Strategic Planning Process and Competitive Positioning of Deposit Taking Saccos in Nairobi City County, Kenya
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Date
2021
Authors
Navodera, Francis Adulu
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
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.
Description
A Research Project Submitted to the School of Business in Partial Fulfillment of the Requirements for the Award of the Degree of Master of Business Administration (Strategic Management Option) of Kenyatta University, June, 2021
Keywords
Strategic Planning Process, Competitive Positioning, Deposit Taking Saccos, Nairobi City County, Kenya