Strategic Responses to Changing Environmental Conditions: a Case of AAR Health Services Ltd

Abstract

Th study was about the responses of AAR Health services changing environmental conditions. Its objective was document the challenges caused by the changes and AAR's response to them. The study was conducted by carrying out in-depth interview with the Chief Operations Officer and General Managers . The findings confirmed that the company operates in a rapidly changing environment characterized by many challenges. These challenges include competition, change in government legislation, environment and limitations in technology.

The study established several responses by AAR to the changes in the business environment it operates in. New products to cater for all income group have been developed and the company has been carrying out public relation exercises to communicate this. AAR has restructured resulting in the formation of the Holding Company and nine subsidiary companies. Technology has been enhanced with the acquisition of new software. AAR has not adequately responded to the changes and challenges it is facing in the external environment because it wants to increase both the scope of its products to cover HIV and pre-existing conditions and its geographical Span. It hopes to improve its service delivery and develop even more affordable products. The study recognizes that AAR is but one of several HMOs in the Kenyan market and it recommends that a study should be carried out to find out the kind of responses of other HMO to changes in the business environment.