| dc.description.abstract | Organizations are open systems, they depend on the environment for resources and
also to discharge their outputs. More importantly they operate in an environment of
change. This means that they have to proctively monitor the changes in their business
environment which has become very competitive, volatile and more importantly
unpredictable and align themselves accordingly. It is the environment in which
organizations operate which shapes them and influences their choices of the strategy
and determines their performance.Gone are the days when organizations used to sit
and wait for customers, customers now have a choice and they value quality products
and services. Companies require strategic thinking and only by evolving good
business strategies can they become strategically competitive (Ansoff and McDonnell
2009).Kenya‟s insurance industry is a major player in the Financial Services Sector of
the Kenyan Economy. Due to changing business environment in Kenya, insurance
companies operating in the country have been compelled to develop strategies that
can help them survive the turbulent business environment. This study used a case
study approach to investigate the strategic responses by Old Mutual Kenya to the
dynamic business environment. Data was collected using an interview guide which
was administered by face to face meetings with the respondents which were the Chief
Executive Officers and functional managers of Old Mutual Kenya.The functional
divisions include Risk and Legal, Finance, Marketing, Operations, Human Resources
and Information Technology. In total 8 face-to-face interviews were conducted. The
researcher also used secondary sources of data to supplement sketchy information
given by some interviewees. The qualitative data collected was analyzed using
content analysis technique. The study established that Old Mutual Kenya Limited has
adopted strategies similar to the other Kenyan insurance companies although it has
been more aggressive in some aspects. The study revealed that Old Mutual Kenya is
using various strategies to respond to changes in the Kenyan business environment.
The most notable ones include diversification, good corporate governance, new
products and services, products and services differentiation, market segmentation,
acquisition, branch network expansion, automation of business processes, innovation,
improved customer service, strategic partnerships, marketing, staff training and
development, cost containment, use of mature information technology and entering
new markets. This study recommends that IRA should create a flexible regulatory
environment. The government should ensure that the necessary laws and policy are
put in place to safeguard the interests of all the stakeholders in the insurance
industry.It is recommended that in order to stay ahead of competition, Old Mutual
Kenya should continuously scan the environment aggressively and speed up
implementation of various strategies considering the implications of each strategy.The
findings of the study indicated that firms at times are quick to come up with strategies
to deal with changes in the business environment without considering the effects that
those responses may have on the business. Thus strategies should be considered
wisely, and an analysis of the effectiveness of those responses should be carried out
before the strategies are adopted. This will ensure that the strategies suit all the
employees in the organization. It will also ensure that the firm is ready to encounter
any challenges that may be encountered during the implementation of those strategic
responses. | en_US |
