Strategic Management Practices And Performance Of Islamic Banks In Kenya: A Case Study Of Gulf African Bank
Strategic management is a level of managerial activity under setting goals and over tactics. Strategic management provides overall direction to the enterprise and is closely related to the field of organization studies. In the field of business administration it is useful to talk about "strategic alignment" between the organization and its environment or "strategic consistency". There is strategic consistency when the actions of an organization are consistent with the expectations of management, and these in turn are with the market and the context. This study adapted a case study design that aims at exploring strategic management practices on the performance on the performance of Islamic Banks in Kenya with reference to Gulf African Bank. The research was qualitative in nature and relies on primary data obtained from the targeted staffs that work in Gulf African Bank who are mainly involved in the formulation and implementation of strategies. The data was obtained from the six management team members belonging to different departments; who will include the CEO, Head of cooperate, Head of finance, Head of Credit and director business. The study used content analysis for data presentation. The study finds that an organization’s strategy must be appropriate for its resources, circumstances and objectives. The process involved matching the companies' strategic advantages to the business environment the organization faces. One objective of an overall corporate strategy is to put the organization into a position to carry out its mission effectively and efficiently. In conclusion, it is evident although Islamic banks do not distribute returns to current account owners, the servicing of these accounts, despite their cost, not only increases the rate of profit, because the deposits are not subject to distribution as they are guaranteed, but these demand deposits also increase the multiplier of assets/equity rate which is reflected in the form even a greater increase in the rate of profit. It is recommended that organizations should employ strategic planning as a way of moving towards their desired future state. It is also recommended an organization’s strategy must be appropriate for its resources, circumstances and objectives. The process involved matching the companies' strategic advantages to the business environment the organization faces.