Transformation from an ngo to a successful business: a case study of acleda bank plc in Cambodia | |
| Author | Sokea Heng |
| Call Number | AIT Proj. no.SM-16-01 |
| Subject(s) | Transformation (Organization)--Cambodia Business planning--Cambodia Non-governmental organizations--Cambodia |
| Note | A master project submitted in partial fulfillment of the requirements for the degree of Master of Business Administration, School of Management |
| Publisher | Asian Institute of Technology |
| Abstract | This paper investigated the transformation approach that ACLEDA Bank in Cambodia applied successfully and the lessons from this transformation. Prior to the transformation, ACLEDA was a credit operator NGO founded in 1993. Because of many constraints including regulations, and inadequate donor capital that limited its operations to provide micro credit to Cambodian small enterprises, ACLEDA had a plan for transformation in order to survive and self-support the organization. With solid business and strategic plans (three steps of preparation for transformation) plus strong support from other development financial institutions (DFIs) including UNDP, ILO, IFC, USAID, ACLEDA NGO had transformed to ACLEDA Microfinance in 1995, subsequently to specialized bank namely ACLEDA Bank Ltd. in 2000, and finally to commercial bank in 2003, named ACLEDA Bank Plc. There are three success factors for transformation, such as leadership, core business, and advisory and technical support. On the other hand, there are two main challenges (private investors, and terms of funding investment from DFIs) during ACLEDA’s transformation. From BancoSol, Bolivia, there are lessons, such as employee ownership, allocation of NGO’s donated fund, and new interest rate, contribute success for ACLEDA’s transformation. ACLEDA’s performance after the transformation is up to the top rank of commercial banks in Cambodia and other leading transformed banks in Latin America in terms of assets, portfolios, and profit. |
| Year | 2016 |
| Type | Project |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Igel, Barbara; |
| Examination Committee(s) | Supasith Chonglerttham;Yuosre Badir; |
| Scholarship Donor(s) | Thailand (HM King); |
| Degree | Project (M.B.A.) - Asian Institute of Technology, 2016 |