November 2014 Vol. 2 No. 3

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Original Research Article

Assessing the capacity of Mellat bank to earn income from commission on services (the guarantee commission, LC, etc), emphasizing profitability and providing a suitable model for capacity management using SWOT model

H. Arabameri

A.M Student of Industrial Management, Islamic Azad University, Semnan, Iran.

E-mail: keramat.asadi@yahoo.com Tel.: +989193322170

Accepted October 28, 2014

Abstract

Due to major changes taken place in the banking system of Iran, Bank Mellat has faced new challenges: restructuring state sectors into private ones through privatization, an increase in their rivals, the intense competition to obtain more market share, bringing about more expenses and costs as to four bank deposits, etc., has led the bank to tends to increase the commission (the income from services’ commission). In this paper, the researcher has collected the required information through interviews with experts as well as scientific and library studies. In the first section of this study, to determine the potential income from commission on Mellat bank services, strategic planning (SWOT model) and assessment models of internal factors (IFE) as well as external factors (EFE) were employed. Due to the fact that in assessment models of internal (IFE) and external factors (EFE), the bank has obtained a score of 2.25 and 1.75, it can be argued that the bank has not successful in making use o its appropriate capacity in the field of services and non-shared revenues.In the last section of this paper, to enhance the capacity of non-shared services of Mellat bank, various strategies SO, ST, WO and WT are suggested. Among aforementioned strategies, the defensive strategy (WT) is selected as the main strategy of the bank through which 12 major factors are presented by the researcher contributing to the self-defense strategy.

Keywords: Capacity assessment, non-shared revenues, guarantees, commissions, technical planning, SWOT model.