Management

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Assement On Industrial Relation Climate (A Comparative Study Ofeisf And Kk Textile Pic. In Addis Ababa
(A.A.U, 200-07) Tsege, Gebissa; Ziauddin, Khairoowala (Dr)
Using The Sustainable Growth Model For Decision Making: The Case Of Ethiopian Airlines .. Pre And Post Public Enterprise Reform
(A.A.U, 2002-01) Dessalegn, Getie; Mr. P, Laxmikantham
This paper casts light on the financial aspect of managing growth in Ethiopian Airlines. It addresses an important issue in financial management attaining sustainable growth especially in public enterprises. The study reveals that the actual growth of the enterprise studied is not in harmony with the sustainable growth rate that should have been achieved, for the period 1986-1999. However, there is some improvement in the enterprise in management of growth after the Public Enterprise (Reform) Proclamation No. 25/1992. The option of reducing dividend payout (i.e. increasing the retention ratio) is beyond the firm's domain of decisionmaking, and the researcher recommends that this aspect be considered in policy decisions by the government so as to enable the firm to increase or decrease dividend payout ratio depending on its fund requirement. In addition, the researcher suggests that improvement in asset turnover and profi tabili ty be considered to prevent problems of growth that may arise. Increasing payload factor and reducing costs are suggested to achieve this objective. IV
The Effects Of Sales Promotion On Consumer Behavior A Survey On The Soft Drink Industry Of Ethiopia
(A.A.U, 2002-02) Binyam, Mesfin; Ziauddin, Khairoowala (Dr)
The two largest Ethiopian soft drinks manufactures have recently introduced a new way of promoting their brands in the market. They attached prizes with products. This study was undertaken to evaluate the effects that are manifested by these promotional efforts on consumers buying behavior. The upshots were evaluated from three conceptual angles: brand switching, repeat purchase and purchase acceleration. In the survey 500 soft drink consumers were covered through questionnaires, of which 451 responses were employed for analyses. After providing a theoretical ground, the study evaluated the responses in total, by sex category, by age group and income class separately. Consequently, soft drink consumers in general seem to react positively towards the prizes offered by the producers. The responses revealed that consumers tendency to switch from those brands without a prize to brands with prizes is high. The only exceptions here are the "above 41" year of age category and the "above 3000" income class. However, once the extra benefits attached are withdrawn, consumers seem to revert back to their original choices. This can be an indicator that the effect of the prizes may only be confide to the period during which they are active. This notion is further strengthened by the fact that responses reviled that, though consumers purchase quantity seems to increase during the period when the offers are active, the acceleration will slow down once the prizes are detached.
Linking Relative Efficiency and Operating Financial Decisions of Commercial Banks in Ethiopia: Application of Data Envelopment Analysis Model in conjunction with Financial Ratios.
(A.A.U, 2002-02) Habtamu, Eshetu; . Zewde, Shibrie(Dr)
Banking institutions perform inter mediation functions and consequently influence the level of money stock through their ability to create deposit liabilities. Therefore, it is critical for depositors, investors, regulators, and the public at large to have vested interest in the performance of banking institutions. Performance evaluation of bank should be linked to decision models so as to associate the results obtained with the decision. To this end, this study initiated with the objective of accurately classifYing the commercial banks in Ethiopia based on their relative efficiency scores has also identified the major financial operating decisions that lead them to better performance. Introducing the Data Envelopment Analysis model is also the purpose of this study. To sum up, the primary purpose is to demonstrate through this empirical evidence that DEA in conjunction with financial ratio analysis can effectively aggregate and reclassifY the perplexing ratios into meaningful financial dimensions, which enable us to gain insight into the financial operating strategies of banks. DEA is the index of sum of weighted outputs to sum of weighted inputs. This model is used to classifY six commercial banks in Ethiopia - those have operated in the industry for at least two years before 2000 - based on their relative efficiency scores. While others may not agree with the input and output variables selected in this study for the DEA model, this study uses interest income, non-interest income, and total loans as outputs and Interest expenses, non-interest expenses, and total deposits as inputs. The financial operating decisions like capital · adequacy, profitability, asset utilization, and liquidity for 1995 to 1999 are also captured through twelve financial ratios extracted from the banks' financial statements. For the purpose of this study efficiency is defined as an 'intermediary approach' which examines the bank's function as a financial intermediary between savers 'and borrowers. According to the DEA efficiency score derived, this study divides the banks into three categories - high, medium, and low DEA efficiency - for financial peer group analysis. The empirical results indicate that those banks with higher DEA scores also have higher ratios in capital adequacy, asset utilization and profitability efficiency, and lower ratios in financial leverage and liquidity than those with lower DEA scores. That is banks with more capital (in a relative magnitude) tended to engage in higher loan risk lending for higher profits; while those with less capital were more conservative in lending money. This shows that the application of DEA in conjunction with financial ratios can not only accurately categorize banks with respect to each other in terms of their DEA efficiencies but can also somehow link the evaluated efficiencies with the bank's actual financial operating decisions.
Marketing Strategy for Competitive Advantage The case of United Ability Factory
(A.A.U., 2002-02) Emawayish, Addisu; Ziauddin, Khairoowala (Dr.)
Market orientation emphasized addressing the needs, desires and wants of the targeted market. Based on this concept market oriented firms gain competitive advantage by delivering value to the customer with more convenience and lesser cost than their competitors. Thus the objective of this project paper is to have a conceptual understanding of market orientation and to assess the status of its application in Ethiopia by taking the case of United Abilities factory, which is the only producer of umbrellas and dry cell batteries since 1964. To gather the necessary information that will help to analyze and arrive at conclusion as a basis for possible recommendations, interviews and secondary sources such as documents of the factory on market study, strategic plan, production data, prices data etc. are used. As per the findings the factory has faced various problems due to usage of old technologies, high level of imported inputs, increasing trend in imported competitive products, and lack of well-established distribution channel. At the prevailing situation the factory is not in a position to become market-oriented firm and cannot gain any competitive advantage either in cost leadership or responsiveness in addressing the needs of the market. So, to address these issues the proposed recommendations include application of recent technology, improving distribution of the products and promotional activities
The Viability of Capital Market in Ethiopian partial fulfillment for the Masters degree of Business Administration)
(A.A.U, 2002-02) Assefa, Worede; Ziauddin, Khairoowala (Dr.)
The study considers market size, liquidity, information, legal and regulatory framework as the basic components for the viable development of stock exchange market in Ethiopia. As a package of the structural adjustment program, the IMF and World Bank prescribe the SSA to establish capital market to serve the purpose of their economic development. However trends show that the markets in the SSA are small in size, illiquid, volatile and not preferred to direct foreign investment but slowly developing overtime. Consequently capital market development is viable in Ethiopia holding the fact that it will be very small and illiquid. But there has to exist investment banks, brokers, dealers, adequate accounting, auditing and legal firms rating agencies supportive professional associations etc. The existence of government regulatory mechanism will further enhance its development. To further have a well functioning capital market the primary efficiency of the other financial institutions very vital.
Dividend policy Case study of Private banks of Ethiopia
(A.A.U., 2003-02) Selam, Ayalew; . P., . Laxmlkantham (Mr.)
A number of studies have been conducted in the area of dividend policy in the developed capital markets. Few researchers also tried to investigate on dividend policy in emerging markets where the financial system is bank centered. This paper explicitly looks into the dividend decision determinants of the four private banks of Ethiopia namely Awash International Bank S.C, Bank of Abyssina S.C., Dashen Bank S.C. and Wegagen Bank S.C. from the year 1996 to 2002. The findings show that given the institutional structure of the banks, the undeveloped form of the financial markets and the age of the banks being in their early stage of growth, dividend decisions are primarily focused on fulfilling legal requirements, i.e., capital adequacy, liquidity and reserve requirements. In addition, the fund needs, the availability and access to external finance, tax, control (protection against dilution), shareholders preference and earnings are among the determinants that are identified to be factors that have dictated the dividend decisions of these banks
Fiancial Failure Prediction: An Empirical Study on Ethiopian Public Enterprises
(A.A.U, 2003-02) Aderajew, Wondim; Tilahun, Teklu [PhD]
The main purpose of this research is to throw light on a very challenging and perhaps forgotten issue of predicting corporate failure in Ethiopian public enterprises. The study tests and replicates a quantitative model for classifying and predicting serious financial problems of companies. It utilized a failure classification model developed by Altman in 1968 and updated continuously. A sample of 15 serious-problem enterprises is compared with the same number of healthy enterprises. Altman Z-Score Model successfully classified 80 percent of the enterprises one year prior to serious financial problems and as much as 70 percent two years prior. A comparable model replicated for the Ethiopian context, with a revised cut-off point, correctly classified 83 percent of the enterprises one year prior to serious financial problems and as much as 80 percent two years prior. In summary, the outcome of the research is expected to draw pointed attention to managers, government, lending institutions, suppliers, employees, and the community at large in assessing the financial health of an enterprise. III
Dividend Policy Case Study of Private Banks of Ethiopia
(A.A.U, 2003-02) Ayalew, Selam; LaxmiKhantam, Mr. P.
A number of studies have been conducted in the area of dividend policy in the developed capital markets. Few researchers also tried to investigate on dividend policy in emerging markets where the financial system is bank centered. This paper explicitly looks into the dividend decision determinants of the four private banks of Ethiopia namely Awash International Bank S.C, Bank of Abyssina S.C., Dashen Bank S.C. and Wegagen Bank S.C. from the year 1996 to 2002. The findings show that given the institutional structure of the banks, the undeveloped form of the financial markets and the age of the banks being in their early stage of growth, dividend decisions are primarily focused on fulfilling legal requirements, i.e., capital adequacy, liquidity and reserve requirements. In addition, the fund needs, the availability and access to external finance, tax, control (protection against dilution), shareholders preference and earnings are among the determinants that are identified to be factors that have dictated the dividend decisions of these banks.
The Human Side of Construction Management A Critical Review of Human Resource Management Effectiveness in the Ethiopian Construction Industry
(A.A.U., 2003-02) Netsanet, Tsegaw; Meheret, Ayenew (Dr.)
The construction industry is a large business segment that plays a crucial role in the national development of countries and is particularly paramount in developing economies where there is lack of infrastructure. In Ethiopia, the construction industry suffers from lack of properly educated manpower, deficiencies in construction management skills, inefficient utilization of already trained manpower and a host of other problems. This research is an exploratory investigation of human issues that contribute for the successful completion of construction projects in Ethiopia. Human factors in construction, such as organizational ambience, motivation, leadership and team building practices that help for the better utilization of the resource were assessed. A survey method, using questionnaire and interview techniques, was used to capture employees' attitudes as well as data on employee turnover, absenteeism, lateness and accident rates. The results of the study showed that employees have good job satisfaction. Employee turnover was observed to be low. Peculiar arrangements for work attendance, whereby the 'psychological contract' of work between employers and employees is observed to work out well, are found to be in place. Substantial number of accidents, out of which some were fatal, has been reported. The 'human resource climate' was found out to be conducive as indicated by the level of job satisfaction and employee turnover. Higher self-actualization needs of employees have been catered for through a high degree of freedom in performing tasks and challenging tasks. Employees however perceived that they don't receive a fair amount of pay. The predominant leadership style was found to pe a lassesfaire type but with more task- rather than people-orientation. Team building practices were observed to be low with employees perceiving low team atmosphere, participative meetings and decision-making practices. In order to effectively and efficiently utilize the human resource in the industry, companies are recommended to (1) cater to the basic needs of employees by providing a fair amount of pay, (2) incorporate incentives to tie performance with rewards, (3) have managers with professional training and experience which practice 'people-oriented' leadership style. Such managers would pursue 'wealth-maximization' goals, which focus on effectiveness and visionary leadership than on efficiency and management, (4) improve team atmosphere in their organization for creating effective communication and conflict resolution platforms, and (5) put in place safety policies and ensure their implementation to decrease accident rates
Forecasting Sales Using The Box-Jenkins Approach: The Case Of Gulele Soap Factor
(A.A.U, 2003-02) Araya, Mulugeta Muluneh; Gurmeet, Singh(Dr)
This study is conducted to facilitate the decision making process of Gule1e Soap Factory by developing an appropriate forecasting model. It aims at providing accurate sales forecasts for future sales, which is a vital input in decision-making. Particularly, the focus is given for forecasting monthly laundry soaps sold by the factory. Towards achieving its objective the study considered the Box-Jenkins approach to time series analysis. A total of 68 monthly sales data has been taken for analysis or model building purpose. Moreover, additional 5 months sales data has been used for forecasting purpose. The analysis of the data, which is carried out using S-Plus 2000 package, suggested that ARIMA (3,1,0) model represents the pattern of monthly laundry soap sales data. According to this model, forecasting current sales essentially requires the inclusion or consideration of the previous four consecutive sales data occurring at the four successive lags. Moreover, it is found that the sales data recorded in the first lag has greater influence or contribution in forecasting current sales volume. On the other hand, it is observed that the sales data involves a seasonal component that turns out to affect the sales volume approximately in 3.5 months. In other words, the analysis indicated that there is a seasonal component that occurs with 3 or 4 months periodicity. This in turn resulted in attaching high importance to the third and fourth lag coefficients as compared to the coefficient of the third lag. The results obtained led to the conclusion that the time factor IS the major but not the only relevant factor in forecasting sales. Other considerations in relation to promotional activities, competitors action, seasonal factors, etc should be kept in mind.
Operations Management (MBA 632) Final Paper On: Rubber Inventory Management Practice Of Addis Tyre Company, S.C.
(A.A.U, 2003-06) Amare, Dagnew; . Tilahun, Teklu( Dr.)
I nventory Management is one of the most responsibilities of an operations manager. Insufficient inventories hamper production and limits sales, where as excessive inventories tie up cash that may be urgently needed elsewhere. It is no surprise, then, that inventory control has been the key to the success of many firms as well as the cause of failure of numerous others. (Monks,1989:392). In view of the above, this paper is on 'Rubber Inventory Management'. The paper aimed at describing the existing rubber inventory management practice of Addis Tyre Share Company. For this purpose both primary and secondary sources of data were utilized. The primary sources of data were collected using interview. Due to its flexibility, the unstructured type of interview was employed. The research is expected to provide information at least on the proportion of the total capital invested in rubber inventory, the type of inventory control system employed, and the contribution of this system to operation efficiency.
The Practice Of Using Marketing Research Outputs To Support Marketing/Business Decision•Making: A Study of Foodstuff•Producing and Beverage•Producing Firms in Addis Ababa
(A.A.U., 2004-02) Bezalbih, Bekele; Gurmeet, Singh (Dr.)
This study was conducted to look at issues related to marketing researches: practices of conducting and using marketing researches, limitations/problems in making researches and in using research outputs by foodstuff-producing and beverage-producing firms in Addis Ababa. Two major problem areas were the basis for making the study regarding the issues: Often managers/decision-makers of most foodstuff-producing and beverageproducing firms have less practice to conduct marketing researches, and thereby use the outputs/results of marketing researches to support their decision-making (1). There are problems in these foodstuff-producing and beverage-producing firms in effectivelf and reliably utilizing the outputs of the researches made because most researches are considered to lack 'quality' on the side of the decision-makers (2). Descriptive research type and survey method (to collect the primary data from subjects) preferably used to conduct the study. Two types of questionnaires-for the decision makers and for the marketing research personnel- distributed to 10 and 5 foodstuffproducing firms and beverage-producing firms, respectively. A total of 29 questionnaires from the marketing research personnel and 27 questionnaires from the decision-makers collected. Out of an overall analysis of the responses of the two types of respondents the following major conclusions were drawn. It can be said that most of the foodstuff producing and '. beverage-producing firms have not been much benefited form the outputs of the marketing researches. There was a need on the side of the decision-makers to using the research outputs and, on the other hand, less emphasis was given to the research making unit/or there was less practice of conducting marketing researches. This would be resulted because the management could not fully rely upon the accuracy/the quality of the marketing research reports. Problem-identification researches were not given much emphasis by the firms. Compared to the other types of research studies, pricing studies had been given priority. It can beinferred that most of the finns were unable to be benefited from the other types of the marketing researches, which they would be equally benefited as the pricing studies Despite the inadequacy of the allocated budgets for conducting marketing research activities and the number of research problem areas and management conflict areas raised on both the decision-making and research making personnel, no decision-maker replied that the research outputs were fully ineffective for making decisions. Therefore, it can be concluded that if it was possible to eliminate/reduce the above problems and conflict areas and improve the quality, effectiveness and the frequency of making different types of marketing researches as needed, the firms would be benefited much more form the research outputs.
An Assessment For-Cinema Screen Advertisement Potential In Ethiopia
(2004-06) Deribie, Mekonnen; Gurmeet, Singh (Dr.)
This descriptive study jar an assessment of cinema screen advertisements potential in Ethiopia has three parts. Questionnaire for the first part and structured interview questions for the rest two parts were used as a tool jar collecting data. Descriptive presentations of the results are discussed along with the findings of the reviewed literature. The first part of the study reveals that cinema/theater audiences are active in terms of making purchase decisions. The number of audiences is increasing even though no one has targeted them for advertisement when they are seated idle in the cinema/theater waiting for the movie or the theater to start. The second part of the study that focused on the cinema/theater houses has indicated that, if there are promotional enterprises that can produce and supply cinema screen advertisement slides or clips, they can run it and generate additional revenue. The third part of the study conducted on the promotional enterprises, on the other hand, has shown that there are very few limiting factors to start cinema screen advertisements except the missing awareness by the advertisers and the cinema/theater houses. Based on these indications, the study concludes that there is potential for cinema screen advertisements in Ethiopia. If the necessary preparations by the cinemas/theaters and the promotional enterprises are made and co-operations are established between these two parties that have the audience and the advertisers in common, the potential for cinema screen advertisement' already exists.
Impact Of Socialization On Employees' Turnover (A Case Study of Development Bank of Ethiopia)
(A.A.U, 2004-06) Ager, Mekuriaw; G.Krishan, Murthy (Dr.)
The mall1 purpose of this study is to assess the impact of organizational socialization on employees' turnover in Development Bank of Ethiopia. Current professional and high level supervisory (PHLS) employees, Ex-PHLS employees and managers were included to gather necessary data pertaining to the socialization process in DBE. To elicit the impact of socialization on employees' turnover questionnaires were distributed to CLllTent DBE professional and sLipel'visory staff (130), professional and supervIsory exemployees' who resigned voluntarily over the past five years (50) and managers assuming different managerial positions of DBE (5), respectively. All respondents were selected on personal judgement of the researcher. The results of the study indicate that majority of the current PHLS employees, Ex-PHLS employees and the management of the company believe that the organization has -failed to provide realistic job preview to the new employees in its pre-employment socialization process. This ultimately creates reality shock on employees joining the organization causing early resignation. It was also found that psychological contract, selection, organization's rules. procedures and policies, and tria 1 and error methods~ are used in the organization as a means to socialize employees but it is not adequate enough to socialize employees. In addition, the major problem to adopt appropriate socialization techniques that reduce turnover is the management drawback. Moreover, most of the current Ex-PHLS employees stl'ongly believe DBE's socialization process and techniques have notable impact on its employees' turnover. The aforementioned findings convince the researcher to recommend for improvement in socialization techniques and procedures of the Bank.
"The Impact Of Customer Service On Customer Satisfaction And Loyalty" (A Study Of Insurance Companies In Etidopia)
(A.A.U, 2004-06) Yaschilal, Shitaye; . A. D., Madhav(Prof)
The underlying aim of all employees training is to increase efficiency. The need for employees training has increased significantly in recent years. It is strongly argued that the most effective training program is those which change behavior on the job in a constructive way. Many training program focuses on the modification of employee behavior in a direction that is deemed advantageous to both the company and individuals. Hence the proj ect focuses on the assessment of training impact in government financial institutions. In order to investigate this, questionnaire which is filled by 88 employees who had get the training is used. To complement the response of employees', questionnaire which is filled by 20 line managers and interviews from training officers is utilized. The analysis and interpretation is made using appropriate techniques with the aid of SPSS software package. The investigation revealed the way training lS conducted and evaluated in government financial institutions The crux of institutions to method of need identified gap, this proj ect is informing the reconsider their training methods stated such as assessment, define a define proper training needs based on training program, and evaluating its effectiveness. Besides it informs the stated institutions training programs to know the contribution overall performance of the organization. to evaluate of it to the overall performance of the organization.
Quality Assurance And Accreditation Of Private Higher Education Institutions (Pheis) (Assessing the Role and Practices of the Ministry of Education)
(A.A.U, 2004-06) Bruk, Assmelash; Dr. G., K.Murthi
The increasing demand for quality private higher education by government, students and society entails that PHEls now face similar pressure that the production industries and other business sectors have been facing for decades. While quality can mean different things to different people, in the context of higher education it particularly refers to a judgment about the level of goal achievement and the value and worth of that achievement. It is also a judgment about the degree to which activities or outputs have desirable characteristics, according to some norm or against particular specified criteria or objectives. The main issues in the quality debate about higher education in many countries are the maintenance and improvement of levels of teaching, learning, research and scholarship; improvement in the quality and adaptability of graduates; how to define and measure quality; management approaches likely to improve outcomes from higher education institutions; the use of benchmarking and performance indicators; and how to convince stakeholders that institutions and systems are doing a competent job in ensuring quality outputs. Based on this, wide differences are observed among countries in their approach to quality assurance. One typical approach has been the accreditation of institutions or professional programs. Accreditation refers to a process of external review which enables higher education programs or institutions to be recognized or certified as meeting appropriate standards. Compared with the past, the new approach to quality assurance and accreditation is largely concerned about improvement and renewal as contrasted to emphasis on input requirements, academic standards, and accountability concerns. This paper particularly tries to describe and report on existing guidelines and criteria for quality assurance procedures and the accreditation system used by the Ethiopian Ministry of Education (MoE) in the assessment and review of PHEls primarily engaged in business fields. As a base for comparison the study draws lessons from international experiences, review of relevant literature, and views and responses obtained from local private providers of higher education. The findings of the study indicate that quality assurance and accreditation efforts of the Ministry tend to predominantly stress on accountability over concern for improvement and renewal. In this respect it has been suggested that quality is about a change in culture, which involves a slow process of evolution. The dominant delegated accountability approach to quality that emphasizes procedures and list of standards is always likely to lead to degree of skepticism about quality that would be counter productive in the development of a quality culture with in the private institutions.
Evaluating The Growth Of Ethiopian Private I Banks Using The Sustainable Growth Model
(A.A.U, 2004-06) Abebe, Wall; Mehari, Mekonnen (Dr).
This paper exemplified the management of financial growth in Ethiopian private banks in light of the sustainable growth mode/. The actual and sustainable growth rates for each of the banks are computed. A three year combined financial statements are also used to compute these rates. The results of the research confirmed that in none of the periods the sustainable growth rate matched with the actual growth rate. In the study it is observed that private banking industry is a growing industry which requires financing. However, as the results indicated, none of the banks attempted to align these rates. Therefore, the researcher recommended that banks should use this powerful tool, the sustainable growth model, to manage their growth. Finally, it is recommended that banks have to improve both the performance and financial policy ratios to finance their increasing growth. To attain these improvements, banks are recommended to increase volume of deposits, have a clearly defined dividend policy, increase sales or diversify their products and improve their profitability.
Dividend Policy Case Study Of Private Insurances In Ethiopia
(A.A.U, 2004-06) Gizew, Tamir; .p., Laxmikantham(Mr)
The objective of this study is first, to explain how different dividend policies are practiced by insurance companies, second what factors are influential to determine the amount of dividend payment, and third how the aforementioned policies and factors affect the price of the share, if any. A case of descriptive research method has been employed on four private insurance companies namely, Nile Insurance Company, Awash Insurance Company, Africa Insurance Company and Global Insurance Company from the year 1999 to 2003. Insurances have used any arbitrary percentage of paid up capital as a dividend policy which is different from the common dividend policies. This arbitrary percentage as a dividend policy is not influential to estimate the amount of dividend payments in the future because of no consistency. Legal restrictions, liquidity position, net annual profit, shareholders preferences, growth prospects and taxes are factors which are commonly used to determine the amount of dividend payments. The paper concludes that all insuranc.es · hav~ not prac~iced relevant divided policy though the above factors have c:lused partly to increase and partly to decrease to determine the amount of dividend paym ~nts . . Finally, regardless of any decision in this ~espect, the price of the share remains the same.
Customers' Attitude Towards Boycotting Pepsi a Case Study on Addis Ababa
(A.A.U, 2004-07) Muhammed, Muhaba; Singh, Gurmeet (Dr)
Customers' attitude plays an important role in determining the success. failure or the pace of the business. Customers' attitude plays an important role not only towards the products or brands of the company but also towards the company and the personalities around the company. If the customers develop a negative attitude towards the products or the company. it will be very difficult for the company to cope with such situation. The objective of the study was to assess the customers' attitude towards the boycott of Pepsi as a reaction to AI-Amudi’s support to EPRDF in terms of his popularity. accusation of foreign citizenship. Publicity or the support, the existence of substitute products. the elect ion result and possible appeal by the leaders of opposition parties. The method used in conducting the study is descriptive survey where 150 questionnaires were prepared and distributed to the respondents who are residents of Addis Ababa. The questionnaires contained fifteen statements in which respondents were required to tick one of the checkboxes as per Liker scale. The data collected were tabulated and analyzed using Weighted and table mean values. The result is that popularity of the businessman, the publicity of hi s support through media and the existence of substitute products (Coca) strengthened customers' attitude towards the boycott. The accusation of his foreign citizenship didn't affect the attitude towards the boycott. The election result is expected to affect the attitude while the possible appeal by the leaders of opposition parties to stop the boycott is expected to have no effect for the majority of the respondents while a significant number though not majority expect the appeal to have effect on the termination of the boycott. And recommendations are drawn accordingly.

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