Strategic Planning, Competitive Advantage and Performance at Equity Bank

Abstract

This study sought to establish how strategic planning has an influence on competitive advantage and firm performance. Strategic planning encompasses all the organizational processes of defining its strategy, choosing direction and decision making on resource allocation in order to pursue the envisaged future ideal state. With the realization of the role played by strategic plans towards the achievement of an organization’s Vision and Mission, the need for focus and alignment, the process of strategic planning remains critical in ensuring efficiency and improved performance. The objective of the study was to establish the influence of strategic planning practices, competitive advantage on performance of Equity bank. Using a questionnaire for the purposes of data collection, Primary data was obtained by presenting the questionnaires to the employees whose roles were closely related to the objective of the study. Data analysis was done using descriptive analysis aimed at a systematic quantitative in-depth description of the composition of the objects of the study. The study concluded that the strategic planning practices adopted by Equity Bank Kenya included objective setting, formulation of a strategic plan, participatory decision making, reward and recognition, training and development and employee participation. The adoption of these practices was observed to have a positive influence on the performance of Equity Bank Kenya. The study recommends Equity Bank Kenya should continue practicing formal strategic planning for enhanced effectiveness and efficiency as well as improved organizational performance. The organization should also continue to strengthen its strategic plans with the one, three and five-year term plans. Finally, the study recommends an enhancement of employee participation in the strategic planning and implementation process, more investment should be channeled into training and development with a long term view in building capabilities. Emphasis should also be laid in prudence while aligning global objectives to the local market.