Response strategies adopted by the Co-operative bank of Kenya limited to changes in the external environment
All organizations are environment dependent. They are in constant two way interaction with the environment and depend on it for continued survival. The management system adapted by an organization is a determining component of the firm's responsiveness to environmental changes. The management system adapted determines the wayan organization perceives the environment, diagnoses its impact on the firm and consequently implements the decisions. This study set out to address one objective which was to determine the response strategies adopted by The Co-operative bank of Kenya Ltd to changes in its external environment. To achieve this objective, the study made use of both primary and secondary data. Primary data was collected through interview guides administered to senior managers in Human Resources, Marketing, Finance and Retail Banking departments. Secondary data was obtained from existing company records e.g. published financial records, newspapers, publications and magazines. Content analysis was used to analyze the data. The study found that Co-operative Bank has been able to keep pace with the continuously changing business environment by having the Cooperative Movement as its strategic and majority shareholder and making products suitable for Saccos. Other response strategies include product innovation, market development through growth and expansion, diversification into stock broking and mortgage financing, good customer relationship management, creating a positive organizational culture and making improvements in technology. The researcher recommends that in order to remain competitive and profitable, the Bank should continue to market its products and services more aggressively and also speed up implementation of its strategies in order to catch up with the market demand.