RIFT VALLEY UNIVERSITY

ADAMA CAMPUS

ATTACHMENT REPORT

Name: BEREKET ABU

ID No: 0072/13

Department: Business Management

Course: Practical attachment in business management

Supervisor:

Organization: Cooperative Bank of Oromia

Adama, Oromia

2016/2024
 COOP Bank Report 2024

Table of Contents
Acknowledgement................................................................................................................................................3
Abstract............................................................................................................................................................ 4
Chapter one..........................................................................................................................................................5
1. Introduction......................................................................................................................................................5
1.1 Back ground of the organization................................................................................................................5
1.2. Statement of problem face in the organization........................................................................................5
1.3. Organization Mission, Vision, Values.........................................................................................................6
1.3.1. Vision..................................................................................................................................................6
1.3.2. Mission...............................................................................................................................................6
1.3.3. Values.................................................................................................................................................6
1.4. Objectives of the organization...................................................................................................................6
1.3.1 General Objective................................................................................................................................6
1.3.2 Specific objective.............................................................................................................................6
1.5. Significance of the organization................................................................................................................6
1.6. Scope of the organization..........................................................................................................................7
1.7. Limitation of the organization...................................................................................................................7
Chapter Two.........................................................................................................................................................2
2. The Basic Concept of the Organization.............................................................................................................2
2.1 SWOT Analysis in Coop Bank......................................................................................................................2
2.1.1. Strengths............................................................................................................................................2
2.1.2. Weakness...........................................................................................................................................2
2.1.3. Opportunity........................................................................................................................................3
2.1.4. Threats................................................................................................................................................4
2.2. Structure of the organization....................................................................................................................5
Chapter Three.......................................................................................................................................................6
3. Conclusion and Recommendation....................................................................................................................6
3.1. Conclusion.............................................................................................................................................6
3.2. Recommendation......................................................................................................................................6
REFERENCES..........................................................................................................................................................8

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Acknowledgement
I would like to express my gratitude to all those who gave me the possibility to complete this
training. I would like to thank to my Supervisor Mr.Kiya Asefa (Candidate of PHD) for giving
me this wonderful opportunity to commence this report in the first instance. I wish to express my
sincere gratitude and appreciation for Cooperative Bank of Oromia, Dedecha Arara Brach for
supporting or guiding me during practice. Specially, I would like thanks to his exelence Mr.
Tesasu Gurmu the manager of Cooperative Bank of Oromia, Dedecha Arara Brach and his
Custom Service Manager Mr. Yosef Abu and to all the staff/ employees in this bank branch who
evaluate and helped me after I complete this training and their advice and allow me to make
close observation, discussion and be voluntary to ask different issues.

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 COOP Bank Report 2024

Abstract
This report was conducted with potential and challenge of Cooperative Bank of Oromia,
Dedecha Arara Brach. Cooperative Bank of Oromia, Dedecha Arara Brach workers work to
achieve objective of organization and the organization have to promote saving culture and
create access to loan which help to attain repaid and sustainable growth of saving culture. Haile
Gebre Lube, regarded as the founder/ father (proponent) of Cooperative Bank of Oromia,
brought the idea of founding the bank for he believed that the best way to fight poverty is
through cooperation.

Cooperative Bank of Oromia (S.C.) was registered commercially on October 29, 2004 in
accordance with article 304 of commercial code Ethiopia and in line with proclamation
no.84/1994 with authorized capital of birr 300 million. It started operation on 8th March
2005,with paid up share capital of birr 112 million.62.86% of Ownership was occupied by
cooperatives while the remaining 37.14% was occupied by non-cooperatives.

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Chapter one
1. Introduction
1.1 Back ground of the organization
The history of cooperative banks has been traced back to the financial exclusion faced by many
communities in the 19th century. With the industrial revolution, the emerging financial services
sector was primarily focused on wealthy individuals and large enterprises in urban areas. The
rural population, particularly farmers, small businesses, and the communities they supported,
were excluded from financial services. Thus, cooperative banks were originally set up to correct
this market failure and to overcome the associated problems of asymmetric information in favor
of borrowers.

Haile gebre lube, regarded as the founder/ father (proponent) of cooperative bank of oromia,
brought the idea of founding the bank for he believed that the best way to fight poverty is
through cooperation. Cooperative bank of oromia (s.c.) was registered commercially on octoberr
29,2004 in accordance with article 304 of commercial code ethiopia and in line with
proclamation no.84/1994 with authorized capital of birr 300 million.it started operation on 8th
march 2005,with paid up share capital of birr 112 million.62.86% of ownership was occupied by
cooperatives while the remaining 37.14% was occupied by non-cooperatives.

Coopbank is now one of the most profitable banks in ethiopia having a total asset value of more
than etb 121 billion. The bank has 630+ branch networks, 10 million account holders, and more
than 11,500 employees.

1.2. Statement of problem face in the organization

The major problem i have seen is failure of system which occurs frequently, which cause long
waiting times in customer services. frequent failures of ATMs and withdrawal limit of money is
the most important problem faced by customers while using the services of the bank furthermore,
problems observed also includes,

 Problems in installed soft wares

 Availability of power backup
 Lack of technical upgrading on staffs or lack of training and knowledge to employee
 Inadequate inter department.

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The solution or measure to be taken to solve or at least minimize the problem to avoid losing
customers due to slow system or poor customer service, cooperative bank of oromia should use
technology to speed up the process.

1.3. Organization Mission, Vision, Values

1.3.1. Vision
To be the leading private bank in Ethiopia by 2025.

1.3.2. Mission
To root the foundation in communities to provide banking solutions that create greater customer
experience with emphasis to cooperatives and Agro-based businesses through proper use of
human resource and up-to-date technologies to maximize stakeholders’ value.

1.3.3. Values
 Integrity.
 Customer satisfaction.
 Learning organization.
 Teamwork.
 Cost consciousness.
 Concern for community.

1.4. Objectives of the organization

1.3.1 General Objective
The objective of this bank is providing banking solutions that create a greater customer
experience with emphasis to seek and measure customers satisfaction.

1.3.2 Specific objective

The specific objectives of the Coop are:

To promote saving culture and create access to loan.

To maximize shareholder's value.

1.5. Significance of the organization

Coop provide investments in targeted, “upstream” human services that are demonstrated to bend
the health care cost curve, improve the social determinants of health and help individuals achieve

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their full potential in a way that is transformative for our society. The cooperative bank of
Oromia (Coop bank) offers banking services that fit anyone's needs.

 Cooperative financing/loans
 working capital loans
 Agriculture mechanization
 Agriculture processing
 Export financing facilities.
Beneficiary of the organization

1. Internal beneficiary

2. External beneficiary

Customers Managers
creditors Workers
Lenders Share holders
Owner.

1.6. Scope of the organization

The cooperative bank of Oromia (Coop) headquarters is located in Finfinne/Addis ababa, Africa
Avenue flamingo area. The bank has a broad ownership base and diversified ownership
structure. Cooperative Bank of Oromia, Dedecha Arara Brach is located at Adama Town,
Dedecha Arara sub-city the main street of Adama around Wangari Area.

1.7. Limitation of the organization

As a branch level very a huge problem which is not controlled by the capacity of the bank is not
happened which hinders the performance of the bank. The few problems that have been as much
as solved by the bank were happened last time;

 Lack of documentation service.

 Lack of sufficient materials
 Lack of communication.

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Chapter Two
2. The Basic Concept of the Organization
2.1 SWOT Analysis in Coop Bank
The following section analyses the swot condition in cooperative bank of Oromia:

2.1.1. Strengths
Cooperative bank of oromia has many strengths that helps the bank for growth. Here Under are
among the banks strong side:

 Business among members-the bank focuses on development of its members

 Trust within members-trust is the key factor for effective functioning of Coop Bank.
 Affordable interest rates-the bank offers loans at reasonable interest rate to its members.
 Large organizational size and scale-wide scope of financial services.
 Strong brand reputation for customer service.
 Strong brand name.
 Digital banking convenience-it’s now easier than ever to do banking online. You can
Deposit your check, pay your bills, and apply for debit card without stepping foot into
Your bank’s branch. However, for more “in-depth” services, you’ll likely still need to
Make an appointment with a financial advisor. high service levels easy access to capital
and funding.
 Focus on internal marketing.
 Team-based culture.
 Clear segments targeted effectively.
 Clear value proposition.
 Effective crm program.
 Good understanding of the customer journey.
 Strong share-of-customer.
 Broad product range.
 Clear positioning.
 Seen as having strong corporate social responsibility.

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2.1.2. Weakness
 Lack of infrastructure: the bank lacks implementation of latest technologies such as
atm’s, computers, and printing machines for effective customer service.
 Layout: the banks internal arrangement is not satisfactory and areas branch opening
doesn’t consider well in cooperative bank of Oromia.
 Although highly networked, the number of branches is limited.
 The employee turnover appears to be on higher side.
 Lack of proper technology driven services when compared to other private banks in
Ethiopia.
Employees show reluctance to solve issues quickly due to higher job security and customers
‘waiting period is long when compared to other private banks. The bank spends a huge amount
on its rented buildings.in spite of modernization, the banks still carry the perception of traditional
bank to new age customers.

 Not attractive store design/layout.

 Inconvenient branching locations.
 poor cost efficiencies.
 mixed quality staff.
 no distinct product features.
 undifferentiated products.
 limited engagement from marketing communications.
2.1.3. Opportunity
 Large untapped area for expansion: in Ethiopia the major part of the population resides
in rural areas .so that the bank has many opportunities of opening branches in the area in
order to pool up the resource to itself.
 Trust in cooperatives: there is better understanding among members and rural area
Customers. Since the bank originated from farmers, it has a great acceptance in front of
rural customers
 Linkage of cooperatives: the bank has a great connection with different cooperatives to
work with.
 Move into rural regions-it’s an opportunity to get more customers, but achieving such a
move isn’t a small feat. It may take dozens of years before this approach is successful.

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 Offer more or lose customers- keeping up with consumer demands and demographic
Changes in a sense that if cooperative bank of Oromia fails to address the demands &
desires of customers, it will lose them. After all, there’s always another bank they can
easily go to.
 To face stiff competition, the bank can innovate new products and services and achieve
high customer satisfaction.
 With full computerization, they can offer cost-effective services like ATMs, electronic
fund transfers.
 Leverage our big data.
 Develop a customer relationship culture.
 Attract new customers through special offers.
 Shift to a customer-centric marketing outlook.
 Target more price inelastic markets.
 Expand its product mix and branches.
 More clearly differentiating its product offering.
 Build relationships with influencers.
 Strengthening /clarifying its value proposition.
 Building online engagement with its brand.
 Advertise on online comparison websites.
 Build/acquire digital marketing expertise.
 Creating more engaging social media content.
2.1.4. Threats
 Competition-increasing focus of commercial banks towards untapped rural sector that
may make the bank out of the game.
 Increasing interest rate-increasing inflation and liquidity fluctuation results in rising
interest rate by banks in varied proportion letting the customers make shift to the one
paying high interest on their deposit.
 Competition with firms of various types and sizes
 Cyber-attacks and its security breaches related to internet/mobile banking
 High-cost structure.
 An unfulfilled customer need in the bank.

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 Arrival of new technologies in other commercial banks.

 Recessions- it’s the most critical threat that can make or break a business. If small and
big businesses fall, it’ll have a direct consequence on cooperative bank of Oromia as a
threat.
 So much competition-banks have a ton of competition; not just with other banks, but with
other alternative finance companies. This includes mutual fund companies and insurance
companies.
 Rise in inflation figures which would lead to increase in interest rates.
 Increase in the number of private players would pose a threat to Coop.
 Uncertain market conditions.
 Growing competitive

2.2. Structure of the organization

Sources from Cooperative Bank of Oromia, Dedecha Arara Brach branch ( 2023)

Roles and responsibility of managers and workers in this bank

The managers have the responsibility of:

Planning, budgeting, monitoring.

Evaluating departments and arrange the over all accomplishments of the bank as office.
Preparation of the report follows plan achievement.
Report to higher body.
The workers responsibility of:

Create good working and customers service mechanism.

Prepare trial balance.
Afford receivable report and prepare the folly reports, revenue &loan reports, receivable
reports, payable report and taking on other reports to another report.

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Chapter Three
3. Conclusion and Recommendation
3.1. Conclusion
In general, the practical attachment was conducted on Cooperative Bank of Oromia, Dedecha
Arara Brach. Based on practical attachment it is possible to conclude that the organization is
committed to break through. Cooperative bank of Oromia established to provide all banking
service and products which have broad ownership and diversified structure. In light of strength,
the bank provides affordable interest rates offering loans at reasonable interest rate to its
members, has large organizational size and scale, wide scope of financial services, strong brand
reputation for customer service, strong brand name, and has digital banking convenience.in
addition to this, easy access to capital and funding, solid financial reserves, effective sales and
service culture, focus on internal marketing, team-based culture, clear segments targeted,
effectively clear value proposition, effective crm program, good understanding of the customer,
strong share of-customer and broad product range, clear positioning and having strong corporate
social responsibility are among the strong side of the bank that is to be continue as it is.
On the other hand, there are also enormous weakness in the bank. For example lack of
infrastructure: the bank lacks implementation of latest technologies such as atm’s, computers,
and printing machines for effective customer service, the banks internal arrangement is not
satisfactory and areas branch opening doesn’t considered well in cooperative bank of Oromia.
The bank is operating in a limited area confined to a region. Although highly networked, the
number of branches are limited, e employee turnover appears to be on higher side lack of proper
technology driven services when compared to other private banks in ethiopia. .likewise limited
online advertising experience, undifferentiated products, inconvenient branching locations, bank
spending a huge amount on its rented buildings are out of the listed problems.

3.2. Recommendation
In order to stand strong in business Cooperative Bank of Oromia, have to keep up all its strength,
correct its weakness, stay safe from threats through use different opportunities issuing acceptable
business strategies. Differentiation involves making products or services different from and more
attractive than those of your competitors.as much as possible the bank has to differentiate its
products that is provided to customers. This can solve the weakness the bank has in its
products.in another way the bank have to expand its branches, fulfil infrastructure needed in
branches, implementing of latest technologies such as atm’s , computers, and printing machines
for effective customer service, and correct areas of branch opening. Any weakness that are raised
in context of the report are all expected corrected by the bank.

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The bank have to use untapped resource because in ethiopia the major part of the population
resides in rural areas .so that the bank has many opportunity of opening branches in the area in
order to pool up the resource to itself, there is a big trust in cooperatives that is there is better
understanding among members and rural area customers. Before other competent entrant. The
bank should have to develop customer relationship culture, attract new customers through special
offers, shift to a customer-centric marketing outlook, expand its product, and enhance online
advertise to increase its sustainability thereby its profit.

In order to get competitive advantage, the bank is advised to make specific concern to provide
special services to its customers. This is why the bank is categorizing its customers in to
corporates, cooperatives, and if customers providing special service to them. But, this is not
enough the bank have to add more since it is in competitive environment. Being cost leadership
is another helping strategy to the bank since it increases profits by reducing costs, while charging
industry-average prices and increase market share by charging lower prices, while still making a
reasonable profit on each sale because of reducing costs.

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REFERENCES
1.Manual of CBO(2023 GC).
2.From my Awareness

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