Strategic Management Intensity and Competitive Advantage of Commercial Banks in Kenya
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Date
2013-10Author
Thagana, Jessie N
Type
ThesisLanguage
enMetadata
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Strategic management in the banking sector demand that organizations should have
effective systems in place to counter unpredictable events that can sustain their operations
and minimize the risks involved through innovations. Stiff competition has continued to
be experienced by commercial banks thus necessitating that they re-package their
services and products with the sole purpose of satisfying their customers as well as retain
their market share. In Kenya it is not clear how strategic management intensity influences
competitive advantage. The purpose of this study was to determine the intensity of the
strategic management practiced by commercial banks in Kenya and to determine the
relationship between the intensity of strategic management practice and competitive
advantage in banks. This research problem was studied through the use of a descriptive
survey design. The target population of this study was the 44 commercial banks in
Kenya. Primary data was collected using a questionnaire while secondary data was
obtained from annual reports of the companies. Quantitative data collected was analyzed
by descriptive analysis. Tables and figures were used to summarize responses for further
analysis and facilitate comparison. The study found that explicit tracking of the policies
and tactics of competitors are used by the firms to gather information about their business
environment. It was deduced that shifts in economic conditions are easily changed as well
as modifications in supplier strategies and the emergence of a new technology.
Considerable emphasis are placed on managing business strategies and firm investments
at the top management level and board of director’s level. Measuring performance
against subjective strategic criteria important in making sure that the firm’s employees
and business strategies meet predetermined objectives and attain competitive advantage.
The study recommends that the commercial banks should pay attention to various forces
of the environment in which they operate in by looking at such issues like tracking of the
policies and tactics of competitors. Commercial banks need to focus on issues of planning
flexibility which involve shifts in economic conditions. Commercial banks also need to
employ more resources to enhance positive contribution towards gaining competitive
advantage.
Citation
Thagana,Jessie N.;October,2013.Strategic Management Intensity And Competitive Advantage Of Commercial Banks In Kenya.Publisher
University of Nairobi School of Business