Strategic Responses to Changes in the External Environment by Mwalimu National Co-operative Savings and Credit Society Limited in Kenya

Abstract

This study sought to establish strategic responses to changes in the external environment by Mwalimu National Co-operative Savings & Credit Society Limited in Kenya. The researcher was driven to undertake the study to find out how the Sacco has survived in a fast changing environment due to decline in loan demand and declined share capital. The research used a case study design. Primary data was collected by use of interview guide while secondary data was collected from the Sacco’s financial statements and official memos. The data collected was then analyzed using content analysis which enabled the researcher to categorise the phrases and statements from respondents to describe the logical structure and pattern of expression which helped to ascertain an association to the statement or phrases. The study found out that major changes in the external environment facing the Sacco were competition in a liberalized economy and introduction of e-commerce, limited amount of credit a member could qualify for hence members sought for alternative financing source to get more credit and the mushrooming of other teachers saccos in the counties with the intention of ‘being associated’ with Mwalimu National Sacco. The study found in dealing with these challenges the sacco should; review the loaning condition, buy off members’ loans with other commercial financial institutions, establish a marketing department and advertise in the vernacular radio stations.