The Role of Strategic Planning Practices on the Performance of Mfi’s: A Case Study of Faulu Kenya
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Date
2013-06
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Daystar University, School of Business and Economics
Abstract
Faulu Kenya is a deposit taking micro-finance Company, registered in Kenya under the Micro – Finance Act which is regulated by Central Bank of Kenya. Micro-finance involves the provisions of financial services to the low-income households and micro and small enterprises (MSEs) provide an enormous potential to support the economic activities of the poor and thus contribute to poverty alleviation. The purpose of this study therefore, is to find out the role of Strategic Planning practices on the performance of MFI’s (a case study on Faulu Kenya). The objectives include: to identify the strategic planning practices that Faulu Kenya has adopted, to identify the role of strategic planning practices on organizational performance and to identify the major challenges faced in adopting various strategic planning practices.
This study used descriptive research design and purposive sampling method. The information for this study was gathered through the questionnaires. The researcher employed descriptive methods of data analysis (pie charts). These methods were used to show the distribution of responses in terms of frequency and percentage. The other method of data analysis was the statistical package of social analysis. This method was used to code and analyze the questionnaires to give information in form of frequency distribution tables and pie charts.
The study revealed that Strategic planning practice plays an important role to MFI’s such as Faulu Kenya. The study also revealed that there is a significant relationship between strategic planning and performance. Thirdly, Strategic planning practices contributes
significantly to the achievement of sustainable competitive advantage, superior performance and customer satisfaction. Strategic planning is also greatly affected by bureaucracy, lack of funds and lack of involving appropriate people posing a major challenge in effective implementation of plans. In this regard, there was need for Faulu Kenya to incorporate Strategic Planning practices as a key part of the strategic components of the business in order to enjoy the maximum contribution to the MFI’s performance.
Description
MASTER OF BUSINESS ADMINISTRATION
in Strategic Management
Keywords
Faulu Kenya, micro-finance Company, Micro – Finance Act, micro and small enterprises (MSEs), low-income households