Strategic Responses to Challenges of Globalization by Kenya Commercial Bank Limited

Abstract

An organization's thriving capability plus accomplishment happens once the business generates then upholds a match amid its approach besides the atmosphere plus amongst its interior ability plus its approach. Globalization creates competition to local industries and organizations worldwide, and thus, strategic measures are required to be in place to address the challenge of globalization. To survive, organizations should adopt strategies that are compatible with their strategic goals and objectives to effectively accommodate changes to globalization. The specific objectives of the study were to determine the challenges posed by globalization to the Kenya Commercial Bank and to identify the strategic responses to globalization adopted by the Kenya Commercial Bank. This study was based on three theories, Porter’s competitive theory, Resource-based theory, and strategic management theory. The research adopted a case study approach and interview guide was used for collection of data. Content analysis was used to analyze data which was qualitative in nature. The study established that the bank faces numerous globalization challenges such as; technology, bank expansion, competition and restructuring challenge. Research findings were that KCB had put in place strategic responses to counteract the challenges it was facing. The response strategies employed include; technology, quality customer service, cost leadership, differentiation, restructuring, alliance and joint ventures. The study concludes that globalization has affected both KCB both positively and negatively. The study established that economic decline has resulted in fewer business opportunities for KCB customers. There has been a positive response from the ICT department as globalization led to the allocation of the modem gadgets employed in the banking ICT infrastructure. It recommends that KCB becomes more diligent in environment scanning and continues with proactive as opposed to reactive strategies in dealing with challenges of globalization and there should be provision of funds for the installation of the various ICT related equipment and this should be prioritized given that it can increase the security levels and the efficiency rates among its operations.