| dc.description.abstract | The objective of this study was to identify which response strategies commercial banks in
Kenya have adopted due to changes in the economic environment. Dynamic
environment changes impact on organizations goals and objectives. This makes it
difficult for an organization to remain viable. To be able therefore to stay ahead of
competition, it’s imperative for organizations to continually scan the environment. This
enables the organization to adjust their strategic responses to accommodate the demands
of the environment. The appropriate response strategies will guarantee a competitive
edge. For the last 10 years Kenya’s economy has experienced tremendous changes and
they have impacted a lot in all industries in the country. The nature of competition for
example has changed. The banking industry has not been spared either. This research
project was a survey on all commercial banks. In an effort to meet these objectives the
primary data was collected. Primary data was obtained through a questionnaire
administered to managers have been involved or responsible for developing strategy.
Secondary data was obtained from existing bank publications and annual reports. The
study found out that Kenya commercial banks have been able to respond to the changes
in their environment through Retrenchment strategies which involved cutting operating
costs and divestment of non-core assets. They have also responded to the environment
by use of investment strategies which contrast with retrenchment and as such firms
perceive these changes as opportunities to invest, innovate and expand into new markets
in order to achieve or extend a competitive advantage also noted is the use of
Ambidextrous strategies where organizations combine incremental change with
discontinuous change, or the exploitation of existing resources to improve efficiency,
with exploration of new sources of competitive advantage and innovation. The
researcher recommends that in order to stay ahead of competition banks should
continuously scan the environment aggressively and also speed up implementation of its
strategies. | en |
