Strategic responses by East African Breweries Limited to changes in the external environment

Abstract

The aim of this study is to determine the strategic responses employed by East African Breweries Limited to changes in the external environment. Specifically the study seeks to investigate the main strategic responses by East African Breweries Limited to changes in the external environment; to understand how East African Breweries Limited has employed these strategies to counter the external forces working against its operations and to ascertain the challenges faced by East African Breweries Limited in responding to changes in the external environment. The study adopted a case study design. The research involved all senior unit managers at EABL. EABL is made up of seven operating units i.e. Kenya Breweries Ltd, Uganda Breweries Ltd, Serengeti Breweries Limited, International Distillers Uganda Ltd, Central Glass industries Ltd, Kenya Maltings Ltd and United Distillers and Vintners Kenya Ltd UDV (K). The study involved 2 respondents from each operating unit so as to get from them strategic responses employed by EABL in countering changes in the external environment. The data collected from the respondents was qualitative in nature. The researcher used content analysis to analyze the data through describing phenomena, classifying it and seeing how the concepts interconnect as was indicated by the respondents. The study findings indicated that EABL units have adopted two types of responses namely anticipatory approach which are driven by research on consumer and market trends and respective responses designed in order to maintain competitive advantage and stay ahead of the consumers and reactive approach which are driven by events happening in the market place that require responses ranging from competitor activities and changes in regulatory environment. The study therefore concludes that EABL continuously reviews/scans its environment and responds to the changes in the external environment based on potential impact of each change.