Macro Environmental Factors and Performance of Multinational Corporations in Kenya

Abstract

Several multinational companies have set up base in Africa over the past years. This research was carried out mainly to determine if the macro environment affects the achievements of global firms that are in Kenya. The research focused on variables such as socio-cultural environs, economic factors, political stability, technological and environmental potentiality among others. In addition, this study finds out whether that the performance of firms from different countries of origin and industries are affected by the environment in a similar manner as those belonging to any other sector. The findings of the study can bring about the conclusion that political stability, political stability, political system and ideologies, taxes, excise duty, exchange rates and interest rates, customer’s taste and preference and consumer’s purchasing power are among the major factors that affect performance as far fulfillment of an organizations’ goals are concerned. The study established that organizations are affected by the macro environment within which they exist. Factors such as the political environ as well as the economic, social and legal environs were among the major influencers of the environment and specifically so where political stability and effective political systems are concerned, taxes, excise duty and exchange rates plus understanding the consumer needs and preferences. A relationship strong and positive therefore exists between the external environ and the success of corporations with the least influential factor being the socio-cultural factors dealing with religion, belief, attitude and values and this applied to all aspects of performance excluding customer relationship.