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A Systematic Study of Strategies Employed By Multinational Corporations in Response to the Ever-Changing Political Environment in Kenya

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dc.contributor.author Sonoiya, Gilbert Kiprop
dc.date.accessioned 2019-01-11T14:08:51Z
dc.date.available 2019-01-11T14:08:51Z
dc.date.issued 2018
dc.identifier.uri http://erepo.usiu.ac.ke/11732/4154
dc.description A Project Report Submitted to the Chandaria School of Business in Partial Fulfilment of the Requirement for the Degree if Masters in Business Administration (MBA) en_US
dc.description.abstract The objective of the study was to determine strategies that have been employed by MNCs in response to the ever-changing political environment in Kenya by firms quoted at the NSE in Kenya in order for them to remain competitive in such a market and advance their growth. This study aimed at examining: the factors that affect a Firm’s External Business Environment, International Business and International Business Environment and finally strategy and strategic management and how it correlates with the external and international business environments. This study used descriptive survey, which is a process of collecting data in order to answer questions regarding the current status of the subjects in the study. The study used descriptive design because it enabled the researcher to collect a large quantity of in-depth information about the population that was studied. Descriptive research design enabled the researcher to test and measure the population needed for quantitative experimentation as it gave valuable pointers as to what variables were worth testing quantitatively. For the purposes of this study, stratified sampling was used. Stratified sampling is a type of sampling method in which the total population is divided into smaller groups or strata to complete the sampling process. The strata were formed based on some common characteristics in the population data. After dividing the population into strata, the researcher randomly selected the sample proportionally (The Economic Times, 2018). For this study, both primary and secondary data collection was appropriate. Primary data was collected through a self- made questionnaire. The questionnaire adopted both structured and unstructured questions. The responses in the questionnaires assisted in gaining an in-depth understanding of the strategies adopted by MNCs in Kenya in response to the ever-changing political environment. The questionnaire was structured based on the research questions. Secondary data enabled evaluation of historical strategies and analysis of studies that have been carried out in the past. The analysis of the research data was carried out using Statistical Package for Social Sciences (SPSS) and Microsoft Excel programs. Figures and tables were variably used in data representation. The study examined the factors affecting the external business environment and regressed these findings with the effectiveness of strategies applied in response to the ever-changing political environment in Kenya. The study found out that these strategies employed by MNCs are essential in mitigating risk. The findings also indicated that the stability in external environment is a key decision-making factor in any investment initiative in a country. The study also examined international business and the international business environment and regressed these findings with the effectiveness of strategies applied. The findings indicated that Kenya is a good international business destination bolstered by good diplomatic ties and business friendly policies. The disparities in findings represent differences in opinion and thus more needs to be done to ensure stability of the country as an international business destination. The study finally analysed strategy and strategic management and correlated this with both the factors affecting the external business environment and the international business and international business environment. These findings indicated that the strategies employed in response to the ever-changing political environment in Kenya had different levels of success and had different success factors. We can also see that despite the effectiveness of these strategies, they have not resulted in greater investment by the MNCs. The study concludes that the external environmental factors do not greatly affect the effectiveness of strategies applied in response to politically turbulent environment. The study also concluded that the variations in the effectiveness of strategies applied in response to politically turbulent environments were as a result of the international business environment factors and the policies of the host country in regard to multinational corporations. The study recommends that the Kenyan government needs to do more to enhance the stability of the external business environment especially during turbulent times. In addition, the study recommends that MNCs maintain and boost their investment in Kenya boosted by the stable political structure and strong constitution that promotes foreign investments. The study finally recommends that MNCs fully adopt these political response strategies as it has been established they have been successful. It is also recommended that the MNCs maintain these strategies through election cycles in order to safeguard their businesses en_US
dc.language.iso en en_US
dc.publisher United States International University - Africa en_US
dc.subject Systematic Study en_US
dc.subject Strategies Employed en_US
dc.subject Multinational Corporations en_US
dc.subject Response en_US
dc.subject Ever-Changing Political Environment in Kenya en_US
dc.title A Systematic Study of Strategies Employed By Multinational Corporations in Response to the Ever-Changing Political Environment in Kenya en_US
dc.type Thesis en_US


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