StrategicResponses Adopted by Saccos to the Changing Operation Environment in the kenyan Financial Sector. a case of Nairobi based saccos with Front Office Service Activity
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Date
2013-02-19
Authors
Mwithiga, Rosaline Wambui
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Abstract
The alignment between strategy and environment lies at the centre of strategic management.
Organization is faced with turbulence and stiff competition in their external environment. Hence
need to be conscious of the changes in the environment in which they operate and respond to
various factors in the environment in order to remain relevant. Businesses are facing stiff
competition today and they are going to curb this by continuously scanning the environment and
delivering the greatest value to customers with the view that as the operating environment
changes, a more pronounced transformation of the business landscape lies ahead. The purpose of
the study was to investigate the strategic response adopted by SACCOS to the changing
operating environment in the Kenyan financial sector. The literature covered is on strategy,
organizations and their external environment, factors influencing the strategic responses and
strategic responses to dynamic environment. The study used descriptive survey. The researcher
examined a sample of staff drawn from the population of 273 managers in Nairobi Based
SACCOS with front office service activities. A sample of30% from within each group was taken
using stratified random sampling. This generated a sample of 82 respondents for this study. The
, study used both primary and secondary data. It used primary data collected using questionnaires
to carry out the study. After collecting data responses from the questionnaires, the researcher
analysed the quantitative data using descriptive statistics by applying the Statistical Package for
Social Sciences (SPSS. 17.0) and presented through percentages, means, standard deviations and
frequencies. The information was displayed by use of tables, graphs and in prose form. The study
concludes that the Saccos use restructuring strategies most in responding to the changing
operating environment most followed by Differentiation strategies, then diversification strategies
while monitoring and evaluation strategies are the least used. The study recommends that the
management should look for alternative sources of funding in order to overcome the challenges
of finance related to restructuring strategy, economic recession and liquidity and solvency. The
Saccos should also seek for ways of keeping overheads lower than others by use of knowledge
from past experience. The Saccos should be focused in achieving the goals of growth and
development that are important for the company such as survival in market, market
diversification/differentiation, product development, market development, profitability and
growth (gain in market share).
Description
Department of Business Administration,2011