Introduction
This document analyses the mission statements of three banks namely National Bank of Abu Dhabi, Abu Dhabi Islamic Bank and Al Hilal Bank. The mission statements will be compared and analyzed in an effort to understand their clarity, scope, and consistency with the respective company’s line of business. The document revolves around three main banks in Abu Dhabi. The banking industry has grown over the years since it was first established catering for a number of financial services such as monetary savings, loans, investments and financial consultations services. The key driving factor behind the growth of this industry is the fact that banks operate on interests earned from the funds saved by clients in any respective bank. However, there has been a growth in the Islamic form of banking that tends to differ from this norm and that specifically caters for nations that have a majority of their population being Muslim. Among these nations is the United Arab Emirates that cover a number of nations among them Abu Dhabi. The National Bank of Abu Dhabi, Abu Dhabi Islamic Bank and Al Hilal Bank are among the most popular banks in this nation. They were established in accordance with Islamic Sharia’s principles with different mission statements. Each of this mission statement helps to emphasize the commitment that each bank has pledged and strives to offer to its clients. Generally, a mission statement consists of the following key components: a mission, a vision, values, and goals. These are usually derived from the company’s core activities. On the other hand, the mission statement helps clients to understand the scope of a company’s line of business. Sampling a number of these mission statements and comparing them helps to get a better understanding of what should be the scope of a business mission statement in relation to the business operations.
This document also consists of a section on a hypothetical company. The company’s name is stated; its mission statement, and its business model analyzed. The company picked for this scenario is in the same line of business as the three case studies.
The following are some of the mission statements of the three banks under study.
National Bank of Abu Dhabi
The mission statement of this bank consists of a vision, mission, values, and a pledge to its customers. The vision gives an overview of the long-term goal of the bank, which is to become the most successful bank in the region while the mission describes how the vision is going to be achieved. Values are the core features that differentiate the bank from other institutions. Such as proper client needs management. Lastly, a pledge to its customers on some of the tasks the bank will fulfill for its customers.
Abu Dhabi Islamic Bank
The mission statement of this bank consists mainly of a mission and vision. The vision specifies what the bank aims to achieve in the future, and the mission specifies how that will be achieved. The mission states that the bank aims to be at the top of the pack in financial services based on Islamic principles while the mission touches on the clientele that the bank targets in its operations.
Al Hilal Bank
The mission statement consists of a mission and a vision. The mission of this company is to contribute to the region’s growth specifically United Arab Emirates and raise the notion of Islamic banking in the world. The vision talks of setting standards that can be emulated by other financial institutions dealing with Islamic banking in the world.
Comparison
The three mission statements are similar in a number of aspects. First, they consist of a mission and vision definitions of each company. The vision outlines the goal of the company in the future while the mission contains the path that will be followed to achieve the vision. Second, the mission statement of each respective company is in line with the company’s line of business. The three banks mainly deal with Islamic banking that they have clearly stated.
There are some minor differences in the way the mission statement of these banks have been outlined. The mission statement of the National Bank of Abu Dhabi is more detailed than the other two mission statements. It consists of three additional sections that help to further emphasize their line of operation covering on their values, pledge to customers, and the interaction of the company with the corporate world. The other mission statements are briefly defined without touching on values and their interaction with the corporate world both customers and other financial institutions.
Evaluation and Critique
The majority of institutions have a mission statement to define their path of operation and serve as a reminder to its management and customers. However, among the various mission statements of some of the institutions in the banking industry, a number of issues come up. The mission statements are not specific on how the company will achieve the set goals and the scope of some these institutions are too general covering the whole world which may not be practical. Other mission statements do not cover their role and code of conduct concerning other institutions either as clients or as competitors. The mission statement of a respective company should be clearly defined to meet the goals of the company and clearly state steps to be taken to get to a certain level of success and all parties involved in the business operations should be addressed.
Proposed Company
Vision
Mission
Promote savings in the society by offering higher rates on savings and offering money in a number of currencies based on the client’s location in the world.
Values
Prioritize customer needs.
Promote business image and that of our clients.
Work hand-in-hand with other financial institutions to achieve sustained growth.
Goals
Offer loans to customers.
Promote a conducive and easily accessible mode of communication.
Promote the welfare of our clients through savings and financial advice.
Business Model
The bank will target middle class individuals and encourage them to save their earnings while they are working in a number of countries in the world. From these savings, the bank will be able to offer services such as financial advice to customers based on their saving trends and jobs and offer loans from the pooled resources. The bank expects to make a profit from the loans offered to individuals and corporate clients and via other investments such as real estate and insurance services.
Bibliography
Al Hilal Bank. Mission and Vision. 2013. http://www.alhilalbank.ae/ (accessed June 1, 2013).
Mission & Objectives. 2013. http://www.adib.ae/mission-objectives (accessed June 1, 2013).
NBAD. Our Mission & Vision. June 2, 2013. http://www.nbad.com/en/AboutNBAD/Pages/OurMissionBrand.aspx (accessed June 1, 2013).
