International operations by Kenya Commercial Bank in Southern Sudan as an emerging market
Abstract
Internationalization is the process of engaging in production of goods and services beyond national boundaries. Emerging markets are further offering an opportunity for firms to set up their subsidiaries and carry out their operations in these markets, to increase sales, profitability and diversify the businesses. On this basis the study sought to understand the objectives behind internationalization of operations. It further sought to find the challenges firms face while carrying out their operations in foreign markets, the roles such as HR, financial management, strategic management, ICT, operations management; played by the various managerial functions as far as international operations are concerned. KCB was chosen as the appropriate firm to bring out this phenomenon since it set up a wholly owned in Southern Sudan which is an emerging market. The Uppsala theory has been used by many to explain the internationalization of operations by companies and it is against the backdrop of this theory that the study was focused. The research found that the strengths KCB has includes, huge capital base, technological advancement and management skills. This is beneficial because in carrying out internationalization. The study was also able to establish the fact that the roles in international operations works hand in hand and are not independent of each other. The challenges that the bank faced are the decision making process and the costs involved in setting up and sustaining the operation in Southern Sudan such and regulations set by the government of the day.
A number of recommendations were made in the study to KCB on improving their international operations and the Government of Southern Sudan; being the policy makers.
Publisher
College of Humanities and Social Sciences, University of Nairobi