Strategic Repsonses Adopted by the Kenya Ports Authority to Changing External Environment

Abstract

To the date of this study, no known study had focused on the strategic responses adopted by Kenya Ports Authority to counter changes in environment. This was despite the fact that the current changes brought about by globalization and economic crisis have had a great effect on the port given its international dealings. The objective of this study was to determine the strategic responses adopted by KP A as a response to the changing external environment.

This was a case study since the unit of analysis is one organisation. The research utilized both primary and secondary data. The interviewees of this study were the eight heads of divisions. These respondents are appropriate because they are well versed and form part of the decision making body. The raw data was edited for completeness and consistency. A content analysis was employed. The data was then presented in a continuous prose as a qualitative report on the strategic responses to the changing environment in Kenya Ports Authority.

The study concludes the organization has employed strategies such as differentiating the main services from those offered by competitors as well as global economic changes that had made the organization launch extensive financial strategies so as to remain competitive in the market. The study concludes that low cash flows, entry of many regional competitors due to liberalization of the economy; regulation and receptive attitude of potential customers since the authority is a government agency.

The study concludes that to counter the changes, the organization has reacted by introducing low-cost but high quality services so as to make it easy for customers to access their services and that KP A has been focusing more on the East and Central region market as a strategy to be the ports authority of choice for everyone. The study concludes that strategic responses were both proactive and reactive to the changes in the company's external environment.

The study also concludes that the organization had a better vision and improved regulatory and commitment to develop and partner with other organizations had caused the organization to change from conservative to forward-thinking. The study recommends that KP A should engage more in talent acquiring responses to ensure that there is innovations geared towards development of new services that are affordable and high quality.

The study further recommends that KPA should heavily involve in regional trade by diversifying in other countries in East Africa and Africa at large in order to take advantage of economic liberations in many countries as a result of globalization. The study also recommends that the company should recruit workers who have the necessary knowledge and competencies in the business to minimize on the induction and training costs. Key words: Strategy; strategic response; environment