Organizational Structure and Strategy Implementation at Geothermal Development Company in Kenya
Abstract
Strategy implementation determines the success of an organization because it actualizes
the plans that have been set by the organization. Implementation phase of the strategy
presents the greatest challenges because it involves interplay of several variables, both
internal and external to the organization. The internal variables such as the organizational
structure are within the control of the organization and the management can manipulate
them to suit the required purposes. Equally the strategy drawing process influences the
strategy implementation and hence appropriate participative procedures should be
adopted by an organization in coming up with the strategy. The energy sector is expected
to play a critical role towards achievement of the country’s vision 2030. Implementation
of strategies by the firms in the energy sector is therefore critical towards achievement of
government’s policies and strategies. Cheap power reduces the production cost of goods
and services, making them affordable to the citizens and competitive in the global,
market. Geothermal energy has be classified to be cheaper when compared to hydro and
thermal power. The government is therefore keen to see the strategies of Geothermal
Development Company (GDC) being successfully implemented. Successful
implementation of GDC strategies shall provide adequate power that shall enable the
government achieve the development objectives of industrialization. The research project
was a case study on GDC. The objectives of the study were to determine the strategy
implementation process; establish the role played by organizational structure in strategy
implementation and to determine the challenges of strategy implementation at GDC.
Research used primary data that was collected through the use of interview guide
instrument. Content analysis method was used to analyze the data collected. The study
established that strategy implementation process was team work that cut across all the
levels of GDC hierarchies. Organization structure was found to play an important role in
strategy implementation. GDC was found to have organic organizational structure that
was flexible enough to allow adjustments during strategy implementation. The challenges
to strategy implementation were largely external to GDC and arose out of the presence of
strategic alliances partners. Major limitation of the study was the fact that the study was a
case study whose implications are more to the organization or GDC as opposed to other
firms in the industry. Further cross sectional research is therefore required before the
findings are declared to be universal in application. The study recommended that GDC
should reduce the heavy reliance on the strategy partners and work towards selfsufficiency. GDC should also look outside the Kenya borders, especially on Uganda and
South side to generate and export surplus power using the Kenya Northern Corridor.
Publisher
University of Nairobi