The effect of strategic management practices on performance of Savings and Loans Companies in Kumasi

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This research sought to examine the importance of strategic management to organizational development. The population of the study comprised all management and staff of 20 selected savings and loan companies operating in the Ashanti region. A total of 100 management and staff of 20 savings and loan companies were selected for the study. Purposive sampling was employed to select the respondents in this study. The study utilized both quantitative and qualitative approaches. Data was collected through questionnaires. SPSS was used to analyze data. Findings showed that most savings and loans companies try to manage strategically by aligning Initiatives with Strategy, engaging staff fully in strategy implementation, keeping staff fully informed about corporate strategic direction, monitoring strategy and implementation in order to adapt it where necessary to meet the challenges and realities of the times and structuring the organization to be effective in its strategy implementation. The study also showed that all the strategic management practices had significant positive effects on sales growth. Furthermore, the study showed that the most ensnaring pitfall of strategic management is the inability of organizations to translate strategy into a corporate purpose. This was followed by short term planning, failure to create accountability for results, inability to foster belief in the strategy, ignoring external trends, overconfidence based on existing success and failure to respond to structural changes in the market. Finally, the study showed that strategic management practices have direct positive relationship with corporate performance (as depicted with sales growth). Based on the findings, the study recommended that managements of savings and loans companies factor into their strategic management decisions, the marketing environment and the prevailing macro conditions in order to come out with an effective strategic plan that would have positive impact on corporate performance.
A thesis submitted to the School of Business, Kwame Nkrumah University of Science and Technology, in partial fulfillment of the requirements for the award of a Masters Degree in Business Administration, 2015