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THE IMPLICATIONS OF STRATEGIC CHANGE OF FIRM OWNERSHIP ON STRATEGIC POSITIONING OF COMMERCIAL BANKS IN KENYA

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.

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Author: maryam abdillahi mbaruk
Contributed by: luzze lillian nannozi
Institution: university of nairobi
Level: university
Sublevel: post-graduate
Type: dissertations