Response Strategies Adopted by Cheli and Peacock Limited to the Changing External Environment in Kenya

Abstract

Turbulence in the environment means organizations must develop response strategies for them to remain in business. The more hostile the external environment is, the more an organization needs to respond to it, the more difficult it is to carry out work and the more defensive the organization must become. The external environment can provide both facilitating and inhibiting influence on organizational performance. Multiple influences in the immediate or proximal environment form the boundaries within which an organization is able to function; these influences likewise shape how the organization defines itself and how it articulates what is good and appropriate to achieve. This has been the situation in Kenya for companies operating in tourism industry since year 2007. The global economic environment has been so unpredictable that many firms are forced to always have contingency measures to avert the adverse effects of the highly erratic environment. The tourism industry in particular has been bedeviled by a images of post election violence, global economic crisis and threat of terrorism combined with technological advancement. This research was an attempt to understand how an organization responds to the influences of the erratic external environment and how the forces outside the organizational boundaries help to shape the organization. The specific objective of the study was to establish the response strategies Cheli and Peacock limited has employed 7 to cope with the turbulent external environment. The study used a case design which was the most suitable in this situation where questions like where, how and when are used to investigate on a certain phenomena to describe the real position. An interview guide was used to collect primary data from the four managers who formed the task force that developed strategies Cheli and Peacock was to adopt. The qualitative data collected was then analyzed through narratives. From the study, it was discovered that for the company to remain competitive in the market, it adopted strategies which include; strategic marketing, restructuring, investment in information technology and training of staff.