Alliance Bank Case Study
Table of Content
1. Introduction………………………………………………………………………...…2
2. External Analysis (PESTLE, Porter’s Five Forces)…………………………….……..3
3. Internal Analysis: (SWOT analysis, VRIO analysis, Value Chain)......……………....9
4. Recommendation (Corporate Strategy)……………………………………………...14
5. Recommendation (Business Strategy)……………………………………………….16
6. Recommendation (Functional Strategy)……………………………………………..18
7. Implementation……………………………………………………………………....20
8. Conclusion ……………………………………………………..…………………....20
9. References…………………………………………………………………………...22
1. Introduction
Alliance Bank is one of the leading banks in Kazakhstan, and it is the tenth largest bank in terms of assets in Kazakhstan. Headquartered of the bank are located in Almaty.
Bank is developing as a universal financial institution in all lines of business, with a primary focus on retail banking and lending to SMEs.JSC Alliance Bank, has been operating for over 15 years. Recently bank has been shadowed by number of scandals, which had a negative effect on its reputation. In February, 2009 the government appointed a new management team after its key shareholder, SAFC, rejected to support the bank in long-term. During the financial crisis Alliance Bank was the first bank to default. By 2010 its debts were restructured and government had to inject 24 billion KZT on its deposit account in order to save the bank. Since the restructuring, state-owned National Wellbeing fund Samruk-Kazyna is holding 67% of the bank’s shares.
In 2012 Alliance was judged to be stable with a Standard and Poor’s rating of “B-”. Today Alliance’s long-term credit rating by Standard and Poor’s is stated at “D”, together with short-term rating. In 2011 bank considered talks with European Bank for Reconstruction and Development regarding the potential sale of its shares. In February 2014 bank has suffered from technical default. Later in February, the bank’s reputation suffered even more after
1. Introduction………………………………………………………………………...…2
2. External Analysis (PESTLE, Porter’s Five Forces)…………………………….……..3
3. Internal Analysis: (SWOT analysis, VRIO analysis, Value Chain)......……………....9
4. Recommendation (Corporate Strategy)……………………………………………...14
5. Recommendation (Business Strategy)……………………………………………….16
6. Recommendation (Functional Strategy)……………………………………………..18
7. Implementation……………………………………………………………………....20
8. Conclusion ……………………………………………………..…………………....20
9. References…………………………………………………………………………...22
1. Introduction
Alliance Bank is one of the leading banks in Kazakhstan, and it is the tenth largest bank in terms of assets in Kazakhstan. Headquartered of the bank are located in Almaty.
Bank is developing as a universal financial institution in all lines of business, with a primary focus on retail banking and lending to SMEs.JSC Alliance Bank, has been operating for over 15 years. Recently bank has been shadowed by number of scandals, which had a negative effect on its reputation. In February, 2009 the government appointed a new management team after its key shareholder, SAFC, rejected to support the bank in long-term. During the financial crisis Alliance Bank was the first bank to default. By 2010 its debts were restructured and government had to inject 24 billion KZT on its deposit account in order to save the bank. Since the restructuring, state-owned National Wellbeing fund Samruk-Kazyna is holding 67% of the bank’s shares.
In 2012 Alliance was judged to be stable with a Standard and Poor’s rating of “B-”. Today Alliance’s long-term credit rating by Standard and Poor’s is stated at “D”, together with short-term rating. In 2011 bank considered talks with European Bank for Reconstruction and Development regarding the potential sale of its shares. In February 2014 bank has suffered from technical default. Later in February, the bank’s reputation suffered even more after
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