STRATEGIC RESPONSES AND PERFORMANCE OF SAVING AND CREDIT CO-OPERATIVE SOCIETIES IN NAIROBI COUNTY, KENYA
Abstract
Business environment is characterized by constant changes from the external market forces. For organizations to become effective and hence successful, they should respond appropriately to changes that occur in their environments. Changes have implications which manifest in either opportunities or threats. Opportunities present an opening for improving the organizational performance. The objective of this study was to establish whether strategic responses affect performance of Savings and Credit Cooperative Societies in Kenya’s Nairobi County. The research covered SACCOs that were licensed by SASRA. The target population in this study was all the 38 SACCOs in Nairobi County licensed by SASRA which had total of (228) top managers. The research utilized questionnaires to collect data from the respondents. The study adopted descriptive research design because it gives a detailed description of events, situations and interactions between people and things with minimum bias. The data was analyzed through SPSS. The findings of this study would be useful to management and staff of SACCOs in Nairobi County by providing insights on how the organization can adapt and respond to turbulence in external environment. The organization would adopt strategies that would give it strategic advantage as compared to its competitors and or also change strategic responses which may not be effective. From the findings of this study, there existed a strong positive correlation between cost cutting and performance of SACCO, there was also a strong positive correlation between Market expansion and performance of SACCO. The correlation coefficients for the independent variables were statistically significant. It can therefore be concluded that the SACCOs in Nairobi county needed to consider cost cutting and market expansion for better business performance.
Key Words: Cost Cutting, Market Expansion, Performance, Savings and Credit Co-operative Societies
Full Text:
PDFReferences
Ansoff, H.I. (1957). Corporate strategy. Mcgraw-Hill: New York
Ansoff.H.I. &McDonnel.F. (1990).Implanting strategic Management, (2nd ed). New York: Prentice Hall
Burnes B; (2010), Managing Change, a Strategic Approach to Organizational Dynamics, 3rded. Prentice Hall
Charles W. H; and Dan S; (2013) Strategy Formulation: Analytical Concepts. McGraw Hill
Cool, Karel, Almeida Costa, Luis and Dierickx, Ingemar, “Constructing Competitive Advantage”, in Pettigrew, Andrew, Thomas,Howard and Whittington, Richard (Eds),Handbook of Strategy and Management, Sage publications, 2012.
Kiaritha, H, Gekara, M. &Mung’atu, J. (2014). Effect of operating costs on the financial Performance of SACCOs in the banking sector in Kenya, Prime Journal of Business Administration and Management, 4(2): 1359-1363.
Kinuthia, P.M. (2007). Management of loan default problems in SACCOs in Nairobi province.
Kumar, 2010: Research methodology: A step by step guide for beginners, Sage Publications, London.
KUSCCO website (www.kuscco.com)
Lynch R. (2008) Strategic Management 5th Edition, Financial Times/Prentice Hall, Harlow
Machuki, V.N.,&Aosa, E. (2011). The influence of external environment on the performance ofpublicly quoted companies in Kenya. Business Administration and Management Journal, 1(7), 205-218.
Mahmood, I. P. & Mitchell, W. (2014). Two faces: Effects of business groups on innovation in emerging economies. Management Science: 1348-1365
MBA Thesis, Jomo Kenyatta University of Agriculture and Technology, Juja, Kenya.
Michael E Porter, (1996) “What is Strategy?” Harvard Business Review, November-December: 61-78
Mintzberg, H. (191996). The Structuring of Firms. Englewood Cliffs, NJ: Prentice Hall.
Mugenda, O. M., & Mugenda, A. G. (2012). Research Methods: Quantitative and Qualitative approaches. Nairobi, Acts Press.
Ngechu M., (2014). Understandng the Research Process and Methods: An Introduction to Research Methods Nairobi, Acts Press.
Pearce J. A and Robinson R. B; (2012) Competitive Strategy; Irwin – McGraw Hill
Pearce J.A and Robinson R.B; (2005) Strategic Management; Strategy formulation, Implementation and control, Irwin, Homewood, Illinois
Pfeffer, J. & Barney (2013). Organizations and organization theory. Boston, MA: Pitman.
Porter, M. E (2013). Competitive advantage: Creating Superior Performance. New York free press.
Porter, M. E; (1998). The competitive advantage of nations, Free Press, New York
Porter, M.E. (1985). The Competitive Advantage of the Inner City, HarvardBusinessReview(May/June).
Rehema, M. (2013). Common issues affecting performance of Saccos in Malawi. Examiner Financial cooperatives. Reserve Bank of Malawi.
Schenk M (2012). Commercial Banks and Credit Unions: Facts, Fallacies, and Recent Trends, Credit Union National Association, available at: http://advice. cuna.org/
Wairimu, C. M. (2012). Strategic Responses of Barclays Bank Kenya Ltd to Challenges in the External Environment: (Unpublished MBA Project). School of Business, University of Nairobi.
Waweru M. M; (2011). Strategic responses by Mwalimu Sacco Society Limited to challenges of competition. Unpublished MBA Project. University of Nairobi
World Council of Credit Unions (WOCCU) (2014). Statistical report, World Council
DOI: http://dx.doi.org/10.61426/sjbcm.v4i3.503
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.
PAST ISSUES:
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.