Response Strategies to Changes in the International Business Environment Adopted by Research-based Multinational Pharmaceutical Companies in Kenya
Abstract
Faced with the reality of competing in a global environment while having to act in a local
environment, Multinational Company (MNC) subsidiaries create competitive advantage
through response strategies that adapt to both the changes in their international
environment and their national environment. A survey was carried on all the researchbased
multinational pharmaceutical company subsidiaries in Kenya to establish the
changes that have occurred in the international business environment, their impact on
their businesses and the response strategies that they have adopted to cope with these
changes. The instrument for data collection was a questionnaire, which consisted of
structured and semi-structured questions. Data was collected from a total of ten (10)
companies, which constituted the population of companies targeted for the survey as per
the inclusion criteria. The study findings suggest that changes have occurred in the
international business environment of the multinational pharmaceutical companies
(MNPCs). The ratings for changes in the global industry environment and the macroenvironment
were higher than those for changes related to globalisation of the industry.
The results further suggest that these changes in the international business environment
have had an impact on various aspects of the businesses of the MNPC subsidiaries in
Kenya. These changes appear to have had the greatest impact on activities related to
marketing and sales and the least impact on the research and development activities of
these subsidiaries. The research findings further established that the research based
MNPC subsidiaries in Kenya have adopted a range of response strategies to these
changes which when ranked in descending order of mean score, were related to the
marketing and sales function; stakeholder engagement activities; approach to business;
and international business. From the results of this study, it can be concluded that the
changes in the international business environment have impacted on the business of the
research-based multinational pharmaceutical company subsidiaries in Kenya. These
changes have in turn led to the adoption of a range of response strategies by these
subsidiaries. These response strategies appear to be guided by the pressure for local
responsiveness vis-à-vis the pressure for global integration; and the corporate context
which is dictated by their headquarter offices.
Citation
Degree Of Master Of Business AdministrationPublisher
University of Nairobi School of Business
Description
A research project submitted in partial fulfillment
Of the requirements for the award of the degree of
Master of business administration.
School of business, university of Nairobi