Factors affecting Strategic plan process and its practices in private micro finance institution In a Case of Busa Gonofa S.C

Abstract

Strategic plan is one of the management tools which are used widely by different organizations to define the future direction of their organizations. The strategic planning process requires that an organization defines the strategies that will best fit their resources and capabilities to the external and internal demands of the environment. The objective of this study is to examine the practices and process of using strategic plan and what factors affect it in Micro Finance Institution. The study was descriptive research design will be adopted in this study and it was carried out based on the information from the secondary and primary data sources which was administrated using questionnaire, interview and observation. The Target population of the study was from a total of 620 employees of the organization 114 was accessed population and targeted four major micro finance selected branch including head office who account for 22.6% of the total Institution in Busa Gonofa with wide experience of workers. The study managed to obtain responses for 20 out of total employee in each branch from the four major Micro finance Institution which was totally an 80% response rate. The data was organized using description and the results are presented in table. The analysis was done by descriptive and regression analysis method and finally it was found out that MFI, these days, have good understanding about the benefits of strategic planning thus using it as an important tool that must be applied in their organization. Due to their peculiar organizational purpose which focuses on meeting social objectives, the challenges for practice and processes their strategic plan are diverse, especially internal factors like lack of finance, commitment, structure and external factors like environmental scanning, and lack of technology. The study recommended that though most things in the process phase of the strategic planning seems right, but it need more improvement in practice part, according to this study different uncontrollable factors are here and it need to incorporated work and managers identified and amend each factors interns of their evaluation. Strategic plan should not be for shelf, it has to be practice and changing to do work.