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MASTERS OF BUSINESS ADMINISTRATION (MBA)
Strategic management
Group assignment
Strategic plan of Awash Bank

MEMBERS ID
Hulusew Teshome EMBA/115/14
Genet Solomon EMBA/389/14
Bizuhan Abera EMBA/416/14
Habtam Yirga EMBA/056/14
Hana Tafese EMBA/004/14

SUBMITTED TO: Hailemariyam (PhD)

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INTRODUCTION
1. Awash banks vision, mission and core values………………………..3
1.1 Vision……………………………………………………………………...4
1.2 Mission………………………………………………………………….....4
1.3 Core value………………………………………………………………….4
2. External environmental metrics………………………………………..5
2.1 Economical…………………………………………………………………5
2.2 Political…………………………………………………………………….5
2.3 Social……………………………………………………………………....5
2.4 Legal……………………………………………………………………….5
2.5 Technological………………………………………………………………6
3. Internal environmental metrics ………………………………………..6
3.1 Internal factors relating to organization…………………………………..6
3.2 Internal factors related bank relation with customers……………………6
4. Competitive strategic metrics………………………………………...7
5. Long range plan………………………………………………………7
6. Alternative strategic………………………………………………….7
6.1 SWOT Analysis………………………………………………………….8
6.2 Key external interpretation………………………………………………9

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1. Background

The company was established by 486 founding shareholders with a paid –up capital of
birr 24.2 million and started banking operation on feb.13, 1995.the number of
shareholders and its paid-up capital increased to over 5400 and birr10.3 billion,
respectively. The company’s total assets reached birr 173billion with over 730 branches
found across the country. Awash bank continues to be leading private commercial bank
in Ethiopia.

Having grown from humble beginnings with visionary intent, awash is the first private
bank in Ethiopia to exceed a billion profit mark in the history of Ethiopian private banks
in the financial year 2019 since inception, the organization have expanded through a
combination of substantial organic growth and an enhanced customer service experience.

The company offers a unique bouquet of innovative products and services that help
individuals manage their finances now and in the future. The bank offers its private
banking customers distinct personalized financial services that allow them with utmost
convenience and exclusivity.

Awash bank is working a major target on a ten years strategic plan, which is entitled to
“transforming AIB, vision 2025.”The major target of the plan is to make awash one of
the top ten banks in east Africa in terms of capital, loans and advances, and deposits with
in 10 years.

Awash bank operated a commendable performance and a unique result of its kind during
the year 2020/21 it is also important to mention that the bank’s annual achievement was
by far greater than the cascaded yearly target planned to be implemented, on the fifth of
tenth years strategy transformation of the banks vision 2025 project

 Delivering higher returns to its shareholders over the recent years

 Increased income ,capital and divided paid out with a track record of creating a
significant value for its owners
 Approval of essential policy matters and the encouragement made in the branch
expansion and introduction of new information technology products
 Also engages in many different project activities namely, it project, strategy
development project and the construction of own building project

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 2. Awash banks vision, mission and core values
Mission, vision and value statements serve as the foundation for an organization’s
strategic plan. They convey the purpose, direction and underlying values of the
organization
VISION
 Describes what a company desires to achieve in the long-run, generally in a time
frame of five to ten years, or sometimes even longer
‘To be the first choice world class Bank’
 Therefore Awash banks vision is not to come ahead of other domestic banks but
to be one of the top ten east African banks by 2025.
MISSION
 It defines what line of business a company is in, and why it exists or what purpose
it serves.
‘To provide innovative, competitive and diversified banking service accessible to the
society with qualified and committed staff in a profitable and socially responsible
manner’
 Therefore the sustainability of the business depends largely on the staff and
employees.
Core value
 Values represent deeply held beliefs within the organization and demonstrated
through the day to day behaviors of employs and managements. Shape company’s
culture and impact the business strategy of the organization.
 Building public trust and confidence
 Treating customers as guests of honor
 Discharging social responsibilities
 Building a strong and health bank of which the current and future generation will
be proud of.
Over all the company’s core value is to be core bank to clients, deepening strategic relationship
in the market. To be number one bank for accessibility, innovative products and diversity of
customer focused banking services.

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3. External environmental metrics
Is a group of factors or conditions that are outside the organization but affect it in some extent.
In business, this term commonly applies to elements related to out of control dimensions such as
society, economy, and regulations and political system.
1. Economical factor:
 Inflation
 Impact of COVID- 19 pandemic on the economy
 Stiff competitions among different banks
 Interest rates
 Employment rates
 Disposable income
 state of development of financial system
 free market economy
 investment policy
 role of government
 general income level
 role of central bank:
I. reserve ratio
II. clearing house
III. refinancing
IV. loan facility
V. supervision and advising
2. Political factor: the elevated political instability in some part of the country
 The ideology of the state
 The attitude of the government
 Development work
 Trade tariff policies
3. Social factor:
 Value
 Security
 demographics
 Education
 Cultural trends
 Banking habits
4. Legal factor
 Business control law
 Tax law
 Import and export law
 Fiscal laws

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 5. Technological factor
 As some technological advances, its drastically affects the company’s
ability to sell the obsolete technology.
4. Internal environmental metrics; of a business consists of all the factors that are directly
involved with the organization and which have direct impact on its business and routine
activates.
 Internal factors relating to organization
I. Location of the bank
II. Layout designing of bank
III. Defined goals and politics
IV. Clear cut responsibilities and duty
V. Adequate plute and logistics framework
VI. Trade union
VII. Promotion and transfer based on efficiency
VIII. Efficient deposit and credit operation
IX. Efficient management
X. Financial solvency
XI. Financial discipline
XII. Service rendered
XIII. Method of work
XIV. Bureaucratic complexity
 Internal factors related bank relation with customers
I. Number of employees
II. Satisfaction of the service provided
III. Efficient employees
IV. Service-oriented altitude
V. Loyalty to the bank

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6. Competitive strategic metrics: is a visual resource that enables us to
know where the position of the company with in the market.

Particulars 2016/17 2017/18 2018/19 2019/20 2020/21

Deposits 32,893 45,906 62,464 74,266 108,074

Loans and 22,646 31,304 47,262 57,274 87,539

advances

Total assets 40,027 55,268 74,635 89,280 128,695

Capital and 5,424 6,496 9,640 11,968 15,852

reserves

Profit 1,350 1,964 3,344 3,600 4,823

before tax

No. Of 316 366 410 466 566

branches (in
No.)

No. Of 6,772 7,881 9,150 More than More than

employees 10,000 12,000
(in. No)

7. Long range plan: the major plan is to make awash one of the top ten banks in
east Africa in terms of capital, loans and advances and deposits with in 10 years.

8. Alternative strategic: are strategies that a business develops to set the

direction, for which human and material recourses will be applied, for a greater
chance of achieving selected goals.

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 SWOT Analysis
1. Strength of awash bank
 High service levels
 Highly automated system
 Efficient technology and process
 Highly knowledgeable and motivated work force
 Team based culture
 Effective CRM program
 Good understanding of the customer journey
 Strong share of customer
 Attractive store design/layout
 Clear segments targeted effectively
 Highly convenient location
 Broad product range
 Easy to use apps
 Easy access to capital and funding
2. Weakness
 Broad competitive set
 No real relationships with online influencers
 No expertise in creating engaging online content
 Limited online advertising experience
 Limited engagement from marketing communications
 Mixed quality staff
 Poor cost efficiencies
 Targeting price elastic markets
 No distinct product features
3. Opportunity
 Diversified and multicultural workforces
 Emerging of new technological advancement
 Enhancing organizational partnerships
 Large number of educational facilities and graduates
 Transformation in working
conditions,safety,healthy,equipment and child care
4. Threats
 The peace and stability in some parts of the country and the
war in the northern region
 The prevalence of the new version COVID-19 pandemic an
its serious impact on doing business
 The stiff competition among existing and new banks.
 Country –level double-digit inflation rate for food and non
-food items.

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 KEY EXTERNAL FACTOR
OPPORTUNITIES WEIGHT RATING WIGHTED SCORE
Large and diversified .15 3 .45
work force
Opening of branches .10 2 .20
in different part of the
country
Introduction of .05 4 .20
advanced banking
system
Progressive growth of .05 3 .15
educated manpower
Expansion of .10 1 .10
automated HR system

THREATS WEIGHT RATING WIGHTED SCORE

Political instability in .15 1 .15
some parts of the
country
Emerging of COVID- .15 3 .45
19 pandemic
Economic inflation .15 4 .60
High cost of .05 1 .5
technological
investment
Data security and .05 2 .10
cyber-attack
TOTAL 1.00 2.45

TOTAL WEIGHTED SCORE OF 4.0= 2.45 means the organization response is outstanding to
threat and weaknesses

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