auto and mortgage finance in preceding
two years has significantly increased the prices of these assets,
and thus has created inflationary pressures in the economy.
3 Equity Stock Investment Given the volatile nature of the equity markets, banks'
investment in equity stocks needs a cautious approach.
4
E-Banking
Another area where still a lot of progress should be made is the
E-banking. This will not only lower the transaction costs but
will also help in improving the customer services. The ATM
penetration ratio is still quite low in Pakistan and the efforts are
needed to not only further expand the ATM network more
aggressively but also to improve upon the security standards.
5
Islamic Banking Islamic banking is a relatively new concept in our bankingsystem. More and more banks are seeking license to open
Islamic bank Branches. At present two full fledged Islamic
banks having 37 branches are operating in Pakistan.
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