The coperative bank of Kenya.

Origin.

The coperative bank is a commercial bank in Kenya that is governed

and controlled by the central bank of kenya.it serves the needs of the
individual, small business and large coperations.The bank was
founded in 1965 initially as a coperative society. The Kenyan
government order all coperative societies in Kenya to transfer their
deposit to the coperative bank. And that all coperative buy the banks
share. The bank opened for business on 10 January 1968 with a sum
capital of ksh 255000, .The government supplemented the capital with
21400.this was given as loan without interest and it was supposed to
be paid back within a period of ten years. The coperative bank serves
small sized units organized in the coperative sector both in urban and
rural areas ‘they are traditionally centered around communities,
localities and work place essential lend by small borrowers .
The bank has got over 7.5 million accounts as from December 2018
and in 2010 the bank was awarded as the best bank of kenya by the
London financial times due to their excellence growth.

Mission.

To offer wide range of innovative financial solutions leveraging on our

heavy investment in mult channels, national and regional presence and
with a focus on excellent customer experience by a highly motivated
and talented team.

Vision.
To be the dominant bank in Kenya and the region, riding on the unique
coperative model providing innovative financial solutions for
distinctive customer experience.

VALUES:
Trustworthy, innovative and agile, value of customers and people,
sharing and collaboration, passion for excellence, bold and
courageous.
The following macro factors affect the operations of the coperative
bank in the following ways;

Political factors;
This factor affects the bank positively and negatively. During the
launching of vision 2030 one of the sectors that the authorities
thought would be of vital importance to increase the country’s GDP
was the financial sector through various ways, for instance they
wanted to increase the rate of Kenyans who saves in banks from 17%
to 30% within a period of seven years this kept coperative bank on
toes to ensure that they benefit in the development plan of the nation.
The government was a source of intervention in terms of financial
assistance to the coperative bank in its foundation days as their
beginning capital was insuffient and this facilitated their growth.. Also
the government laws affect the state of the banking sector by
intervening in the matters of the banks leaving the industry to political
influence. This include legislative laws such as the labor laws, trade
restriction, tariffs and political stability, policy on tax rate affects the
bank negatively as it increases the banks expenditure which will in
turn increase the charges on customers.

Opportunities.
The government can intervene n the matters of the bank leaving it
successful.
Threat: these may include corruption, or specific legislative, such as
labor laws trade restrictions and political instability.

Economic factors:
The banks play and important role in the facilitating of the economy of
the nation in varied ways. Banking industry and the economy are tied
together. How income flows, during times of recession affects how
much capital coperative bank can access. Spending habits also affect
how customers borrow or spend funds on the banks.
The income of the customers affects the volume of the deposit. If the
customer’s income is low the deposit in the bank will be low and this
will affect the banks revenue. Inflation which is persistent leads to
backslash, it affects the currency and its value thus causing instability
.the exchange rates also affect the currency such as the US dollars
which influence the spending habits and inflation in an economy.

Opportunities.
Being a coperative banks there are many cooperation’s in Kenya that
are based on agriculture and since the government ordered all
cooperation’s to deposit in this bank is of great advantage.
Treats;
Natural calamities are unpredictable making the operation at stake
some times for the banking sector.

Social-cultural:
Some of the social cultural factors arise from the believes, values,
perceptions, religion, buying behavior and necessities of people. All
these affects how people view, see and use banking options.
Consumers seek knowledge from bank tellers regarding saving
accounts, investments before they decide whether to deposit their
money in bank or not. coperatives bank has also participated in the
social well fare of the society by supporting actives like sports,
education, and health care among others thus caring for the public at
large.

Opportunities:
One the opportunity identified is that there is a direct contact between
the clients and the people at the teller. This is good because there is
immediate feedback and the customers are immediately gratified. Also
the consumers are able to seek knowledge from the banks regarding
loans and many other bankingservices.
Threats:
Primitive and culture based beliefs. Those in the rural areas belief
that they cannot save their money in the bank. More so people have
never known the benefit of investing their savings in the banks. They
prefer keeping their money in the pots or burry it under ground. More
so people still value their wealth in terms of materials like the Masai
who value their wealth in herds of cattle making it difficult to have
banking as an option because they have no cash at hand.
Ecological factors:
These include natural forces such as climate, floods, drought, fire,
these may pose a great challenge in the normal running of the banking
system. This is because they are unpredictable and when they occur
they bring about great destruction of lives and property. Before banks
are established they need to look out for Areas that are not prone to
this ecological factors. More so climatically factors such as abundant
rainfall may lead to yielding of good produce which in turn will make
farmers to deposit their income if they get much profits from their
sale. Its interesting to note that cooperative bank in 2013 was
recognized as the most green bank of 2013. An award for achieving
the fastest turn around for renewal energy for being the bank with the
largest pipeline project in the country.
Opportunities; many organizations has joined hands in the fight
against environmental degradation and it is a global issue there fore
co-po bank isn’t fighting alone

Threats. Environmental determinism, this is a school of thought that

the environmental forces that occur are as a result of external forces
where by man has got no control over them such as earthquakes
,thunderstorms which remains a great threat

Legal:
These are laws, regulations issued by the central bank of Kenya. They
subject banks to certain requirements restrictions and guidelines.
These regulations create transparence between banking institutions
and with the individuals with whom they conduct business. Banking is
a much regulated industry and one with extensive regulatory
compliance requirements. Failure to comply with the long list of laws
plus the reporting requirements can lead to disaster for the institution.
For instance lending requires very detailed disclosure of the interest
rate maturity and paying schedule of the client which might be
discouraging to the customers for the lending option due to plenty of
laws.

Opportunities:
The banks is protected by the law and its security by the central bank
of Kenya and this creates confidence from the public to bank with the
coperative bank.
Threats:
The bank is unable to operate independently because it has got to
adhere to the laws and regulations and this may hinder innovation and
growth and its own expansion

Technological factors:
Technology has got many causes as it enables the bank to deliver
services with cheaper and better methods. It leads to increments in
capital alter the banks tax position, reduce risk profile and cuts the
operational cost and it improves on the banks competitive position.
Technology leads to new innovation and creativity within the
organization, technology is changing how the bank handle customer
funds which matters a lot, and thus coperative bank offers a mobile
app to witness accounts transfer funds and pay bills on smart phones
is so appealing to the banks consumers., the phones can scan cheque
and it is processed from their location. Even banks themselves are
utilizing technology within their work place. Communication through
video conferencing meetings is being embraced.

Opportunities:
The bank is able to do online banking such as the e book which are
very convenient to their clients, customer care is also improved.

Threat: the technology has also contributed to the online fraud. Banks
have got to be prudent enough because when the conmen have access
to the accounts of their client it may lead to massive loss.

Concussion:
coperative bank plays a very vital role in the development sustainable
plans of the nation mostly as well stipulated in the big four agenda and
in so doing it has got to devise means in how to handle the macro
environment as well discussed above because they directly affect its
day to day operations and they also influence the micro environment
of the company.

FRIGOKEN KENYA LIMITED.

The company was established in 1989 as a provider of premium

agricultural products. Frigoken is a member of the industrial promotion
services group of companies which in turn is a member of the Aga
khan fund for economic development. Frigoken is the largest export
oriented vegetable processing company in the east African region
engaging of thousands of small-scale farmers in its value chain.
Frigoken deals in the production of vegetables primarily for use human
food such as cucumber, tomatoes, beans, cabbage, carrot, lettuce,
onion etc.
AIM:
They aim to be a global leader of choice for the supply of premium
horticulture produce specializing in value added market products
while forging a better future for local farmers in its value chain. They
produce all year round crops which are internationally recognized as
food and and safety standards assuring customers of quality reliable
and service.

MISSION:
To supply safe quality products produced to highest global standards.

Values; integrity, trust respect inclusiveness and sustainability.

Pestle affects the activities of Frogwomen Kenya limited in the

following ways.

Political:
In vision 2030 agriculture remains the key factor in obtaining
economic growth rate of 10%.it remains the country’s bedrock in
creating equitable and sustainable growth. The big four agenda
emphasize 100% food and national providence to all Kenyan citizens,
that’s why the government is of great help to all agriculture based
firms including frigoken in so doing frgoken enjoys lots of privileges
from the government assistance thus reasuring its day to day
activities.

Economic factors:
These factors affect frigoken company greatly .they include low
income, recession, demand and supply and also inflation. If the
consumer have low income their purchasing power will be very low
and failure to purchase the produce.
The company will not be able to get profitable sales from the produce.
The fluctuation of prices of the agricultural products due to the
difference between the actual output and the planed output, also they
are easily damaged creates a challenge to the company because the
prices keeps on decreasing and increasing.
Social factors:
They include human relationship, social attitudes, values, beliefs,
perception, and religious and education. They affect frigoken where by
most people who adhere to their values, background say that they
cannot work at frigoken farm, they say that only farmers should be
found in such places and they don’t want to be farmers. With this the
company will lack in man power and thus affect their outcome
negatively. Also there is a great relationship between population
growth and food production, as population continues to growth there
is need for agricultural firms to increase on their food production as to
meet with the increased demand for food.

Technological factors.
Technology increases productivity. If frigoken with the development of
new technology applies these new techniques to the production of
crops there will be much output of crops which will be produced
faster, better and cheaper. On the other hand if they are not able to
meet up with the new development of technology , workers will be
slow ,tiring, expensive and there will be low output which will lead to
low supply in the market and high prices that will affect the
consumers.

Ecological factors.
The presence of the rich volcanic soils in kenya promote the growth
of soils and plenty of rainfall. Kenya is an agricultural based economy
and a lot of factors are favorable for the growth of vegetables
including the warm and cool tropical climate.
On the other hand floods, drought fire earthquakes poor soil type can
affect frigoken horticulture. Negatively, for example floods and earth
quakes can destroy all the produce and can even claim lives. Drought
can also result to low yield of winter vegetable production. Also
infertile soil can also affect production pests and disease s affect
frigoken outputs as they damage the produce. fe

LEGAL factors:
These include regulatory and laws that affects frigoken negatively and
positively. And one of them is the taxation policy. This increases the
cost of production which eventually lead to high cost of goods. Also
frigoken being an export firm it is also affected by the global
regulations concerning exportation of fresh agricultural produce.

The opportunities identified include:

Government policy. The government has put more emphasis to the

agricultural sector in its agenda for sustainable development in the big
four agenda and the vision 2030.
As a result subsidiary is given in the form of free importation of
equipment with lower production cost and increases supply.
There has also been a lot of investment in the frigoken company like
the Aga khan sustainable development plan.
Good consumer who patronize them constantly.
Skilled workers boost the efficiency and productivity in the work
place.
Frigoken tries to sustain their opportunities by building a good
relationship with the foreign investors, customers and the works.Also
by continuing to produce good quality products which impress not only
the government but also customer and giving them discounts Workers
are being motivated by appreciating them by promotion and giving
them bonuses.

THREATS:
Competitors:
Some other horticulture firms are coming up. This brings about
competition in the marketing of their produce.
More incidences of pest and diseases which leads to damage of the
crops and vegetables for incidence the recent outbreak of the locust
in the country.
High use of pesticides as a result of pest and disease. This leads to
high cost of production and also alters with the soil fertility which may
hinder good yields.
Fluctuating in market prices of vegetable produce.
High pollution burden. When the environment including the land is
polluted it will affect produce like the cloroflorocarton. This will lead
to down pour of acidic rain which affect crop output.
solutions
Rapid land and warehouse development, as most land are being
developed time shall come when there will be no land for horticulture.
This poses great fear and concern to those who are into horticulture.
They deal with the threats in the following ways:
Competitor by listening to them by benchmarking to see what others
are doing and how they are doing it, then they can adjust where
necessary.
W
they also put a lot of consideration in preventive control measure
against pest and dieses before we venture into hortculture.if they put
this control measure in place it will reduce use of pesticides.
We have no control over the fluctuation in the prices of vegetables in
the market but we just try to know what then in the market prices is.
This will also help to know how to place price’s on own vegetable so
that we won’t be at a loss.
In terms of pollution if possible they can create awareness about
global warming most especially in the aspect of refuse disposal so
that people will be knowledgeable about the proper way of disposing
refuse that will not be harmful to the environment.

Conclusion:
frigoken is a key factor in the development of the economy and as
frigoken marketing department they should work hard in the control of
the pestle such that they are not outdone in the control of their micro
environment.

Referances:

Strategic marketing planning and control by John ensor ruth.

Marketing cocepts and strategies by sally didd and lyndon sinkin