Strategic Management Practices and Performance of Lapfund as a State Corporation in Kenya

Abstract

Conceptually, the adoption and implementation of strategic management practices allow organizations to understand and identify their position in the market strategically by managing both current strategies as well as choosing future ones appropriately. Organizational performance success relies on adequate implementation of strategic management. Strategic management however needs efficient processes and systems in order to counter certain unpredictable occurrences that may sustain operations and at the same time minimizing associated risks. Empirical and theoretical evidence indicate that implementation of strategic management systems can ultimately lead to an improvement in the organizational performance. The purpose of this research was to establish the relationship between strategic management practices and performance in state corporations. The study used a case-technique and targeted LAPFUND and its employees in order to determine the relationship between strategic management and performance in the organization. The study focused on 6 managers who have worked at LAPFUND for the last two years during the data collection. The study established that LAPFUND had incorporated strategic management practices in regard to their formulation of strategies, analysis of situations, as well as in evaluation and implementation. This research paper also found that strategic management techniques positively impact organizational performance, however, success of the strategies rely on the kind of system in place. Further, the report recommended that government ought to divest from industrial as well as commercial investments and instead bring active participation to citizens through shareholding and at the same time, recognize legal and institutional frameworks. The research also recommended that state corporations be including employees in making critical and long-term decisions that affected the entire company