STRATEGIC PLANNING PROCESS AND COMPETITIVE POSITIONING OF DEPOSIT TAKING SACCOS IN NAIROBI CITY COUNTY, KENYA

NAVODERA FRANCIS ADULU, KINYURU REUBEN NJUGUNA

Abstract


There exists a direct correlation between Strategic Planning process and competitive advantage. Whereas Strategic Planning process encompasses formulation of strategy, implementation as well as control of the key objectives undertaken by an organization's top leadership on behalf of shareholders, resource considerations resulting from a thorough interrogation of the external environment where the operations of organization existing is critical. The main objective of the study was to investigate how strategic planning process affects competitive positioning of deposit taking Sacco’s in Nairobi City County, Kenya.  The study variables include Strategy formulation, Strategy implementation, Strategy monitoring and evaluation and strategic control. This study was based on the resource-based view, the theory of industrial organization as well as the stake holder’s theory. The research design for this study was a descriptive research design. The unit of observation was the 42-deposit taking SACCOs in Nairobi City County, Kenya. The unit of analysis was management staff among the SACCOs who total to 320. Simple random sampling was used to select 30% of the population to make a sample size of 99 respondents. The researcher employed both qualitative and quantitative data analysis techniques. The study employed both descriptive and inferential statistics to analyse the collected data whose presentation shall be inform of charts, tables, percentages, frequencies and graphs. This study may help in appreciating the strategic planning process at deposit taking Sacco’s and their influence on competitive positioning. This may benefit players in the Sacco’s society of Kenya including policy makers in government who will immensely benefit from this study. The study found that strategy formulation influence competitive positioning of deposits taking Saccos in Nairobi City County, Kenya. The study also revealed that strategy implementation influence competitive positioning of deposit taking Saccos. The study also found that strategic control influence competitive positioning of deposit taking Saccos. The study concluded that strategy formulation is positively realted to competitive positioning at deposit taking Sacco’s. The study concluded that strategy implementation is positively realted to competitive positioning at deposit taking Sacco’s. The study concluded that strategy monitoring and evaluation is positively realted to competitive positioning at deposit taking Sacco’s. The study concluded that strategy control is positively realted to competitive positioning at deposit taking Sacco’s. The study recommends that Saccos should put in place strategies such as inclusion of stakeholders and conduct market research in the process of formulating strategies for the organizations.  The study also recommends that Saccos should inform employees about new strtaegies in the organzitaion prior implementtaion so that they can adjust and adapt.

Keyword: Strategy formulation,  Strategy implementation,  Strategy monitoring, strategic control, competitive positioning, strategic planning process


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