| dc.description.abstract | The objective of the study was to determine how the changes in the environment have affected
the clearing and forwarding industry and to identify the strategic and operational responses
adopted by the firms to counter the changes.
50 companies were targeted for the study usmg the stratified sampling technique where the
companies were classified into three categories-the multinationals, companies that do in-house
customs clearance and other local companies. A structured questionnaire was administered to
senior managers of the selected companies through a "drop and pick" method with telephone
follow ups.
Out of the targeted companies, 32 companies responded which represented a 64% response rate.
The response rate among multinationals was 58%, local companies 71.4% and those which do
in-house customs documentation 50%. The response rate was largely influenced by restricti vc
company communication policies, confidentiality concerns and time constraints for the senior
managers who were the target respondents. -.
The questionnaire was structured in three sections. Section 1 sought to obtain general
information about the firms; Section 2 sought to determine using a 5-point Likert Scale (I-no
impact, 2-low impact, 3-moderate impact, 4-high impact and 5-very high impact) the impact of
the external environmental forces on the firms and Section 3 seeking to determine the operational
and strategic responses adopted by the firms to counter the changes in the external environment.
The data collected was analysed for completeness and validity and the findings summarised and
presented in form of frequency tables, percentages, line, bar and cone charts as well means and
standard deviations in line with the objectives of the study. The study had sought to answer two
key questions: How the external environmental forces had impacted on the clearing and
forwarding industry and how the industry had responded to the forces?
Using the 5-point likert scale to assess the degree of impact with (1 no impact and 5 very high
impact), the findings revealed that the impact of environmental forces on business is real and
critical. Technological advancements with an impact rating of (4.4), political-legal (3.6) and
economic (3.3) forces were found to pose the greatest impact in the remote environment whereas
on the industry environment, suppliers' actions (3.9), competitors (4.3) and changing customer
needs (4.3) added to the agony.
Being alert to the forces and their impact to business, the firms in the industry in their attempt to
answer the second question have identified appropriate operational and strategic responses.
Among the strategies are strategic planning which has been adopted by 77% of the respondents,
customer service focus by 84%, pricing by 68% and technological. innovation (48(%) .
It is incumbent upon firms therefore that they must continuously scan the environment to identify
opportunities and threats while at the same time evaluating their organizations' resource
capabilities to ensure that they exploit the opportunities and counter the threats. This way they
will be best placed to craft strategies that match the appropriate environmental turbulence and
thus ensure success and prosperity of their organizations: | en |
