Global Journal of Management and Business Research, A: Administration and Management, Volume 23 Issue 1

The Effect of Strategic Management Practices on Customer Satisfaction and Loyalty in Selected Hotels in Kumasi Charles Akomea Bonsu α , Eric Edwin Owusu σ , Adwoa Benewaa Brefo Manuh ρ & Emelda Antwi Ѡ Author α σ: Department of Entrepreneurship and Finance, Kumasi Technical University. e-mail: Charles.abonsu@kstu.edu.gh Author ρ: Department of Management Studies. Author Ѡ: Valley View University, Kumasi Campus. Abstract- Strategic management helps in making decisions about future opportunities and threats faced by the small and medium-sized enterprises. The main purpose of this study was to assess the effect of strategic management practices on the satisfaction and loyalty of customers of Hotels in Kumasi. Three objectives and accompanying research questions defined the scope of the study. The study adopted primary data which was solicited from two hundred respondents who were purposively sampled from selected hotels in Kumasi with a structured questionnaire on a five-point Likert Scale. Data collected were analyzed quantitatively using both descriptive and inferential statistics with SPSS version 21. Ordinary Least Squared (OLS) regression was adopted for the regression analysis. The study found out a positive effect on customer satisfaction hotels in Kumasi. Strategic Management Practices (SMP) suffused a coefficient of 0.046 in the regression model with a p-value of 0.0014 at 5% level of significance. Also, the study established a positive and significant relationship strategic management practices and customers loyalty of Hotels in Kumasi. The study recommends that hotels develop an organizational culture that reflects their business model since organizational culture will dictate how things should be run in the company and how individuals should act towards one another and clients in fulfilling the vision of the organization. Keywords: strategic management, customer satisfaction, loyalty. I. I ntroduction trategic management is the process of formulation, implementation and the evaluation of strategic actions which will enable a business entity to achieve its objectives (Garg & Goyal, 2012). It is also a set of managerial decisions and actions which determine the long run performance of a corporation which includes strategy formulation, implementation and control of managerial decisions intended to help the company achieves its set targets. Strategic management helps in making decisions about future opportunities and threats faced by the small and medium-sized enterprises (Rubio & Aragón, 2009). It stipulates the development of appropriate endeavors that are intended to serve as powerful motivators of individuals and enhances communication, coordination as well as participation in the firm. Sahoo and Yadav (2017) asserted that strategic management is basically about setting the underpinning aim of the company, selecting the most appropriate goals towards those aims and fulfilling them with time. Strategic management process encompasses the development of a strategic mission, setting of objectives, developing a strategy, situation analysis, and finally the actual strategy implementation and a continuous evaluation process to keep track of the performance (Bahr, Pier & Sakka, 2017). The process is both dynamic in nature and continuous where an alteration in a single component may result in a complete change of the whole strategy. II. P roblem S tatement Strategic management increases the efficiency and effectiveness of firms by improving both current and future operations, it provides a framework for management’s vision of the future. Strategic management and customer satisfaction cannot be separated especially in for-profit organizations. Meanwhile most firms especially the small and medium enterprises place less emphasis when it comes to making an effective strategy for improved performance (Dauda, Akingbade, & Akinlabi, 2010). The strategic planning process is used by management to establish objectives, set goals, and schedule activities for achieving those goals and includes a method for measuring progress. Various studies have been carried out across the globe on the impact of strategic management practices and its impact on the organizational performance and success. For instance, Dauda et al. (2010) carried out a study on strategic management practice and corporate performance in Lagos Metropolis; Agwu (2018) conducted a study to analyze the impact of strategic management on the business performance and established that strategic management had a positive relationship with business performance. Gweh (2018) also conducted a study on the effect of strategic management on the growth of the firm but none of these studies has investigated the effects of strategic management practices on customer satisfaction and loyalty of hotels in Kumasi. This study is S 75 Global Journal of Management and Business Research Volume XXIII Issue I Version I Year 2023 ( ) A © 2023 Global Journals