Strategic planning and competitive advantage at family bank limited

Abstract

The strategic planning process involves the formulation of strategies that commit An organization to a specific strategic path into the future. The objective of the Study was to determine the influence of strategic planning on competitive Advantage at family bank limited. This study was guided by four theories that Include resource based view theory, stakeholder approach theory, porters five Forces and dynamic theory. This study was a case study since the focus is in one Organization, in particular family bank limited. Data gathered from the research Was qualitative in nature. Interview guide was utilized. The interview guide was Made up of open-ended questions and was administered to the respondents by Face to face interviews. Content analysis was used to synthesize the responses Collected from the interviewees so as to bring out common themes from the Various responses. The study found that the strategic planning practices adopted By family bank kenya included objective setting, formulation of a strategic plan, Participatory decision making, reward and recognition, training and development And employee participation. The findings further concluded that formality, Management participation, employee participation and the adoption of strategic Planning tools and techniques as adopted by family bank kenya in its strategic Planning process had a positive impact on organizational competitive advantage. It was concluded that the most commonly applied strategic planning practices at Family bank included setting strategic formulation (targets), core competencies, Training and development programs, organisational culture and code of ethics. Strategic planning practices were found to contributed effectively towards Building and strengthen the relationship between employees by sharing common Goals and shared values in working towards the same goals. The study Recommends that family bank kenya should continue practicing formal strategic Planning for enhanced effectiveness and efficiency as well as improved Organizational competitive advantage. Family bank should pool more funds and Resources to invest in banking technologies and innovation so as to improve Employees’ efficiency and minimize operational costs. Family bank should Sponsor its staff to a continuing training and development program in order to Expose the employees to specialized skills and knowledge. Top management Should provide adequate support to their staff in form of resources and facilities.