Response Strategies Adopted by Mastermind Tobacco Kenya Ltd to Changes in the International Macro-environment
Abstract
The integration of the global economy over the past few decades has led to the creation of
an environment full of opportunities for firms to increase business. But in order to take
advantage of these opportunities firms have to face certain challenges. Entering a new
market means that business managers have to contend with the challenge of doing
business in a different and somewhat unknown environment. Firms who achieve success
in their international business are those that perceive the changes in the international
environment and are able to develop strategies that enable them to respond accordingly.
On this basis, the study aimed to establish the response strategies that Mastermind
Tobacco (K) Ltd has adopted to changes in the international macro-environment. The
study also sought to establish the challenges that the company is facing while responding
to the changes in its international macro environment. The open systems theory and
contingency theory of organization were used to explain the organizational structure and
changes. Data was collected by use of interview guides for the primary data while
secondary data was obtained from the company's strategic plan, internal publications and
magazines. The data was of qualitative nature and from past studies content analysis was
found to be the most appropriate in analyzing these type of data hence the study adopted
content analysis technique in analyzing the data; the analysis was presented in a narrative
form. The study established that indeed Mastermind Tobacco (K) Ltd macro-environment
was full of uncertainties and rapid change; the response strategies that the company was
using were identified as, comply, stakeholder involvement, product development, market
development, exporting, contract manufacturing, manipulation, corporate social
responsibility, afforestation, agro-forestry, diversification and vertical integration. It was
also established that the company was grappling with the challenges of dulled motivation,
systems delay, action disconnects and distorted perception in the formulation and
implementation of the response challenges. The study recommends that the company
enhances its environmental scanning, competitor analysis and SWOT analysis. The study
also does recommend a change in the organization structure from centralization to
decentralization. Finally, it recommends that the policy makers engage the industry
players in the formulation of policies concerning them and to also review the current
policies and regulations.
Citation
Wanjiru Peter Muchiri (2013). Response Strategies Adopted By Mastermind Tobacco Kenya Ltd To Changes In The International Macro-environment. Master Of Business AdministrationPublisher
University of Nairobi