Assessment of strategic management practices: the case of private commercial banks in Ethiopia

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Addis Ababa University


The aim of this thesis is to assess the strategic management practices of private commercial banks in Ethiopia. This descriptive study adopting a quantitative research techniques answers two basic research questions, first the extent to which private commercial banks formulate, implement, evaluate and control its strategy. Second, the major challenges faced on the process. A systematic random sampling method was used to select four representative private commercial banks in Ethiopia from a list of sixteen based on their year of establishment. To further decide on the sample size from each selected Banks, a proportionate sampling method was applied. Finally, simple random sampling technique was used to identify the sampled respondents’. As data collection instrument, AMCES questionnaire was adopted after securing written approval and in consultation with the advisor. The reliability of the tool applied was tested and obtained a Cronbach alpha value of 0.833. The questionnaire was administered to 246 randomly selected employees, who have an involvement on the strategic management process. From the findings, it was learnt that the result obtained for strategy implementation and evaluation & control practice of private commercial banks was below the mean score. Therefore, the study concluded that private commercial banks focus more on the strategy formulation while giving less emphasis to strategy implementation, evaluation and control. The study finally recommended the need for the Banks to give due attention for strategic implementation in terms of human resource capability and Board support and on strategy evaluation and control with regard to performance measurement, communication and timely responsiveness to noted gaps.


Thesis submitted to Addis Ababa university college of business and economics in partial fulfillment of the requirements for the degree of master of business administration (MBA)


Strategic Audit, Strategy Evaluation & Control, Strategy formulation