Anonymous
Nov 1, 2023
Challenges facing multi-National corporations,citing relevant examples from kenyan scenarios?
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Nov 1, 2023
There are several challenges that multinational corporations (MNCs) face in Kenya. Some of these challenges include:
1. Political instability: Kenya has experienced periods of political instability, which can create uncertainty for MNCs operating in the country. For example, in 2007-2008, Kenya experienced post-election violence that led to the displacement of thousands of people and disrupted business operations.
2. Corruption: Corruption is a significant challenge in Kenya and can affect MNCs in various ways. Bribery and unethical practices can hinder business operations and create an uneven playing field. For instance, in 2019, the Kenyan government canceled a contract with a Chinese construction company due to corruption allegations.
3. Infrastructure deficiencies: Kenya's infrastructure, including roads, ports, and power supply, is often inadequate for the needs of MNCs. This can result in logistical challenges and increased costs. For example, inadequate road networks can lead to delays in transporting goods, affecting supply chains.
4. Lack of skilled labor: MNCs often face difficulties in finding skilled labor in Kenya. The education system may not always align with the needs of the job market, resulting in a shortage of qualified professionals. This can impact the ability of MNCs to expand and innovate. For instance, technology companies may struggle to find enough skilled software developers.
5. Cultural differences: MNCs operating in Kenya need to navigate cultural differences to effectively engage with local employees, customers, and stakeholders. Understanding and respecting cultural norms is crucial for successful operations. For example, multinational fast-food chains have had to adapt their menus to suit local tastes and preferences.
6. Security concerns: Kenya has faced security challenges, including terrorism and crime. MNCs need to invest in security measures to protect their employees and assets. For instance, in 2013, an attack on the Westgate shopping mall in Nairobi resulted in the closure of several multinational retail stores.
Overall, these challenges highlight the complexities that MNCs face when operating in Kenya. However, many MNCs have successfully navigated these challenges and continue to thrive in the Kenyan market.
1. Political instability: Kenya has experienced periods of political instability, which can create uncertainty for MNCs operating in the country. For example, in 2007-2008, Kenya experienced post-election violence that led to the displacement of thousands of people and disrupted business operations.
2. Corruption: Corruption is a significant challenge in Kenya and can affect MNCs in various ways. Bribery and unethical practices can hinder business operations and create an uneven playing field. For instance, in 2019, the Kenyan government canceled a contract with a Chinese construction company due to corruption allegations.
3. Infrastructure deficiencies: Kenya's infrastructure, including roads, ports, and power supply, is often inadequate for the needs of MNCs. This can result in logistical challenges and increased costs. For example, inadequate road networks can lead to delays in transporting goods, affecting supply chains.
4. Lack of skilled labor: MNCs often face difficulties in finding skilled labor in Kenya. The education system may not always align with the needs of the job market, resulting in a shortage of qualified professionals. This can impact the ability of MNCs to expand and innovate. For instance, technology companies may struggle to find enough skilled software developers.
5. Cultural differences: MNCs operating in Kenya need to navigate cultural differences to effectively engage with local employees, customers, and stakeholders. Understanding and respecting cultural norms is crucial for successful operations. For example, multinational fast-food chains have had to adapt their menus to suit local tastes and preferences.
6. Security concerns: Kenya has faced security challenges, including terrorism and crime. MNCs need to invest in security measures to protect their employees and assets. For instance, in 2013, an attack on the Westgate shopping mall in Nairobi resulted in the closure of several multinational retail stores.
Overall, these challenges highlight the complexities that MNCs face when operating in Kenya. However, many MNCs have successfully navigated these challenges and continue to thrive in the Kenyan market.
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