The factors that influence strategic Decision effectiveness in CFC Stanbic bank Limited

Abstract

The study was conducted on the factors that influence strategic decision effectiveness in CFC Stanbic bank limited. The objectives of the study were: to establish the strategic decision making process at CfC Stanbic Bank; and to determine the factors that influence strategic decision effectiveness in CFC Stanbic Bank in Kenya. Literature review items were used to come up with the research gap and the items on the questionnaire. The research methodology was based .on the fact that this was an exploratory study conducted as a cross sectional survey. Data analysis tools used in the research were SPSS and data was presented in form of tables. Data was collected from the CFfC Stanbic Bank Limited. The respondents were the senior management, Middle management and Low-level management ("team leadership"). The response rate was 74% percent. Based on the results from data analysis and the research findings; Firstly, the strategic decision-making process has a direct influence on strategic decision effectiveness at CFC Stanbic Bank Limited. Secondly, it was found that to a great extent, the decision importance (Intuitive and Political Issues) which the bank considers are: the bank decision makers act more rationally when there are decisions implying important consequences; more attention is allocated to issues involving the highest cost or risk. Thirdly, it was found that some the most important strategic decision outcomes in CFC Stanbic Bank as explicitly portrayed in decision effectiveness are: based on rationality, in CFC Stanbic, intuition has an important role in strategic decision making since CFC Stanbic's public policy decisions employ rational methods to be more successful than those that did not. Fourthly, the external environment characteristics/factors in the strategic decision-making process that influence the strategic decision effectiveness in the CFC Stanbic bank are to a great extent: the strategic decision processes in CFC Stanbic are affected by environmental attributes; given a stable environment, CFC Stanbic uses synoptic processes rationally; with b faster decision making in CFC Stanbic, more decisions could be made, leading to more learning and the capturing of fleeting opportunities. Lastly, the internal environment characteristics/factors in the strategic decision-making process that influence the strategic decision effectiveness in the CFC Stanbic bank are to a great extent; owing to CFC Stanbic's performance in comparison to companies similar in size and industry, is sound strategic decision success; CFC Stanbic's more rational approach to the strategic decision-making process has led to better performance of the bank. The following challenges need to be addressed; the negative interaction between political behavior and performance, which in turn influences strategic decision success in efe Stanbic; the success of CFC Stanbic's decision is a function of the availability of resources such as money and material. Areas of further research that were identified include a study on the key factors that influence strategic decision effectiveness in other sectors of commercial and financial sector to determine how the factors that influence strategic decision effectiveness can contribute to a companies financial performance. The greatest hurdles while conducting the study were irrelevancy, transportation, time and literature availability. Key Words: Strategic Decision Making Process, Strategic Decision Effectiveness and CFC Stanbic Bank.