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 thelargest privately owned bank in Kenya and Tanzania and is currentlyexpanding to other East African countries. The bank ' s target marketsince its incorporation has been corporations and institutions . CBAhad been dominating this market for a long time until the late 2000s,when it started experiencing challenges as a result of the changingbusiness operating environment, including changes resulting fromintegration of the East African Community and other regional businessdynamics. CBA has been forced to respond to these challenges in anumber of ways.The study examined the strategic responses adopted by CBA tochanges in the business operating environment in the East Africanregion and sought to find out what opportunities are being presentedby regional market integration. The objectives of the study were firstto establish the strategic responses of CBA to changes in the regionalbusiness operating environment and secondly to establish the challengesand opportunities CBA has encountered as a result of the changingregional business operating environment over the last five years. Afterthe data had been analysed, it was observed that CBA responded tochanges in the regional business operating environment in a numberof ways. Some of the strategic responses by CBA are regional marketexpansion, corporate restructuring and re-branding, research into anddevelopment of new products and services, improving information andtechnology systems, adopting a financial strategy and improving thehuman resource management style.