Implementation of Expansion Strategy at Kcb Group Public Limited Company, Kenya

Abstract

Expansion strategy is an organization’s attempt towards growth relative to its previous performance and size. The dynamic business environment demands continuous adjustments in business planning and activities. This study sought to establish how expansion strategy has been implemented at KCB Group PLC. The study objectives included; to establish how expansion strategy has been implemented at KCB Group PLC, to determine challenges of implementing expansion strategy and to determine measures to deal with the challenges. The study was anchored on Institutional Theory, Resource Based Theory as well as Industrial Organization (IO) economics theory. The interviewees for the study were top management, middle management and junior employees of KCB Group Plc. Primary data was collected through a one on one interviews with interviewees using an interview guide. The design for the study was a case study since the unit of analysis was one organization, KCB Group Plc. Content analysis method was used to analyse the data. The study established that the expansion strategy implementation at KCB Group PLC uses a top bottom approach balanced. At the very top being the Group board followed by top management, then middle management and at the bottom being the employees. Study established that expansion strategies are ratified at the top of the structure then cascaded downwards through the use of score card to operationalize the specific objectives. Each department is allocated timelines and targets in order to implement the proposed expansion strategy. The study also found out that training is used as a tool to align the bank’s structure and culture to expansion strategy implementation. The study established that KCB Group Plc faces a number of challenges in its implementation of expansion strategy which included; Inadequate internal communication, lack of ownership of the expansion strategy implementation process mostly by the junior employees due to inadequate information on what is expected from them, insufficient allocation of resources more so the human resource, harsh operating environment due to the trendy in the industry such as the interest capping regime in the Kenyan market, flawed objectives setting process, lack of feedback mechanism and follow up on the expansion strategy implementation process, less commitment and resistance to change by the employees. The study concludes that KCB Group Plc exploits its available resources to implement its expansion strategies. This is done through laying focus on the external market conditions then narrowing down on its product layout. The study recommends proper training in order to align culture and structure of the Bank to the expansion strategy implementation, and for the employees to get more committed and to own the process. A research department to be set up to work hand in hand with the strategy department in order to gauge the outcomes and relay feedback to all employees. The main limitation of the study was that the study’s interviewees were from the Bank’s Head Quarters. The interviewees at the branch level were not referred to, even though the study identifies their impact in implementation of expansion strategy.