Turnaround strategies and performance of selected Commercial Banks in Kenya
The many changes in firms operating environment impacts on organizations goals and objectives and this make it difficult for organizations to remain viable in a long run. Therefore, in order to remain competitive, business units should continually scan the environment so that the organizations adjust their strategic responses to accommodate the demands of the environment. One of the adaption strategies undertaken by organizations is the turnaround strategies. This study examined the effect of the turnaround strategies on performance of selected commercial banks in Kenya. A sample of four banks that had undertaken the turnaround strategies was used and primary data collected using questionnaires administered to the managers of the banks who are responsible for implementing the turnaround strategies. Secondary data was obtained from the banks’ existing bank publications and annual reports. The study established that the Commercial Banks have pursued different turnaround strategies that include marketing, financial, revenue generation, retrenchment, top management changes, technology advancement and diversification. The popular turnaround strategies were top management changes, technology advancement and retrenchment. The finding shows that indeed the turnaround strategies adopted by the banks has had a positive effect on the performance of the commercial banks. The researcher further recommends that Kenya Commercial banks undertaking turnaround strategies should not only concentrate on attracting new customers but also emphasize on developing extensive distribution channels to gain a competitive edge in the market.