1.

0 Introduction
This report is based on the printed assignment for Strategic Management course. In this course, I have learned about the strategic management and its content like strategic leadership, External environment opportunities, Business level strategy, competitive rivalry, and about corporate level strategy, corporate governance, international strategy, strategic Entrepreneurship, management hierarch, MBO strategic decision, planning process, etc. As a part of my course, I was assigned by my course instructor to prepare this final report about Importance and steps of strategic decision-making, concept of MBO and its success and failure in an organization. To discuss about strategic decision-making and its importance, steps I have selected Islami bank Bangladesh Limited. To observe the success and failure of MBO and concepts of MBO I have chosen Islami bank Bangladesh Limited (IBBL).

1.1 Origin of the Report

Based on my practical experience as well as theoretical knowledge, I have completed the report regarding Importance and steps of strategic decision-making, concept of MBO and its success and failure of Islami Bank Bangladesh limited. The focus of my study is to analyze the over all strategy of importance and its steps of making strategic decision which is the core philosophy of Islamic Bank. Islami Bank does not lend money or issue securities with fixed interest. Instead it finance in various schemes approved by Shariah Board to achieve its goal.

1.2 Objective
To familiar with the Importance and steps of strategic decision-making, concept of MBO and some of the success and failure associated with MBO for Islami Bank Bangladesh limited. To find out the overall pictures about the Importance and steps of strategic decision-making, concept of MBO and some of the success and failure of MBO for Islami Bank Bangladesh limited.

1.3 Methodology
The study is performed based on the information extracted from different sources collected by using a specific methodology. This report is analytical in nature. The methodology is mentioned below: 1.3.1 Primary Method: At first, I have colleted information by visiting the both organization and asked them some question. 1.3.2 Secondary method: The secondary sources of data collection were books of strategic management (Johnson G and scholes, Pearce and robinson; strategic management, Mcgraw Hill USA/India) annual report, prospectus and websites of the company.

1.4 Limitations
From the beginning to end, the study has been conducted with the intention of making it as a complete and truthful one. However, many problems appeared in the way of conducting the study. All the branches of the sample bank were not physically visited. Lack of in-depth knowledge and analytical ability for writing such report. Difficulties to collect all the relevant data primarily. Lack of experience.

2.0 Strategic decision-making

Strategic decision-making can be viewed as a special kind of decision-making under uncertainty. Such decision-making involves the activities of goal formulation, problem identification, alternatives generation, and evaluation/selection. Researchers in cognitive psychology and behavioral decision theory have identified a number of cognitive simplification processes which may affect the way decision-makers perform these tasks. Within this paper, the research on these processes is summarized and their possible effects on strategic decision-making are discussed. Implications for future research in this area are also drawn. Chosen alternative that affects key factors which determine the success of an organization's strategy. In comparison, a tactical decision affects the day-to-day implementation of steps required to reach the goals of a strategy. In general strategy is defined as "the long term direction of an organization". However to be more specific and based on characteristic , it involves , strategy may be defined as the long term direction and scope of an organization to achieve competitive advantage through the configuration of resources within a changing environment for the fulfillment of stakeholders aspirations and expectation.

2.1 What is MBO?

Management by Objectives (MBO) is a process of defining objectives within an organization so that management and employees agree to the objectives and understand what they are in the organization. The term "management by objectives" was first popularized by Peter Drucker in his 1954 book 'The Practice of Management'.[1] The essence of MBO is participative goal setting, choosing course of actions and decision making. An important part of the MBO is the measurement and the comparison of the employees actual performance with the standards set. Ideally, when employees themselves have been involved with the goal setting and choosing the course of action to be followed by them, they are more likely to fulfill their responsibilities.

Management by objectives enjoyed huge popularity for some time but soon fell out of favor due to its rigidity and administrative burden. Its emphasis on setting clear goals, however, has been dictated and remains valid.

2.2 Importance of strategic decision making in Islami Bank Bangladesh Limited (IBBL).
According to the management of Islami Bank Bangladesh limited, Strategic decisionmaking is an important organizational phase that often defines a business firm's success. It is one of the most common denominators of successful business ventures. Needless to say, it is extremely difficult for a person to succeed without a plan for success. The importances of strategic decision making to Islami Bank Bangladesh ltd are like below: Strategic decision can serve as a business firms road map to success: A strategic decision lists some of the possible situations of Islami Bank Bangladesh ltd. will likely face. It also details the business firms strengths, weaknesses, opportunities and threats (SWOT.) It serves as a source of inspiration: Part of strategic decision-making is identifying the goals and purposes. Moreover, these goals and purposes serve as a great source of inspiration. A strategic plan is used by entrepreneurs to measure success. It gives entrepreneurs and personnel an idea of where they are and where they want to be. It identifies risks and competition: Risk and competition play an important role in a business firms success, or in some occasions, failure. Nevertheless, strategic planning aims to identify such risks and helps devise measures to avoid or counteract such risks. The in-depth knowledge gained from strategic planning is a great weapon against competition. It guides management in decision-making: Strategic decision making also plays a crucial role in the decision making process of the business firm. A strategic plan details the current financial standing and capacity of the business. It also provides entrepreneurs invaluable information regarding external factors that affect the business firm.

It gives an overview of the market condition: Another major importance of strategic decision is that it gives us an overview of the market condition. The market condition is critical in determining a business firms success. More so, it gives entrepreneurs and managers an idea of when and where to place marketing efforts and funds.

Strategic decision making is highly important not just in business but as well as in other aspects of life. Combined with substantial amount of resources and quality work force, it can spearhead a business firm to success beyond measure.

2.3 Steps of strategic decision-making process:

Islami Bank Bangladesh Limited (IBBL) follows some steps for making their strategic decision. The steps are as follows: Step1: Define the Problem This first decision-making step involves collecting information and analyzing it to frame the problem. It is where decision to satisfy or maximize information is made and implemented. See Decision Making Styles for more information on satisfying or maximizing information. This is the step where define the decision problem and blend problem solving and decision making processes. The better we define the true problem; the better can collect relevant information about the problem. Steps 2: Specify Your Goals According to IBL, we need to know what we want to accomplish before we start developing solutions. For instance in the example of the downtown merchant association, the merchants wanted to get more people to shop downtown. They understood their goal, just not what was keeping them from reaching their goal. If we face difficulty-seeing goal, just think about what it would be like if the problem was resolved. For example, if the downtown merchant associations problem was resolved, more people would drive to and park downtown everyday. Since all goals

should be quantifiable, lets say the merchants want another 1000 people per day to shop downtown. Sometimes this imagining helps with solutions, but other times it may help you to define and understand the true problem better. Step 3: Develop Solutions This third step is when you start developing solutions to a decision problem. I recommend starting with as many solutions as possible. Then start weeding out unsuitable solutions and keeping those with the best chance to accomplish goals. Step 4: Select A Solution Once we have several potential solutions, select the best one solution or combination of solutions that balances costs with benefits. We do this by prioritizing all potential solutions, determining the cost of each, forecasting how well each will resolve the problem, and sometimes combining solutions to create the best one. Once we have completed all this decision making analysis and selected the best solution, we are ready to implement it. Step 5: Implement Solution Implementing decision requires a detailed plan with a timetable. The more details plan in the decision implementation, the more likely the solution meets the goal and resolve the problem. Decision making implementation also requires delegating responsibility for each step in the implementation to someone knowledgeable and experienced in the skills and actions required for that step. Then we must hold each person accountable for implementing his or her respective steps.

Interactions between everyone involved in the implementation process will assure that the right hand knows what the left is doing, will keep important details from falling through the cracks, and will involve them psychologically with the results. Step 6: Monitor Solution However, no matter how much plan implementation, it seldom goes exactly as planned. Therefore, it is vital that monitor implementation of decision-making solution, regularly judging how well progress moves toward the decision goals.

3.0 Brief description about Islami Bank Bangladesh Limited (IBBL).

Bangladesh is one of the largest Muslim countries in the world. The people of this country are deeply committed to Islamic way of life as enshrined in the holy Quran and the Sunnah. Naturally, it remains a deep cru in their hearts to fashion and design their economic lives in accordance with the precepts of Islam. The establishment of Islami Bank Bangladesh Limited on March 13, 1983, is the true reflection of this inner urge of its people, which started functioning with erect from March 30, 1983. This bank is the first of its kind in South-East Asia. It is committed to conduct all banking and investment activities on the basis of interest fee profit-loss sharing system. In doing so, it has unveiled a new horizon and ushered in a new silver lining of hope towards materializing a long cherished dream of the people of Bangladesh for doing their banking transactions in line with what is prescribed by Islam. With the active co-operation and participation of Islamic Development Bank (IDB) and some other Islamic banks, financial institutions, government bodies and eminent personalities of the Middle East and the gulf countries, Islami Bank Bangladesh Limited has by now earned the unique position of a leading private commercial bank in Bangladesh.

3.1 Historical Background of Islami Bangladesh limited (IBBL).

In August 1974, Bangladesh signed the Charter of Islamic Development Bank and committed itself to reorganize its economic and financial system as per Islamic Shariah. In January 1981, Late President Ziaur Rahman while addressing the 3rd Islamic Summit Conference held at Macca and Taif suggested. "The Islamic countries

should develop a separate banking system of their own in order to facilitate their trade and commerce". This statement of Late President Ziaur Rahman indicated favorable attitude of the Government of the People's Republic of Bangladesh towards establishing Islamic banks and financial institutions in the country. Earlier in November 1982, Bangladesh Bank, the country's Central Bank, sent a representative to study the working of several Islamic Banks abroad.

3.2. Special Features of IBBL:

Islami Bank Bangladesh Limited (IBBL) was incorporated on13.03.1983 as a public company with limited liability under the companies act, 1913. The bank started functioning with effect from 30.03.1983 as the first Shariah based interest-free bank in South-East Asia. The bank is committed to run all its activities as per Islamic Shariah. IBBL through its steady progress and continuous success has, by now, earned the reputation of being one of the leading private sector banks of the country. The distinguishing features of IBBL are as under: All its activities are conducted on interest-free system according to Islamic Shariah. Investment is made through different modes permitted under Islamic Shariah. Investment income of the bank is shared with the Mudaraba depositors according to a ratio to ensure a reasonably fair rate of return on their deposits. Its aims are to introduce a welfare-oriented banking system and to establish equity and justice in the field of all economic activities. It extends Socio-economic and financial services to the poor, helpless and low-income group of the people for their economic enlistment particularly in the rural areas. It plays a vital role in human resource development and employment generation particularly for the unemployed youths. 8

 Its aim is to achieve balance growth & equitable development of the country through diversified investment operations particularly in the priority sectors and in the less developed areas.

4.0 Management by Objectives (MBO) in IBBL:

The management of Islami Bank Bangladesh Ltd thinks that the essence of MBO is participative goal setting, choosing course of actions and decision-making. An important part of the MBO is the measurement and the comparison of the employees actual performance with the standards set. Ideally, when employees themselves have been involved with the goal setting and choosing the course of action to be followed by them, they are more likely to fulfill their responsibilities.

4.1 Success of MBO

According to IBBL some of success of MBO is: 1. Motivation Involving employees in the whole process of goal setting and increasing employee empowerment. This increases employee job satisfaction and commitment. 2. Better communication and Coordination Frequent reviews and interactions between superiors and subordinates help to maintain harmonious relationships within the organization and also to solve many problems. 3. Clarity of goals 4. Subordinates have a higher commitment to objectives they set themselves than those imposed on them by another person. 5. Managers can ensure that objectives of the subordinates are linked to the organization's objectives.

4.2 Failures of MBO:

There are several failures to the assumptive base underlying the impact of managing by objectives, including: 1. It over-emphasizes the setting of goals over the working of a plan as a driver of outcomes. 2. It underemphasizes the importance of the environment or context in which the goals are set. That context includes everything from the availability and quality of resources, to relative buy-in by leadership and stake-holders.. 3. Companies evaluated their employees by comparing them with the "ideal" employee. Trait appraisal only looks at what employees should be, not at what they should do. The use of MBO must be carefully aligned with the culture of the organization. While MBO is not as fashionable as it was before the 'empowerment' fad, it still has its place in management today. The key difference is that rather than 'set' objectives from a cascade process, objectives are discussed and agreed upon. Employees are often involved in this process, which can be advantageous.

5.0 Functions of IBBL:

The operation of Islamic Bank Bangladesh limited can be divided into three (3) major categories: 5.1 General Banking: It includes a. Mobilization of deposits b. Receipts and payment of cash. c. Handling transfer transaction. d. Operations of clearing house e. Maintenance of accounts with Bangladesh bank and other bank.

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f. Collection of cheques and bill. g. Issue and payment of Demand Draft, telegraphic transfer and payment order. h. Executing customers standing instructions. i. Maintenance of safe deposit lockers. j. Maintenance of internal accounts of the bank. While doing all the above noted work IBBL issue cheques-book, Deposit account operating form, SS card, Ledgers, Cash book, Deposit account ledgers, preparation statement of accounts, Pass book, Balance of different accounts and calculates profits. Islami Bank Bangladesh limited offers to open the following account to the depositors: 1. Al-Wadeah Current Account. 2. Mudaraba Savings Account.-MSA 3. Mudaraba term deposit Receipt. (3 month / 6 month / 12 month / 36 months term)MTDR 4. Mudaraba Special Scheme-MSS 5. Mudaraba Hajj Savings Account (1 year to 25 year term)-MHSA 6. Mudaraba Special short notice Account.-MSNA 7. Mudaraba Savings bond (5 year & 8 year term)-MSB 8. Mudaraba Foreign Currency Deposit.-MFC 9. Mudaraba Monthly profit Distribution scheme.-MMPDS 10. Mudaraba Moharana Account.-MMS 11. Mudaraba (wakf) cash Account.-MWCA.

5.2 Investment:
IBBL invests its money in various sectors of the economy through different modes permitted by shariah and approved by Bangladesh Bank. The different modes of investment are as follows:

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Investment Mechanism of IBBL

Bai- Mechanism Share Mechanism Ijara Mechanism

a) Bai-Murabaha b) Bai-Muajjal c) Bai-Salam d) Istishnaa

a) Mudaraba b) Musharaka

a) Hire Purchase b) Hire Purchase Under shirkatul Melk

5.3 Foreign Exchange Business

Foreign Exchange Business plays a vital role in providing substantial revenue in the bank income pool. Like all modern Banks IBBL operates in the area of the foreign Exchange business. IBBL performs the following tasks: Opening letter of credit (LC) against commission for importing industrial, agricultural and other permissible items under Islamic Shariah and Import policy. Opening letter of credit on the principle of Mudaraba sale, on the principle of Musharaka sale and under wage earner scheme. Handling of export/import document. Negotiation of export / import document when discrepancy occurs.

6.0 How Islami Bank Bangladesh limited (IBBL) might be improved:

Islami bank bangladesh Limited (IBBL) does not follow all kinds of steps of strategic decision-making process. Strategic decision making also plays a crucial role in the decision making process of the business firm. A strategic plan details the current financial standing and capacity of the business. It also provides entrepreneurs invaluable information regarding external factors that affect the business firm. So if Islami bank Bangladesh limited (IBBL) could maintain and follow all kinds of necessary steps of decision-making process then IBBL might be improved easily. 12

7.0 Mission and vision of IBBL

Mission: To establish Islami Banking System through the introduction of a welfare oriented banking system and also ensure equality and justice in the field of all economic activities, achieve balanced growth and equitable development through diversified investment operations particularly in the priority sectors and less development areas of the country. to encourage socio-economic upliftment and financial services to the low-income community particularly in the rural areas. Vision: Vision of IBBL is to always strive to achieve superior financial performance, be conconsidered a leading Islami Bank by reputation and performance. Goal of IBBL is to establish and maintain the modern banking techniques, to ensure the soundness and development if the financial system based on Islami principles and to become the strong and efficient organization with highly motivated professionals, working for the benefit of people, based upon accountability, transparency and integrity in order to ensure the stability of financial system. IBBL will try to encourage saving in the form of direct investment. IBBL will also try to encourage investment particularly in projects, which are more likely to higher employment.

8.0 Findings:
In my findings part I have presented the importance of strategic decision-making, and the steps that management takes for strategic decision making of the organization named Islami Bank Bangladesh Limited (IBBL). I have also explained the concept of MBO and it is success and failure in terms of Islami Bank Bangladesh Limited (IBBL) Limited. All the sequences are arranges according to the questions provided by the course instructor. The detail about these matters has been described above.

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Conclusion
At the end of this report, we can say that strategic decision-making is very important for any organization. By setting strategic decision organizations can know their strength and weakness as well as can be successful in maintaining their business. Thats why strategic decision making is very important in an organization. If the organizations follow the steps of making strategic decision properly than any problem can be solved easily. If they use these decision making steps decision making process, they will make more informed decisions and will be more comfortable with decision making under uncertainty

On the other hand, Management by Objectives (MBO) is a process of defining objectives within an organization so that management and employees agree to the objectives and understand what they are in the organization. There can be both success and failure in implementing MBO, but organizations have to look at the successes and go ahead. By adapting these two factors, organizations can perform their duties perfectly and can achieve their goal easily.

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Bibliography:

Books of strategic Mnanagement (Johnson G and scholes) Strategic management pearce and robinson, Mcgraw Hill USA/india Islami Bank Bangladesh Limited Web site(www.Islamibankbd.com) Annual Reports of Islami Bank Bangladesh Limited. Several Booklets from Islami Bank Bangladesh Limited. Several Newsletters from Islami Bank Bangladesh Limited. Training materials of IBTRA.

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