Strategic Planning Process and Competitive Positioning of Deposit Taking Saccos in Nairobi City County, Kenya
Navodera, Francis Adulu
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Business environment challenges possess a major threat to an organizational survival and development of competitive positioning within the ever evolving and changing market dynamics. Therefore, this study examined the influence of strategic planning process on competitive positioning of deposit taking Saccos in Nairobi City County, Kenya. The specific objectives were to examine the influence of strategic direction, objective setting, environmental scanning and strategic intent on competitive positioning. The study was anchored on resource based view theory, contingency theory and leadership contingency model theory. This study adopted a descriptive research design for the study. The population of the research was all management staff of Sacco’s that are registered by the Sacco Societies Regulatory Authority. This sample size of 99 was used then distributed based on proportions in the target population identified by stratified random sampling. Questionnaires were used as data collection instruments. Quantitative data was analyzed using descriptive statistics such as mean and standard deviation and presented in form of tables, pie-charts and bar-graphs where applicable with the aid of Statistical Package for Social Sciences (SPSS) version 20.0. Inferential statistics such as correlation analysis and multiple regressions was used to determine the relationship between variables. The study established that strategic direction, objective setting, environmental scanning and strategic intent positively and significantly influenced competitive positioning of Deposit Taking Saccos in Kenya. The study concluded that strategic direction is a path set out by the deposit taking Saccos based on their vision, mission, core values and the strategies identified to achieve the goals set by the Saccos. Objective setting provides a yardstick for effective competitive positioning, it serves as motivating force where employees work to achieve objectives, it helps to pursue Saccos vision and mission, it defines the relationship between the Saccos internal and external environment and provides basis for decision making. Environmental scanning helps management of Saccos determines the future direction of the organization and strategic intent gives an idea of what the Sacco desires to attain in future. It indicates the longterm market position, which the Saccos desires to create or occupy and the opportunity for exploring new possibilities. The study recommends that Deposit Taking Saccos should define a clear strategic direction that takes into account technology changes, economy, customers and competition. Deposit Taking Saccos should have a unique set of strategic objectives by choosing objectives that match their competitive positioning goals and include movement in a positive direction. Deposit Taking Saccos should look at its operating environment, their services, and how they might evolve, their clients, and how their expectations might change, issues that are likely to affect their workforce, emerging and converging technologies. Deposit Taking Saccos should first have a strategic focus which is the starting point for developing a statement of strategic intent.