An investigation of the existing business models of Small Private Security Companies in Kenya: a Case Study of mark patrol (Kenya) Limited
Date
2013-07
Authors
Kibua, Darren
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
This dissertation investigates the existing business models of the small private security
company (PSC) in Kenya, guided by the fact that PSCs operate in an industry with high
growth potential and negligible regulatory hindrance.
The broad objective of this study was to understand the existing business models and the
challenges of business growth faced by small PSCs. This was done through a case study
of Mark Patrol (Kenya) Limited (MPKL), a small third tier PSC, which was the only
security company that was willing to share its business information. The dissertation
begins by providing an overview of the private security industry (PSI) in general and the
PSC sector in particular. Then it reviews available literature on the concepts of a firm,
business growth, measurement of business growth, the different stages of business
growth, governance and management. From the literature review a conceptual framework is developed. The framework identifies the macro-environment, governance,
management, the competitiveness of small PSCs and the competitiveness of the PSC
sector as the principal factors influencing the business growth of small PSCs.
To achieve its objectives, the study analyzes qualitative and quantitative data collected
from the internal and external environment of MPKL using questionnaires, interviews,
focus groups and various sources of secondary data. The analysis concludes that the
macro-environment and competitiveness of the PSC sector do not significantly inhibit the
business growth of MPKL. It further identifies a lack of both good governance structures
and managers with adequate administrative capacity at MPKL, which results in a
principal-agent dilemma. Finally, the dissertation provides recommendations on the
strategies that MPKL, and many other similar small PSCs, can adopt to improve their
business models and prospects for growth.
Description
A dissertation submitted to Strathmore Business School, Strathmore University, in partial fulfillment of the requirements for the Degree of Master of Business Administration.
Keywords
Business modelling, Small private securities, Kenya, Mark Patrol