Strategic Planning and Organizational Performance of Equity Bank

Abstract

Strategic planning is an important aspect in any organization. Most organizations understand the need to clearly define their vision, mission, objectives, targets for improvement, objectives, and the course of action necessary to achieve them. Over the years, good progress has been made to improve the rigor of strategic planning. There exists no one clear way as to how organizations ought to carry out strategic planning operations.The focus of this study is to establish the impact of strategic management on the organizational performance of Equity Bank Kenya Limited. This study was conducted by utilizing a case study. The primary data was collected using an interview guide, while the secondary data was obtained from Equity Bank’s financial reports and other publications. It was established that Equity Bank adopts various strategic planning objectives, including the digitalization strategy, diversification strategy, market penetration strategy, and the product development strategy among others. Further, it was established that the bank reviews its strategic plans on its annual basis, and it has a director to oversee the formulation and implementation of strategy within the organization. Additionally, the study established that the organizational performance at Equity Bank has been continuously increasing year after year. The organizational performance of the firm is measured using three indicators including the profitability, growth of the total asset base, and growth in customer deposits. The three indicators depict an increasing trend year after year. The study concludes that effective strategic planning positively affects the organizational performance of any firm. Recommendations for further studies are made to compare the performance of those firms that utilize strategic planning and those that do not utilize strategic planning in their operations.