Strategic Response to Changes in Business Environment by Commercial Banks in Kenya

Abstract

The banking industry is portrayed by clients' complexity, strict control and supervision, innovation headway, progression of keeping money permit prompting fast internationalization. Vital reactions guarantee the survival of associations everywhere and in the meantime improve importance in nature in which they serve. Consequently, all around created and focused on vital reactions are imposing weapons for the firm in gaining and supporting an aggressive edge. This investigation looked to establish that vital reaction to changes in business condition by business banks in Kenya. The examination likewise tried to set up the real business condition changes looked by business banks in Kenya. To accomplish these destinations, a cross sectional engaging review configuration was received and the populace included all the 41 business banks in Kenya as at 31st December 2017. Essential information was gathered utilizing an organized survey which was controlled to the directors responsible for procedure and activities or their counterparts from each the chose business bank. The gathered information was broke down utilizing enlightening measurements which incorporated the mean, frequencies, rates and the standard deviation. The examination found that client desires and change opposition by representatives were the inside condition factors influenced business banks in Kenya to an expansive degree and that adjustments in data innovation, tax collection, unfair competition, prudential regulations, legal changes, corruption, economic conditions and inflation were the major external environment factors affecting banks. The study also found that that staff training, consultancy, innovation and ICT deployment, effective capacity utilization, customer relationships management, diversification to other sectors like banc assurance, strategic partners’ management and aggressive marketing strategies were used to a large extent. The study established that that adherence to rules and regulations, aggressive marketing, insurance and transfer of risks were also effective that staff training, consultancy, agent banking, customer relationships management, corporate governance, expansion into new markets and research promotion were the most effective strategies. The study concluded that that most used response strategies were staff training, consultancy, innovation and ICT deployment, effective capacity utilization, customer relationships management, diversification to other sectors like banc assurance, strategic partners management and aggressive marketing. The study also concluded that the most effective strategies of dealing with business environment changes were staff training, consultancy, agent banking, customer relationships management, corporate governance, expansion into new markets and research promotion