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Strategic Responses of Banks Treasury Departments Towards a Competitive Environment and Its Effect on Profitability: A Case Study of Bank of Africa

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dc.contributor.author Muchangi, Jackline
dc.date.accessioned 2015-05-15T14:47:36Z
dc.date.available 2015-05-15T14:47:36Z
dc.date.issued 2014-08
dc.identifier.uri http://erepo.usiu.ac.ke/11732/187
dc.description A Research Project Submitted to the Chandaria School Of Business In Partial Fulfillment of the Requirement For The Degree Masters Of Business Administration (MBA) en_US
dc.description.abstract The purpose of this study was to determine the effect of strategic responses of banks treasury departments on the profitability in Bank of Africa. The following research questions were used to guide the study: i) What is the effect of Employee empowerment strategy on the profitability of Bank of Africa? ii) To what extent does customer relationship management strategy affect the profitability of Bank of Africa? Iii) What is the effect of Information Technology Deployment strategy on the profitability of Bank of Africa? The research was carried out through descriptive survey design. The population of the study was 1040 employees of the Bank of Africa. A sample size of 81 respondents was selected through convenience sampling. The study used primary data specifically the study used a questionnaire as the preferred data collection tool. The questionnaire had close ended questions only. This study used the quantitative method of data analysis. Quantitative methods of data analysis included inferential and descriptive statistics. The rationale for using quantitative methods for data analysis was because some of the data results required quantitative interpretation. The researcher used descriptive and inferential statistics in this study. For instance, descriptive statistics include frequencies and measures of tendency mainly mean, mode and median. Inferential statistics include correlation analysis. The tool for data analysis was Statistical Package for Social Sciences (SPSS) version 20 program. The results were presented using tables and pie charts to give a clear picture of the research findings. One of the study objectives was to determine the effect of employee empowerment strategy on the profitability of Bank of Africa. Results indicated that majority of the respondents agreed with the statements that every new employee receives induction training, learning about the duties of the job was included in the induction training, on the job training was important and effective in improving employee performance, employees were satisfied with the compensation package offered in the bank, employees’ are satisfied on reward motivation granted by the bank and employees’ are satisfied on working environment and opportunities offered in the bank. The second objective of the study was to determine to what extent customer relationship management strategy affects the profitability of Bank of Africa. The study findings indicated that majority of the respondents agreed with the statements that CRM strategy enables the banks to analyze the customer profiles, CRM strategy helps banks to identifying the banks most profitable customer and prospects, CRM enables the bank to provide better customer service to their clients, CRM enables the bank make call centers more efficient, CRM enables the bank and help sales staffs close deal faster, CRM enables the bank discover new customers, and increase customer’s revenues and CRM strategy enables the banks to analyze the customer profiles The third objective of the study was to determine to what extent information technology deployment strategy affects the profitability of Bank of Africa. Results indicated that majority of the respondents agreed with the statements that the bank has invested heavily in an ATM network, the bank has invested heavily in internet banking, the core banks management information system was compatible with other systems, the management information system was flexible enough to supports the growth of the bank, the management information system of the bank has been crucial in assisting employees to enhance their performance and productivity, the bank has invested in a management information system which is easy to use and the bank has invested in a management information system which has enabled the minimization of administrative costs. It was possible to conclude that employee empowerment was highly emphasized in the banks. Results led to a conclusion that all employees received induction training and all the learning was incorporated on the job training. Results revealed that employees’ are satisfied on recruitment selection systems, compensation package, job security, career growth, reward motivation and working environment Results led to the conclusion that CRM strategy enables the banks to analyze the customer profiles. It was inferred that CRM strategy helps banks to identifying the banks most profitable customer and prospects and that CRM enables the bank to provide better customer service. It was concluded that the bank has invested in a management information system which was easy to use and that the bank has invested in a management information system which has enabled the minimization of administrative costs. Results led to the conclusion that the core banks management information system was compatible with other systems and that the management information system was flexible enough to supports the growth of the bank. In line with study results, it is recommended that employee empowerment be emphasized in the banks as it has an effect on the overall achievement of bank’s profitability. Therefore the management is urged to encourage sharing of potentially sensitive information on costs, quality, and productivity on financial performance with other employees. The study recommends that banks should emphasize customer relationship by investing in a customer relationship management system. Specifically, banks should invest in a robust Information technology system as this can certainly help companies to create satisfied and loyal customers. It is recommended that investment in Information technology be emphasized in the banks as it has an effect on the overall achievement of competitive advantage. Therefore the organization is urged to invest in innovative and technology based products such as ATMs, Mobile banking, Internet banking and agency banking. In addition, banks should invest in management information systems which are easy to use and which facilitate minimization of administration and operational costs. en_US
dc.publisher United States International University - Africa en_US
dc.subject Competitive Advantage en_US
dc.title Strategic Responses of Banks Treasury Departments Towards a Competitive Environment and Its Effect on Profitability: A Case Study of Bank of Africa en_US
dc.type Thesis en_US


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