Strategy Implementation and Performance of Apa Insurance Limited Kenya

Abstract

Constant changes taking place in the business environment have made it necessary for organizations to embrace strategic planning process in order improve organization performance and also meet stakeholders expectations. Insurance penetration in Kenya stands at less than 3% which is very low compared to South Africa. Strategy implementation is a critical and yet a very challenging part of strategic planning process which involves an organization leadership creating an enabling environment by empowering the employees to deliver on the objectives agreed upon during strategy formulation and review process. Organization performance are outcomes that can be measured using financial or non-financial indicators. The outcomes can then be compared with expected performance within the organization or the industry. Strategy Implementation comes with fair amount of challenges for many organization. The challenges organization encounter during strategy implementation can emanate from within the organization or in the business environment. The objective of this study was to establish the relationship between strategy implementation and performance of APA insurance Limited. APA insurance underwrites general insurance business in Kenya. APA was established in 2003 after the merger between Pan Africa Insurance and Apollo Insurance general divisions. In less than 15 year APA has become a dominant player in the insurance industry achieving a consistent growth in market share and gross written premium. The study was a case study research design that sought to conduct an in-depth study. Primary and secondary data was collected for the purpose of the study. Interview guide was used to collect primary and data collected was analyzed using content analysis technique. From the study findings it clear that strategy implementation positively influences organizational performance that can be measured using both financial and non-financial indicators. The study validate other empirical studies that have previously been done to establish the relation between Strategy implementation and organization performance. The study will benefit both academia and in practitioners as they will have useful insight as to how strategy implementation impact positively organization performance