Principles of Management (MGT201)

Section: 6

[Instructor]

Iftekhar Mahfuz
Submitted by,
Shihab Ahamed (2030835)
Md Saminul Hoque Chowdhury (2120934)
Swakkhar Saha (2130533)
Onia Roy Joya (1930466)
Sakib Ahmed (2221771)

Submitted on, 14th August 2023

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Table of Contents:
Executive Summary: ....................................................................................................................3
Research Method: .......................................................................................................................3
Company Overview: ....................................................................................................................4
VISION STATEMENT:....................................................................................................................5
MISSION STATEMENT: .................................................................................................................5
VALUES: ......................................................................................................................................6
External Environmental Factors of BRAC Bank:............................................................................6
Specific Environmental Factors: ...............................................................................................7
General Environment Factors (PESTEL Analysis):......................................................................8
BRAC BANK’S PESTEL FRAMEWORK .........................................................................................8
BRAC Bank’s Continuous Improvement Framework – PESTEL ................................................11
SWOT ANALYSIS OF BRAC BANK LTD: ........................................................................................16
Identifying The Stakeholders: ....................................................................................................19
Business Organogram of BRAC Bank:.........................................................................................22
Organizational structure of BRAC Bank:.....................................................................................25
Leadership Style Of BRAC Bank………………………………………………………………………………………………..28
BRAC Bank's Major Milestones:……………………………………………………………………………………………….28
Conclusion:………………………………………………………………………………………………………………………………29
References:………………………………………………………………………………………………………………………………30

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Executive Summary:
The primary objective of this report is to evaluate the specific and general external factors
affecting BRAC Bank. It involves conducting a PESTEL analysis, a SWOT analysis, identifying
various stakeholders and determining critical ones, as well as studying the bank's organizational
structure and management style. As we delve deeper, we gain a comprehensive understanding
of the company's history, operations, and implementation of strategies.

The introduction delves into BRAC Bank's historical background, its guiding philosophy, vision,
mission, and core values. Subsequently, the report explores the influence of External
Environmental Factors on the bank, categorized as Specific and General Environment. In the
specific environment, the focus is on customers, suppliers, competitors, and special interest
groups. In the broader context of the general environment, the report examines the political,
economic, social, technological, environmental, and legal factors impacting BRAC Bank's
operations. Furthermore, a detailed SWOT Analysis of BRAC Bank is presented.

The report also provides an extensive analysis of stakeholders and emphasizes their significance
for the organization. The key stakeholders for BRAC Bank include Shareholders, Government,
Central Bank, Customers, and Strategic Partners. The operations of BRAC Bank are also
influenced by several other stakeholders. The report proceeds to discuss the organizational
structure, revealing that BRAC Bank employs a Mechanistic Structure, also known as an
autocratic structure. This structure emphasizes formal and centralized networks within the
organization.

Research Method:
This report has been compiled using secondary data sources. The data collection process
involved analyzing the annual reports for the years 2020 and 2021. Furthermore,
supplementary information was extracted from BRAC Bank's official website to ensure
comprehensive coverage of required data points. Proper referencing of all the gathered
information has been included in the Reference section of the report.

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Company Overview:
BRAC Bank is an overall performance-pushed agency, wherein its values are on the middle of
each interest.

BRAC Bank Limited started with the imaginative and prescient to offer banking answers to the
‘unbanked' Small and Medium Entrepreneurs. Taking thought from it determine agency BRAC,
the most important NGO within the world, BRAC Bank brought small price tag loans to the small
and medium enterprises (SME), to specially carry the grassroots marketers beneath the
umbrella of formal banking service. Close to 1/2 of the financial institution's lending portfolio is
made out of small and medium enterprises – popularly referred to as the ‘SME'.

In 2001, BRAC Bank did now no longer begin its adventure like another traditional financial
institution. The visionaries who led the financial institution found out that the formerly
unnoticed Small and Medium Enterprises (SME) region performs considerable position in
producing increase and developing employment within the country. Over the beyond few
decades, conventional banks had been reluctant to put money into this region. At a time whilst
it become nearly not possible for the SME marketers to get financing from the banking region in
Bangladesh, BRAC Bank improved and got here to finance those unbanked SME marketers.

BRAC Bank is an overall performance pushed dynamic agency, wherein its values based on the
middle of every and each interest as pillars. It is the best member of the Global Alliance for
Banking on Values (GABV) from Bangladesh. The Global Alliance incorporates sixty-six economic
establishments working in international locations throughout Asia, Africa, Australia, Latin
America, North America and Europe - serving extra than 60 million customers, keeping as much

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as USD two hundred billion of blended property beneath control and powered via way of
means of a community of 80,000.

BRAC Bank stocks the 3P Philosophy – People, Planet and Prosperity with the alternative
companions of GABV. They trust that they have got obligation toward the human paintings with
and the locations they function in. As a mission-pushed financial institution, they choose to
paintings for the welfare of our humans and society.

VISION STATEMENT:
Building a profitable and socially responsible financial institution focused on market and
business with growth potential, thereby assisting BRAC and its stakeholders to build a just,
enlightened, healthy democratic and poverty free Bangladesh.

MISSION STATEMENT:
 Sustainable growth in ‘Small & Medium Enterprise’ sector;

 Continuous low-cost deposit Growth with controlled growth in Retained Assets,

 Corporate Assets to be funded through self-liability mobilization,

 Growth in Assets through Syndications and Investment in faster-growing sectors,

 Continuous endeavor to increase fee-funded income,

 Keep our debt charges at 2% to maintain a steady profitable growth,

 Achieve efficient synergies between the bank's branches, SME unit offices and BRAC
field offices for delivery of remittance and the bank's other products and services,

 Manage various lines of business in a full controlled environment with no compromise

compliance and on service quality,

 Keep a diverse, far-flung team fully motivated and driven towards materializing the
bank's vision into reality.

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VALUES:
Their strength emanates from their owners – BRAC. This means, they will hold the following
values and will be guided by them as BRAC Bank does their jobs.

 Innovation- BRAC has been an innovator in the creation of opportunities for the poor to
lift themselves out of poverty. They value creativity in program design and strive to
display global leadership in groundbreaking development initiatives.

 Integrity- They value transparency and accountability in all their professional work, with
clear policies and procedures, while displaying the utmost level of honesty in their
financial dealings. They hold these to be the most essential elements of their work ethic.

 Inclusiveness- They are committed to engaging, supporting and recognizing the value of
all members of the society, regardless of race, religion, gender, nationality, ethnicity,
age, physical or mental ability, socioeconomic status and geography.

 Effectiveness- They value efficiency and excellence in all their work, constantly
challenging their selves to perform better, to meet and exceed program targets, and to
improve and deepen the impact of their interventions.

External Environmental Factors of BRAC Bank:

External environment means the forces and institutions outside the organization that
potentially can affect the organization’s performance. There’re basically two major components
of the external environment which are as follows:

1. Specific Environment

2. General Environment

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Firstly, we’ll discuss the specific external environmental factors which have a direct and
immediate impact on managers of BRAC Bank in terms of making decisions and taking actions
accordingly.

Specific Environmental Factors:

SPECIFIC

Customer Suppliers Competitors Special Interest Groups

Specific Environmental Identification

Components

Customers The people who’re directly or indirectly connected or involved in

transacting through BRAC Bank.

Suppliers Their suppliers are their valued partners and deemed to be an

extension of BRAC bank in terms of supplying goods, services and
resources.

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Competitors Commercial Banks:

 Govt. Bank: Rupali Bank, Sonali Bank, Pubali Bank etc.

 Private Bank: Dhaka Bank, Mutual Trust Bank, Trust Bank etc.

For Mobile Banking Sector: Nagad, Rocket, Upay etc.

Special Interest Groups Social Media, Journalists, Central Bank-Audit Committee, Anti-
corruption commission

General Environment Factors (PESTEL Analysis):

PESTEL analysis enables BRAC Bank to identify key facets across some of the major domains
that affect its business and operations - both internal and external that enable it to not only
understand its intrinsic strengths, but also its position within the competitive field.

PESTEL

Political Economical Social Technological Environmental Legal

BRAC BANK’S PESTEL FRAMEWORK :

PESTEL ANALYSIS KEY FACTORS

POLITICAL:  Proactive Govt. monetary policy, including tax policy

 Stable political environment

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  Public sector investment in mega projects

 Relatable regulatory climate

 Strong Covid relief support through stimulus funds

1. Degree of impact: High

2. BRAC Bank’s Strategy to address the Political forces: Zero

tolerance to regulatory misalignments

ECONOMICAL:  Strong economic recovery post-pandemic

 Sustained positive growth rate achieved in GDP

 Interest rate cap on both deposits and loans, making

reprising critical

 High non-performing loans in the industry

 Volatility in currency exchange rates

 Rising energy prices and supply chain disruptions

impelling inflationary pressures

1. Degree of Impact: High

2. BRAC Bank’s Strategy to address the economic forces: Strong

business analysis and monitoring system

SOCIAL:  Steady rise in per capita income

 Changing technology reshaping customer behavior

 Increased awareness around health and safety

 Advancement in key social indicators, such as literacy

 Accelerated digital adoption triggered by the pandemic

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  Rising urbanization and industrialization

 Public consciousness around ethics and integrity

1. Degree of Impact: Moderate

2. BRAC Banks’s Strategy to address the social forces: Aligning

banking with changing societal transformation

TECHNOLOGICAL:  Dependency on technological innovation

 Govt. initiatives in Digital Bangladesh, transforming the

banking

sector

 Rising customer sophistication

 Growing cyber security incidents and threats

 Growing presence of FinTech companies with digital-first

products

 Evolving regulations on digital banking

1. Degree of Impact: High

2. BRAC Bank’s Strategy to address the technological

forces: Digitalization (focus to create a sound digital
ecosystem)

ENVIRONMENTAL:  Growing focus on green banking and green workplace

 Contribution towards meeting the Sustainable Development

Goals

(SDGs)

 Greater need for institutional responsibility in society

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  Growing threats of climate-change events

 Regulations around sustainable finance

 National commitments to climate action

 Increased occurrence of natural disaster

1. Degree of Impact: High

2. BRAC Bank’s Strategy to address the environmental

forces: Sustainable core lending business, with a focus
of embedding ESG principles

LEGAL:  Highly regulated business environment

 Stringent laws regarding customer privacy and data protection

 Licenses and permits, including for product launch

 Labor laws

 Protection of intellectual property

 Defalcation instances, such as money laundering, terrorist

financing, forgery, etc.

1. Degree of Impact: High

2. BRAC Bank’s Strategy to address the Legal forces: 100%

compliance culture with zero deviations

BRAC Bank’s Continuous Improvement Framework – PESTEL:

PESTEL Impact on industry BRAC Bank’s focus areas Major
Components Outcomes

P–  Heightened  Continuous Zero

regulatory caution assessment of the
Political Tolerance to
to prevent political environment

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 potential with commensurate regulatory
undisclosed money strategic responses. misalignments.
flow into the
 Robust disclosure
economy.
standards.
 Hence, more
 Strong political risk
stringent
mitigation measures
compliance
in place, like extended
requirements may
due diligence for
be placed on the
identifying PEP’s and
banking industry
providing banking
over money
facilities to them.
laundering and
illegal transfer of  Greater focus on
money. SME’s over corporate
clients to circumvent
bigger NPL shocks.

 Conservative and
considered approach
to growth in assets
portfolio.

E-  Strong  Conservative, yet Dedicated

governmental dynamic approach of
Economical Special Asset
efforts in financial lending.
Management
market stability
 Resilient and and Recovery
and efficiency.
adaptable business teams.
 The economy has model ensures quick
witnessed a V- and secure
shaped trajectory – opportunity capture.
a solid start in the
 Strong grassroots
beginning of the
distribution network
fiscal year, followed
for facilitating deposit
by a sharp dip
mobilization.
because of the
pandemic and then  Leveraging SME

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 progressive customer base to shift
recovery. from “lender” to
“banker” position.
 Bangladesh GDP is
expected to expand  Lending expected to
by 8% in 2020 and continue to grow with
inflation rates are higher rate of interest
forecasted at ~6% for new assets
in 2021. booking to align with
cost of deposit.
 Hike in deposit
interest rate due to  Expansion of non-
liquidity crisis funded facilities will
would be a major be a good option for
upcoming reducing pressure on
challenge, thus interest income.
impacting lending
 Apart from credit
too.
restructuring
 Reprising of assets undertakings under
to match cost of the leadership of
deposit may well newly-recruited Chief
be in the offing. Risk Officer (CRO) the
bank also has a robust
risk assessment
framework.

 Robust bank-wide
efforts in Improving
NPLs.

S–  Low awareness  Contribute to lifestyle Supporting

about institutional enhancement through
Social Nation-
finance beyond the proper financial
building
peripheries of the solutions.
entrepreneurs
metro cities.
 Support job creation hip,
 Low education via lending activities. employment
standards and generation and

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 hence low  Continuing to tailor societal
awareness about products/services as development.
banking/finance. per customer
preferences.
 Yet, a study
entrepreneurial  Ensuring sensitivity to
spirit and culture cultural contexts,
with a “can do” including gender,
attitude. social conventions and
beliefs.
 Non-homogenous
income distribution  Entrepreneurial spirit
among the public of the broader society
as well as diverse will always ensure
preferences. demand for financial
products.

 Anticipate
shifts/trends and
develop business
approaches
accordingly.

T-Technological  Tech advancement  Invested substantively Automation

has made in tech over the years.
We are
customers more
 Thus, the bank has focused on
aware, which has
consistently remained enhanced
altered their
ahead of the tech automation
expectation levels.
curve, effectively and
 Growing thwarting digitalization
dependence on competition. across the
tech to meet bank.
 The Bank is in the
customer demands,
midst of upgrading
as well as threat
legacy systems to a
from fin techs and
state-of the-art core
other competitors

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 has meant that we banking system and
have continuously ERP with manual
invested in processes being
technology. automated to increase
efficiency and reduce
 Our focus on tech
TAT further.
investment has
been premised on  Enhanced focus on
increasing access digitalizing products,
and lowering costs services and
of banking for our processes.
customers.

E-  Green/susta  Stewarded by robust Expansion

inable green banking practices,
Environmental In their green
finance is BRAC Bank has a sturdy
finance book.
on the rise environmental screen
in BD, in no that helps evaluate
small way projects through the
encouraged prism of their impact on
by global the environment.
financial
 They are focused on
and
lowering their carbon
developme
footprint through
nt
optimizing water, energy
institutions.
and paper consumption,
 Changes in while also making
the concerted efforts to
environmen minimize their waste to
t will landfill.
enforce
more
stringent
regulatory
compliance
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 and
reporting.

L-  Tightening  BRAC Bank is fully GAVB

regulations will compliant with the
Legal They Are the
constitute a major statutes classified
only banking
part of the legal under the Bank
institution in
landscape in Companies Act, 1991,
the country to
Bangladesh, going as amended in 2013,
be a part of the
forward. BB circulars and
prestigious
guidelines, listing
 Further, evolving Global Alliance
regulations and
regulations are also for Banking on
securities laws of the
perceived with Values, a
country.
respect to the global platform
regulatory action Apart from the above, the that stewards
taken during bank is fully compliant with principles
COVID-19. the Companies Act, 1944; based best
Income Tax Ordinance and practices in
Rules, 1984 and Value Added banking.
Tax Act and Rules, 1991.

SWOT ANALYSIS OF BRAC BANK LTD:

SWOT analysis is an important tool for evaluating an organization’s Strengths, Weakness,
Opportunities, and Threats. It also helps organization to evaluate its performance and scan the
external and internal environment.

STRENGTHS:

 GOODWILL: BRAC Bank LTD has established a reputation for themselves in the
banking industry of the country. They build their reputation by tremendous
growth in profit and deposit.

 SPONSERS: BBL has been founded by a group of renowned entrepreneurs of the

country having adequate financial back-up. The board of directors headed by its

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 chairman Mr. F. H. Abed along with other prominent person built a strong
foundation for the bank.

 Efficient Management: the top management officials have years of banking

experience, skills, expertise they continue to contribute towards further
expansion of the bank. The top management is the driving force that have
caused the bank to grow and develop.

 Facilities and equipment: they have adequate facilities and equipment to

provide better service to customers. They have computerized online banking
operation named MBS banking, counting machine in teller counters, and
computerize statements have improved the service for the customers.

WEAKNESS:

 Lack of advertising and promotion of SME loan: this is a major setback for BBL
and one of its weakest areas. BBL’s advertising and promotional activities are
satisfactory but SME loan is not advertised so as a result many people are not
aware about the existence of this bank.

 NGO name (BRAC): BRAC is one of the largest NGO of the world and it is
operating its activities in Bangladesh. Many people of the country are not aware
that it’s not an NGO bank but a commercial bank.

 Remuneration: the remuneration package for entry level and mid- level is very
low along with their compensation package. Considering the low payment
structure, it’s difficult to attract and retain higher educated employees.

OPPORTUNITIES:

 ATM: BBL always tries to provide the best service to their customers. Alongside
providing ATM card to their customers, they also have ATM booths in different
locations around the country.

 Diversification: BBL can use diversification strategy in expanding its current

business. The management can consider starting merchant banking or diversify
in to leasing and insurance. By expanding their business portfolio, BBL can reduce
business risk.

 Product line proliferation: in this competitive environment BBL must expand its
product line to enhance its sustainable competitive advantage.

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  Available branches: with its proper and useful operation network, they can
further expand their branches in many remote and new locations of the country
which will deliver service to customer and earn a healthy profit for the bank.

THREATS:

 Competition: competition is a threat of any business. And as competition is

increasing every bank has an intention to provide better service to customers
and gain an edge over their competitors.

 Upcoming banks: upcoming private local banks can pose a threat to existing
private commercial banks like BBL. In the future when more local banks emerge
then banks like BBL will have to develop strategies to compete against the
competition.

 Multinational banks: The rapid expansions of multinational banks have imposed

a threat to new growing private banks. Existing foreign bank such as Standard
Chartered is now pursuing an aggressive branch expansion strategy. This bank is
establishing more branches countrywide, foreign banks have tremendous
financial strength, so it will pose a threat to local banks.

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Identifying The Stakeholders:
Stakeholders mean any constituencies in the organization’s environment that are affected by
an organization’s decisions and actions. It includes all the internal and external groups that can
influence the particular organization. BRAC Bank embraces a people-centric and stakeholder-
inclusive approach to create value. This means that stakeholder engagement is integrated into
every step of their value creation process. They are devoted to understanding each
stakeholder’s concerns and expectations and then applying the relevant inputs to their
decision-making to ensure sustained value creation. Based on a broad-based assessment, BRAC
Bank has identified their 11 key stakeholders as those with whom they need to collaborate
with, consult and involve.
The name of the 11 key stakeholders will be discussed below:

1. Employees

2. Investors/Debt Providers

3. Suppliers

4. Communities

5. Customers/Public

6. Government

 Anti-corruption Commission (ACC)

 National Board of Revenue

7. Central Bank

 Central Bank’s Audit Committee

 Deposit Insurance System

 Financial Intelligence Unit (FIU)

8. Strategic Partners

9. Industrial Bodies

10. Shareholders

11. Media

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Major Critical Shareholders:

Shareholders/Owners: The most significant and critical stakeholders are shareholders/

owners. As they have the authority to control the business. They have the power over its
directors and managers as well. Even they can sell the business/particular organization to
someone else.

Government: The second most important stakeholder is Government who controls financial
institutions (specially banks) operations through laws and regulations that dictate what banks
and other financial institutions (Central and Commercial Banks, Investment Banking, Credit
Union, Savings and Loan Association, Brokerage Firm) can and cannot do.

 Anti-corruption Commission (ACC): Anti-corruption Commission works as a

representative of Bangladesh Government to reduce corruption from all the
sectors including banking sectors. Anti-corruption collective action is a form of
collective action with the aim of combatting corruption and bribery risks in
public procurement. It is a collaborative anti-corruption activity that brings
together representatives of the private sector, public sector and civil society

 National Board of Revenue (NBR): NBR acts as the central authority for the tax
administration in Bangladesh. This organization is under the internal resource
division of Ministry of Finance and responsible for implementing tax policies and
tax laws in Bangladesh. The main responsibility of NBR is to collect tax
revenues (primarily, Value Added Tax, Customs Duty, Excise Duty, and Income
Tax). It works with three tax-type wings namely, Customs Wing, VAT Wing, and
Income Tax Wing. There are two more wings named IT wing and Research &
Statistics wing under NBR.

Central Bank: Central Bank is considered as the “Banker’s Bank”. It also acts as the “lender of
last resort” which means Central Bank (Bangladesh Bank) is responsible for providing its
nation’s economy with funds when commercial banks cannot cover a supply shortage. Basically,
all commercial banks are under the command of central bank and they must abide by the
Bangladesh Bank’s compliances. A key role of central bank is to conduct monetary policy to
achieve price stability (low and stable inflation) and to help manage economic fluctuations. The
policy frameworks within which central banks operate have been subject to major changes over
recent decades.

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  Central Banks Audit Committee: The primary purpose of a company's audit
committee is to provide oversight of the financial reporting process, the audit
process, the company's system of internal controls and compliance with laws
and regulations.

 Deposit Insurance System (DIS): Deposit Insurance Systems (DIS) is the key
element in maintaining confidence and promoting financial stability through
increasing saving in the banking sectors. Deposit Insurance Systems is a measure
to protect bank depositors, in full or in part, from losses caused by a bank's
inability to pay its debts when owing.

 Financial Intelligence Unit (FIU): The core function of an FIU is the receipt,
analysis and transmitting of reports of suspicions identified and filed by the
private sector. The FIUs therefore function as an intermediary between the
private entities, subject to AML/CFT obligations, and law enforcement agencies.

Customers: The fourth important stakeholder is customers. A satisfied customer is like a living
billboard of the bank that is going to places and highlighting the bank's brand image through
words of mouth (WoM). Likewise, an unhappy customer does the opposite.

Strategic Partners: Lastly, the Strategic Partnership allows consumers and businesses to rely
on the protections of banks, while enjoying access to new non-bank technology and services,
getting the best of both worlds.

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 Business Organogram of BRAC Bank:

BOARD OF DIRECTORS

DR AHSAN-H-MANSUR
CHAIRMAN

ASIF SALEH MEHERIAR M HASAN SHAMERAN ABED

NOMINATED DIRECTOR NOMINATED DIRECTOR NOMINATED DIRECTOR

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 FAHIMA CHOUDHURY FARZANA AHMED DR ZAHID HUSSAIN
INDEPENDENT DIRECTOR INDEPENDENT DIRECTOR INDEPENDENT DIRECTOR

DR MUSTRAFA K MUJERI FARUQ MAYEENUDDIN AHMED SALEK AHMED ABUL MASRUR

INDEPENDENT DIRECTOR INDEPENDENT DIRECTOR INDEPENDENT DIRECTOR

SALIM R F. HUSSAIN
MANAGING DIRECTOR & CEO
MANAGEMENT COMMITTEE

SELIM R F HUSSAIN
MANAGING DIRECTOR & CEO

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MD SABBIR HUSSAIN MOHAMMAD MASUD TAREQ RIFAT ULLAH KHAN CHOWDHURY MOINUL
DMD & COO RANA FCA DMD & HEAD OF ISLAM
DMD & COO CORPORATE BANKING DMD & CMLCO

SYED ABDUL MOMEN MD SHAHEEN IQBAL BRIG. GEN TUSHAR M SARWAR AHMED
DMD & HEAD OF SME DMD & HEAD OF KANTI CHAKMA HEAD OF INTERNAL
TREASURY AND HEAD OF GENERAL CONTROL AND
FINANCIAL INSTITUTIONS SERVICE COMPLIANCE

NAZMUR RAHIM AHMED RASHID JOY MD MAHIUL ISLAM MONIRUZZAMAN MOLLA

HEAD OF ALTERNET HEAD OF CREDIT RISK HEAD OF RETAIL HEAD OF OPERATIONS
BANKING MANAGEMENT BANKING

AKHTARUDDIN EKRAM KABIR SHEIKH BARRISTER NURUN NAHAR

MAHMOOD HEAD OFF MOHAMMAD RASHED AHMED BEGUM CHIEF
HEAD OF HR COMMUNICATION ASHFAQUE HEAD OF LEGAL & TECHNOLOGY
HEAD OF RECOVERY OFFICER
BRANCHES

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Organizational structure of BRAC Bank:
 After studying the organogram of the organization, it can be concluded that it has a
mechanistic structure with a tall span of control.

 A mechanistic structure is an organizational design that is rigid and tightly controlled.

 BRAC bank's corporate organogram has a continuous line of authority that extends
from upper levels to the lowest levels of the organization clarifying who reports to
whom with a clear chain of command.

 There is more centralization in the organization and a narrow span of control.

 The work flow of BRAC Bank is highly specialized and formalized, the jobs within the
organization are standard and guided by rules and proper procedures as seen in the
diagram below.

 Each department has a head and a rigid departmentalization, an example of it can be

seen in the figure below in which the network organogram is geographically
departmentalized.

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Distribution Network Organogram:

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Work Flow of BRAC Bank:
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Leadership Style of BRAC BANK:
BRAC Bank's adoption of a mechanistic structure underscores their preference for an
autocratic leadership style. This approach bestows the leader with complete decision-
making authority and complete command over subordinates, indicating a centralized
governance. The senior management ensures a structured hierarchy with each individual
under the direct supervision of a superior. This framework enables swift planning,
evaluation, and rectification of team actions, a pivotal attribute for a financial institution
like a bank where efficiency in time, execution, and work quality holds paramount
importance. The autocratic leadership can be regarded as a potent asset for BRAC Bank,
effectively contributing to their adept pursuit of organizational objectives.

BRAC Bank’s Major Milestones :

Over the past 3-5 years, the bank has achieved several significant milestones that have helped
to solidify its position as one of the leading financial institutions in the country. In this report,
we will examine some of these milestones and identify the corporate-level strategy/strategies
that BRAC Bank has been pursuing during this time.

1. 1 Expansion of Branch Network: BRAC Bank has been expanding its branch network
aggressively over the past few years. In 2018, the bank had 189 branches across the
country, and by the end of 2021, it had expanded its branch network to 235. This
expansion has allowed the bank to reach more customers in different parts of the
country and increase its market share.
2. 2 Digitalization: BRAC Bank has been focusing on digitalization to enhance its customer
experience and increase operational efficiency. The bank has introduced several digital
products and services, including online banking, mobile banking, and internet payment
gateway. Additionally, the bank has launched a digital platform called bKash, which
allows customers to perform financial transactions using their mobile phones. These
digital initiatives have helped BRAC Bank to attract tech-savvy customers and stay ahead
of its competitors.
3. 3 Diversification: BRAC Bank has been diversifying its business portfolio by expanding its
product and service offerings. The bank has introduced several new products, including
SME banking, agribusiness banking, and Islamic banking, to cater to the needs of
different customer segments. This diversification has helped the bank to mitigate risks
and generate more revenue streams.
4. Corporate Social Responsibility (CSR): BRAC Bank has been actively engaging in CSR
activities to support sustainable development and contribute to society. The bank has
been involved in various initiatives, including education, health, and environmental
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 sustainability. These CSR activities have helped the bank to enhance its brand image and
strengthen its relationship with stakeholders.

Overall, it is evident that BRAC Bank has been pursuing a growth-oriented corporate-level
strategy over the past 3-5 years. The bank has been expanding its branch network, diversifying
its business portfolio, and embracing digitalization to enhance its customer experience and
increase operational efficiency. Additionally, the bank has been engaging in CSR activities to
contribute to society and strengthen its relationship with stakeholders.

Conclusion:
Presently, we have gained insights into both general and specific factors that wield influence
over BRAC Bank's performance and operational landscape. These encompass political,
economic, social, environmental, technological, and legal dimensions, as well as considerations
related to customers, suppliers, competitors, and special interest groups. A concise overview
also sheds light on the pivotal stakeholders for BRAC Bank – its shareholders, government
entities, the central bank, customers, and strategic partners. The bank's notable dedication to
meeting stakeholder needs and aspirations is evident.

BRAC Bank Ltd. adheres to an autocratic leadership style, granting leaders complete decision-
making authority and centralized control over their subordinates. Additionally, a narrow span of
control is observed. The overarching priority remains the optimization of customer satisfaction
and the efficacy of the employee team's performance. This approach has enabled the
successful management of around 7,740 employees within the organization.

Upon comprehensive evaluation, our assessment concludes that BRAC Bank Ltd. is poised to
sustain its trajectory of elevated accomplishments in the forthcoming years.

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References:

1. (2022). Retrieved 2 August 2022, from

https://www.bracbank.com/financialstatement/BRAC_AR_2020.pdf:

2. (2022). Retrieved 2 August 2022, from

https://www.bracbank.com/financialstatement/BRAC_AR_2020.pdf

3. BRAC Bank. (2022). Retrieved 2 August 2022, from

https://www.bracbank.com/en/about-us/

4. Performance Analysis of BRAC Bank Limited. (2022). Retrieved 2 August 2022, from
https://assignmentpoint.com/performance-analysis-of-brac-bank-limited/

5. BRAC Bank. (2021). Annual Report 2020. Retrieved from

https://www.bracbank.com/investors/reports/annual-reports/2020

6. BRAC Bank. (2021). Our History. Retrieved from https://www.bracbank.com/about-

us/our-history

7. BRAC Bank. (2021). CSR Activities. Retrieved from https://www.bracbank.com/about-

us/csr-activities

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