Strategic Management Practices and Performance of Kenya Commercial Bank in Nairobi City County, Kenya

Abstract

As other players in the financial sector, Kenya Commercial Bank is jostling for market share in the face of significant challenges posed by stiff competition emanating from the sector as well as from mobile telephony providers that have introduced innovative alternative products to conventional banking products. This study investigated the effect of strategic management practices on performance of Kenya Commercial Bank in Nairobi City County. In particular, the study sought to determine how strategic intent, strategy formulation, strategy implementation and strategy control affect performance of Kenya Commercial Bank. The researcher made use of descriptive research design to implement the research strategy. The target population of the study consisted of employees of Kenya Commercial Bank whereas data was collected from a sample of employees at the management level selected using stratified random sampling. Both primary and secondary data was collected using a questionnaire and document review respectively. Validity of the questionnaire was ensured using experts‟ opinion and literature review. A pilot study was conducted using fourteen employees and aided in testing the reliability of the research instrument. Analysis of descriptive statistics was conducted using frequencies, percentages, mean and standard deviation. Analysis of inferential statistics was performed through bivariate correlation analysis and multiple linear regression analysis in order to confirm if there was a relationship between the research variables. Results of analysis showed that strategic intent, strategy formulation, strategy implementation and strategy control are all strongly correlated to performance. Similarly, strategic intent, strategy formulation, strategy implementation and strategy control are statistically significant to performance at ninety five percent level of confidence. Corporate level managers should formulate policy that guide the development of strategic intent and ensure involvement of stakeholders in the strategic management process. Management of the bank should also ensure that proper scanning of the environment is undertaken in order to enhance the ability of the organization to optimize and leverage on strategic choices. In addition, all the bank‟s stakeholders should be adequately facilitated to efficiently and effectively execute their corporate obligations both individually and collectively.