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Internal and external factors affecting the business of Bank of Ceylon


Internal and external factors affecting the business of Bank of Ceylon

Word count 3515


1.0 Introduction
2.0 Company overview
3.0 Internal environment analysis
3.1 Strategic capabilities of BOC
3.2 VRIN model
3.3 Organization structure
3.4 Organization culture
3.5 Product portfolio (BCG matrix)
4.0 External environment analysis
4.1 PESTEL analysis
4.1.1 Political environment
4.1.2 Economic environment
4.1.3 Social environment
4.1.4 Technological environment
4.1.5 Ecological environment
4.2 Porter’s five forces analysis
4.3 Competitor analysis
5.0 SWOT analysis

Additional information


1.0 Introduction

The objective of this report is to comprehensively analyze the internal and external factors affecting the business of Bank of Ceylon (BOC). Environment analysis is a strategic tool which use to evaluate internal and external factors which affects to organization’s performance. Kotler and Keller (2005) explains the environment analysis as comprehensive, systematic, independent and periodic examination of organization’s macro and micro environment in order to identify problem areas, opportunities and recommending action plans to improve the organization’s performance. Strategic tools such as PESTEL, Porter’s five forces analysis, competitor analysis, resources and core competencies analysis will be used to conduct environment analysis.

2.0 Company overview

BOC is a state owned commercial bank of Sri Lanka which operates since 1939. “Bankers of the Nation” is the theme of BOC. It is the leading commercial bank of Sri Lanka when it comes to number of customers, number of branches, asset base, deposit base, loan, advance and earnings. Currently, BOC provides financial solutions such as personal banking, corporate banking, development banking, treasury & investment, mortgage financing, leasing financing and international banking. As the largest and state owned bank in Sri Lanka, BOC immensely contributes economic and social development of the country. The vision of the BOC is that “to be the Nation’s preferred bank with a strong global presence providing customer centric innovative financial solutions (BOC, 2020). Mission of the bank is that to provide highly efficient, technologically sophisticated, customer focused, resilient and innovative financial solutions to the Nation with global access, empowering employees and enhancing value to the stakeholders (BOC, 2020).
BOC is the market leader of banking and financial service sector in Sri Lanka which accounts 20% of market share of financial sector. In international banking sector in Sri Lanka, BOC accounts for 40% market share. Considering number of employees, BOC has the largest employee cadre in financial sector in Sri Lanka which employs more than 8400 employees (BOC, 2020). Bank offers wide range of products to customers. Below table displays the different categories of products, bank offers. As per the below table, BOC has wide range of products portfolio targeting different customer segments in the market.