Turnaround Strategies and Performance of Selected Commercial Banks in Kenya
Abstract
The many changes in firms operating environment impacts on organizations goals and
objectives and this make it difficult for organizations to remain viable in a long run.
Therefore, in order to remain competitive, business units should continually scan the
environment so that the organizations adjust their strategic responses to accommodate the
demands of the environment. One of the adaption strategies undertaken by organizations
is the turnaround strategies. This study examined the effect of the turnaround strategies
on performance of selected commercial banks in Kenya. A sample of four banks that had
undertaken the turnaround strategies was used and primary data collected using
questionnaires administered to the managers of the banks who are responsible for
implementing the turnaround strategies. Secondary data was obtained from the banks’
existing bank publications and annual reports. The study established that the Commercial
Banks have pursued different turnaround strategies that include marketing, financial,
revenue generation, retrenchment, top management changes, technology advancement
and diversification. The popular turnaround strategies were top management changes,
technology advancement and retrenchment. The finding shows that indeed the turnaround
strategies adopted by the banks has had a positive effect on the performance of the
commercial banks. The researcher further recommends that Kenya Commercial banks
undertaking turnaround strategies should not only concentrate on attracting new
customers but also emphasize on developing extensive distribution channels to gain a
competitive edge in the market.
Publisher
University of Nairobi