Challenges Facing Absa Group Limited Acquisition Strategy of Barclays Bank of Kenya Limited

Abstract

Acquisition Strategy is a term that is not new to many big firms especially in the financial markets. Firms have been using this strategy to diversify their operations into new markets and also as a way to stay afloat especially in the wake of stringent competition Barclays Bank of Kenya as an organization has also not been left behind in this new wave of mergers and acquisitions. Barclays Bank of Kenya has been recently acquired by Absa group limited making it the latest acquisition in the financial market in Kenya. This merger has been largely driven by the Barclays PLC group who is the major shareholder Absa, meaning Amalgamated banks of South Africa Originally, aims at becoming the leading bank in Africa. It is because of this clear strategy that Absa intends to become the largest bank in the world. The purpose of this study was to determine the challenges faced by Absa Group Limited in acquisition strategy implementation and further to determine the measures taken by Absa Group Limited to deal with the challenges of the acquisition strategy. The study has identified some challenges that are threatening the success of the acquisition strategy of Absa Group limited of Barclays Bank of Kenya Limited. The study employed the use of the case study methodology as the study involved only one entity. The study further employed the use of questionnaires n collecting information from respondents. It made use of content analysis to deeply dissect the information provided by the researchers with the main aim of looking for answers to the main objectives of this study. The study has looked at how Absa can effectively look at the challenges that are affecting its acquisition strategy of Barclays Bank of Kenya Limited. It has addressed the issues of organizational structure, employees, organizational culture and leadership as the major factors affecting its acquisition strategy. The study is crucial and has provided a number of insights those managers and leaders in various organizations or similar financial institutions can make use of the insights provided to address issues that they can face in successful strategy acquisition. In the industry, the study provided a precedent in acquisition strategy of a financial institution and better yet a deep dive into the challenges that an entity may face in the implementation of the acquisition strategy. Whereas the business environment in which organizations operate in keeps changing, the study established some key recommendations that Absa group limited ought to consider in their acquisition strategy. The study recommends that communication at all levels should be taken very seriously. This refers to communication to staff members, customers and key stakeholders. The acquisition strategy must also reach the areas considered to be remote or else the strategy will not work. The study also recommends that all efforts must be geared towards a smooth transition so that business operations will not be disrupted. Additionally the efforts must be well coordinated for the implementation of the strategies to work well