Strategic responses by banque populaire du Rwanda to challenges in the external environment
Business, now-a-days is vitally affected by the economic, social, legal, technological and political factors. These factors collectively form business environment. Business environment, as such, is the total of all external forces, which affect the organization and operations of business. The environment of an organization has got internal and external environment. Managers must be aware of these environmental levels and their relationship and importance to the bank. 1 o counter this, good strategic responses is very important. Strategic management asserts to match the ever scarce organization resources to the ever changing environment factors to have a strategic fit. The purpose of the study was to establish he strategic responses by Banque Populaire du Rwanda to challenges in the external environment. The objectives of the study were to establish the strategic responses that BPR has adopted to changes in the environment and factors influencing BPR’s responses to external environmental changes. The researcher used case study as research design, it was preferred because it is concerned with answering questions such as how much, what, which and who. Thus answering phenomenon in its current state, a case study was carefully designed to ensure complete description of the situation, making sure that there is a minimum bias in collecting of data and reduce errors in interpreting the data collected. The interviewer was the top management of BPR. The researcher found that macro environment affects strategy responses of the bank. I lie respondents stated that political infl jence, technological advancement, economical factors which included interest rates and the global crisis affected strategy’s responses of BPR. The researcher further found out that legal factor affects the bank policies; they stated that legal factors included flexibility and adaptability of law and other legal rules governing the business. The respondents felt that the taxation by the Rwandan government was very high specifically the value added tax which lead to change of strategy. The bank (BPR) uses intensive and organization re-structuring strategy to counter the ever changing macro environment factors. It was recommended that all employees be involved in putting in action strategies of BPR in order to respond to the external environment. Organization should ensure that full steps of strategies are undertaken and every person department should play apart to put them in action. In this study, we review the factors that enable or impede effective strategy’s responses of BPR. We highlight how strategies have been researched so far and what kind of responses has been undertaken by the bank. As a result of our literature analysis, we found crucial factors which influenced strategy’s responses of BPR such as economical, political, social and technological factors. Thus more research should be sought to establish factors affecting strategic responses to the internal environment.
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