#Strategy Analysis of Bank of Ceylon, Sri Lanka. #I have done this for Business Strategy Subject #by : Zeinul Haleem

2. Strategic Analysis of BOC
Table Contents
•
•
•
•
•
Introduction
Internal Analysis
External Analysis
Stake Holders
Conclusion

3. History of BOC
•
Bank of Ceylon (BOC) was ceremoniously opened by Sir Andrew
Caldecott, then Governor of Ceylon, on the 1st August 1939 at the
City office premises located in Fort Colombo.
•
BOC's first branch in 1941 at Kandy and subsequently in
outstation towns, such as Galle, Jaffna and Trincomalee.
•
Bank of Ceylon opened its first overseas branch in 1949 in London.
•
The Bank was nationalized in 1961 to facilitate the national
development efforts.
•
The first Foreign Currency Banking Unit (FCBU) in Sri Lanka was
set up by the Bank in 1979
•
The first Merchant Bank in Sri Lanka was set up by Bank of
Ceylon in 1982. (The Merchant Bank of Sri Lanka Limited, )

4. •
Bank of Ceylon introduced Ceybank Visa Credit Cards in 1989 for
the first time in Sri Lanka
•
Bank always make adjustments to innovative focus, service
differentiation, diversification, cross- selling ability, governance and
risk control. Further to take off with the country in its development
process, Bank has launched products/units such as an Islamic
Banking Unit, which operates through Island wide network and
Investment Banking Unit aiming to diversify its portfolio in non-core
banking.
•
The bank has a network of 606+ branches, 200+ extension centers,
and 484+ ATMs. It also has an around the clock call center at 0094
11 2204444 and an around the clock branch at its Colombo Office.
•
Addition to the local presence, the bank maintains an Off-shore
Banking Unit in the head office in Colombo, and three branches in
London, Malé, & Chennai.

5. Resources of BOC
Tangible
Intangible
Buildings
Machines (ATM, Etc)
Vehicles
Furniture and fittings
Land
Office Equipment's
Finance Assets
Cash, accounts ,stocks and bonds
Knowledge
Skills, Service
Intellectual Properties
Trade marks, Patens, copyrights Trade
Secrets

6. Core Competency
Bank
Profit
Income
Deposit Advance
BOC
9.7
93.4
801
697
People’s
6.4
88.1
758
675
Com.
10.4
53
435
400
HNB
7.4
45
364
335
Sampath
3.4
35
276
258
Seylan
2.2
20
159
130

8. No. of Employee
SEY
SAM
HNB
COM
PB
BOC
0
2,000
4,000
6,000
8,000
10,000

9. External Factors
PEST analysis
P
Government is responsible for protecting the public interest.
Political stability affects business decision.
Consumer protection.
Regulations of business activities.
E
Competitor activity.
Competition for resources.
Savings.
Unemployment numbers
S
Work life balance.
Trends in consumer behaviors.
Leisure & Lifestyle.
T
Technological arrange is speeding up.
Technology develops now products (internet).
Improved communication.
Internet business.

10. POLITICAL ANALYSIS
•
•
BOC banking has been sheltered by the regulations and policies made by different governments in the countries
where they are working. The company has been able to remain to the policies agreed by each government to
make sure that the company will be able to accomplish business operation successfully and effectively.
BOC Company also formulates their own defence strategies besides any governmental restrictions and
limitations.
ECONOMIC ANALYSIS
•
Being one of the world’s leading and completive businesses in conditions of banking and finance BOC said to
have a secure and successful economic strength. In spite of lots of dangers that they meet in many parts of the
world, the management of BOC make what they need to be able to go beyond such struggles and to have a
better economic condition and create a shield against unemployment.
SOCIAL ANALYSIS
•
BOC is being affected by the circumstances of the society in which they are in use. By the side of this BOC tries
harder to make sure that each society is given the same chances to take the benefit of the resources given by the
organization. The company adhere to having good name and relations in the society that belong to secure that
everything will be customary and under control.
TECHNOLOGICAL ANALYSIS
•
•
The urgent situation of information technology, internet and generally the improvement of technology effects how
BOC has been working in the past years. The company search for different systems and used internet to get to
their costumer all over the world and also help them know the latest trends in the global business. Except from
these, the company also uses special facilities which help then to advance their productions and operations and
also make them to achieve their goal. Technological breakthroughs can create new industries which might prove
a danger to presented organizations.
To summarise PEST analysis looks at the business strategies to understand the environment that the company is
working and also to take the advantages and benefits to minimize the threats and the dangers for the business.

11. Porter's Five Force Factors

12. New Entrance For Industry
Threat
LOW
Profit
HIGH
Nearly Impossible for new bank to enter the industy
and offering the TRUST and the FULL RANGE OF
SERVICES.

13. Power of Buyers
POWER
HIGH
Profit
LOW
Customer Expecting High Quality Services
Customer expecting more profits for their investments.
Taxation

14. Power of Suppliers
POWER
HIGH
Profit
LOW
Customer Deposits
Mortage & Loans
Loan from other institutions

15. Availability of Substitutes
Threat
LOW
Profit
HIGH
There is no high level threaten from substitute for Banking industries in
srilanka.
But in future situations will change..
Real Estate, Investments Plan, Stock Market and Companies introducing
new easy scheme loans for their customers.
Growing local money inflation.

16. Rivalry Amount Competitors
Competition
HIGH
Profit
Average
In banking industry competition is very high. There are Nearly 30+
Local and Foreign banks available here. But BOC is unique its won
customers heart and trust by standig nearly 60 years with local
customers.

17. • According to porter’s 5 forces factor, BOC
profitability and stability is high.

18. Strategic Group Mapping
High
People’s
Bank
Branches
BOC
Low
HNB
COM
Sam.
Sey
Deposits
High

19. Stakeholders
“Stakeholders are groups or individuals who can affect or be affected
by the achievements of a business.”

20. Stakeholders Mapping
High
Central Bank
Government
Management Board
Stake & Share Holders
Employees
Power
Policy Markers
Local Administrators
Former Clients
Auditors / Analyzer
Students
Low
Trainees
Low Level Staff
Charity Foundations
Competitors
Interest
High

21. Value Chain
Primary Value Chain Activities
Inbound
Logistics
Operations
Outbound
Logistics
Marketing
& Sales
Service

22. Inbound Logistics include the receiving, warehousing,
and inventory control of input materials.
Ex : Cash, Stationaries , Computers , Vaults (safe
lockers)
Operations are the value-creating activities that transform
the inputs into the final product.
(Loans , Savings , Treasury Bills and bonds , Deposits
, Lease , Trade )
Outbound Logistics are the activities required to get the
finished product to the customer, including warehousing,
order fulfillment, etc.
(Atm’s , Branches , Web sites etc…

23. • Marketing & Sales are those activities associated with
getting buyers to purchase the product, including
channel selection, advertising, pricing, etc.
• (Advertising , special promotions , direct sales ,
Sponsorships ,
• Service activities are those that maintain and enhance
the product's value including customer support, repair
services, etc.
CSR

24. Support Activities
Human Resource Management –
the activities associated with recruiting, development,
and compensation of employees.
Firm Infrastructure –
includes activities such as finance, legal, quality
management, etc.

25. Support Activities
Procurement - the function of purchasing the raw
materials and other inputs used in the value-creating
activities.
Technology Development - includes research and
development, process automation, and other technology
development used to support the value-chain activities.

26. Conclusion
According my Strategic analysis Bank of Ceylon’s
process is stable and high profitable. They have
average threat from competitors, but BOC’s brand
image and trust is giving advantage for them in
competition.
If BOC can more familiarized with new technology
they can easily win future challenges