PEST Analysis for Bank Muscat Essay Example | Topics and Well Written Essays - 1500 words

PEST Analysis for bevel Muscat - Essay Example1. History and growth of money box Muscat The rely Muscat is a commercial cuss of Oman, founded on 30th April 1982. It has strong operative presence in sectors including corporate banking, investment banking, retail banking, and private banking. Currently, the Bank Muscat is the largest banking network in Oman with over 130 branches and as cooks worth more than US$18 billion (Bank Muscat). It has presence in overseas countries including Riyadh, Saudi Arabia, and Kuwait with a branch each and possesses a representative office in Dubai and UAE. The Bank Muscat is being continuously rated as the best bank in Oman over the last several(prenominal) years and it has been awarded the Hewitt recognition as the centre Easts Best Employer 2009 (Hewitt 2009). 2. PEST analysis of the familiarity The PEST analysis is a potential beam of light to analyze the macro-economic environment of a business industry. This tool can be used to assess the market for the Bank Muscat. Political factors The political framework of Oman is in the form of an absolute monarchy where the Sultan of Oman acts as the wit of government as well as head of state (Al-Azri 2012, p.1). The court system in Oman has three levels including Elementary Court (lowest level), the Court of Appeal (middle level), and the peremptory Court (highest level). Since Oman is an absolute monarchy, it has clear long term policies regarding the banking development in the country. The recent global quoin has persuaded the Sultanate of Oman to focus more on sustainable banking development. Therefore, the Oman government greatly supports Bank Muscats efforts to change its market position and to expand its banking business. The strong government assistance benefited the Bank Muscat to become the showtime company from Oman to be listed on the London Stock Exchange. In addition, Oman maintains better diplomatic relations with US and India and this strength is likely to contribute to the Bank Muscats early growth. Economical factors Oman is a Middle East country which has been achieving significant GDP per capita growth rates for the past half a speed of light (Gonzalez 2008, p.154). The country has significant oil and natural gas reserves and they appear to be the main antecedent of revenues for the country. As studies indicate, the intense modernization efforts taken by Oman to improve its peoples living standards and to seduce a significant position in the global marketplace are also promoting the operations of the Bank Muscat. Since Oman is one of the Middle East countries with no national debt, investors view Oman as a stable parsimoniousness and they are willing to invest in the country (Doing business in Oman). This favorable economic smear greatly assists the Bank Muscat to attain the trust of investors and hence to promote their banking operations easily. As of the get out ended on 31st March 2009, the net profits of the Bank Musca t nearly double to OMR 48.42 million from OMR 26.54 million in 1Q08 (GCC First reaction paper 2009). Finally, competitive interest rate set by the Bank Muscat would safeguard the interests of its clients and the situation in turn may assist the bank to raise huge operating funds. In total, the countrys economic spectrum offers a prosperous future for the organisation. Social factors With the failure of a number of banks across the globe, Oman