The challenges of implementing strategic management in commercial bank of Ethiopia

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This paper demand on assessing the challenges of implementing strategy management of commercial bank of Ethiopia. In the way to answering the basic question of the research, the study applied descriptive research design using mixed research approach. Data was gathered through questionnaires’, interviews and document review. To collect representative data a five point likert scale is used and descriptive analysis with frequencies and percentage were applied during data analysis. The findings of the research show that the implementing of strategy management is mainly concentrated on five major challenges confronted by the organization in the process of implementing strategy management; potentially unachievable strategy, ineffective leadership, having wrong people in leadership position, poor alignment with administrative authority and implementing strategy management tasks were not sufficiently defined. Additionally, the finding of research shows that The major factor affecting implementing strategy management have four core factors Such as the vagueness of the assignment of responsibility, inadequate down the line leadership, uncertainties, unplanned project causes deviation in implementation. And finally it concludes that the majority respondents agreed on the major action taken to reduce the challenges of implementing strategy management that top management commitment, the involvement of subordinate, role of communication, maintain an open strategy implementation process, clarify strategic goals during strategic plan development, providing opportunity for participation, establishing creative working environment to sustain implementing strategy management and also training. Based on the finding, the study recommended that to have a successful implementation of strategies, Effective leadership, Effective communication, Having the right people in leadership position, Better alignment with administrative authority, the involvement of subordinate, reduce vagueness of the assignment of responsibilities, the top management’s commitment. Moreover, Teamwork plays an important role within the process of strategy implementation. Finally, the training is one of the effective way to provide follow up to ensure employees execute new strategic lessons in their daily workflows.


Thesis submitted to College Business and Economics Department of Public Administration and Development Management in Partial fulfillment of the Requirements for the Masters of Arts in Public Management and Policy (MPMP)


Challenge, Commercial bank of Ethiopia, Strategic management