Influence Of Horizontal Integration Strategies On Revenue Growth Of Commercial Banks In Kenya: A Case Of Ncba Bank.
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Date
2023-10
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School of Business and Economics, Daystar University
Abstract
ABSTRACT
The dynamic and unpredictable business environment has required that organizations adopt effective strategies to overcome the competitive forces and therefore, in order to improve productivity organizations are using approaches such as horizontal integration which include: acquisitions, mergers, and even hostile takeovers to strengthen their position in the market. The purpose of the study was to assess the influence of horizontal integration strategies on revenue growth of commercial banks in Kenya, with a specific focus on NCBA Bank in Kenya. The study objectives were to identify the horizontal integration strategies employed by NCBA bank, find out measures of revenue growth used by NCBA Bank and assess the influence of horizontal integration strategies on revenue growth. The study employed a descriptive research design and targeted 250 employees from four departments at NCBA Bank. Stratified random sampling technique was used to select a sample size of 75 respondents. Data was collected using questionnaires and analyzed using inferential statistics and descriptive statistics with the aid of the SPSS version 25. It was established that both mergers and acquisitions had been implemented at NCBA. Further, profitability levels, growth in sales and growth in market share were the measure of revenue growth used by NCBA. Findings indicated that mergers and acquisitions had a positive significant correlation with revenue growth (r=0.396, p=0.000, r=0.280, p=0.004 respectively. The study revealed that growth in revenues was a function of increased market share, profitability and increased sales as a result of the two horizontal integration strategies. The study recommended that in order to remain competitive, NCBA and other financial institutions must engage in strong market analysis to avoid setbacks that come with fast expansion or growth which may lead to business failure or losses.
Description
Masters Thesis
Keywords
Horizontal Integration, Revenue Growth, Commercial Banks, Kenya, Ncba Bank
Citation
Kirangi, C. N,. (2023, Thesis). Influence Of Horizontal Integration Strategies On Revenue Growth Of Commercial Banks In Kenya: A Case Of Ncba Bank. School of Business and Economics, Daystar University