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Running Head: JOHNSONS MICROFINANCE INSTITUTION 1 Johnsons Microfinance Institution Name: Professor: Course: Institution: Date:
JOHNSONS MICROFINANCE INSTITUTION 2 Table of Contents Johnsons Microfinance Institution ................................................................................................... 1 Introduction ...................................................................................................................................... 3 Competition .................................................................................................................................. 3 Economy ...................................................................................................................................... 4 Technology ................................................................................................................................... 6 Consumer trends .......................................................................................................................... 7 Legal procedures .......................................................................................................................... 8 Internal factors that may affect Johnsons institution ....................................................................... 9 Human resource ........................................................................................................................... 9 Capital resources .......................................................................................................................... 9 Organizational structure ............................................................................................................. 10 Innovation .................................................................................................................................. 11 Infrastructure .............................................................................................................................. 11 Conclusion ..................................................................................................................................... 11 Reference ....................................................................................................................................... 12
JOHNSONS MICROFINANCE INSTITUTION 3 Introduction In 21 st century, the external and internal environments of any business have become a great contributor to the success or failure of businesses around the world. This being the case, any company that seeks to establish itself or venture into any field needs first to consider the state of these factors in order to make proper preparation. The finance sector in Kenya has greatly transformed in the course of time and this means that there are changes which needs to be noted. With the growth of economy, increased levels of income and growth of businesses, the banking sector has become a key area of focus. Such aspects have drawn many microfinance companies to develop interests in investing in Kenya. Therefore, there are both local and international microfinance institutions in Kenya. According to the given case based on the topic of research, Johnsons Institution requires to consider the five dimensions of an organization’s external and internal factors that may affect its operations in Kenya. Research will focus on the five dimensions in the discussion and the view of Johnsons Institution. The given five external factors includes: competition, economy, consumer trends, legal procedures and technology. The internal factors are; innovation, infrastructure, capital resources, human resource and organization structure. Such will be analyzed in the light of the state of the MFIs in Kenya. Competition Competition exists in almost every field and though it ranges based on the number of companies or other service providers who are operating in the same field ( Thuo & Juma, 2017) . It involves companies which are selling the same product or service which may affect operations of a new company that is entering the field ( Mbogo and Ashika, 2011) . In Kenya there are various microfinance companies which includes: ECLOF Kenya, ASA Kenya and K-LEP among others. First it is good to note that there are different acts which have been signed and each process has brought about freedom in the field of microfinance thus making the field more attractive to many operators ( Sila, 2014) . For example, the recent developments in the field involves the signing of the act which would allow microfinance institutions to be controlled or regulated the same way banks are being regulated ( Mbogo and Ashika, 2011) . This again would ensure provide more freedom which later made different companies from even abroad to develop interests in investing in Kenya. The other aspects which have caused competition is the increased

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