The Commercial Bank of Ethiopia is the leader in the Ethiopian banking industry.rnIt has wide branch network, and major market share in both deposits andrnoutstanding loans and advances. CBE has obtained this position due to historicalrnreasons rather than operational competency.rnThose factors contributing to the bank's dominance are not at their place theserndays. The liberalization of the domestic banking sector has opened the door forrnsmall private commercial banks. The globalization of the world economy hasrnposed the threat of entrance of foreign banks to the local market.rnUntested competency of CBE on one hand and the stiffening competition andrnpotential threat of foreign banks from the other side arouse the need to look atrnthe bank diagnostically. The researcher by using the strategic construct: strategicrnorientation has described the strategic trait of the Commercial Bank of Ethiopia Six dimensions with twenty-seven indic,ators were used to measure the strategicrnorientation of CBE. The dimensions are aggressiveness, analysis, defensiveness,rnfuturity, proactiveness and riskiness. This measurement was adopted fromrnthorough literature review. Modification has made on the measurement to makernit fit to the Ethiopian banking industry. The measurement was tested forrnconstruct validity and reliable using statistical techniques. The tests arernacceptable with implications for future improvement.