1.

Introduction

I select financial institution. ACSI was licensed as a micro finance share company in April 1997
with the primary mission of improving the economic situation of low income productive poor
people in the Amhara region through increased access to lending and savings services.
Organization for the Rehabilitation and Development in Amhara is still involved in relief
activities as well as development projects such as conservation, forestry and small-scale
irrigation in the Amhara region. The other shareholders of ACSI are the Amhara State
Government (25 percent), Amhara Development Association (ADA) 20 percent, Amhara
Women’s Association (AWA) 10 percent and Endeavour 10 percent.

At present ACSI offers three types of credit products (installment, term and asset loans), savings
accounts (both pass book and term/time deposits), money transfers (limited to institutions at
present) and pension fund payments on behalf of the government. ACSI also is developing a
micro insurance product that should be launched by the end of 2005.

ACSI’s operations currently cover most of Amhara State, reported as over 65 percent of the rural
villages. Through its 10 branches and 174 sub-branch field offices it has reached all districts in
the State and operates in over 2221 of the 3240 kebeles (almost 70 percent if the total). By June
2005, ACSI had an outreach of over 394,000 active credit clients with a loan portfolio of
US$44.5 million. In addition, ACSI had over 600,000 savings clients, with total savings of
US$21.1 million mobilized. I classification of factors from excellent (Exc) to poor should be
determined to compare financial institution.

Competitors

establsh

A bank is a financial institution that provides banking and other financial services to their
customers. “A banking company which receives deposits through current account or any other
forms and allows withdrawal through cheques or promissory notes.”
 The following functions of the bank explain the need of the bank and its importance: To provide
the security to the savings of customers, To control the supply of money and credit, To
encourage public confidence in the working of the financial system, increase savings speedily
and efficiently, To avoid focus of financial powers in the hands of a few individuals and
institutions, and To set equal norms and conditions (i.e. rate of interest, period of lending etc) to
all types of customers

N Significant buying factors may company Competitors

o ACSI Awashe bank CBE Dashen bank
1 service quality Good Exc Very Good Exc
2 Market share Exc Very Good Exc Fair
3 Cash flows Exc Very Good Exc Fair
4 Advertising/ promotion Fair Good Exc Fair
5 Geographical coverage Good Fair Exc Fair
6 levels of brand loyalty Exc Good Exc Good
7 Return on investment Good Good Good Good
8 Organizational culture Fair Good Fair Good
9 Levels of capacity utilization Exc Good Fair Good
10 distribution channels Good Very Good Fair Fair

According to criteria ACSI takes relative has high competitive advantage on Market share, Cash
flows, levels of brand loyalty and Levels of capacity utilization but other criteria moderate
competitive advantage on service quality, Return on investment, distribution channels and
Geographical coverage based on the competitors, low competitive advantage on Organizational
culture and Advertising/ promotion, ACSI to see competitors strategy moves at least moderate
competitive advantage of competitor

ACSI will strictly pursue a strategy that will ensure provision of financial services that are
valuable to clients while maintaining institutional sustainability. This would be made possible
through diversification. Product Diversification ACSI is providing both credit and saving
services, and may be able to provide insurance services in a not-too-distant future. Client
Diversification Pursuant to the National Bank directives, ACSI will reach out to a broader
clientele of "the working poor", both self-employed and employed. Credit with Education the
delivery of credit and saving services alone cannot be sure way out of poverty for the majority
poor. To develop Advertising /promotion/ strategy and give incentive for customers.