Strategies Adopted by Sarova Group of Hotels in Kenya in Response to Changes in the External Business Environment

Abstract

This research project investigated the strategies adopted by Sarova Group of Hotels in Kenya in response to changes in the external business environment. The external environment of an organization includes those factors outside the organization that affect the organization‟s ability to function and sustain competitiveness in the industry and the market at large. This study helped us to understand what strategies the Sarova Hotels have put in place or matched to counter the various changes in the external business environment, and also remain relevant and make profits in the Hotel industry. Hotels develop strategies that aim to secure a strong market position and achieve profitability outcomes. The study viewed and analyzed these two study objectives, strategies adopted by Sarova Group of Hotels in response to changes in the external business environment and the environmental changes in business faced by Sarova Group of Hotels. The research design used was a case study as it was ideal for the research because it allowed in-depth research of the data collected. Therefore making it easier for the researcher to collect data and define phenomenon more comprehensively. The researcher used both primary and secondary data. Primary data was collected using an interview guide with prospective respondents at the top-level management. Content analysis was used to analyze the data since the nature of the data was qualitative. The study sought to establish that managers in organizations strive to make strategic choices that align the goals of the organizations to their existing external business environment. This sought to establish the strategies adopted by Sarova Group of Hotels in response to changes in the external business environment. This study found out that the hotels adopted the following strategies in order to respond to the changes in the external business environment, Technology, Diversification, Strategic Alliance, and Market Positioning. To apply these strategies they also found out that the main changes in the external business environment are political, economic, socio-cultural, technological, environment and legal. The study made a conclusion that Sarova Hotels and the environment are in a framework where the rationale of the interdependent relationship exists between the organizations and the external business environment. The study recommends that there should be a proper management of strategic planning and management in the organization. Also recommends a structuring of an independent unit for proper strategic monitoring and evaluation process and outsourcing for strategic researchers and consultants to understand the organization‟s external business environment and come up with strategies to implement with regard to capabilities of the organization. The limitations of the study were inadequacy and unwillingness to share detailed information, lack of generalization on the research findings, limited time due to tight schedules. The suggestions for further research is use of different research instrument to attest whether the research will result to similar findings and comparison between the different strategies adopted by other companies in the hospitality industry in Kenya which will provide more insights on the best strategies to adopt to cope with the changes in the external business environment to companies in the industry. Therefore, the organization needs the environment while the environment needs the organization, none would be in existence if deprived of the other, because they have an interdependent relationship. For their interdependent relationship to survive the organization has to come up with strategies to adopt to respond to the changes in the external business environment.