The perception of credit managers on the effectiveness of strategies adopted by Equity bank of Kenya in the performance of loans
A company’s strategy consists of the business approaches and initiatives it undertakes to attract customers and fulfill their expectations, to withstand competitive pressures and to strengthen its market position. These strategies provide opportunities for the organization to respond to the various challenges within its operating environment. Banking institutions throughout the world are facing a fast paced dynamic environment where efficiency and competitiveness hold the key to survival. The process of establishing a competitive advantage is at the heart of competitive marketing strategy. The objective of the study was to establish the perception of credit managers on the effectiveness of strategies adopted by Equity Bank in the performance of loans. The study adopted a census survey design. The population of the study was credit managers in the banks’ branches operating in Nairobi. The study used primary data which was collected through self-administered structured questionnaires. The data was analyzed and presented using mean, standard deviation and percentages. The findings of the study was that the credit managers perceived the strategies adopted by the bank to be effective as it resulted in offering of customers quality products and services, continuously improve qualities and are more cost-conscious, being flexible in the strategies they employ and use flexible process of decision making. The recommendations of the study were that managers should be involved in formulation of strategies and the Bank should embrace risk management so as to be able to analyze its performance relating to loan default and operational losses. These strategies provide opportunities for the organization to respond to customers’ needs and also to respond to the various challenges within its operating environment.