Question

PRINCIPLES MANAGEMENT

Emirates islamic bank (EIB) focused to the next level of success, expanding the reach of the organization on a local and regional level. EIB are driven to building our organization on the two pillars of Personal and Commercial Banking, which will serve as the engine for our future growth.

1. Management Functions are classified in to five. Explain the organizing or controlling function of EIB to expand their business in future.

2. PESTLE Analyst is an analytical tool for strategic business planning and a strategic framework for understanding external influences on a business. Discuss how Political and Economic Factors will effect EIB in present.

3. Probe how the managers decision role will influence the performance of an organization.

Answer 1

1)

EIB wants to grow through increasing the personal and commercial banking footprint on a regional level. This would imply setting up new infrastructure in terms of new branches, reaching out to business customers and also appointing relationship managers to manage the relationship with personal clients. In order to achieve this growth, new manpower resources needs to be hired and then they have to be allocated jobs in the framework of the organization and optimally to ensure that costs are minimized and organization objectives are met.

Thus for the managers, it implies taking stock of the resource requirement in various projects, allocating resources, acquiring new resources where required and developing a winning culture in the organization to ensure growth is sustainable and objectives and target are met year on year.

2)

The political and economic factors are potential risks which might affect the growth plans of EIB. If there is political or economic uncertainty, then the appetite of businesses to invest would diminish and personal consumption would also reduce. This would mean that scope for financing commercial transactions and personal loans would also diminish and the growth of EIB may be affected.

On the other hand, if the political and economic environment are amenable, then the growth plans of EIB would be met to a large extent and corporate objectives would be met because of robust business and personal demand.

3)

The managerial decision making is the most significant factor in determining the performance of the organization.

If the decisions are in line with the overall strategy of the organization and the decisions are swift and timely, it aids in increasing the firm value by seizing the opportunities.

On the other hand, decisions opposed to corporate strategy undermines the strategy and if these decisions are slow also, then the opportunity may be lost and this would lead to a reduction in firm value.