Strategic planning and performance of banks in Kenya: a case of National Bank of Kenya
The main aim of the study is to investigate on strategic planning and performance of banks in Kenya in reference to National Bank of Kenya. Strategic planning assesses both the internal and external environments to formulate strategy, implement the strategy, and evaluate the success of strategy. Strategic planning incorporates planning, employee motivation, new product development, and visionary views. Banking institutions to perform better there is need to put in place strategic plans that are effective for the organization to achieve its goals and objectives. National Bank is a listed but government controlled bank in which government holds a 22.5% stake, National Social Security Fund (NSSF) 48.06% and the general public just under 30% through the Nairobi Securities Exchange. Strategic planning is commonly practiced in order to enhance the Organizations performance. This study reviews theoretical foundation of the study, strategic planning process, strategic planning practices, organizational performance and factors affecting the performance. The main focus of this study will be qualitative. Primary data and secondary data was used and edited for completeness and consistency. The study found out that Effective Strategic planning practices involve formulation of vision and mission statement, performance of situation analysis and finally strategy formulation and choice. Strategic decision determines the organizational relations to its external environment, encompass the entire organization, depends on input from all of the functional areas in the organization and have a direct influence on the administrative and operational activities and are vitally important to the long term health of an organization. Effective Strategic planning practices involve formulation of vision and mission statement, performance of situation analysis and finally strategy formulation and choice. The study suggests further research on the strategic planning and performance of banks in Kenya. The study will supplement the findings of this study by providing information on the strength and weaknesses of the strategic planning and performance. The main limitation of the study is that the research was conducted on only one organization. The study focused on at National Bank of Kenya. This research recommends further research should be replicated in other banks in Kenya in order to establish whether there is consistency among them on strategic planning and performance.