Strategic Alliances And Competitiveness Of Family Bank Limited

Abstract

Financial institutions in Kenya are operating in very competitive markets environment with many macro-economic aspects affecting their operational competitiveness. The factors include the exchange rates, inflation and guidelines from Central Bank of Kenya. However, the industry has experienced many market participants entering the market with two under liquidation due to financial crisis. This brings up competition among the banks by offering better services to their customers. The objective of the study was to determine the influence of strategic alliances and competitiveness in Family Bank Limited in Kenya. The study adopted a case study in which seven senior managers who are involved in the strategic alliance formulation, development and implementations were considered and interviewed. Data collection was done through interview guide in whom the researcher interviews the respondents and data was analyzed using the content analysis. The study established that the Family Bank Ltd has value for experienced personnel for effective, efficiency and competitiveness of operational performance. The Strategic Decisions involved all stakeholders through a strategic committee which main duties are proposal writing, reviewing, monitoring and implementation. Staff Resistance to strategic change is experiences but minimized by proper education, champion identification, option limited and team management and training of bank staff and system technicians. Considerations of available alternatives, information and discussion with the Senior Management and Board Directors who sometimes disagree. Strategic alliance making is devolved to lower levels of management from top management, association, unions, staff, customers and the government. The contributions of employees are included in strategic alliance making gives a feedback mechanism from top level managers to low management level. The strategic alliances are made effectively by proper communication to the organization which influences the competitiveness of the bank. The study recommends that the bank CEO and the directors should be empowered by the board of directors to make and implement strategic alliances with other key players of the market. The bank should avoid strategic alliance within a short time and major in joint venture Alliance and service delivery alliance since they improves the profitability of the bank