Factors Influencing Strategy Implementation at the Co-operative Bank of Kenya

Abstract

The purpose of this study is to examine the factors that influence strategy implementation at The Co-operative Bank in Kenya. The results from the study can be used by the bank to focus on the factors that influence strategy implementation, and can also be used as a guide to other firms to recognize the factors that influence strategy implementation. The study provides a review on the concept of strategy implementation, in view of a competitive environment, and will highlight some of the factors that influence strategy implementation, in relation to contributions from authors in the related field. The study was conducted on a case study design, and data collection was conducted though an interview guide. Primary data was collected through an interview guide administered to the different staff levels classified as senior management, middle management and clerical. The respondents were from the various functional units. Data analysis was through content analysis as the data sought was qualitative in nature. The study concluded that organizational structure and leadership was the most significant factor affecting strategy implementation. It was observed that organizational structure was important to realize the respective strategics functionally, and leadership steers a strategic course through determination of market needs, ensuring proper resources are in place and driving implementation of the identified strategies to achieve goals. Other key factors included staff motivation, as the task of strategy implementation largely relies on staff. Economic factors such as: inflation which affects customers* ability to take up tank products, interest rates and Gross Domestic Product growth, as well as political kctors including: governance of banks by The Central Bank of Kenya, and political viii stability are vital for strategy implementation. Technology and globalization were also identified as important factors influencing strategy implementation. An organizational culture that supports strategy implementation, as well as competitor's strategies was identified as being important in implementation of strategy. The study recommends scanning and analysis of the identified factors during strategy management process in order to ensure successful strategy implementation in firms. Organizations have to be aware of factors influencing strategy implementation, in order to successfully implement their formulated strategics, to achieve the set goals.