Challenges to strategy implementation at CMC motors group limited

Abstract

Strategy implementation is the process of transforming strategic intentions into actions, then into acceptable results. It is one of the most vital phases in the decision making process; embracing all the actions necessary to put the strategy into practice. Successful strategy implementation is as critical and difficult as the strategic choice. It requires consideration of the resources to be used, human resource requirements, structure, systems, and other variables. Strategic management and hence strategy implementation are context sensitive. Thus, the manner in which these are practised in one sector may not fully help in understanding their practice within other sectors. This study focused on the motor vehicle industry and within the context of a multidivisional company. Among strategic management studies that have been done, very few have focused on the implementation aspect. Furthermore, these few ones have laid their focus more on other contexts other than the multidivisional context. This study was designed to fill the gap by emphasizing strategy implementation in a multidivisional context. It sought to answer the questions: what are the strategy implementation practices adopted by CMC in implementing its strategies?; and what are the challenges that CMC faces during the implementation process? Consequently, it purposed to achieve two objectives: to establish the strategy implementation practices adopted by CMC Motors Group; and to identify the challenges encountered by CMC Motors Group in implementing its strategies. The major findings of the study were that CMC Motors adopts various practices in implementing its strategies. Embedded in the company’s broad action plans and strategic thrusts are practices such as planning and control systems, performance targets, direct supervision, market mechanisms and some social cultural practices. The study established that whilst the practices that CMC uses support its strategies, aspects of the company structure and culture, resistance to change, unsupportive processes and procedures, uncontrollable factors in the environment, inadequate training of staff and resources among others were major obstacles to successful strategy implementation in the company.This study is presented in five chapters each with various sections through which the researcher has tried to discuss the above issues. The findings of this study should be understood and evaluated in light of the limitations of the study. This study is especially helpful to CMC and other similar companies in Kenya. It should be particularly helpful to the company’s strategic team and managers of multidivisional organizations whose responsibilities include formulating and implementing strategies.