EMERALD INTERNATIONAL COLLEGE

MASTERS OF BUSINESS ADMINSTRATION (MBA) PROGRAM

INDIVIDUAL ASSIGNMENT FOR ADVANCED STRATEGIC MANAGEMENT

COURSE

TITLE:-DEVELOP BALANCED SCORCARD FOR THE FIVE YEAR STRATEGIC

PLANE OF BANK OF ABYSSINIA

PREPARED BY ID

AGEGNEHU MISGANAW EMRIE MBA003/15

Submission date February 09, 2025

Submitted to Dr. Endris

TABLE OF CONTENT

Contents
TABLE OF CONTENT ................................................................................................................................. i
1, INTRODUCTION ABOUT THE ORGANIZATION ........................................................................................... 1
1.1, OWNERSHIP ....................................................................................................................................... 1
1.2, The Choice for All ............................................................................................................................... 1
1.3, VISION ................................................................................................................................................ 1
1.4, MISSION ............................................................................................................................................. 2
1.5, VALUES ............................................................................................................................................... 2
1.6, STRATEGIC PLAN OF THE BANK.......................................................................................................... 2
1.7, Key Objectives .................................................................................................................................... 3
2. BALANCED SCORECARD ANALYSIS ............................................................................................................ 3
2.1, Financial Perspective.......................................................................................................................... 3
2.2, Customer Perspective ........................................................................................................................ 4
2.3, Internal Processes Perspective .......................................................................................................... 4
2.4, Learning & Growth Perspective ......................................................................................................... 5
3. INTRODUCTION TO DEPOSIT MOBILIZATION STRATEGY .......................................................................... 6
3.1, METHODS ........................................................................................................................................... 6
3.2, STRATEGIC ISSUES .............................................................................................................................. 6
3.3, POLITICAL, GOVERNMENT AND LEGAL FORCE .................................................................................. 6
3.4, TECHNOLOGICAL FORCES .................................................................................................................. 7
4. FUNCTIONAL DEPARTMENT ...................................................................................................................... 8
4.1, FROM MANAGEMENT POINT OF VIEW ............................................................................................. 8
4.2, MARKETING PERSPECTIVE ................................................................................................................. 8
5, INDUSTRY ANALYSIS.................................................................................................................................. 9
6, FEASIBLE RECOMMENDATIONS .............................................................................................................. 10
7, REFERENCE .............................................................................................................................................. 11

BSC method analysis of BOA 1

1, INTRODUCTION ABOUT THE ORGANIZATION

In an era where commercial banking services were in an inchoate stage and striding towards
transforming different sectors of the economy, Bank of Abyssinia’s founders believed in the
need for a bank that gives comprehensive commercial banking services. Thus, the Bank of
Abyssinia (BOA) was open for business in 1996 with enthused initiation and determination.

The name Abyssinia resembles bravery and character which is the core attributes of BOA. Its
identity is demarcated with a sense of hope, optimism, and belief as it is perfectly displayed in its
logo, the Adey Abeba. Adey Abeba brings the promise of a new beginning. BOA brings that
very sense to all the customers it engages with. Working with and through Boa brings sustained
success with the help of a bank that is a symbol of determination and hard work.

1.1, OWNERSHIP

Bank of Abyssinia is a share company of private individuals who amass experience and success
in different areas including business, entertainment and education. Such diverse ownership not
only reflects the company’s determination and willingness to succeed in the sector it operates in,
but also signifies its ability to work together towards building a successful business venture and
commercial bank service.

1.2, THE CHOICE FOR ALL

BOA’s commitment to deliver quality commercial products along with first class customer
service makes BOA the most suitable bank for all. Adopting its tagline in such manner reflects
BOA’s deep association with the society. With more financial products and services BOA has
demonstrated through the years that is a Bank for all and any kind of customer.

1.3, VISION
 Tirelessly working to achieve our vision
 To become the leading commercial bank in East Africa by the year 2030.

BSC method analysis of BOA 1

1.4, MISSION
 Our mission enables us to drive forward with aim
 Provide excellent financial services through competent, motivated employees and digital
technology in order to maximize value to all stakeholders.

1.5, VALUES
Our values reflect our identity
 Customer Satisfaction
The quality of our work is always measured by the level of satisfaction our customers get. To
attain the maximum value, our financial services are always of the highest.
 Integrity
The services we deliver throughout the country keep their uniformity and standard to display our
integrity.
 Team work and Collaboration
As we stride towards the same goal, which is delivering unparalleled banking service, our
collaborative effort holds the utmost significance.
 Caring for our community
As a bank that bears the former name of our country, our commitment lies beyond delivering
financial services. It goes without saying that we are deeply concerned and involved in helping
the community we operate in. Our corporate social responsibility shows our care as it is a
platform to which allows us to give back to our community.

1.6, STRATEGIC PLAN OF THE BANK

The bank has three strategic plans which was set for five years 2025-2030 which has three main
objectives (Strategic Themes)

Growth

 Accessibility options, extensive customer acquisition, high resource mobilization

both on domestic and FCY and allocation of same, and enhancing the variety of
product and service offers.

BSC method analysis of BOA 2

 Operational Excellence

 Standardization, optimization, convenience, efficiency, and effectiveness.

 Building internal capabilities leveraging on high utilization of technology and
driving continuous improvement.
Digitalization: is more than bringing efficiency and effectiveness

 To respond to the disruptive power of digitization

 To seize the opportunity offered by digital technologies and quickly conquer the
market
 Building internal capabilities leveraging on high utilization of technology and
driving continuous improvement.
 Driven by the ever increasing demand of customer for convenient, simple, fast
services and better experience through virtual and online.
 Driven by changing employee behavior and thought patterns that requires modern
intra-organizational communication and interaction forms.

1.7, Key Objectives

 Customer base from 12.5 million in 2024 to 20 million in 2029.
 Deposit to grow from 192.5 billion in 2024 to 285.3 billion in 2029.

2. BALANCED SCORECARD ANALYSIS

The Balanced Scorecard provides a framework for Bank of Abyssinia to align its activities with
its strategic objectives. By focusing on key performance indicators across all four perspectives,
the bank can achieve sustainable growth and enhance its overall performance through SMART
targets.

2.1, Financial Perspective

The finance department is considered one of the important departments in the company, as it
submits financial statements and final accounts and the accompanying specialized financial
statements and reports, provided that it conforms to Islamic and international accounting
standards and according to the laws, regulations and instructions in force from the Central Bank

BSC method analysis of BOA 3

of Ethiopia(NBE)and works on managing internal and external accounts through the network of
precise systems Which works on preparing reports, statistics and financial movements inside and
outside the bank with customers and companies.

Goal: Drive profitable growth alongside increased deposits.

Initiatives:

 Introduce high-yield savings accounts and attractive term deposit options to attract more
deposits.
 Expand the loan portfolio strategically, focusing on profitable segments while managing risk
effectively.
 Implement a cost management program to reduce operational expenses and improve
efficiency.

2.2, Customer Perspective

Goal: Attract new customers, enhance their satisfaction, and improve retention.

Initiatives:

 Launch targeted digital marketing campaigns on social media and other online platforms,
focusing on specific demographics.
 Conduct community outreach programs to build brand awareness and acquire customers in
underserved areas.
 Enhance the mobile banking app with improved user experience, new features like Apollo,
and increased security.
 Establish a 24/7 customer support call centers and virtual banking service surrender hotline
to address customer queries and resolve issues promptly.
 Implement a customer loyalty program with personalized offers on monthly /weekly and
rewards to encourage retention.

2.3, Internal Processes Perspective

Goal: Improve operational efficiency and drive innovation to support customer acquisition and
deposit growth.

BSC method analysis of BOA 4

Initiatives:

 Invest in an automated loan application system to reduce manual processing and speed up
approvals.
 Develop a user-friendly online account opening portal like Debo that allows customers to
open accounts quickly and easily even if when they were outside the country.
 Expand digital banking services by offering mobile payments, online loan applications
via Apollo, and other innovative solutions.

2.4, Learning & Growth Perspective

The human resources department is the main pillar in the bank, and it bears a major role in
implementing and implementing the policies and strategies of the board of directors and senior
management in relation to the management of the human element, which is the bank’s capital,
which is the most valuable resource of the bank and mainly affects the achievement of the bank’s
goals, efficiency and productivity.

Goal: Develop employee skills and enhance organizational culture to support the achievement of
strategic objectives

Initiatives

 Implement comprehensive training programs on new digital banking technologies,

customer service best practices, and product knowledge.
 Conduct regular employee feedback surveys and implement action plans to address
concerns and improve job satisfaction.
 Within the organization.
 Offer competitive salaries, benefits, and performance-based bonuses to attract and retain
talented employees.
 Create clear career development paths and provide opportunities for employees to
advance

BSC method analysis of BOA 5

3. INTRODUCTION TO DEPOSIT MOBILIZATION STRATEGY

3.1, METHODS
 Prepared based on desk analysis
 Global and domestic economic and market fundamentals were reviewed
 The internal analysis was made based on analyses of performance trends, review of
various in-house surveys and assessments and the corporate strategy document.
 The team has also consulted household consumption expenditure survey, Socio-economic
survey, conducted by CSA or in collaboration with NBE and World Bank.
 In addition, Branch Banking, District managers and other stakeholders provided key
insights at the preliminary draft stage.
 The document has been further enriched through feedbacks collected from the Resource
Mobilization Committee (RMC), up on presentation of the first draft; which were
incorporated to prepare the revised document.
 The revised document, in turn, was deliberated by the Executive Management and further
insights and feedbacks were collected and made part of this final document.

3.2, STRATEGIC ISSUES

 Promotion and Sales
 Product Dev’t and customization
 Multi-channel banking
 Partnership
 Customer base expansion
 Customer service quality
 Deposit mobilization culture

3.3, POLITICAL, GOVERNMENT AND LEGAL FORCE

LEGAL DEPARTMENT

A group of skilled legal professionals who have gained experience in banking work, Their role is
to look into all the contracts that the bank intends to sign, as well as to ensure that all the bank’s
contracts are in line with the laws of the Central Bank on the one hand and protect the bank on

BSC method analysis of BOA 6

the other hand, as well as representing the bank before external and internal parties.

As we reviewed federal, state, local and foreign governments are major regulators, deregulators,
subsidizers and customers of the organization so the legal department control political variables
like:- Changes in tax laws, special tariffs, Antitrust legislation , Tax rates, Legislation on equal
employment, Environmental protection laws: involved on social responsibility

LEGAL COMPLIANCE AND COMPLIANCE CONTROL DIVISION

This section undertakes the task of reviewing, following up and evaluating all policies,
procedures and decisions issued by the senior management regarding the various activities of the
bank, and indicating their consistency and compatibility with the laws, regulations, and
instructions in force.

3.4, TECHNOLOGICAL FORCES

Revolutionary technological changes and discoveries are having a dramatic impact on

organizations. As we know technological advancements can dramatically affect organizations
products, services, markets, suppliers, distributors and marketing practice. By taking this into
consideration bank of Abyssinia introduced the most sophisticated technology and improves the
company in the area of digitalization. The organization has also strategy to achieve one of the
strategic objectives of digitalization.

Example

 ITM (interactive teller machine) in other word virtual banking

 ATM (automatic teller machine)
 Internet banking
 Card less transaction
 POS(point of sale)
 Guzugo for booking travel ticket and payment
 MRV (machine readable visa) etc.

BSC method analysis of BOA 7

4. FUNCTIONAL DEPARTMENT

4.1, FROM MANAGEMENT POINT OF VIEW

As we observe the organization has independent and hierarchical management structure and each
management level have its own duties and responsibilities.

The function of management consists of five basic activities

 Planning
 Organizing
 Staffing
 Motivating and
 Controlling

4.2, MARKETING PERSPECTIVE

As we review the organization follows forward integration marketing strategies in order to

control over distributors or retailers or to sell products directly to consumers. This strategy can
be also applied at branch premises, electronic device, different payment gateway and other
distribution outlets. The companies also apply backward integration strategy as means of seeking
ownership or increase control of firm’s suppliers. This strategy is applied when agents,
merchants, POS merchants and other entity signed contractual agreement with the organization is
not reliable and if they are not on good faith.

Market penetration and product development are referred to as intensive strategies because they
require intensive marketing efforts if a firms competitive position with existing products is to
improve Bank of Abyssinia follows market penetration strategy so as to seek to increase market
share for present products or services in present markets through greater marketing efforts.

BSC method analysis of BOA 8

To put into action the bank increase the number of sales persons, increasing advertising
expenditure and increasing publicity efforts. Again here bank of Abyssinia craft product
development strategy that seeks increased sales by improving or modifying present products or
services. For instance the company provide additional value proposition by making free ATM
transaction fee on interest free banking users.

Generally based on our observation the company also apply related diversification with potential
customers in which their value chains possess competitively valuable cross business strategic fits
and finally retrenchment also used by the selected organization to regroups of business activity
through cost and asset reduction as a means reverse of declining sales and profit. So by taking
the information that we gather from both primary and secondary data we recommend the
company to capitalize strength and eliminate its weakness by improving the strategies of the
organization.

5, INDUSTRY ANALYSIS

Developments in the banking industry were assessed through Porter’s five forces of competition
model. This force examines how intense the competition is in the marketplace.

1. Competition in the Industry This force examines how intense the competition is in the
marketplace. The level and intensity of competition in a certain market or industry is
commonly measured by market concentration.
2. Bargaining Power of Customers (both as Users and Owners) the bargaining power of
customers could also be seen from the nature of their relationship, i.e., whether they are
resource owners (deposit and FCY generators) or resource users (borrowers and FCY
consumers).
3. Bargaining Power of Suppliers (Vendors) Suppliers can be seen as service providers on
which the Bank’s operations depend on like telecommunications, power, technological
firms all of which have high bargaining power due to their monopolistic nature. The power
of vendors like technological firms becomes even higher in the IFB business since they are
limited in number and their offering.
4. Competition from Substitutes the MFIs, saving and credit unions, informal sectors such

BSC method analysis of BOA 9

 as Equb, Idir are the major players in the financial service delivery landscape that can be
considered as substitute to banking products/services. Moreover, financial technology
service providers (Fin-Tec) have also recently emerged as substitute for payment services.
The imminence of capital market in near future could be one alternative to put money into
with better investment opportunity, which may attract resource owners.
5. New Entrants threat in the industry the banking industry is highly attractive for new
entrants, as can be seen from high rates of profits, though earning per share is diminishing
as more banks joined the market. The number of banks joining the market, including full-
fledged interest free banks, implies the IFB business target customers will have more
choices, which would dwindles the market share of incumbent banks including BOA. This
in turn implies that the Bank needs to introduce unique value propositions to retain existing
customers as well as attracting new ones so as to expand its market share.

6, FEASIBLE RECOMMENDATIONS

Based on our observation we recommend the organization the following activities

 The organization should enhance customer relationship management so as to boost

deposit performance and achieve sustainable growth.
 The bank should give great emphasis on extensive customer acquisition.
 The organization should increase deposit balance per account.
 The organization should go further to acquire new potential customer’s mainly unbanked
society and untapped market.
 The company also needs to implement different marketing strategies more than the
current status i.e. Money tracking, cross selling, up selling, door to door and referral
market.
 It’s also expected from the organization to broadening foreign currency sources so as to
mobilize resources on this aspect.

Finally we suggest the organization to capitalize strength and eliminate its weakness by taking
opportunities as a competitive weapon and craft strategies for external threat.

BSC method analysis of BOA 10

7, REFERENCE
Company Manual and published materials
Strategic management text book second edition
Our background knowledge about the course
Interview response from key personnel of the company
Https://[Link] .com
Https://[Link]
Https://[Link]

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