Qatar National Bank and Qatar Islamic Bank - Case Study Example

Topic: Qatar National Bank and Qatar Islamic Bank Introduction Every country requires a stable system of safeguarding their finances. The citizens need to be assured of a safe method of saving their hard-earned money. Due to this, the country has to ensure that the set up banking systems are dependable and relevant when it comes to looking into the best interests of the customers. Some of the factors involved include ensuring high quality customer services and a strong security system of the bank systems. Qatar is one of the countries that has managed to come up with various baking systems for the citizens of this country. Two of these banking systems include Qatar National Banking (QNB) and Qatar Islamic Banking. The country has managed to incorporate religion into the banking system. The Islamic religion happens to be the common religion in the country. Both banking systems are designed to ensure the safety of the money of the citizens. These options are valuable to the citizens as they are able to pick whichever type of banking strategy they wish to follow. Each of the two banking systems; QNB and QIB has its own advantages that make it favorable to the citizens who follow his type of banking as well as a defined structure. 2. Definitions The QNB refers to the Qatar National Banking. Tis bank was founded in the year 1964. It was the first bank to be formed in Qatar. The bank offered investment of options and money safety. The structure of the bank has split ownership. This ownership is equally between the Qatar Investment Authority and the private sector. The Qatar National Bank is the leading National Banks in the Middle East as well as the region in around North African countries. The steady growth has led to the accumulation of shares in the market that ate about 45% of the assets of the bank. On the other hand, the QIB refers the Qatar Islamic Bank was founded in the year 1982. It was the first institution in Qatar that was Islamic and financial. The Institution is supervised by the board of Sharia and follows the Islamic laws keenly. Every organization has a set of goals it aims to achieve. In order to meet these goals and objectives, the organization must work towards meeting them. It is a process that involves different aspects of the organization including the management, the employees, the structural design of operation and the amount of capital that is present. Each of these is a key factor and they all have to work together in order to produce the desired result. The organization therefore requires a relevant strategy that will ensure that it is moving towards meeting its objectives as a whole. A plan that will direct and guide the direction in which the progress of the organization will follow is essential. These strategies are influenced by various factors such as ideas and thoughts that are keenly put together. These thoughts and ideas may change from time to time, which would therefore influence the type of strategy used. 3. Differences and reason One of the major differences between the two systems of banking is that while QNB involves the Qatar authority Investment Authority and the private sector, the QIB is more involved with the Islamic religion. The QIB is governed by laws that concern the Islamic religion and is run by a board of Sharia. This shows that the rules governing this banking system is totally different form the ones governing the Qatar National Bank. As a result, the individuals who believe in the religious banking system will have more faith putting their money under the safety of a bank governed by the rules of their religion. On the other hand, the Qatar National Bank is governed by a different system of rules. This is because the two ownerships are not governed by religion and have to gear the bank towards the best interest of their customers. This is regardless of their customer’s religion as this bank is not based on religious rules. According to Stuart, the changing times result in the inevitable change in strategy as the management has to keep up with the trends. It is also important for there to be intellectual governance of an organization in order for there to be meaningful strategies that will bring progress. Knowledge has a great impact on the type of strategies used in an organization and aids the advancements that may occur. For this reason, Stuart feels that competitive strategies are more and more being based on intellectual capacity. This directly has an influence on the processes of management and the reforms that may occur. An organization that is able to utilize knowledge and information and make up strategic plans on how to move forward have a better chance at success than those that dwell on the older forms of management and strategies. There should be awareness of the views of the customers as well as the employee’s views. This requires research and queries on the opinions about various aspect of the organization (Stuart 1998 10). This will also welcome feedback and proposals of better means of running the organization. The diversity in opinions and suggestions will offer room for generation of new ideas and strategies that are unique and relevant. Both of the banks have benefited from using different marketing strategies as well as strategies of running the organization. 4. Advantages of QNB There are various advantages of the Qatar National Banking system. One of these advantages is that this banking system welcomes individuals from all types of religions. It does not discriminate against the religious factor which enables the bank accommodate as many customers as they can. It is appositive thing and an advantage not only to the bank as well as the customers. Those visiting the Middle East section of the world and belong to different religion other than Islam are able to bank with the Qatar National bank as it offers services to different types of people. This advantage also benefits those living in the country and would like to bank with a free bank that is not limited to religion. Another thing is that the Qatar National Bank offers online services. This is an advantage to the customer as they can be able to access the services and information of this bank online. Most actions that involve business in the world are performed online. As a result, those banking with this bank have the advantage of joining the rest of the world in using online banking services that are essential as well as effective. This mode of banking enables the customer have access to money and have their questions well answered. This bank also offers loans to their customers as long as the requirements of the bank are met. The bank also offers investment options to its customers and therefore also expresses interest in the well-being of their customers. 5. Advantages of QIB The Qatar Islam Bank has its own advantages as well. These advantages involve the fact that the bank reaches out to most of the individual in the Islam religion. Through the use of the Sharia laws, it is evident that the bank targets those in the Islamic religion to join in their banking system. The bank is able to era nth trust of those in the Islamic religion and assure them of the safekeeping of their money. The main advantage of the bank is the security it offers to those who bank with it both financially and spiritually. Most of the people found in the Middle East region are Islam which makes them an easy target to this bank. The bank also offers advice services as well as loans that will benefit the customer and enable them advance themselves. New strategies can therefore be derived from evolved old strategies. For instance, past strategies were designed in a manner that dwelled on the predictable nature of circumstances. However, now the times are different and the market and organizations in the industries cannot quite predict the changes that may occur in the market or society. For this, they have to be thoroughly prepared and come up with strategies and plans that will enable them emerge undisrupted by these turbulent changes. Unlike in the past when the methods used were almost the same and rarely are they revisited, the current strategies need to be able to keep up with competition in the market and protect the organization’s long-term survival in the industry. According to (Xavier 2002 56), a strategic process that is robust is required in order to ensure that an organization maintains its success despite the turbulence and unpredictability. The strategic use of trending platforms such as the internet and is therefore necessary in order to ensure that the reforms made are guiding the organization in the right direction. Old strategies did not prioritize the use of platforms such as the internet which would render most of the past strategy models as not so reliable strategies. Hence there is a necessity for a complexity in the generation of new strategies in organizations. Putting in the new and latest strategies in the running of the bank has enabled the customers benefit and understand the bank they are saving up their money with. It enhances the act of reaching out to more people such as the use of online banking services in order to benefit the customers. With great knowledge and information from the customers and the staff members as well as results obtained from research an organization is advantaged in various ways. The management will have a variety of different perspectives to consider including those of the employees. The organization is also able to keep up with the trends in technology, marketing strategies and profit generation of profits. When a management is able to acquire information from these areas, the future plans and strategies employed to achieve them are more reachable. New ways of thinking about strategy are also realized in the running of these processes. This is because of the different ideas from different individuals who have different knowledge and experiences on different matters. The management is also at a position of gathering useful information from professionals on various matters. A strategic plan that will impact change is backed up with sufficient knowledge on a variety of matters (Stuart 1998 13). Each generation has new ways of thinking based on the lessons learnt from past strategies or innovation on existing strategic plans within the organization. Improving on past strategies or better yet coming up with brand new ideas on new strategies can benefit an organization both internally and externally. This is because the new strategy may satisfy both those working within the organization as well as work towards adding on the customers or clients of the organization while maintaining those already in existence. The diversity of activities within the organization enable it formulate strategies that will enable it move forward. It is also helpful in that all these individuals can control the direction in which an organization moves. Proper employee motivation and financial management is crucial to the progress of an organization. It will enable all the different aspect of the organization to work in harmony. When all these parts of an organization function together diligently then it is most likely that the organization will have a chance of succeeding in the industry. The management is also required to work together and in coordination in order to be able to have proper control on the activities going on in the organization and the most likely turn of events. As it is inevitable that disputes will occur in the running of the organization between different sectors and members, and then it is important for appropriate measures and strategies of dealing with these disputes to be resolves in the end, it will benefit the organization as a whole when there is harmony in the organization. Based on the information acquired and the studies that have been done, the argument that the strategies are not found in the organization or something it has but rather something that it does is true. It is the activities performed in the organization that lead to the formulation and execution of a strategy. Conclusion In conclusion, a good banking system is one that meets the preferences of the customer and ensures the safety of the funds of the customer. This being said, both the Qatar National Bank and the Qatar Islam Bank are well endowed in ensuring that they meet the best interests of the customers. The two banking systems have been around for a long time and have therefore establishes themselves in the banking industry. They know what the customer needs and understand how to ensure that the customer is fully satisfied. The two banks are open to offering guidance on investment options to their customers as well as how to promote the success of the bank itself. They have reached out to their target markets efficiently and ensured that necessary steps are taken to understand the requirements of the customer. This has in turn promoted the popularity of the banks as they have earned the trust of many customers for generations and generations. They have also been able to balance their finances and ensure that they are stable and earn the banks stable profits. It is through these factors as well as meaningful strategies that the two banks have been able to remain as successful as they are. References Stuart, J. D. (1998). Analysis of water samples for trace levels of oxygenate and aromatic compounds using headspace solid‐phase microextraction and comprehensive two‐ dimensional gas chromatography. Journal of Microcolumn Separations, 10(7), 597-604. Hossain, M., & Leo, S. (2009). Customer perception on service quality in retail banking in Middle East: the case of Qatar. International Journal of Islamic and Middle Eastern Finance and Management, 2(4), 338-350. Xavier, F. B., & Hunt, R. A. (2002). Strategy in turbulent times. Managerial Auditing Journal, 17(1/2), pp. 55-59. Read More