STUDENT NAME: HILDA KATUNGU NGUSYA

ADMISSION NUMBER: BCOMMNRB599121

BMA 415: CONTEMPORARY ISSUES IN MANAGEMENT

GROUP D

Discuss how monitoring and evaluation of strategic management process would have
prevented collapse of three banks namely Chase Bank, Dubai Bank and Imperial Bank

Definitions

Monitoring is a periodically recurring task already beginning in the planning stage of a

project or programme. Monitoring allows results, processes and experiences to be
documented and used as a basis to steer decision making and learning processes. Monitoring
is checking progress against plans.

Evaluation is assessing, as systematically and objectively as possible, a completed project or

programme or a phase of an ongoing project or programme that has been completed.
Evaluations appraise data and information that inform strategic decisions, thus improving the
project or programme in the future. Evaluations should help to draw conclusions about five
main aspects of the intervention: Namely relevance, effectiveness, efficiency, impact and
sustainability.

Monitoring and evaluation (M&E) is an embedded concept and constitutive part of every
project or programme design. Monitoring and Evaluation is not an imposed control
instrument by the donor or an optional accessory of any project or programme. In general,
monitoring is integral to evaluation. During an evaluation, information from previous
monitoring processes is used to understand the ways in which the project or programme
developed and stimulated change.

Strategic management is the process of setting goals, procedures, and objectives in order to
make a company or organization more competitive. Typically, strategic management looks at
effectively deploying staff and resources to achieve these goals.
The following are the indicators that could prevented collapse of three banks namely
Chase Bank, Dubai Bank and Imperial Bank to measure their exposure.

i. Portfolio at risk- Portfolio at risk (PAR) is the type of ratio that usually is used in
microfinance institutions or banks to measure the quality of loans and the risk that
they currently have. Portfolio at risk (PAR) is important when Bank need to analyze
or measure the risk in percentage that loans may go default if properly breakdown the
loans and group them in similar risk categories. Portfolio at risk is usually calculated
by using the amount of loan outstanding that is overdue comparing to total loan. The
term risk in this ratio refers to the risk that the loan’s clients may not pay or not be
able to pay back the loans that we provided them. Performance monitoring is a risk
manager's primary tool for understanding the quality of the risk profile of a portfolio
and must be viewed as a dynamic process as economic and market conditions and
obligor risk profiles change over time. Such a process must be tailored to the specific
features of the portfolio and so requires a high degree of customization. For example,
designing an asset-liability management (ALM) monitoring framework might entail
development of interest rate shock scenarios against which the portfolio would be
measured in terms of market value changes, and include a value-at-risk (VaR)
analysis of individual asset types such as equities, foreign exchange exposures and
fixed income positions.

In general, the banks can estimate how much in percentage the loan will default when
they have sufficient information to calculate portfolio at risk in detail, e.g., by
breaking down loans into the small segments. Hence, the Portfolio at Risk (PAR) ratio
can help to make the decision on future loan disbursement, especially decisions on
pricing to reflex the risk that the future loan disbursement may expose to.

ii. Market share -In business, market share measures the amount of the market
controlled by a single Bank. It indicates how a company is doing within a given
industry. For most Banks, increasing market share is a strategic goal. Not only does
high market share mean that a company is doing more business, but it also influences
the way Customers perceive that the bank. Banks normally view market share
increases and decreases carefully because they signify relative competitiveness. A
declining market share is often viewed as undesirable from an investment standpoint,
whereas market share growth indicates a company's overall strength. Market share
 offers insight on how to identify and outperform specific competitors. Also, it is
helpful to calculate relative market share on an ongoing basis to see whether the
convention center is enhancing its position within the industry or increasingly falling

behind the competition. Yet, despite its importance, many Banks ignore market share
and instead focus on internal metrics such as satisfaction, awareness, loyalty, leads,
revenue growth etc.

iii. Loan book-

iv. Customer deposits- Although banks do many things, their primary role is to take in
deposits from those with money, pool them, and lend them to those who need funds.
Banks are intermediaries between depositors (who lend money to the bank) and
borrowers (to whom the bank lends money)

v. Dormant Accounts

vi.

vii. Bank Performance Matrix-Performance matrix track and assess specific processes
within a bank, such as, marketing and profitability. This allows for comparing data
against established objectives and goals. The resulting data from tracking
performance metrics helps bank determine where to make adjustments to reach set
goals. Three important metrics to track within the overall growth of a business
include: Return in investments (ROI) indicators: ROI indicators are important
metrics to track because this data can determine whether an investment will result in a
return (profit) or not. Tracking ROI can help businesses decide which investments are
worth pursuing and which are not. For example, an investment that guarantees a
return rate of 20% offers a greater ROI compared to one that can only ensure a return
of 10%. Profitability is an essential performance metric that tracks a Banks profit
margin and compares that data to target goals. This can help determine if any
adjustments are necessary to reach those goals. For instance, a business can use
profitability metrics to track its average profit margin compared to its goal profit
margin. The company can use this data to change sales methods used to generate
profit.
viii. Level of Competition
Expected

(i) The paper should be 10 pages (excluding preliminary and references); Use Times
New Roman, font 12, 1.5 spacing and justified.
(ii) Use APA 6thedit (2010) style of referencing
(iii) Your reference list MUST have at least two relevant journal articles from each
of the following sources: Emerald, EBSCO, JSTOR, Willeys and one other journal of
your choice.
(iv)Also the reference list MUST have at least three relevant books two of which must be
available in soft from SPU library.
(v) None participant’s members shouldn’t be included in the group list that will be
forwarded for marking.
(vi)Plagiarism shall be checked with acceptable level of similarity not exceeding 15%.
Intentional Plagiarism will carry zero marks while non intentional will be awarded
50% of the GROUP scores.