Opportunities & Threats for Firms Exposed to Globalisation in Kenya

This essay examines the impact of globalization on firms operating in Kenya, highlighting both opportunities and threats. Kenya, recognized as East Africa's commercial hub, presents robust growth prospects, pro-business reforms, and a rising consumer market. The analysis explores how factors like governmental rules, changing consumer markets, and investment opportunities influence Kenya's global business environment. It discusses the rationale for international expansion, citing increased growth potential, improved cost-to-profit ratios, and the ability to leverage currency fluctuations. Opportunities include creating a new consumer base, potential government support, and greater business exposure. Challenges encompass cultural barriers, local competition, taxation, supply chain complexities, and operational risks. The essay also evaluates the significance of trading blocs like the Economic Partnership Agreement (EPA) and double taxation agreements in stimulating global growth through access to international markets, cost reduction, and improved customs processes. The case study of COOK is used to illustrate these points.

ANALYSE THE OPPORTUNITIES
AND THREATS FOR FIRMS
EXPOSED TO AN
INCREASINGLY GLOBALISED
ENVIRONMENT

Introduction to Kenya
 Kenya known as commercial “gateway and
regional hub of East Africa.
 largest as well as advanced economies of East
Africa.
 may grow at 5 percent per annum in the coming 5
years.
 growing entrepreneurial middle class and enjoying
steady .
 The capital being Nairobi is worked by
government to be in par with existing financial
centres over the world

global business environment and impact of
global drivers in Kenya
Global business environment is being affected by
several factors such as governmental rules;
changing consumer markets; investment
opportunities.
key drivers that have influenced the overall
working of Kenya and these are as follows;
 Robust growth prospects
 On-going pro-business reforms
 Rising domestic and regional consumer market
 Investment opportunities across various
priority sectors

rationale for COOK to expand their business
internationally.
 a chance to increase the overall potential
for growth by tapping new consumers.
 a chance to better their overall cost-to-
profit ratio and generate more revenue
sources.
 COOK can take advantage of uncertain
currency in UK market
 generate new sales cycles

Opportunities and challenges for global growth
opportunities
 creating a new consumer base
 The government of Kenya may support the plans
as the company will create jobs for people.
 greater exposure to business
The challenges
 cultural barriers
 local competition
 Taxation
 supply chain
 operational risk

trading blocs/agreements and the
advantages of specific trading agreements
that would have a direct significance for
Kenya
 Economic Partnership Agreement (EPA)
 Double taxation agreement

Evaluate how these stimulate and generate
global growth.
 access international markets and thus
increase the overall volume of
production.
 reduction in cost followed by improving
the international competitiveness
 improvement in the customs process