dc.description.abstract | This study examined the implications of Strategic change of ownership on the
strategic positioning of commercial banks in Kenya following the cross sectional
study approach where six banks were sampled for the study. The study further
examined the extent of change of ownership on the strategic positioning of the banks.
The population of the study was banks in Kenya that have undergone strategic
ownership change in the last five years (2008 to 2013). As provided by Central Bank
Of Kenya website 6 commercial banks qualified for the study. The study was
conducted through a cross sectional survey and there was no sampling since the
population was small. The six commercial banks were Prime Bank Kenya Limited,
CFC Stanbic Bank (K) Limited, Kenya Commercial Bank Limited, Jamii Bora Bank
Limited, Equatorial Commercial Bank Limited and Ecobank Kenya Limited. Primary
Data was collected from target respondents using a self-administered open ended
interview guide. The guide is divided into three sections that had questions on bio
data, strategic ownership changes in commercial banks and strategic positioning. The
findings from the study revealed that indeed banks that had gone through change of
ownership had made several internal adjustments that influenced the strategic
positioning of the respective banks. The study further revealed that strategies
preferred by banks for change of ownership are mergers or total acquisition. It further
revealed the reasons that necessitated this ownership restructuring varied. Some
respondents gave the need for improving capital base for ease of trade, while others
preferred this avenue as a means to achieving their expansion strategy. The indicators
applied to establish implications of change of ownership on the positioning of the firm
are change in products and services, change in risk control measures and internal
regulations, new approaches to customer recruitments and retention, changes in
employee incentive schemes and changes in customer complaints handling
mechanisms. The findings led to the conclusion that Strategic change of ownership
has impacted positively on the strategic positioning of commercial banks affected by
such changes. | en |