Industry Analysis If we see the banking Industry in Pakistan, the overall industry is at the maturity stage.

The whole world is passing through the economic crisis, which has affected the banking industry, the most. Many famous banks around the world got bankrupted. Thats why the overall industry is at the maturity stage

External Environmental Analysis: The external environment of Bank Al-Falah includes their external customers and competitors etc. The country forces affecting the environment e.g. political forces, Economic forces, Sociocultural forces, and Technological forces are the part of the external environment. Political Factors Political factors in any countries affect the organizations and institutions greatly. If there is a stable political environment, the organizations flourish successfully but if there is instability in political environment, then there is a bad effect on all institutions and organizations. If we look Bank Al-Falah with the aspect of political environment, there are some rules made by the government to follow. A regulatory approval is necessary from the State Bank of Pakistan in order to launch a bank. Further more there is requirement of State Bank of Pakistan that the paid up capital of Bank Al- Falah should be Rs 10 billion by 2010, Rs 13 billion till 2011 and Rs 23 billion by 2013. Economic Factors As we know the economic conditions of the country at the current is not so good, and there was a huge economic crisis recently which affected many banks. Bank Al-Falah should consider short term and long term issues concerning economy of the country. It is obvious that with the current situation, Bank Al- Falah like many other banks are being affected by the challenges like inflation, unemployment and economic crisis. Socio- Cultural Factors Every country has its own social values and cultures. Bank Al-Falah is doing good by keeping in mind the cultural values of Pakistan. As we can see from its advertisements that it reflects the true cultural and social values. And by doing this, Bank-Al Falah is attracting a great deal of customers. Because it is natural that when some organization takes care of customers social and cultural values, then the customers are naturally attracted towards that particular organization.

Technological Factor The technology plays a very important role in todays successful organization. Bank Al-Falah is doing good in introducing technologies as and when required by the Bank. Further it trains the employees to use those technologies