1. Assess the marketing philosophy of commercial bank of Ethiopia .

which of the philosophies

discussed ,do you think , is adopted by the bank .substantiate your arguments with clear
evidences .what should the company do to appeal to the customers .(10 point)

Ethiopia, being one of the developing countries, has its own take on this. The country
had enjoyed a quasi-market economy pre 1975 during which the financial sector was free to some
extent; but the development of the financial sector devolved with th

For individual comercial banks, they seek profit by lending. However, from the perspecitve
of the whole system of commercial banks, they create credit.

On one side, as they lend to the firms, they contribute to the aggregate supply by enhancing
capital accumulation; on the other side, they also create financial wealth which definitely pushes
the aggregate demand. Therefore, lending of commercial banks promotes economic growth.

The lending of banks also adds to debt, which has two opposite effects. As debt increases, the
debtors have more burden in a proportional way, but their eanings will increase in a decreasing
rate. This results in a financial instability and thus leads to a business cycle.

In summary, banks collect deposits and lend them to firms for profit. They create credit to the
economy, which promotes growth and generates business cycles

Even if I am not a specialist, we can say that the lending bank has to assess as precisely as possible the
credit risk of the borrower. But nowadays credit default swaps allow the lending organization to transfer
credit risk to another institution, let say another bank. The lending bank has to pay each year a fee to
the protection seller. In case of default of the borrowing company, the protection seller has to
reimburse the lending bank. As you understand, we have exchanged a credit risk, or a default risk
against a counterparty risk if the the seller of protection is not able in all scenarii to pay what is due.
Thus, derivatives may be involved in the lending process.
Philosophy of lending in commercial bank?. Available from:

t's an italian bank, the first one which start lending in an ethical way in Italy.

But it's a cooperative company.

this is a case, you can try to find some survey on this item for Italy or other countries.

so it's not true that there is not strictly ethic in lending

my aim was only to say you that in some cases you can find philosophy in lending, but it's just a
little bit and ot the general one. so pay attention when you're talking about selection process in
lending activity.

I'm going to work on ethical finance in the future so if you want we can keep in touch.

I think there are not a lot of papers on this item

Philosophy of lending in commercial bank?. Available from:

The Commercial Bank of Ethiopia (CBE) is the largest commercial bank

in Ethiopia As of June 2015, it had about 303.6 billion Birr in assets and held approximately
67% of deposits and about 53% of all bank loans in the country. The bank has around 22,908
employees, who staff its headquarters and its over 1000+ branches positioned in the main cities
and regional towns.[1] The latter include 120 branches in the national capital Addis Ababa. With
the opening of a branch in the Gechi in the Illubabor Zone of the Oromia Region, CBE's banking
network has reached online 783 branches. The bank has reached 1014 branches as of February
12, 2016.[1]

The bank also operates two branches in South Sudan, and is contemplating opening re-opening a
branch in Djibouti, andopening branches in Dubai and Washington, DC, all to serve the
Ethiopian diaspora.

The bank is pioneer to introduce modern banking to Ethiopia and credited for playing a catalytic
role in the economic progress and development of the country. It is also the first bank in Ethiopia
to introduce ATM service for local users.[2]

History

A Commercial Bank of Ethiopia building in Addis Ababa.

After the Ethiopian-English victory over Fascist Italy, the new government established the State
Bank of Ethiopia a proclamation issued in August 1942. State Bank of Ethiopia commenced full
operations on 15 April 1943 with two branches and 43 staff. It served both as the Ethiopia's
central bank with the power to issue bank notes and coins as the agent of the Ministry of
Finance, and as the principal commercial bank in the country. In 1945 the Ethiopian government
granted the bank the sole right of issuing currency. The first governor of the bank was an
American, George Blowers. He inaugurated the new national currency, which, owed its
successful introduction to the United States. The United States provided the silver for 50 cent
coins, whose intrinsic value ensured popular acceptance of the new paper money to a population
used to the circulation of the silver Maria Theresa thaler.

In 1958, the State Bank of Ethiopia established a branch in Khartoum, Sudan, that the Sudanese
government nationalized in 1970,[3] which over time grew to number 21 branches.[4]
In the 1950s, SBE established a branch in Djibouti.[5] In 1920, the Bank of Abyssinia had opened
a transit office in Djibouti. At some point after its creation, the State Bank of Ethiopia reopened
the transit office, which in time became a branch.

In 1963, the Ethiopian government split the State Bank of Ethiopia into two banks, the National
Bank of Ethiopia (the central bank), and the Commercial Bank of Ethiopia (CBE).[6] Seven years
later, the Sudanese government nationalized the Commercial Bank of Ethiopia's branch in
Khartoum.[3]

The Ethiopian government merged Addis Bank into the Commercial Bank of Ethiopia in 1980 to
make CBE the sole commercial bank in the country. The government had created Addis Bank
from the merger of the newly nationalized Addis Ababa Bank, and the Ethiopian operations of
the Banco di Roma and Banco di Napoli. Addis Ababa Bank was an affiliate that National and
Grindlays Bank had established in 1963 and of which it owned 40%. At the time of
nationalization, Addis Ababa Bank had 26 branches. The merger of Addis Ababa Bank with
CBE made CBE the sole commercial bank in Ethiopia, with 128 branches and 3,633
employees.[4]

In 1991, when Eritrea achieved its independence, Eritrean government nationalization the
branches there. In 1994, these branches formed the basis for what became the Commercial Bank
of Eritrea. Also in 1994, the Ethiopian government reorganized and reestablished CBE.[4]

In 2004, CBE closed its branch in Djibouti due to problems with loan losses.[5]

In January 2009, CBE received regulatory approval to open a branch in Juba, Southern Sudan.[7]
CBE expanded its presence in South Sudan to five branches in Juba and Malakal, but ongoing
conflict in the country has forced CBE to close all but two branches in Juba.[5]

A few years ago,[when?] the government restructured CBE and signed a contract with Royal Bank
of Scotland for management consultancy services. After the death of its former President, Mr.
Gezahegn Yilma, the Board of Management appointed Mr Abie Sano as a new President of the
Bank. Parliament recently increased the Bank's capital to 4 billion Ethiopian Birr.

2. Identify and briefly describe four trends in the macro /market environment that will have or
recently had an influence on the selected industry .for each of the trends you have to : (15
point)
a) Briefly explain the trend
b) Describe the impact of the trend on the industry
 c) Highlight the implications that the trend has on the marketers in the chosen industry
3. Assume you are producing and selling Ethiopia Cultural cloths .customer complain the lack of
creativity and Quality in your produce .15 point
a) Explain how you segment ,target the market and position the product .
b) Develop the marketing mix strategies (include product ,pricing ,place, and promotion strategy )