dc.description.abstract | For a firm to survive and prosper, a strategy is important. Strategy helps a firm create a fit
between the organization and its environment in an effort to enable the organization adapt
to its turbulent environment. How the strategy is planned, formulated and implemented is
therefore important.
Strategy is the direction and scope of the organization over the long term, which enables
it to achieve advantage through configuration of its resources within the changing
environment, to meet the needs of markets and fulfill the expectations of the
stakeholders. An organization's strategy deals with the game plan for moving the
company into an attractive business position and building a sustainable competitive
advantage. A company's actual strategy usually turns out to be more or less than the
planned strategy as new strategy features are added and others are deleted in response to
newly emerging environmental conditions.
This study was about the strategy formulation and implementation process at AAR group
of companies. The group was started in the year 1984 and operated in a relatively stable
environment for 15 years up to year 1999 when adverse environmental challenges started
emerging. By year 2003, the environmental factors had become severe and the group
realized that it had to review its strategy if it was to survive. The objective of the study
was to document the process that AAR group undertook in formulating and implementing
the strategy. The study further sought to interrogate any challenges encountered in that
process.
The study was conducted as a case study by carrying out in-depth interviews with the
Chief Executive Officer, The Managing director, five (5) Senior Managers, five (5)
middle level managers and ten (10) employees at lower support level. The findings
confirmed that the group formulated strategy and has continued to implement those
strategies.
This study established that key to strategy formulation at AAR Group was a clear
identification and formulation of the organizations Vision, Mission, Core Values and strategic objectives. The organization used participatory approach where all staff were
involved in this process. This was particularly key in ensuring buy in by all staff. The
organization further successfully analyzed and understood both the external and internal
environment that it was operating in as a basis of determining proper fits between the
group's capabilities and the environment. The product of this exercise was a clearly spelt
out understanding of what the organization needed to do to prosper in that environment
having considered both the internal capabilities and the external conditions.
The next step was then to implement the plans that had been formulated. Key to
successful strategy implementation at AAR Group were nine (9) components; rules and
policies consistent to the strategic objectives, goals and measurements were created,
organization core values were embedded, there was consistent training, products offering
was enriched, there was change in both the physical structure and organization structure.
There were three major challenges of strategy formulation and implementation at AAR
Group. Firstly, the participatory approach was challenging especially in having the lower
level staff participate fully in the process. The other challenge was in achieving
successful embedment of the new core values. The biggest challenge though was in
setting up and implementing performance measure and reward system that was
understood by everyone and that would drive performance to predetermined objectives.
To date, this remains a challenge to successful strategy implementation.
This study was limited by scarcity of resources. It would have been desirable to interview
a larger number of lower level employees. Furthermore, because the topic under research
was broad since it incorporated both strategy formulation process and implementation
process, the research was not adequately detailed.
Further detailed study should be conducted on specific aspects of strategy formulation
and implementation at AAR Group separately to give a more detailed account of each
process. In addition, studies should be 'carried out to establish whether other Health
Management Organizations have formulated and implemented strategies and how this
was done. | en |