Strategy Implementation And The Growth Of Saving And Credit Cooperative Societies In Tharaka Nithi County: A Case Of Trans Nation Sacco

ABSTRACT

Strategy implementation refers to choices and activities that translate a strategic thought to organizational actions where the organization moves from planning to execution of the plans to achieve its goals. Past researchers have attributed the recent growth in the SACCOs to the shift to effectiveness of strategy implementation. The Trans Nation SACCO has experienced growth in terms of profits, share capital, members, and loans uptake. The Trans Nation SACCO has been offering new products and services to its members, and seeking out new market segments but not much has been done to find out strategy implementation and growth of the SACCO. The successfulness strategy execution diminishes if devised strategies are not successfully put into action. Even with such developments, other SACCOs in the region are still opening and obtaining members. Regardless of the value of execution of a strategy, many studies have concentrated on formulation of strategy than on strategy implementation. The main objective of this study was to find out strategy implementation and growth of SACCOs in Tharaka Nithi County and it was conducted in the Trans-Nation. Specifically, the study sought to find out how product development strategies influence the growth of the Trans Nation SACCCO in Tharaka Nithi County, to find out the influence of direct sales strategy on the growth of the Trans Nation SACCO in Tharaka Nithi County, and to find out how the market development strategy influences the growth of the Trans-Nation SACCO in Tharaka Nithi County. The study was guided by the resource based theory, contingency theory, and Porter’s model of competitive advantage. The study used a case study design. This study targeted the six branches of the Trans Nation SACCO in Tharaka Nithi County and it used a census. The sample size was 66 employees of the Trans- Nation SACCO who were the managers and other employees excluding the security personnel and cleaners. Data analysis was done using SPSS and presented by use of tables, charts, and graphs. Findings revealed that the Trans Nation SACCO has implemented product development, market development, and direct sales strategies. The major strategies adopted included the introduction of new products and services and creation of awareness of product and services, development of different products and services designed for a particular market segment, electronic marketing, aggressive marketing, the use direct emails, brochures and leaflets, and marketing in public shows. Regression results revealed that the growth of the Trans Nation SACCO can be attributed to product development strategies, market development strategies, and direct sales strategy. The results showed a correlation value (R) of 0.694 which depicts that there is a good linear dependence of the Sacco growth and all the predictor variables (product development, market development, and direct sales strategies). An adjusted R-squared of 0.712 indicated that product development strategies, market development strategies and direct sales strategies explain 71.2 percent of the variations in the growth of Nation Sacco while 28.8 percent is attributed to other factors that were not included in the model. The study recommended that the Trans Nation SACCO should consider aggressive marketing to attract more members as well as make the market aware of their products and services. Advertising the SACCO products and services via the media will help the SACCO achieve its growth objective.