Strategic responses adopted by pioneer assurance company limited to the turbulent external environment in kenya
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 a long time. The 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 insurance industry in particular has been bedeviled by a low market penetration rate due to myriad issues. They include low product awareness, low income levels, perceived low return on insurance policies, cumbersome settlement procedures and general lack of trust in the industry. 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 strategic responses pioneer assurance company limited has employed 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 top managers of Pioneer Assurance Company limited. 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; offering a wide rage of products and services, engaging skilled staff, automation of business processes,organised distribution network countrywide and intensive marketing.