Strategic Responses by Commercial Bank of Africa to Changes in the Regional Business Operating Environment

Abstract

This study is on the Commercial Bank of Africa (CBA), which is the
largest privately owned bank in Kenya and Tanzania and is currently
expanding to other East African countries. The bank’s target market
since its incorporation has been corporations and institutions . CBA
had been dominating this market for a long time until the late 2000s,
when it started experiencing challenges as a result of the changing
business operating environment, including changes resulting from
integration of the East African Community and other regional business
dynamics. CBA has been forced to respond to these challenges in a
number of ways.
The study examined the strategic responses adopted by CBA to
changes in the business operating environment in the East African
region and sought to find out what opportunities are being presented
by regional market integration. The objectives of the study were first
to establish the strategic responses of CBA to changes in the regional
business operating environment and secondly to establish the challenges
and opportunities CBA has encountered as a result of the changing
regional business operating environment over the last five years. After
the data had been analysed, it was observed that CBA responded to
changes in the regional business operating environment in a number
of ways. Some of the strategic responses by CBA are regional market
expansion, corporate restructuring and re-branding, research into and
development of new products and services, improving information and
technology systems, adopting a financial strategy and improving the
human resource management style.