Strategic Management Practices and Organizational Financial Performance: A Case Study of Posta Uganda

Abstract

The study focused on strategic management practices and their effect on financial performance of Posta Uganda covering a period of four years from 2020 through 2023. It was guided by (i) to determine the influence of strategy formulation on the financial performance of Posta Uganda; (ii) to examine the influence of strategy implementation on the financial performance of Posta Uganda, and, (iii) to investigate the influence of strategy evaluation on the financial performance of Posta Uganda. The researcher applied a cross-sectional design adopting both qualitative and quantitative approaches. The study involved 114 participants. The researcher used both simple random sampling and purposive sampling to select the respondents and key informants. The researcher used the interview guide, questionnaire, and document review checklist. Overall, strategic management practices (strategy formulation, implementation and evaluation) had a positive and significant influence on the financial performance of Posta Uganda with R Square scores—.329, .304, and .295 respectively which were significant at P-v<0.05=0.000. Also, it was revealed that strategy formulation, implementation, and evaluation contributed 32.9%, 30.4%, and 29.5 variation in the change experienced in the financial performance of Posta Uganda. Therefore, the study concludes that Posta Uganda's financial performance is greatly improved by strategy formulation, implementation, and evaluation. It was recommended that Posta Uganda should regularly match departmental goals with its overarching corporate strategy by holding quarterly reviews, monitoring progress, and closing performance gaps. Posta Uganda should create cross-functional task teams and hold frequent feedback sessions to aggressively encourage staff involvement and cooperation in plan execution. Furthermore, Posta Uganda should precisely identify its objectives and make sure they are conveyed throughout the company in order to foster strategic clarity and unity.