Strategic Choice and Organizational Performance of Banks in Delta State

Abstract

This study ascertained the interplay between strategic choice and organizational performance of banks in Delta State. The study adopted a correlational survey research design. The population of this study consists of customers of the twenty (20) banks operating in Delta State. A structured questionnaire distributed to 250 respondents sampled from the target population using the Cochran formula was employed to gather data for the study. Pearson Product Moment Correlation Coefficient (PPMCC) was employed to ascertain the relationship between the variables. The findings revealed a significant positive relationship between the predictor variables (cost leadership and differentiation strategy) and organizational performance. The study thus concludes that there is a significant association between strategic choice (cost leadership and differentiation strategy) and organizational performance. Based on the conclusion, the study recommends that; Banks should adopt a cost leadership strategy considering its impact on financial and marketing performance. Banks should be agile in sensing customers' evolving service tastes and preferences and regularly differentiate their service offerings from competing banks to gain a competitive advantage.