Strategic management practices adopted by Kenya commercial bank Limited
Abstract
Between the years 2010 to 2012, that is 2 years KCB rose to becoming the best
performing bank in the banking industry in Kenya surpassing other banks in the industry
that had consistent performance over those years. It was expected therefore that KCB
employed certain strategic management practices to enable them sustain their business
operations. As the largest bank in the banking industry in Kenya in terms of assets base,
the study sought to determine the strategic management practices adopted by KCB and
also establish the challenges of strategic management faced by the bank. To achieve this
objective, the study intended to use interview guides. The target interviewees were senior
management at KCB who were directly involved in strategy. In relation to the strategic
management practices adopted by KCB, the study revealed that the senior management in
KCB has varied strategic management practices adopted in their organization and they
dedicate a lot of time, man power, technology and resources during the entire strategic
management process. The study also revealed that the senior management implements the
strategic management practices while following the six steps of the strategic management
process which are formulation of the company’s mission and vision, situation analysis,
determination of the strategic objectives, strategic analysis and choice, implementation of
the strategy and finally strategic evaluation and control. In relation to the strategic
management challenges faced by KCB, the study revealed that they included challenges
in organizational structure and challenges when monitoring the implementation of
strategic management practices. They also included challenges during implementation of
the strategic management practices, financial constraints, negative effects on operational
responsibilities and other resource based constraints other than financial constraints.
Motivational challenges especially when projects are not successful were also faced by
the bank. Political challenges, economic challenges and technological challenges were
faced by the bank as well. However, the study revealed that the senior management
constantly comes up with ways and measures to mitigate these challenges.
Publisher
University of Nairobi