Abstract: The performance of state corporations is of most importance given that these state corporations are used by the government in the realization of its service delivery to its citizens. As a result, the state corporations need well defines strategies to ensure stability in their performance. However, strategy implementation has faced a number of challenges which can only be countered when the full benefit of strategy is appreciated. It is on this background that the study sought to establish the relationship between strategy and financial performance of state corporations with special emphasis on Postbank. The objective of the study was thus to determine the effect of strategy on performance of Postbank. This was achieved by meeting the specific objectives of the study which were to determine the effects of Strategic planning, implementation of strategy and monitoring and evaluation of strategy on financial performance of Post Bank. The study adopted a survey research design. The study therefore targeted the managers since they are involved in strategic decision making. However, for manageability, the study concentrated on the 13 Post Bank branches within coast thus having a population of 33 managers spread among the branch managers, credit managers, operation managers and the regional manager. Since this number is manageable, the study adopted a census approach. The study collected primary and data from the respondents through structured and semi structure questionnaires. The study used emailing for data collection method. The collected data was sorted and tested for consistency and reliability before being subjected to descriptive analysis of mean and standard deviation and a content analysis on percentile followed by a regression analysis the study found high correlation between strategy monitoring and control and performance as opposed to strategy planning and implementation. It however found that state corporations concentrate more on strategy planning and implementation leading to low performance. The study therefore recommended for the state corporation to put more effort on strategy control and monitoring. The study also recommends that management of Postbank should put more energy on control of the strategic plan and monitoring the implementation of the strategic plan in order to enhance performance. Core values and other strategic responsibilities should apply to all levels of the organization to promote the banks image and improve its financial performance.
Keywords: FINANCIAL PERFORMANCE, organization to promote the banks image.
Title: Effects of Strategic Management on the Financial Performance of State Corporations in Kenya, A Case of Postbank Kenya
Author: BEATRICE W. MURIITHI
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
Research Publish Journals
