dc.description.abstract | Organizations face environmental challenges and to survive they must adopt appropriate
responses. Commercial banks in Kenya face challenges from their external environment.
The study so
ught to identify the challenges commercial banks face in their external
environment and how they respond to those challenges. The study was a survey of all the
commercial banks in Kenya. The findings were that commercial banks in Kenya face
political, econ
omic, technological and socio
-
cultural challenges in their operations. The
commercial banks respond to these challenges by appropriate responses such as
diversification, cost leadership, mergers and acquisitions and outsourcing. The study
concludes that to
survive
,
commercial banks in Kenya need to respond appropriately to
the environmental challenges they face. Based on the findings, it is recommended that
commercial banks should constantly identify the environmental challenges they face in
the political,
technological, socio
-
cultural and economic arena and adopt appropriate
responses to those challenges in order to survive in a highly competitive market. The
study faced limitations in that it focused on
ly on
commercial banks and did not cover the
whole ban
king industry including cooperative societies, micro
-
finance institutions and
mortgage companies. Suggestions for further research include an industry study to cover
all the members of the industry including commercial banks, micro
-
finance companies,
coope
rative societies and mortgage companies to identify industry specific challenges.
Further research can also be done on the impact of mobile and internet banking on the
banking
industry and how the industry has responded to that challenge | en_US |