Effects of Strategic Decisions on Performance of Commercial Banks in Kenya: A Case of KCB Group Limited

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dc.contributor.author Waweru, Lina
dc.date.accessioned 2018-11-08T08:25:43Z
dc.date.available 2018-11-08T08:25:43Z
dc.date.issued 2018
dc.identifier.uri http://erepo.usiu.ac.ke/11732/4092
dc.description A Research Project Report Submitted to the School of Business in Partial Fulfillment of the Requirements for the Degree of Masters in Business Administration (MBA) en_US
dc.description.abstract The aim of the study was to find out the effect of strategic decisions on performance of commercial banks in Kenya with key focus on Kenya Commercial Bank Limited. The research questions addressed in this study included: what are the effects of strategic pricing on performance of KCB Group Limited? What are the effects of strategic human resource management on the performance of Kenya Commercial Bank? What are the effects the use of strategic information technology on KCBs performance? The descriptive research design was applied by use of a survey that was conducted at Kenya Commercial Bank Head Office using a questionnaire. The purpose of the survey was to find out the answers to the aforementioned research questions. Samples of 48 respondents were used to undertake the survey with structured questionnaires issued to the given sample. The sample of 48 respondents was arrived at by application of the stratified random sampling technique. The data was entered into the Statistical Package for Social Sciences software (SPSS) tool to generate correlated figures along with corresponding percentages and frequencies. The data was then presented by use of tables and figures. The study investigated the effect of strategic pricing on performance of Kenya Commercial Bank Group Limited. It was established from the study that indeed there are effects of strategic pricing on performance of KCB Group Limited. The findings were that strategic pricing enhances market penetration of KCB Group products, increases the market share of the bank, increases the brand image associated with market share superiority and enhances competitiveness of the bank’s products. The research found that there is a correlation between the strategic pricing of KCB Group Limited and the enhanced performance indicators that build the profitability aspect of the bank. As such, it is in order to conclude that the strategic pricing strategies applied by KCB Group have an effect on its performance. It was recommended that KCB Group should uphold the implementation of strategic pricing decisions to keep abreast with enhanced performance especially with the market share, product penetration and superiority of brand image. Further, the study sought to establish the effects of strategic human resource management decisions on the performance of KCB Group Limited. It was established that there is an effect of strategic decisions regarding human resource management which directly impact on key performance indicators at KCB Group. The study established that Business Continuity Planning strategies on the human resource of the bank had an effect on consistency of performance and its autonomy. Further, strategic human resource decisions were found to enhance teamwork and technical abilities through staff training, staff motivation that ensures drive for performance and strategic staffing that is key in objectivity of assigned roles, a key factor in shaping the focus of operational performance. The research found that indeed there is a relation between strategic human resource management and the performance of KCB Group Limited. It thus can be termed that at KCB Group Limited, strategies on human resource management affect performance of the bank. Hence, it was recommended that the implementation of strategic human resource management should be upheld by KCB Group Limited. In addition to upholding the existing strategic human resource decisions, it was recommended that KCB undertake further staff training to strengthen that specific performance indicator that is key in enhancing performance of staff. In its finality, the research investigated the effects of application of strategic information technology on the performance of KCB Group Limited. The study found out that there is the effect of strategic information technology on performance of KCB Group and the same was established as follows: strategic information technology was found to earn KCB Group a competitive edge due to efficiency that in turn grows customer confidence and improves market share which is a key performance indicator; enhanced efficiency of service for the banking staff and clients, an aspect which enhances the performance of the bank in terms of turnaround time, market penetration, brand capacity as well as customer confidence and that entirely, the bank’s brand image was found to be enhanced as a result of strategic decision making on information technology. It was found out that as a result of strategic application of information technology, the brand has become more reputable, brand growth has brought about increase in financial performance, earning customer loyalty and create a brand reputation in an honest and reliable manner that boosts market penetration. The research found a relationship between strategic information technology and the bank performance, thus strategic information technology and accrued decisions affect performance of KCB Bank Limited. It was recommended that the bank adopts more information technology strategic decisions in an informed manner to avoid undertaking strategies that may be costly yet less productive. It was further recommended that KCB Group uphold the current strategies on Information Technology as they place the bank competitively in the market. en_US
dc.language.iso en en_US
dc.publisher United States International University - Africa en_US
dc.subject Strategic Decisions en_US
dc.subject Performance of Commercial Banks en_US
dc.subject Kenya en_US
dc.subject KCB Group Limited en_US
dc.title Effects of Strategic Decisions on Performance of Commercial Banks in Kenya: A Case of KCB Group Limited en_US
dc.type Thesis en_US

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