Implementation of internationalization strategy

Abstract

This study aimed to investigate the implementation of internationalization strategy at Kenya Commercial Bank group limited. A case study approach was adopted with the interview method used to gather data for the study. Based on the data from the interviews, two research objectives were addressed, to determine how Kenya commercial bank group limited implements its internationalization strategy and to establish the challenges faced by Kenya commercial bank group limited in the implementation of internationalization strategy. Data was analyzed using content analysis and the analysis of the findings revealed congruence with theoretical strategies identified in previous studies. It was found that Kenya commercial bank group has adopted greenfield investments as its foreign market entry strategy. From the findings, it’s clear that KCB group limited has been motivated by a number of factors to go international, the main ones being increase of profits and shareholder value, better serve customers who have relocated abroad. The implementation basically involves communication through emails, cascades which are quarterly publications by KCB group and involvement of the members of staff to encourage ownership of the strategy, the different licenses are bought, office space identified and the human resource team recruits members of staff who will handle the implementation of the strategy. From the findings it’s clear that KCB group experiences some challenges during the implementation of internationalization strategy including cultural diversity, language barriers, political instability, human resource constraints, custom delays, poor infrastructure and high setup costs pegged to the choice of entry mode. The study recommended that the company should develop policies that cover, communication, recruitment and training handling of challenges.