The changes in business environment brought about by globalization and liberalization has increased competition in the banking sector reducing market shares of most banks. Customers have become increasingly aware and demanding and the successful survival by any single bank depends on producing, packaging and delivering products and services which offer superior value than competitors' products. Creating and maintaining a competitive edge over rival firms requires embracing strategic management practices. Consequently, the Co - operative Bank of Kenya Limited has adopted strategic planning aimed at assisting the Bank to maintain its competitive position in the financial market.

Co - operative Bank of Kenya Limited was formed in 1965 by the Co- operative movement to serve the unique financial needs of the sector and it has remained to this founding principal of providing financial services to the Co - operative movement (Olali, 2006). The Annual Report and Financial statement (2006), states the facts that the Bank has a share capital of Kshs 4.8 billion, total assets of over Kshs 58 billion, customer deposits of Kshs 48 billion. It is the fourth largest Bank in Kenya and is the largest issuer of debit cards. Today Co - operatives continue to be the core clientele for the Bank and account for over 70% of the business turnover. It is the only indigenous private Bank fully owned by Kenyan shareholders. The Bank directors are elected through the delegates of the Co- operative movement and they represent all the eight provinces of Kenya (Olati, 2006). The Bank currently has a total employee establishment of over 1400. With liberalization of the economy and globalization of the businesses, the Bank embraced the new challenges by becoming a fully - fledged Bank in 1994. The change of Chief Executive Officer and the management at Co -operative bank in early 2001 ushered a new era where new ideas are adopted and managers reclaiming managerial responsibilities. The main objective then was to come up with innovative business strategies that would ensure the Bank served its core customers, the Co - operative Societies and non Co - operative customers effectively.

The Bank embarked on reviewing its five year corporate strategic plan which builds on the existing strengths of the bank specifically addressing growth and development, information technology and business management, enhanced service delivery, profitability and capital growth. The strategic plan for the Bank has been drawn up with the theme 'Managing for Value'. The strategies are based on four perspectives: First, People; Secondly, Customers; thirdly, Financial performance and Risk; and finally, Control. The goal of the plan is to ensure that the Bank meets the shareholders' expectations, provides the Bank with a common language and clearly understood objectives, guarantee satisfaction to its chosen customer segments and business partners. A focus on these four perspectives would result in customer satisfaction, efficient and effective processes, and motivated and prepared staff.

Questions

Using the above case study answer the following 

2. Identify and discuss internal and external variables that affects cooperative banks performance 8 marks
4. Carry out a SWOT analysis for cooperative bank 6 marks
6. Discuss the importance of strategic planning (your answer should be in reference to the case) 6 marks