Effects of Environmental Dynamics on Organizational Competitive Strategies: a Study of Guaranty Trust Bank

This study addressed the effects of environmental dynamics on the development and implementation of competitive strategies within the commercial banking sector focusing on Guaranty Trust Bank (GTBank) in Lagos State as a case. This study adopted a survey design, with the questionnaire serving as the primary data collection tool, data were collected from 400 distributed questionnaires, with 300 valid responses analyzed using simple linear regression. The information gathered from respondents was presented and analyzed in percentage tables using SPSS 24.0 The findings revealed that environmental dynamics variables, environmental complexity and vitality have strong, statistically significant positive effects on organizational competitive strategies, while environmental munificence shows a weak and statistically insignificant relationship. (Environmental complexity r=0.694; R²=0.482; p < 0.05, Environmental munificence r = 0.168; R² = 0.028; p = 0.054, Environmental Vitality r = 0.735; R² = 0.541; p < 0.05) This study concluded that the importance of strategic flexibility, innovation, and proactive adaptation in dynamic and complex environments, highlights that bank must continuously align their resources and strategies with external challenges and opportunities to sustain competitive advantage. The study contributes to the literature by clarifying the distinct roles of environmental factors in shaping competitive strategies and offers practical recommendations for managers to enhance organizational performance through ongoing environmental scanning and strategic agility. Keywords: Business environment, Banking industry, Market competitiveness, Organizational competitive strategies, Sustainability, Innovation