Bank of Cylon Project

8/11/2019 Bank of Cylon Project

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THEMISSIONSTATEMENT

We are here to serve the financial needs of our highly valued clients, both organizations and

individuals. We deeply care about all our stakeholders shareholders, customers and employees

and we are highly motivated to equitably distribute our fruits of success amongst them. We

always vow to maintain the highest possible ethical standards in all our operations and pride

ourselves as an integral part of a model corporate citizen. We offer a supreme, stimulating

environment that fosters an urge in our employees to put in the highest levels of outputs and

creativity. Our human assets are nurtured in a healthy ambience that reminds them that by

advancing themselves they will also be advancing our entity. We seek to uplift our economy and

get the most out of our limited resources by continuously increasing the productivity of our

management, capital and labor. We are one family committed to do whatever it takes to be the

leading bank in South sia.

!!!!!!!!!!!!!!!!

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EXECUTIVESUMMARY

"ommercial #ank is a public limited liability company established in Sri $anka on

%une &', ()*), under the companies+ ordinance no'( of ()- and quoted in "olombo Stock

/0change in 1arch ()23. licensed commercial bank under the banking ct no -3 of ().4heir vision is to be 45/ $/6/7 in the financial industry in Sri $anka, having a visible

presence in the region by the year &3(3 and their mission is to deliver optimum value to their

customers, employees, shareholders and the nations.

4heir growth in income for the year ending &338 was &&.(29, which e0ceeded their

goal of &39. 4he growth in total assets was &'.'29 at the end of &338, which also e0ceeded their

goal of &39. 4his proves their e0pertise in the field of banking in the financial industry. 4he

secret of their success lies in the superior technology they use and the highly motivated, well

trained workforce. 4hey believe the human spirit lies at the beginning, the center and the end of

all activities. Solutions and products are aimed to satisfy the human spirit, tailormade to fit each

unique possibility and to offer each the broadest possible choice. t the end of the day they hope

to have enriched and made the best use of humanity.

:magine a Sri $ankan mind, imagine a Sri $ankan soul talking to men and women,

reaching across oceans, conversing across miles; building partnerships, using technology,

healing wounds, creating better worlds, cleaner neighborhoods ;;happier families. 4hey are

thinking out of the bo0 and breaking out of the bo0, working towards their goal of becoming the

banking leader in the S7" region, taking not


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SITUATIONANALYSIS4he essence of situation analysis is taking stock of where the firm or product has been

recently, where it is now, and where it is headed in the light of the organization+s plans and the

e0ternal factors and trends affecting it. =Marketing The Core, Author-Roger A. kerin, page-33>. :t

is especially done in two forms?

/0ternal @actor

:nternal @actor.

:f an organization has to stay in the business for a long time, than they has to consider

both the factors of the situation analysis.

EXTERNALFACTORS

/0ternal factors are those which can never be controlled or changed by the managers

and sometimes the businesses can be victimized or get tremendous opportunity from those

factors. 4hese factors stays in the e0ternal environment, that is, the large arena that e0ists outside

the organization and comprises many varied forces that have an impact upon the organization+s

structure, processes, and performance. 4hese forces may be direct, e0erting an immediate and

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direct influence on the organization, or they may be indirect, influencing the climate in which the

organization operates.

ll managers, whether they operate in a business, a government agency, or a

university, must in varying degrees, take into account the elements and forces of their e0ternal

environment. While they may be able to do little or nothing to change these forces, they have no

alternative but to respond to them. 4hey must identify, evaluate and react to the forces outside

that may affect its operations. 4he e0ternal environment consists of customers, competitors,

suppliers, human resources, economic, technological, social, political and legal, and ethical

factors. ll managers must manage the organization to minimize the negative effects and

ma0imize their positive impact on the organization from these forces.

Customers:

"ustomers purchase an organization+s product or services. 4hey may be individuals or

organizations. Of all other direct forces, customers are perhaps, the most vital to organizations.

fter all, their decision is to buy or not buy a firm+s output directly determines the company+s

sales revenues and ultimately its survival.

"ommercial #ank of "eylon $td has both individual and corporate clients. So they are very good

at both types of banking. s they solely depend on their customers, they give the most priority to

their customers. lthough they did not conduct any research to understand the changing tastes

and demand of their customers, but still they have some unique services for their valuable

customers like speedy and friendly service, Saturday #anking, holiday banking, "om#ank online

internet banking, Ariority #anking, Aahan personal loan, "omShakti $easing facility etc. :n Sri

$anka they have a separate branch for the senior citizens where they serve them very patiently

"ommercial #ank of "eylon $td trained their employees in such a way that their employees can

satisfy all their customers. 4hey opened many branches all over Sri $anka, even in the offside

regions.

Competitors:

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"ompetitors are an organization+s opponents, the companies against which the

organization competes for customers and needed resources =e.g., employees, raw materials, even

other organizations> in the e0ternal environment. 4here are two types of competitors Intratype

Competitors, who produce same products or service as the organization produces and Intertype

Competitor, and they are distinctly different and competing organizations.

"ommercial #ank of "eylon $td has both types of competitors. ll local banks are

their intratype competitors. 4his bank competes by their quality service standard, giving better

offers, like holiday banking, dedicated branch for citizens, 41, 6ebit"redit cards etc.

"ommercial #ank of "eylon $td also has intertype competitors like insurance companies,

investment houses etc. they are very much concerned about these competitors. 4hey are always

trying to be the leader in the industry by offering new facilities including the present ones.

Suppliers:

Suppliers are resource providers and a supplier could be an individual or an

organization whose output becomes input for another organization. 4his means suppliers produce

raw materials for companies. So if suppliers fail to give quality product then the entire

organization+s process can be hampered.

4hey have their stockholders+ investment into their company. nd every client who is

depositing money in their bank is their supplier for fund. Other than this last year "ommercial

#ank raised BS C -' million from the international debt market. 4hough they have not introduced

shares in #angladesh but in future they have a plan to introduce shares in the #angladeshi market.

Human Resources:

5uman resources are the vast resources of people in the e0ternal environment fromwhich an organization obtains its employees. s people are the most precious resources of any

organization so the management should select the right person from this vast resource into their

organization.

"ommercial #ank of "eylon $td is very much concerned about recruiting the possible

best employees into their organization from the available human resources. /very year as they are

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e0panding their activities they recruit many people in their bank through a standard selection

process. nd they always observe the environment to fulfill their demands.

Technological:

4echnological forces are developments in technology in the e0ternal environment that

can have an impact on an organization in two ways. One impact is technological developments

can influence an organization+s use of knowledge and techniques in producing a product or

service and performing other work. nother impact is technological forces require that

management keep abreast of the latest developments and, where possible, incorporate

advancements to maintain the organization+s competitiveness.

"ommercial #ank of "eylon $td wanted to be the leading bank in South sian region.

So they do have to think heavily about the technological factors as they are doing now. "ountries

in this region are not developed so new technologies are coming here. nd "ommercial #ank of

"eylon $td wants to be the leader to introduce new technologies in the industry.

conomic:

/conomic forces are changes in the countries economy reflected by such indicators as

inflation rate, gross domestic product, unemployment rates, the value of money, interest rates, and

size of budget and trade deficits.

"ommercial #ank of "eylon $td operates in two countries whose economic

conditions are not so good. 5ere in these countries D6A, DEA rate is very lowF unemployment

rate is high, so it is difficult for banks to find their clients. #ut as economic conditions are

changing towards better situation so they are hoping to get more benefits from these countries.

!olitical" #egal an$ Regulator%:

Eumerous laws and a multitude of authorities characterized the political, legal, and

regulatory forces in the e0ternal environment that have indirect but strong influences on the

organization. 4hese forces can act as both constrains or opportunity.

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Aolitical, legal, and regulatory conditions are not so stable in Sri $anka and

#angladesh. So they need to deal deeply about these situations. 4hey have to maintain liaison

with the government to operate under sound conditions. 4hey have made a separate department to

look after these facts so that they do not have a terrible shock if something changes in these

factors. #ut as Sri $anka and #angladesh are very good friends so they are not hoping for any big

problems with the government of #angladesh.

Cultural an$ Social:

"ultural and social forces are changes in social and cultural system that can affect an

organization+s actions and demand for its products or services. /very nation has a social and

cultural system comprising certain beliefs and values.

"ommercial #ank of "eylon $td first operated in Sri $anka and now they opened in

#angladesh. s these two countries culture are very similar so they do not have to deal with any

cultural shock. 4hey engaged in many social activities both in Sri $anka and #angladesh like

helping the 4sunami Gictims, or flood affected people. 4hey did many charitable works in these

countries. :n the near future they are looking forward to starting their operation in the B/ and

:ndia.

INTERNALFACTORS

:nternal factors are those under which managers must work and they can control those

factors. 4hat refers to an environment within an organization i.e. internal environment. :t

identifies the setting where managers work, the daytoday activities that utilize much of their

time, and some generalized skills necessary to cope with the internal environment. Bnder this

factor we have three levels of managements, skills of various departments inside the organization

like human resource skill, technological skills, 7H6 department etc.

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'perational #e(el )anagement:

4his is the bottom level management where managers have to deal with daytoday

activities. 4his level focuses on effectively performing whatever the organization produces or

does. 4he operations function is the fundamental core of every organization. 4he managerial task

here is to develop the best allocation of resources that produces the desired output. 1anagers at

this level should have human skills which means they must have leadership ability, communicate

with others and understand others.

t the operational level, managers+ activities are to observe that checks are processed

and financial transactions are recorded accurately and quickly. Eewly employed managers start

their


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Strategic management+s responsibility is to deal with the organizations goals, long

range ob


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"ombank e/0change. "ombank e/0change enables Sri $ankan e0patriates and other remitters

to remit money through a network of agents in over '3 countries worldwide. nother evidence of

their technological advancement is that they recovered the information loss due to 4sunami within

&I- days through their intranet and hence start serving their 4sunami victimized clients.

R*+ +epartment:

7esearch and 6evelopment department is very important part for any organization.

#ut unfortunately "ommercial #ank of "eylon $td does not have this department. #ut accordingto the sources they are going to introduce this department very soon. #ecause they feel that to

survive in competition they need a 7H6 department. /ven though they do not have any 7H6

department they are the pioneer of 5oliday #anking that is, banking -*' days a year.

,inancial Situation:

4hey have a strong financial condition in Sri $anka as they are one of the leading

organizations in that country. 4hey have total asset about 7s.(-,82-,-' at end of the year &338

while total asset was about 7s.((3,&2),)&* at the end of the year &33- which shows a increase in

total asset of about &'.'29 from previous years. 6uring the year, "ommercial #ank raised BS C

-' million from the international debt market via a syndication arrangement with Standard

"hartered #ank =S"#>. 4hey started their operation in #angladesh, which ensures their financial

stability even if sometimes any thing goes wrong in Sri $anka for a temporary period.

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THESWOT ANALYSIS

Strength-eakness'pportunityThreat nalysis

Strengths:

4he mere fact that the #ank of "eylon is surviving and doing well in a world

where the business ambience is harsh and unpredictableF where there are constant battles

with innumerable competitorsF where there is always a scarcity of economic resources

manifests its possession of strengths. n enterprise must have strengths in order to be a

player in this e0citing business world and the "ommercial #ank of "eylon is no different.

Superior Technology:

4o begin with, the (- branches are linked online by an e0cellent, stateof

theart information technology system. ll the crucial data is accessible and available

through the webbased intranet. #ecause this bank has the world+s one of the best :4

banking infrastructure, it retained its composure in the face of adversity. :t remained

unperturbed even after the unfortunate strike of a natural disaster the tsunami. 4wo of

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its branches in Sri $anka suffered damage but remarkably, the #ank recovered lost data

from the central data reservoir and resumed operations within a few days. 4he bank, thus,

manifested an amazing resilience.

Wealth of Human Resource:

4he #ank of "eylon knows that the real strength lies in the proficiency of the

human element of an organization and realizes the importance of proper training of all

those working for this bank. 4his bank is affiliated with the Eational Bniversity ofSingapore and the sian :nstitute of 4echnology =:4> and every year it sends its

employees abroad to places like 4hailand, Singapore and #angkok for training. 4raining

programs are e0tremely beneficial because the employees get the opportunity to go back

and learn new ways of solving problems. 4hey develop additional skill and de0terity in

their areas of e0pertise. /ven though these training and educational programs are

e0pensive, the #ank is still willing to bear the e0penses because it knows that the benefits

outweigh the drawbacks. 4he branch in #angladesh has also sent its employees for

training at present.

Helping hand from the IFC:

#ank of "eylon has partnership with :@" =:nternational @inance

"orporation>, which has given them access to training and credit. Detting assistance from

a strong body like :@" is one of this bank+s strengths.

Positive Social Image:

4he #ank has a good reputation of being a socially responsible corporate

citizen and this favorable image is its strength because this image draws in creditors and

clients because they feel that by being cooperative with this bank, they will also be

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providing funds for good causes and will participate in contributing to the society+s

welfare. 4he #ank has organized a #lood 6onation Arogram for the third consecutive

year with the Eational #lood #ank, "olombo. :t contributed 7s &'3,333 for setting up a

6ialysis unit at the Eagoda 5ospital, donated equipment to the $ady 7idgeway 5ospital,

refurbished a ward at the "ancer 5ospital, and introduced a branch solely dedicated to

the senior citizens.

Innovator:

4he bank has come up with a new service J5oliday #ankingK and has thus

identified itself as a pioneer. ll the branches of the #ank have committed themselves to

stay open -*' days a year an offer their service with a smile, be it /id, "hristmas or Au


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to worry about being short of funds when in need because it can always borrow from

other institutions participating in the :nternational debt market.

!o" mar#et and operational Ris#:

Operational risk is defined as the potential loss arising from a breakdown in

an organization+s systems and technical procedures, and internal controls, human error,

fraud or delay to perform. :t could also be potential loss arising from a ma


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When looking from this fresh participant+s perspective, it is now a question of

survival ;since this #ank has


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'o R ( ) )epartment as yet:

4his is one of #ank of "eylon+s ma


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Post+disaster ,ctivities may lead to an improvement in the

infrastructure:

fter the tsunami, many areas are currently under construction and

renovation and the #ank is hoping that if there is a restructuring and reorganizing of the

infrastructure, it will aid in bringing down operational e0penses better highways will

decrease transport and commuting costs for e0ample. :f the operating e0penses go down,

the #ank can utilize its funds more productively for other purposes.

*ffering Services to the Senior Citiens in %angladesh:

4he #ank should introduce its e0clusive service to the senior citizens here in

#angladesh also because it might boost the #ank+s profitability because at present none

of the other local or foreign banks are offering such service. 4he range of financial

services could include special pension schemes, health packages, etc. :f the bank provides

betterquality customerservice like patiently dealing with their financial queries, making

them understand how to better manage their money, being welcoming and hospitable,

then the bank will discover a great market niche.

Spreading its smile to )u-ai and India:

4he bank should make full use of entering the growing :ndian market and the

rich market in 6ubai.

Threats:

.scalating *il and /tility Prices:

4he utility costs are shooting up because Sri $anka is in urgent need of coal

power plants. 4he electricity costs in the country is one of the highest in the world and is

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continuing to soar. 4his is a threat to the bank because this will also skyrocket the

operating e0penses and reduce profitability.

'egative impact of Tsunami on the economy:

4he #ank+s profitability is at risk due to the damage caused by the 4sunami

because this natural disaster has created great havoc in the lives of many Sri $ankan

citizens, who have been "ommercial #ank+s clients. So the bank may have to prepare for

provisions against bad loans and writeoffs because many people who have borrowedmoney from this bank may have suffered great financial losses and as a result may be

unable to repay back their loans. 4his possible negative aftermath of the 4sunami is a

serious threat to the #ank of "eylon because other foreign banks this bank is competing

with are not dealing with the consequences of this unfortunate catastrophe.

.0change Rate 1olatility:

Bps and downs in the e0change rate is something every bank has to deal with

but if the fluctuation gets out of hand, it might have a significant impact on the bank+s

profitability.

'e" Players in the $ame?

:n this hostile world of business, there will always be insecurity, a constant

fear that there might be someone out there doing e0actly what you are doing but doing it

even better. s nature+s law itself, it always has to be the survival of the fittest there is

no place for the weak and the incompetent the candidate has to always take its leave if

it fails to make its mark. :t is a tough game where risks are involved.

Possi-le Political Insta-ility:

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/ven though civil wars do not break out in Sri $anka and #angladesh as in

some fundamentalist countries where the environment can become quite volatile and

unsafe, they are nonetheless not completely protected from political instability. /very

year, strikes are a common occurrence and these pose a momentary disruption, a break in

the smooth continuity of the #ank+s operations.

OBJECTIVES

Ob


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competitor+s rate was -)9. 4his is the lacking of their company or this rate is one type of

barrier for there $eadership. 4o gain the perfect rate can be helpful for them.

Strategy: 4o achieve this ob


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:n #angladesh the #ank has only four branches and one 41 booth that is

not enough to satisfy customer needs. 4heir ob


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e0tending it to comprehensive /conomic partnership greement which will cover not

only trade on terms of goods and services but also services and investment in relation to

the two countries. 4he Dovernment has also entered into a free trade agreement with

Aakistan. dditionally, a free trade agreement with the BS is also being sought. 4hese

strategies will help the #ank to gain a stronger position in the financial industry.

%roaden International Credi-ility:

$ast year, the #ank raised a shortterm syndicated loan in the internationaldebt market. One of the ob.

To develop ne" lo"+cost delivery channels:

nother important ob


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Strategy:4o gain this ob


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but they did not get the result very well. nd now their ob


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give them access to training to Jknow how+ and to credit which they would not otherwise

have had.

Strategy: 4hey e0pect that the :@" will be closely involved in infrastructure

development in the posttsunami phase and they hope that they could become part of this

effort at national reconstruction.

Sta-ility in mar#et position:

4he #ank is operating in a dynamic market in Sri $anka their ob


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@unctional departmentalization and process departmentalization refers in to

internal activities of an organization and other three are e0ternal to the organization.

,unctional $epartmentaliation:

:n functional departmentalization

,unctional Structure:

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!rocess $epartmentaliation:

Organizations that use processes as the basis of departments at the highest

level are typically small firms. :n this dept. they enhance skills and efficiency.

$(antages:

(. "oordination within product lines made easier

&. 7esponsibility for failures, successes identifiable

#. +isa$(antages:

(. "ompetition for resources, power

&. $ack of development of e0pertise in functional areas

-. Aroduce limited product.

!ro$uct $epartmentaliation:

1anagers of many large diversify companies groups


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&. Aeople have a full time commitment to a particular product line.

-. 4ask responsibility is clear.

8. Aeople receive broader training.

#. +isa$(antages:

(. :t is difficult to coordinate across product line and divisions.

!ro$uct line:

Customer $epartmentaliation:

"ustomer and clients can be a basis of grouping


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departmentalization they must stay alert. #ecause when a company is establishing a new

office in different countries it means they are highly investing on that pro


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1 7equires lots of communication and coordination =e.g., between

functional and divisional bosses>

"ommercial #ank of "eylon is a multinational organization and they have

branches in #angladesh and they are planning to e0pand their organization to 6ubai and

:ndia as well. #ecause it is centralized organization they have their main branch in Sri

$anka and they make all the ma


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,unctional structure o Commercial an0 o Ce%lon:

35

:nformation

4echnology

1anaging director

:nternational4rade

"orporate

#anking

5.7.

6epartment

Aersonal

#anking

@inance H

Alanning

Aersonal

#anking

"ustomer"are

6epartment

Operations


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centralization and decentralization of authority. /ven though the organizational

structure is rigid, employees have some authority and say within the company.

"ommercial #ank also follows The Theor% o ureaucrac% to a certain e.tent . :n

"ommercial #ank every employee+s authority, task responsibilities and its

relationship to other, position in the organization are clearly specified. 5ere personals

occupy positions on the basis of their performance. 4hey know whom to report and

who reports to them. welldefined system of rules, standard operating procedures

and norms e0ist in the organization. #ank of "eylon follows some of the ,a%ols !rinciples :ts employees are

specialized and they are divided to perform their


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-. 4hey will comply strictly with all laws and regulations and conduct the

business in a fair and transparent manner to gain the public+s trust and

confidence.

8. 4hey will seek to inspire the trust of their shareholders by improving the

business performance through continuous business development and

appropriate risk management, and by disclosing the information on business

activities timely to the shareholders.

'. 4he company will contribute to progress toward the society by assisting withdevelopment in the areas they operate.

*. "ommercial #ank will provide the opportunities and work environment

necessary for all employees to enhance their e0pertise and make full use of

their abilities.

LEADERSHIP

TH T=R ', #+RSH!

$eadership is an interpersonal influence directed toward the achievement of a

goal or goals. :n other words, a leader influences more than one person toward a goal.

$eadership quality is a prime factor to motivate employees. 1anagers at "ommercial

#ank effectively influence their employees by their supreme leadership quality.

)oti(ation:

1otivation is an inner power that drives a worker towards a particular

ob


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TH >< T' #+RSH!

1anagers in different departments practice a number of powers to motivate

employees+ behavior and get them to act in a certain way.

56 !egitimate po"er:

$egitimate power depends on the position in the hierarchy the

higher in the hierarchy, the more power one possesses. :n "ommercial

#ank of "eylon the chairman =top level> is the head of the board of

directors. 5e is involved in decisionmaking and strategic planning on the

other hand, the deputy manager is in the technical manager =mid level>

who is not involved in long term planning.

76 Re"ard po"er:

/very employee does not have reward power at "ommercial #ank.

Only the toplevel managers can reward any employee according to

hisIher performance they use performance appraisals and employees+

contribution to achieve organizational goal.

86 Coercive Po"er:

4his is the power almost all the managers have. 1anagers can

punish hisIher subordinates if they follow the rules or regulation or if the

employees mishandle the use of fund.

96 .0pert po"er:

Special knowledge, skills and e0pertise often help managers at

"ommercial #ank to preside over other employees. :t comes from

specialized learning. /0ample the manager of the :4 sector has e0pert

power.

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6 Personal po"er:

"oworkers respect admiration and loyalty has a very high impact

to increase leadership quality of the managers.

!!#C# TH'RS ', #+RSH!

"ommercial #ank uses eha(ior Control in the organization the

managers emphasize on certain traits and personal characteristics, fore0ample listening power, intelligence, selfconfidence tolerance for

stress, maturity, integrity and honesty to effective leadership.

5igh performance is appreciated in "ommercial #ank by giving special

rewards to their employees.

/very employee of "ommercial #ank from top to bottom feels that his or her


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CONCLUSION:

"ommercial #ank of "eylon is the one of leading banks in Sri $anka at present

and has made its entrance into the #angladeshi market in the hope of gaining similar

success and popularity. 4he tsunami waves may have washed away whole communities,

homes, schools, businesses, towns and villages but the #ank is here to survive and stay.

:t hopes to enter the :ndian market soon and spread the Sri $ankan spirit of human

strength and resilience there too;.

4his pro


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We now know what Jgroup workK really means because we have firsthand

e0perience five of us classmates collaborated and pooled our capabilities, energies, and

enthusiasm each individual contributing to the best of hisIher ability each of us

working towards one common shared goal. We started off as acquaintances and ended up

as friends as the semester approached its end. We would like to thank our faculty 1r.

Shahid 5ossain for letting us in on this opportunity, giving us support and encouragement

and helping us out whenever we needed him.

!!!!!!!!!!!!!!!!!!

Bibliogr!"#:

(. Web Sites?

http?IIwww.analytictech.com

http?IIwww.blacksacademy.co.uk

http?IIwww.srds.ndirect.co.ukIleader

http?IIwww.combank.com

http?IIwww.orgstructure.boc

&. Te0t-oo#?

@undamentals of 1anagement %ames 5 6onelly, %r, %ames $. Dibson, %ohn 1

:vancevich

-. ,nnual Report&338 of #ank of "eylon

96 Intervie":

4anzila Pubeida

#anking 4raining

4el? &8&2' e0t &8

Deorge " Domes

ssistant 1anager

4el? &8&2' e0t &-

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http://www.analytictech.com/http://www.blacksacademy.co.uk/http://www.srds.ndirect.co.uk/leaderhttp://www.orgstructure.boc/http://www.analytictech.com/http://www.blacksacademy.co.uk/http://www.srds.ndirect.co.uk/leaderhttp://www.orgstructure.boc/


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:stiaque ."howdhury

Officer "ustomer Service

4el? ((()')

Documents

Bank of Cylon Project