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Jamuna Bank Limited Strategic Management

Jamuna Bank Limited Strategic Management

2.1 Introduction

Jamuna Bank Limited (JBL) is a private commercial bank of Bangladesh registered under the Companies Act, 1994 with its Head Office at Chini Shilpa Bhaban, 3, Dilkusha C/A, Dhaka. The Bank started its operation from 3rd June 2001 by a group of successful local entrepreneurs conceiving an idea of creating a model banking institution with different outlook to offer the valued customers, a comprehensive range of financial services and innovative products for sustainable mutual growth and prosperity. The Bank undertakes all types of banking transactions to support the development of trade and commerce of the country. JBL’s services are also available for the entrepreneurs to set up new ventures.

The Bank is being managed and operated by a group of highly educated and professional team with diversified experience in finance and banking. The Management of the bank constantly focuses on understanding and anticipating customers' needs.


Ø Customer Focus

Ø Integrity

Ø Quality

Ø Teamwork

Ø Respect for the individual

Ø Harmony

Ø Fairness

Ø Courtesy

Ø Commitment

Ø Respectable Citizenship

Ø Business Ethics

Ø Unique Culture


To become a leading banking institution & to play vital role in the development of the country & service so that sustainable growths, reasonable return & contribution to the development of the country can be ensured with a motivated & professional work force.


The Bank is committed to satisfy diverse needs of its customers through an array of products at a competitive price by using appropriate technology and providing timely service so that a sustainable growth, reasonable return and contribution to the development of the country can be ensured with a motivated and professional workforce.


External Environment There are some important segments which is called as four segment analysis of External Environment. They are as follows: as follows:

1. Political Aspects Jamuna Banking has been protected by the regulations and policies formulated by government in the country. The company has been able to adhere to the policies given by government to make sure that the company will be able to conduct business operations successfully and effectively. Furthermore, the company also formulates their own protection strategies against any governmental restrictions and limitations.

2. Economic Aspect Being the one of the largest and competitive industry in terms of banking and finance, Jamuna Bank Ltd., is said to have a stable and successful economic stability. In spite of many dangers that they encounter in different parts of the world, the management of Jamuna Bank Ltd. sees to it that they would be able to surpass such struggles and strives to have a better economic condition.

3. Social Aspect Jamuna Bank Ltd. is being affected by the situation of the society in which they are operating. Along with this, JAMUNA BANK LTD. tries harder to make sure that each society is given equal chances to take advantage of the resources given by the organization. The company adheres to having good reputation and relations in the society that they belong.

4. Technological Aspect The emergence of information technology and internet affects how JAMUNA BANK LTD. has been operating in the past years. The company adopts different IT/IS systems and used internet to reach their customer all over the world and to know the latest trends in the global business.

4.2 Porters Five Forces Model:

1. Bargaining power of Customer:

i. Buyer information availability (HIGH): When Internet becomes changing people’s life, customer can easily obtain information through Internet, they can easily compare the price and service.

ii. Buyer price sensitivity (HIGH): Interest Rate and service charge is sensitive indicator for customer in bank industry, customer may due to those indicators to draw out all or a lot amount of capital from bank to bank/ other financial institution. The switching cost of this action is low.

iii. Availability of existing substitutes products (HIGH): Many substitute product or service present in recent year, such as currency exchange, insurance and loan. They mainly provided by other financial institution.

2. Bargaining power of Supplier (Low):

i. Bank capital supplier (Low): Depositor also is capital supplier of bank, they will compare with other financial product to see whether draw out capital or not.

ii. Credit Card supplier (Medium): Credit Card industry is a high concentration ratio industry, VISA, Master Card and American Express is the most popular credit card. Although other organizations also release credit card system, their market share is much less than these three organizations. Moreover, these three organizations brand name is louder than other organizations, so the switching cost from these organizations to others may be too large.

3. Threats of new entrants (High): When many countries and cities join WTO and the Internet effect, the barrier of bank become disappear. Many financial even non-financial organizations can easily entry to bank industry. They can use more little money to build a website; they can also integrate with other organizations. The switching cost of this behavior become smaller than before and the advantage is larger than before also.

4. Threats of substitute product: Real-time money transfer (i.e. Western Union), real-time payment (i.e. Paypal), currency exchange ( and insurance, they through Internet to provide a high quality but low service charge service. Customer will due to convenience, low cost and high efficiency to change the service to other organization.

5. The intensity of competitive rivalry: There are many banks in the country. Due to technology becomes improve; financial control become release and the change of environment in the society, competition between banks become violent and the maturity of financial market in the country is very high, so the competitiveness force bank to find other profit continuously.

4.3 Internal Environment: Internal Environment is the environment inside the industry. This can be controlled. There are two segments of internal environment. They are:

Ø Industry environment: A group of organizations producing products, or services which are close substitutes.

Ø Competitor environment: A group of organizations collecting information about the competitor’s strength, intelligence, capabilities, weakness etc.

4.4 Competitive advantage of JAMUNA BANK LTD. Jamuna Bank ltd. follows some strategies for creating a competitive advantage. Likewise-

i. Differentiation and sustaining the brand image: Jamuna Bank Ltd. has already created a brand image in the customers mind and that makes them different among others. It is a renowned bank in Bangladesh. So customers have a trust on this name and they feel secure to bank with Jamuna Bank Ltd.

ii. Quality leadership: JBL has an approach that focuses on providing the high quality service to all of their customers. So even they have specific number of branches compare to the main competitors, but they believe to ensure the quality services over there; rather than going with lots of branches.

iii. In terms of expansion of branches and area coverage Jamuna Bank Ltd. Is one of the bank in terms of area coverage, with the largest network of branches and customer base in the country. JBL plays in the market with a many numbers of branches therefore the brand value and service quality of JBL allow JBL to run flourishing business so far.

iv. In terms of products and services JBL net is one of the unique features of JBL where customers can get real- time account information by using it anytime and anywhere.

5. Long-Term Objectives

Be one of the best banks of Bangladesh. In addition:

Ø To establish relationship banking and improve service through development of strategies marketing plan

Ø To remain one of the best banks in Bangladesh in terms of profitability and assets quality

Ø To ensure an adequate rate of return on investment

Ø To keep risk position at an acceptable range

Ø To maintain adequate liquidity to meet maturing obligation and commitments

Ø To maintain adequate control systems and transparency in procedure.

Ø To develop and retain a quality work force through an effective Human Resources Management Systems

Ø To ensure optimum utilization of all available resources

Ø To introduced fully automated systems through integration of information technology

6. Strategies of JBL

The strategies of JBL are as follows:

  1. To manage and operate the bank in the most efficient manner to enhance financial performance and to control cost of fund.

  2. To strive for customer satisfaction through quality control and delivery of timely service

  3. To identify customer's credit and other banking related needs and monitor their perception towards our performance in meeting those requirements.

  4. To review and update policies, procedures and practices to enhance the ability to extend better service to customers.

  5. To train and develop all employees and provide them adequate resources so that customers’ needs can be reasonably addressed.

  6. To promote organizational effectiveness by openly communicating company plans, policies, practices and procedures to employees in a timely fashion.

  7. To cultivate a working environment that fosters positive motivation for improved performance.

  8. To diversify portfolio both in the retail and wholesale market.

  9. To increase direct contact with customers in order to cultivate a closer relationship between the bank and the customer.

7.1 Marketing Strategy

Promotion Strategy of Jamuna Bank Ltd

Promotion acts as the coordinator of all seller initiated efforts to set up channels of information and persuasion. Jamuna Bank Limited promote their business through:

v In the TV news, Jamuna Bank sponsors for reminding the customers.

v They believe on a variety of promotional elements to progress their products and services through intermediaries directly to the customers.

v They think that Personal Selling is effective in creating brand image, conveying information, creating awareness and can generate a behavioral response.

v In the newspapers, Jamuna Bank gives ads for their social marketing activities. Like, AIDS, Drug Addiction, to help poor children, to save the ACID victim etc.

Development of Promotion Strategy of Jamuna Bank Ltd.

Several activities are involved in designing the promotion strategy including:

  1. Setting communication objectives.

  2. Deciding the role of each of the components that make up the promotion program.

  3. Determining the promotion budget.

  4. Selecting the strategy for each promotion component.

  5. Integrating and implementing the promotion component strategies.

  6. Evaluating the effectiveness of the integrated promotion strategies.

Promotional activities of Jamuna Bank Ltd. through CSR

Jamuna Bank Ltd. occasionally gives advertisement and notices in daily newspapers. For example, any new branch opening information or new products etc. Jamuna Bank Ltd has many CSR activities all over the country. At least 2% of our annual profit of every year is put aside for the foundation to conduct Corporate Social Responsibilities (CSR) activities.

These include –

Ø Healthcare service.

Ø Scholarship program for brilliant poor student.

Ø Education Promotion Scheme (Interest free loan).

Ø Helping people affected by natural calamities.

Ø Helping people in slum areas.

Ø Donation to educational institutions to setup computer lab.

By doing these kinds of program, Jamuna Bank has reminded the people to come and join with them.

7.2 Corporate strategies

Based on these long-term trends and their competitive position, their strategy has two parts:

1. A network of businesses connecting the world: JBL is well positioned to capture the growing domestic trade and capital flows. Their global reach and range of services place them in a strong position to serve clients as they grow from small enterprises into large multinationals.

2. Wealth management and retail with local scale: They will capture opportunities arising from social mobility and wealth creation in our priority growth markets, through their Premier proposition and Global Private Banking business. They will invest in full scale retail businesses only in markets where they can achieve profitable scale.

To implement this strategy we have set two priorities for the Group: grow the business and dividends; and implement global standards.

Grow the business and dividends They continue to position JBL for growth, generating capital to invest in mostly organic opportunities in their home and priority growth markets, while progressively growing the dividend. They have adopted six filters, which serve as a tool to determine which businesses fit in their portfolio. They help to address fragmentation in our portfolio by identifying which non-strategic businesses to dispose of. Implement global standards They are adopting and enforcing the highest global standards across JBL. This means building a more sustainable business model by investing in world-leading risk and compliance, while seeking to reduce overall risk. They believe that implementing global standards in these areas gives JBL a distinct competitive advantage.

8. Implementation of Strategy To achieve constant growth in business JBL is persuading a “managing for growth” strategy. Their “strategic human resource management” strategy involves developing comprehensive values among their employees. The “strategic management” initiative was launched to ensure competitive advantage from each business unit. The intensity of strategy formulation is primarily focused on Private Banking, Personal Financial Services, Commercial Banking and Corporate and Investment Banking.

9. Recommendation:

§ They are more concerned with the global and corporate customer group. In addition To that, they can also give some special service and facilities to other customer groups as well. JBL has always stepped ahead in terms of bringing new technological advantage in products and services. They also put focus on providing and ensuring quality service to all of their customers.

§ The management of JBL Bangladesh should put special attention to reduce the coordination gap between front and back office. This problem can have serious impact on their service as well as on their image. The main revenue of JBL comes from the corporate banking category, which is one of the reasons that they don’t have varieties of loan categories. But most of the banks are earning revenue from the loan sector and they have number of loan categories (like- any purpose load is providing by Prime Bank). JBL can also introduce different types of loan facilities for their customers. This can help their existing customers as well as can enhance new customers to them.

§ They can plan further move to gain competitive advantage over the rivals. In pursuing advantage over rivals, they may pursue several competitive moves. For example- lowering or changing interest rates in their services, improving features, implementing innovations in the service etc. JBL is among one of those banks which has taken number of corporate social activities and tried to put local touch with their business in Bangladesh. Such respectful attitudes towards our country and culture have been appreciated by the Bangladeshi people

§ This is the responsibility of Banks to inform and let people learn about their various products. Therefore, Jamuna Bank Ltd. should take necessary actions to educate their customers and make them familiar with their services.

10. Conclusion

It goes without saying that JBL has got a simplified and slow expansion strategy in Dhaka as well as in Bangladesh. The main reason behind such strategy is to ensure quality service to the customers and to maintain their brand image. So accessing all these facts, a gradual and eventual development can be seen. The overall expansion strategy has been improved since its commencement and it is growing day by day. So we can understand the presence of JBL is Bangladesh would be long term orientated and they would serve the Bangladeshi people more extensively.

11. References

v RefME (2016) FREE Harvard Referencing generator. Available at: (Accessed: 15th February 2017)

v Jamuna Bank Ltd. (2017) in Wikipedia. Available at: (Accessed: 15th February 2017)

v Jamuna Bank Strategy (2017) Available at: (Accessed: 15th February 2017).

v Brook, M. (no date) The strategy of bank. Available at: (Accessed: 15th February 2017).

v (Business Case Study) Available at: (Accessed: 15th February 2017).

v A case study of jamuna Bank (2017) Available at: (Accessed: 15th February 2017).

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