JIMMA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF ACCOUNTING AND FINANCE
M. SC. IN ACCOUNTING AND FINANCE PROGRAMME REGULAR

Individual Assignment for the Course Strategic Management

Case Analysis on Vision and Mission Statement of Cooperative Bank of Oromia

Group Members: ID No

1. Dinka Getachew ……EM 0024/13

Jan , 2022

Jimma, Ethiopia

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 Table of Contents
1.1. Background of the organization..........................................................................................3

2. Vision and mission statement................................................................................................4

2.1 The e.................................................................................................................................4

2.2. The reasons for the revision of Vision and mission statements......................................5

3. Current Vision and Mission statement...................................................................................6

4. By what process are your firm’s vision and mission statements altered................................6

5. How are your vision and mission statements used in the firm..............................................7

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 1. Introduction

Vision and mission statements are considered as an important part of strategic management
process for organization. It applies to all types of organizations such as public, private, profit
or non-profit making, multinational as well as small and medium scale enterprises. A well
prepared vision and mission statements would distinguish one organization from another by
showing unique characteristic that differentiates it from others. Vision statement summarizes
where the organization want to be. The values and purposes of business are expressed.
Generally, the mission statement can be seen as the one that if realized, can help
organizations to achieve success.This term paper seeks to analyze the strength and weakness
of vision and mission statements and examine how vision and mission implemented in the
organization on the attainment of their goals.

1.1. Background of the organization

Cooperative Bank of Oromia (CBO) is a private commercial Bank domiciled in Ethiopia.
CBO was established in24 October 2004 in accordance with the provisions of Commercial
code of Ethiopia 1960 and licensed by the National Bank of Ethiopia with the objective to
engage in banking services in accordance with the Banking proclamation number 84/1994.
The Bank commenced operations in 2005.

Most organizations develop vision and mission statements at the beginning of their operation.
CBO has developed vision and mission statements first at the time of its establishment. The
primary responsible body for the development of vision and mission statementsis strategic
and change management team anddifferent department take parts on the development of
vision and mission statement through their managers such as project manager, operational
manager, Human resource managers, and research and development department managers.

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 2. Former Vision and mission statement

Vision:

The bank aspires to be the competent and reputable Bank in Africa that can play a paramount
role in the socio-economic transformation of Oromia.

Mission:

The mission of CBO is to provide full-fledged and customer responsive Banking services for
cooperative societies in Oromia, other entities and individuals with special emphasis to
agricultural and agro-based business financing. We use competent and disciplined employees.
We believe integrity is the base of public confidence.

Mission Statement Evaluation Matrix (yes or no)

Philosophy
Customers

Markets

Self-Concept
Technology

employeesConcern for
ServicesProducts or

forsurvival,

Public ImageConcern for

profitability Concern

growth

Component

CBO yes Yes yes No No yes yes yes Yes

2.1 The overall evaluation of vision and mission statements

The vision seems unachievable becauseCBO is small new bank which provide banking
service to selected parts of the country. How it could be possible for bank to compute with
foreign bank before winning domestic bankso this goal is not achievableand the statement is
too futuristic. In addition even if the bank is in operation in different regions of Ethiopia the
vision statement delimit the scope only onthe socio-economic transformation of Oromia
region. Statement is good if stated as “The bank aspires to be the competent and reputable
Bank in Ethiopia.

A mission statement lacks twocomponents: technology and concern for survival, growth
profitability.

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 Qu.2. How long have your current statements existed? When they were last modified?
Why were they modified at that time?

Vision and mission statements always subject to revision. Organizations usually re-examine
their vision and mission statements annually. As per the manager of CBOAtoMekitewGerma
the former vision and mission statements were revised on Jan 09/2019. The current vision
and mission statements have been used for the last three years.

2.2. The reasons for the revision of Vision and mission statements

The manager of the bank also told us many reason for the revision of their Vision and mission
statements. Among these:

First the former vision and mission statements considered too broad and unrealistic at the
time.

Second reason the former vision and mission statements were not addressing the prevailing
conditions that the business was in.

Thirdly technology has continued to be a critical focus area for supporting business of the
bank.To simplify internal business processes and for implementing a new digital banking
ecosysteminnovation and technology are considered vital and enable the bank provide
secured, reliable and high quality service.By considering business dynamism and changes in
operating environment, the bank had revised its business model and redesigned execution-
focused strategy (operating model) to deliver fitting values for their customer.So that the bank
could better serve and support needs of its target market and customers.

Competitive environment considered as fourth reason. the Bank has taken significant steps to
promote the sharia-compliant banking products and services to its target market. Accordingly,
the priority was given to enhance capabilities, executing a sharia governance framework, and
marketing the product, among others.

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 3. Current Vision and Mission statement

Vision

To be the leading private bank in Ethiopia by 2025

Mission

We root our foundation in communities to provide banking solution that create greater
customer experience with emphasis to cooperative and agro-based business through proper
use of human resource and up-to-date technologies to maximize stake holders’ value.

Mission Statement Evaluation Matrix (yes or no)

Philosophy
Customers

Markets

Self-Concept
Technology

employeesConcern for
ServicesProducts or

forsurvival,

Public ImageConcern for

profitability Concern

Component growth

CBO yes Yes no Yes yes Yes yes yes Yes

Line

The vision statement is good unless it is bounded by year.

The mission statement lacks only one component: market

4. By what process are your firm’s vision and mission statements altered

The managers also explained concerning the process by which the bank revises its vision and
mission statements.As the manager of CBO witnessed CBO Strategic and change
management team regularly re-evaluate both Vision and Mission statements. Revisit
questions like “is this really where we want to go now?” “Considering what we know, is this
still what we want to be and is this still how we want to get there?”

In performing internal and external environment analysis the teamre-examiningvision and

mission the bank look at its own values, its strengths, its own weaknesses, its performance
and how they fit into the current environment. If there is a weakness they proceed to look for
alternative strategies, follow and identify those idea, then define too see the alternatives. After
that the team committee merge these statements into a single document and distribute the

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 draft statements to all managers which request for modifications, additions, and deletions
after incorporating the view of managers at different level, and then thecommittee present
their plan to top management. Top management evaluate andcomment on the document after
thorough discussion with each other. Then top management transfer the document to board of
directors for approval. Finally, the board of directors approve and return back to top
management for implementation.

5. How are your vision and mission statements used in the firm

Both Mission and vision statements guide the development of strategy, help communicate the
organization’s purpose to stakeholders, and inform the goals and objectives set to determine
whether the strategy is on track.

First vision outlines where organization will see itself some years from now. The future-
oriented values and purposes of business are defined. It gives an understanding of the reason
for the existence of the organization. Where are we going? When are we getting to that stage?
How are we going to do it?

The mission statement is a guide to day-to-day activities of an organization and its decision
making.Mission statements offer direction into what organization see as the key objectives of
being in business.Mission outlines wide goals for the establishment of the organization.The
mission can guide the development of a strategy.It serves as foundational guides in the
establishment of organizational objectives. It helps to achieve short and long term objective.It
explains the salient organization’s success measure. Why we do what we do? What, For
Whom and Why?

The next thing is to develop strategies. The organization then develops strategic and tactical
plans for objectives.The strategy then set clear and explicit about what the firm will do, and
not do, to achieve its mission.Prepare strategic plan that sets out annual objectives,
establishes an effective organizational structure, fixes a budget, and develops a work plan for
job execution.

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