Abstract

Oluwatoyin Fayose Babalola

This study sought to examine the relationship of strategic management practices and firm performance in Postbank. The study was guided by the following specific objectives: (i) to determine the competitive strategies adopted by Postbank; and (ii) to establish the relationship between the competitive strategies used by Postbank and its performance. A review of the relevant literature was undertaken in order to eliminate duplication of what has been done and provide a clear understanding of existing knowledge base in the problem area. The literature review is based on authoritative, recent, and original sources such as journals, books, thesis and dissertations. A case study design was used to undertake the study. The population comprised Postbank top revenue drivers, namely operations and marketing/customer service departments, which are divided into regions covering the whole country. A semi-structured questionnaire was used to collect primary data from the respondents. Statistical Package for Social Sciences (SPSS), version 19.0 was used as an aid in the analysis. Data pertaining to the profile of respondents were analyzed by employing content analysis while determining the link between the competitive strategies and organizational performance; the strategy related items were subjected to a factor analysis to test whether the strategic practices were naturally grouped into the various competitive strategies. The findings show that the strategies adopted by Postbank so as to cope with the competitive environment include vigorous pursuit of cost reductions, providing outstanding customer service, improving operational efficiency, controlling quality of products/services, intense supervision of frontline personnel, developing brand or company name identification, targeting a specific market niche or segment, and providing specialty products/services. The findings also show a significant relationship between the strategies adopted by Postbank in Kenya and their respective performances with respect to the following objective performance indicators: total revenue growth, total asset growth, net income growth, market share growth and overall performance or growth.