Proposal for the Internship Report

Submitted By:
Mohammad Rokunuzzaman ID=3-07-11-039 11th Batch Department of Management Studies University of Dhaka.

Submitted To:
Dr. Shahid U. Ahmed Professor

Department of Management Studies University of Dhaka

Topics
How the business level strategy pursued by Agrani bank is working over banks human resources, products and services and helping the Bank to achieve organizational objectives.

Statement of the problem

Agrani Bank is a nationalized commercial Bank established by the Bangladesh Banks(Nationalizatiom) order 1972 ( taking over the entire assets and liabilities of the left over parts of Habib Bank Ltd.) and is fully owned by the government of the peoples Republic of Bangladesh. The Bank had 866 branches as on 31 December 2006(no overseas branch). The Bank also has two wholly owned subsidiary Companies named Agrani Exchange House (Pvt) Ltd. in Singapore and Agrani Remittance House SDN, BHD, Malaysia. The business level strategy followed by this bank is cost leadership strategy. The market of this bank is broad i.e. hole Bangladesh is their market and almost every type of people is their customer. Bank is now giving advances to their customers on big amount as well as very little amount. They are giving agricultural and rural advances which are started from 5000 tk. to more. In 2006, the bank implemented 54 programmes among 3097759 borrowers, totally tk. 25.21 billion and the range of those loans was 5000 tk to 50000 tk. beside small sized loan bank is pursuing Industrial loans, syndicated loan with other banks which are very huge in volume. And the customers of those loans are big businessmen. So as there is no special emphasis on any particular segment of market we can easily recognize that the bank is pursuing cost leadership strategy. In addition to this we can say as there are very little differences between the four nationalized banks in Bangladesh so we can say from the point of view of uniqueness the bank is not unique from others, so they are not performing differentiation strategy.

Performance traits or impact of business level strategy -Agrani Bank has been playing a crucial role in supporting rapid industrialization in our country. The amount of loans and advances of the bank as at the close of 2006 was tk. 105.87 billion with the growth rate of 6.50%. -Agrani bank is one of the biggest banks in our country having 866 branches. They are accessible for most of the people of our country from almost all part of our country. So the remittance business of the bank is very profitable. Because people can send money from abroad and feel the person who are going to take his money will feel ease to receive it from his nearest place. In 2006, the foreign exchange remittances from Bangladeshi nationals working abroad increased significantly by tk.4.73 billion to tk. 39.30 billion from tk. 34.57 billion in 2005. That increase was 14 % higher than the previous year. -For the business level strategy followed by the bank, they are also able to acquire highest profit from the option of Treasury. They were the market leader in both the inter-bank money market and foreign exchange market.

Rationale of the study

Agrani Bank is one of the biggest Banks in our country. Thats mean, one of the biggest corporation of our country. Moreover this the typical type of organization we have had in our economy. We all know strategy is the core issue to run business and to sustain in this current competitive business. And the industry like banking sector is the battle ground of all industry. So it will be very reasonable to study the business level strategy adopted by the Agrani Bank Ltd in different point of view like what strategy they have adopted regarding human resources, their products, their customers etc and how these strategies helping them to achieve the organizational goals.

Objectives of the report

Primary objective- Primary objective is to learn the real world experience because I have gathered theoretical knowledge for two years during MBA course. Now I shall try to match real world experience with the theoretical knowledge.

Secondary objective

To study Strategy Trend of a big typical Bangladeshi organization like Agrani Bank Ltd. To study how they implementing this strategies on various core sectors like HRM, their products and services and customers. How their adopted strategy effecting the organizational goals. To suggest some policy to over come problems.

Scope of the Report

Agrani Bank Limited is one of the biggest banks in Bangladesh. The report will cover the organizational structure; background, functions and the performance of the bank. There will be broad discussion over the banks strategy formulation trends regarding their internal and external environments.

Limitation of the Report/Study

Time is the first limitation as the duration of the program is three months only. Data unavailability is may be another constraint. Another limitation of this report is Banks policy of not disclosing some data. And information for obvious reason, which could be very useful.

Research type
The scope of this study does not require any serious research, such as, an empirical research will demand. It will be an exploratory work. An ongoing system will be explored, researched and analyzed. Research work in this study involves a closer study of strategy adopted by Agrani Bank and result of it.

Methodology of the Study

The methodology of the report is given below Observing the operations and work with the officers at the same time. I shall take some interview of Banks officials for getting more information. For the analysis part, data will be collected from different statements and the annual report of the bank.

Sources of Information
Questionnaire as primary source and interview session as the secondary process

Visionary Recommendations
-The bank should invest more to coup up with the current technological changes and adopt online banking in a vast way. -The salary structure should be rational with other banks. -More training is needed to make current employees as customer friendly. -Top management should be free to formulate banks own strategy. -Some uniqueness should be assessed by strategy formulators and special emphasis is needed to highlight people on that uniqueness. i.e.; integrated low cost differentiation strategy should be implemented.

Concluding remarks
We know Agrani Bank is a government sector bank although the process of privatizing it has been initiated. I think the objective of it is not only to earn profit but also to keep the social commitment and to ensure its co-operation to the person of all level of the country. To do so they used cost leadership strategy for many days. But now the banking sector industry in such a position that if some uniqueness is not shown to customer then other bank will outclass the existence of the bank. So it will be a nice idea to study this banks strategy trend in present time and how they should operate in future.