Strategic Issue Management Practices of Savings and Credit Cooperative Societies in Mombasa County, Kenya

Abstract

This study focused on Strategic Issue Management (SIM) practices by Savings and Credit Co-operative Societies in Mombasa County in Kenya. Strategic Issue Management specializes in detecting surprise developments in the business environment through constant monitoring and surveillance; and execution of timely responses (Ansoff and McDonnell, 1990). The study was deemed necessary because the environments are full of surprises and instabilities the world over.  In fact, issue management has become established as a distinct business discipline, with proven capacity to add strategic value to organizations (Pearce & Robinsonl, 2005). Broadly speaking, issue management attempts to minimize surprises which accompany social and political change by serving as an early warning system for potential and environmental threats and attempts to promote more systematic and effective responses to particular issues by serving as a coordinating and integrating force within the corporation (David, 2005). Cooperatives in Kenya’s turbulent business environment have faced critical challenges such as: traditional products, leadership and governance issues, capital base requirement, taxation, Information and Communications Technology, regulation and supervision, developing competitive business models, demand for loans, non-remittance of fees by members, forgery, HIV/AIDS and outreach issues. These among others have forced cooperatives managers to pause, ponder and devise ways to strengthen their enterprises. Thus the central challenge for cooperatives is to find constructive ways to build and retain competitive advantages in the market place. This is only possible if they incorporate good governance practices in their institutions. Therefore, in a bid to enhance cooperative performance through strategic issue management practices, this research embarked on a quest that raised certain questions: How do cooperative societies rate strategic issue management practices? To what extend did the various strategic issue management practices apply to their cooperatives. The study findings revealed that many cooperatives in Mombasa County were practicing strategic issue management. It is evident that Strategic Issue Management is very significant to a cooperative’s future. This is in line with what Perrot (2008) found out when he posited that tracking, monitoring and managing priority issues is necessary for a firm’s survival during turbulence.

Keywords: Strategic Issue Management, Strengths Weaknesses Opportunities and Threats (SWOT), Management by Objectives (MBO), Euro quip matrix