Response strategies of British American Tobacco Kenya Limited to macro environmental changes
Dynamic environmental changes impact on organizational goals and objectives. This makes it difficult for organizations to remain viable. To be able to stay ahead of competition, it is imperative for organizations to continually scan the environment. This enables the organization to adjust their strategic responses to accommodate the demand of the environment in which they operate. The appropriate strategic responses will guarantee a competitive edge. The last ten years have witnessed tremendous changes in the environment. These changes have greatly impacted on all industries operating in the country. The research project was a case study of BAT K Ltd. This study had one objective to establish the kind of responses BAT K Ltd has adopted to cope with the macro-environmental changes. In an effort to meet this objective, primary data was collected. Primary data was obtained from personal interviews with the respondents who were responsible for developing strategic responses to the changing environment. These respondents have also been responsible for overseeing the implementation of those responses. The data was then analyzed using content analysis. This study has established that changing environmental situation in the Kenyan tobacco industry has posed many challenges to BAT K Ltd. Those challenges arose from the changes in the business environment, increased level of taxation, unfair level competition and harsh legislative changes. According to the study findings, BAT K Ltd has addressed its changing macro environment through restructuring, marketing, information technology and lobbying. These responses have culminated in a more competitive BAT K Ltd making it more prepared to adequately match demands of the environment. A cross-sectional survey covering the whole industry can be undertaken to determine the strategic responses by the firms in the tobacco industry. This would give indications of the responses made by those firms to their changing macro environment. The survey would then allow for industry generalization to be made.