The Influence of External Environment on Strategy in Harambee Cooperative Savings and Credit Society
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Date
2016Author
Karanja, Rachael N
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
The environment in which organizations operate changes constantly. Organizations are
expected to deal with competitive forces such as threats of new entrants, substitute
products, bargaining power of suppliers and bargaining power of customers in order to be
competitive. In Kenya, SACCOs function in competitive environment since liberalization
of the economy in 1997. Harambee SACCO was chosen as a case study. Objective of the
research finding were: To find out strategies pursued by Harambee Cooperative Savings
and Credit Society due to environmental changes. To establish the influence of external
environment on the selection of these strategies. Research was modelled on the case
study technique that aimed at establishing the influence of external environment on
strategy on Harambee SACCO. In this study primary and secondary data collection
methods were applied to gather data. Semi-structured questionnaires were used to gather
primary data which had open ended questions which were administered through drop and
pick method to top management team. Data from the study was analysed using content
analysis since it was qualitative statistic. Analysis of content was used to allow
qualitative statistic collected to be examined based on interpretation and meaning of
information from respondents. The study concluded that performance of the Sacco is
mostly affected by the external environment. For a Sacco to make important strategic
decisions, it has to consider changes in external environment in which the firm operates
in since there are opportunities or threats involved. As a proper way of gaining
competitive advantage in the economy, the SACCO needs to incorporate use of
competitive strategies. SACCO also possesses competitive advantage over other
SACCOs given its nationwide membership. Performance and competitiveness of SACCO
is mostly influenced by the level of competition within a particular economy. A SACCO
incurs more expenses to maintain quality service and attract more customers as a cost
strategy. To differentiate its services the SACCO uses publicity and offers a wide range
of services. High skilled staffs are also engaged in the service provision. The focus
strategy on a specific market is used as a means to remain competitive. To a moderate
extent the firm out-sources support staff. From research findings, research concludes that;
for improvement of competition within the SACCO, majority of the focus should be
geared towards total quality management system. By doing this it will help ensure that
consumer wants are carried out in suitable way of monitoring value hence further address
wants and needs of most customers by continuously addressing them well. For a more
and improved fulfilment of client needs to particular regions, SACCO needs to focus on
analyzing specific technical problems which exist in each particular area. Apart from
financial sector for instance stock market and real estate, SACCO also needs to venture
into other savings which will help boost the economic standing and its asset base. This
particular research finding didn’t attain 100% rate response so result of the topic under
investigation can only be additional interpreted and understood inside margins of inherent
limitations because the organizations control policies and disinclination of respondents to
give back their response.
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