Chapter-III (vastmedia bank)

Chapter No 3

THE OVERVIEW OF VM

INTRODUCTION

People who work together require a defined system or structure through which they relate to each other and through which their efforts can be coordinated. So in this chapter include the VM mission, value, vision, philosophy and part of VM in economy of the Pakistan.

3.1      THE MISSION OF VM:

Every organization has certain aims and goals which they set to achieve regardless organization are profit oriented or non profit oriented. Mission statement give the over view about company whole policy because mission statement consist on and where the organization are going, what is organization nature and how the organization get their aims or future goals.

VM mission is;

·        To provide value added services to our customer.

·        To provide high technology innovative solution to meet customer’s requirements.

·        To create sustainable value through growth, efficient and diversity for all shareholders.

·        To provide a challenging working environment and reword decimated team members according to their abilities and performance.

·        To play a proactive role in contributing towards the society. ¹

3.2      VM VALUES:

·        Highly integrity environment.

·        Excellent in service.

·        High motivation employees.

·        Customer friendly banking system.

·        Innovation and rapidly growth bank

3.3            VM VISION:

“To become a dynamic and efficient bank, providing integrated solution in order to be the first choice bank for the customers.” ¹

3.4       OBJECTIVE OF VM:

“The objective is an organization performance targets the results and outcomes it wants to achieve”

Peter ducker

The purpose of setting objective is top convert managerial statement of vision and mission statement into specific performance targets and outcomes the organization wants to achieve. Setting objective and then measuring whether they are achieve or not help management track an organization’s progress.

Managers of the best performance companies tend to set objective that require stretch and disciples effort. Same like it VM primary objective is to earn profit and minimize its expenditures as for as possible keeping in view the current banking system. The VM secondary objectives are;

·        Improvement in customer services.

·        Cooperative environment for working.

·        Customer friendly environment.

·        Enhance the economic activity in the country.

·        To provide small, medium and log term finance on easily and accessible terms. ¹

3.5       POLICES OF VM:

Polices are the general guideline of the organization decision making process. It provides direction and regulation for action in the certain circumstances. Polices give assistance in deciding issues before they become problems. Thus, polices provide opportunity and maintain control over their subordinates. Polices do exist at all level of organization but polices do not require actions. ¹

VM have also their police to run their organization we can divide VM polices in three heads.

3.5.1    Operational Policies

Operational polices deals with bank routine operations. It includes new scheme which are unreduced to improve VM’S operation and to take measure for better services. ¹ The operation may be divided into;

a.     Domestic Operations

VM is making successful domestic operations; it has 16 regional offices with 852 branches. Many branches are added in the domestic sectors, out of which some are in rural and some are in urban sectors.  The bank has owned a subsidiary name vastmedia management services private ltd, which has shown improved operational result during the years. ¹

b.    International Operations

The VM’s oversea branches are continuously rendering services to its customers and are also contributing significantly in channeling remittances to Pakistan thought their foreign braches. ¹

3.5.2    Managerial Polices

The managerial polices deal with the management issue and formulation of strategies. The management of VM is control management issue by a president and each province has a provincial headed by provincial chief. Each provincial headquarter controls branches through regional offices. ¹

3.5.3    Promotional Polices

Promotion is a business function that identifies customer’s needs and wants determines in which target market the organization can best serve its customers. Promotion is very key factor in a business success. VM adopted certain promotional techniques to enhance the image of the bank. These promotional activities need police to flourish the business and gain profit. Most of promotional takes place through various deposit schemes through advertisement in news papers and on electronic media. ¹

3.6       SILENT FEATURE OF VM:

Beside al high lighted feature, VM have some very vital salient feature which is essential role in policy making process of VM. These features are:

3.6.1    VM’ s Philosophy

VM all philosophy is rolling around to they decided every thing which they dose, to meet or exceeding the performance expectation of their shareholders and customers and especially the community. For customer prospective, they make sure that they provide services with the high value, quality and ethical standard’s in their dealings. For shareholders, they committed to provide alternative and continuing higher rate of return on their investments. Fort business partners, VM provide the opportunities to they run their business with loyalty, progress and prosperity, teamwork, respect and strong ethics and earn profit. VM also involve in community welfare activity. They serve and seek to demonstrate high level of social and corporate responsibility.²

3.6.2    VM Business

The main theme of VM business is to satisfy their customers, who seek assistance and advice in meeting their financial goals. VM’s primary focus is on general banking service namely receiving deposits, advancing loans and online services. VM area of business which they cover is fund management services, merchant banking and leasing and providing credit service to their costumers.

3.6.3    VM Value

VM values are what each of their customer and shareholder can expect from them. These are,

a.       Their Customers Comes First

VM believe that their customers are always right and customer becomes first then VM comes. VM all time served their customer with friendly, caring, responsive and well trained employees. Their services will be categorized by fairness and respect, professionalism, integrity and ethical conduct.

b.       Management By Employees

The VM management takes decision on the behalf of their shareholder. In VM every shareholder and owner is the employee. Management most responsibility to keep them fully informed and participative with the help of their 6859 employees. For shareholders investment they make risk profit and strong credit rating.

c.        Serving The Community

VM accept their social responsibility every time as a corporate organization. VM help government in their many social welfare programs, VM also encourages the talented student by giving them scholarship .VM also encourage their business partners to participate in the community work.

d.       Plastic Money

The world plastic money is very popular in the west but in Pakistan it was properly introduced in early 90’s. Plastic money means credit cards. VM is the first bank, which has introduced “Rupee Credit Card” in the association with master card international of USA, which is acceptablee worldwide. VM introduces two types of cards;

i.            Local card

This is acceptable in Pakistan only.

ii.            International card

This is acceptable in Pakistan as well as internationally.

At present VM master card as mostly used for hotels, airline, and supper markets etc. VM is trying to extent it’s used in massive. According to Mr. Mashood A. Shah, vice president and chief marketing and development division Lahore;

 “It will take another 1-2 years for VM credit card to capture the whole Pakistani market.”

e.        Online Banking

Vastmedia online is a unique service offering from VM to their valuable customers. Through VASTMEDIA ONLINE customers easily excess their account on any branch of VM country wide .account to account funds transfer is also instant remittance.

Vastmedia online provide a secure, efficient and convenient facility for making payment to beneficiary account form account country.

3.7       ROLE OF VM IN THE ECONOMIC DEVELOPMENT OF A COUNTRY:

VM participate an important and active role in the economic development of the Pakistan. VM bring rapid growth in the various sectors of the Pakistani economy by their efficient, effective and discipline in by banking systems. The few important role of VM’S are:

3.7.1    VM Rising Financial Resources.

 VM encourage their customer saving habit by giving various types of incentive on their saving. VM raising more and more recourse by sprite their network through out the country .VM’S rural and urban areas are more then 7000 branches. These saving are available to the businesses which make use of them for productive purpose in the Pakistan economic development.

3.7.2    Create New Investment Opportunities

Businessmen normally hesitate to invest their money in new enterprises. VM provide the opportunities to the business to invest money in new enterprise where VM financial analyst guides them which sector suite them and which are not. For adopting new technologies and production method VM also provide short term and medium term loan on very low interest rate along with financial assistance. This provision of timely credit increases the productive capacity of the Pakistan economy.

3.7.3    Promotion Of Trade Of Industry

VM always seek to promote the country trade and industry by providing many facilities such as vastmedia online, bank demand draft, claques over drawn facility, bill of exchange, foreign currency account, vastmedia bank master card etc.  To revolutionized both national and international trade.

3.7.4    Development Of Different Regions

The VM play a vital role in development of the different regions of the country. VM helped the government to transfer the surplus capital from one region to another by announcing different schemes. Then traders and industrialists of less developed region are able to get adequate capital for meeting their business needs. This in return increases investment, trade and production in the country.

3.7.5    Export Promotion Cell

VM established  his export promotion cell to increases the country export. They provide information about general trade and economic condition of the country and government policies about the flied of customer’s interest both inside and outside.

The VM now not confide them into local banking sector in the very fast moving global banking. VM understand the demand of global customer. To rectify their difficulties VM introduce online banking services along with latest information network into international banking.

3.8            ORGANIZATION STRUCTURE:

Every organization tries to establish an effective behavioral relationship amongst employees and work place in order to work together efficiently. For successful organization needed well develop and coordinated structure can be made on different basis;

¨     On the basis of geographical location.

¨     On the basis of excruciation.

¨     On the basis of function.³

VM is government by board of directors. The VM board of directors consists of 11 members.