Business Growth Strategies and Organization Performance in Chase Bank Limited

Abstract

Growth strategy denotes actions or patterns of actions intended for the attainment of goals. The most widely pursued growth strategies in banks are those designed to achieve growth in sales, assets and profits banks that do business in competitive sector in which they must grow to survive. There are very few local studies carried out in Kenya concentrated on strategic responses in commercial banks. However, there has been no study done on specifically growth strategy and organization performance in Chase bank, thus informing the need to fill the gap by investigating these strategies. The main objective of the study was to identify the growth strategies of Chase Bank Limited and to establish how the growth strategies influence performance of chase Bank Limited. This research was designed into a case study. Primary data was collected via personal interview with an interview guide. The data was qualitative in nature and was analyzed using content analysis. The study established that Chase Bank Limited has adopted various growth strategies to enhance the banks performance. The strategies used to enhance competitive advantage include taking excessive risks, increasing their reliance on non-interest sources of revenue, increasing operational efficiency, altering the risk level of asset portfolios, the adoption of new technologies, diversification of product to cater for diverse needs of its customers; pricing rationalization/discounting to enhance organization performance by influencing consumer perceptions of the advertised offers, market expansions by providing accounts that target specific market segments and promotion to persuade and influence the consumer’s purchase decision. The study recommend that Kenyan Bank can enhance growth by implementing significant organizational change including policies and rules, organizational structure, workplace practices, and organizational culture; banks can enhance product innovation by investing more in research and design; and pricing rationalization strategies can be enhanced by always ensuring that the reduction falls within the price reduction that consumers would expect to be normally discounted for sale