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Abstract:
Purpose: Strategic management is the continuing process of ensuring a competitively superior fit between the organization and its ever-varying environment. The managers have to continuously scan the environment looking for opportunities and threats they face. Commercial banks in Kenya face trials due to the dynamism of the environment in which they function. The general objective of this study was to scrutinize the effects of strategic planning practices on performance of commercial banks, a case of Co-operative Bank of Kenya.
Methodology: The study adapted used a descriptive research design. The target population of this study was the 220 management staff working in the bank's headquarters which was the top, middle and lower level management staffs who are directly dealing with the day to day running of the bank since they are the ones conversant with the subject matter of the study. Stratified proportionate random sampling technique was used to select the sample. Primary data used was both quantitative and qualitative. Data analysis was done with the use of SPSS which produced both descriptive and inferential statistics.
Results: Findings of the study concluded that the independent variable that is strategy formulation, strategy implementation, strategy evaluation and strategy control are the strategic planning practices influencing performance of commercial banks in Kenya. In positions of magnitude, the results indicated that Strategy formulation have the uppermost influence on Performance of commercial banks in Kenya followed by Strategy implementation, Strategy evaluation then Strategy control had the minimum influence on Performance of commercial banks in Kenya. All the variables were substantial as their P-values were less than 0.05.
Unique Contribution to Theory, Practice and Policy: The study recommended that most senior managers should seek more input from the lower-level managers and supervisors in strategy formulation, strategy implementation, strategy evaluation, and strategy control so that the framed plans are real and in line with both short and long term objectives of the organization.
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