COMMERCIAL BANK OF AFRICA
Executive summary
The Commercial Bank of Africa (CBA) case examines the challenges CBA is facing in trying to introduce change in an organization. The problem is compounded because first, the management wants to introduce change in the Information and Communication Technology (ICT) management structure, and secondly, the existing structure is working very well. This results in the Managing Director of CBA, being in a dilemma whether to introduce the change or not.
The Kenya’s banking sector has witnessed rapid growth in the recent past resulting in a scramble for the available customers. There were 49 banks in Kenya in 2003. The banks face stiff competition and the only way to survive is by being updated on the latest Information Communication Technology (ICT) since it is an integral part of the banking institutions. ICT is considered a major focus as a strategic key in the attainment of the comparative advantage. Other factors affecting the banks are the business strategic leadership in order to define business policy formulation and the implementation boundaries. Like in any other country the banking environment is punctuated by government regulations (with specific reference to CBK), political interventions, the ever-changing customer needs and other self-imposing forces in the industry.
The Commercial Bank of Africa was founded in 1962 in Dar-es-Salaam Tanzania but reincorporated itself in Kenya in 1967. It has eight branches in Nairobi and three in Mombasa. In terms of comparative size using asset base and shareholder capitalization, its competitors included Citibank, Standard Chartered, Barclays Bank of Kenya, Kenya Commercial Bank, Co-operative Bank and National Bank of Kenya. In total there are about 21 banks ...