Strategic Orientation of the Commercial , Bank of Ethiopia (A Study)
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Date
2005-07
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A.A.U
Abstract
The Commercial Bank of Ethiopia is the leader in the Ethiopian banking industry.
It has wide branch network, and major market share in both deposits and
outstanding loans and advances. CBE has obtained this position due to historical
reasons rather than operational competency.
Those factors contributing to the bank's dominance are not at their place these
days. The liberalization of the domestic banking sector has opened the door for
small private commercial banks. The globalization of the world economy has
posed the threat of entrance of foreign banks to the local market.
Untested competency of CBE on one hand and the stiffening competition and
potential threat of foreign banks from the other side arouse the need to look at
the bank diagnostically. The researcher by using the strategic construct: strategic
orientation has described the strategic trait of the Commercial Bank of Ethiopia Six dimensions with twenty-seven indic,ators were used to measure the strategic
orientation of CBE. The dimensions are aggressiveness, analysis, defensiveness,
futurity, proactiveness and riskiness. This measurement was adopted from
thorough literature review. Modification has made on the measurement to make
it fit to the Ethiopian banking industry. The measurement was tested for
construct validity and reliable using statistical techniques. The tests are
acceptable with implications for future improvement.
Description
in Partial Fulfillment of the Requirements of the Degree of Master of
Business Administration
Keywords
Commercial Bank of Ethiopia