| dc.description.abstract | In a stable environment firms can exploit their historical strengths but with turbulence the
environment becomes so unstable in that what used to work may not any more. During
the last decade, the environment in which businesses operate has become so complex.
Companies are today faced with situations that they have never witnessed before.
Moreover, the speed at which these challenges occur is great. In light of increased
turbulence, the rediscovery of strategic planning is hardly a surprise. Studies carried out
all over the world indicate that many firms have turned to formal strategic planning
activities to help them cope with the increased environmental changes and competition.
Faced with similar challenges, one would therefore expect insurance companies in Kenya
to have adapted formal strategic planning practices to ensure their continued survival and
success. It is upon this thinking that this study was considered. This study focused on
the Insurance compani.t~.in ~eny~.; The study hadrne objective. To investigate aspects
of strategic planning by insurance companies in Kenya. To achieve this objective,
primary data was collected through personal interviews with Chief Executive Officers or
other managers involved in the strategic planning process. Data was also collected
through telephone interviews and through the drop and pick later method. At the time of
this study, there were 39 registered insurance companies in Kenya, all of which the
researcher had intended to contact. Thirty companies were sampled out of which 19
responded. This represents 63.3·%response rate.
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This study being investigate in nature, descriptive statistics were used to analyse the data.
Findings of the study indicated to some degree presence of strategic planning practices by
insurance companies. Hence, a lot still needs to be done in their strategic planning
activities. Results indicate a tendency to rely on short term planning practices and over
reliance on financial data in planning activities. In competitor analysis, although
competition is described as 'cut throat', the entire process is quite informal. Visions and
missions need to be communicated and be revised when circumstances change.
In the light of these findings, the researcher has proposed a number of recommendations.
Insurance companies should not discard strategic planning. If properly done, it can be of
great value as it is externally focused. Managers would also be able to think strategically.
2nd line managers need to be involved more in strategic planning activities as it is at this
level that strategies are implemented. Further, the role of professionals in guiding
formulation of strategy should not be downplayed.
The researcher also proi6ses1:he need to carry out &.ore research on aspects of strategic
planning by insurance companies in Kenya in order to validate the results. Given that ".
this study was cross sectional in nature in that it looked at insurance companies at a
particular point in time, the need to carry out a longitudinal study is also proposed.
Strategic formulation is a dynamic process and develops over time, such a study would
hence establish how aspects of strategic planning develop in time, identify changes in the
companies strategic planning practices and the cause of these changes. | en |
