Thesis:

Strategic management practices and performance of KCB in Nairobi Kenya

Strategies drive organization performance with an aim of achieving its vision. Today’s business environment is rapidly changing and most organizations try to embrace flexible and process enhancement strategies to guarantee responsiveness of the firm concerning change. This study sought to examine the impact of strategic management practices on the performance of KCB. Specifically, it sought to evaluate the influence of strategy formulation, implementation, evaluation, and control on organizational performance. The total target population comprised of 139 employees including 27 senior management, 43 middle-level managers and 69 functional level managers working at the Bank’s Kencom Brach, Nairobi CBD. Due to the small nature of the target population, a census sampling technique was employed to ensure comprehensive data collection. Using a descriptive research design, data was collected from 121 respondents through structured questionnaires and analyzed using statistical techniques, including regression analysis. The study was guided by three theories which included Resource-Base View theory, stakeholder theory and game theory. Findings reveal that all four strategic management practices significantly influence KCB’s performance. Strategy formulation had the highest impact (β = 0.312), indicating that well-defined strategic planning enhances overall performance. Strategy implementation (β = 0.295) was also critical, highlighting the importance of resource allocation and communication in achieving organizational goals. Strategy evaluation (β = 0.278) and strategy control (β = 0.265) further contributed to performance by ensuring continuous monitoring and corrective actions. The model yielded an R² of 59.1%, confirming that strategic management practices explain a substantial portion of performance variation at KCB. The study concludes that effective strategic management is essential for sustained growth and competitiveness in the banking sector. It recommends that KCB enhance its strategic planning, implementation, and control measures to adapt to dynamic market conditions. These findings provide valuable insights for policymakers, banking executives, and researchers on optimizing strategic management for improved organizational performance.