Factors influencing strategies adopted by Mumtaz trading and investment company limited in its operations in Kenya
The supply and demand forces in the real estate market are affected by human behaviour and economic activity; this in turn affects the financial performance of properties through rental changes, vacancy rates, operation and capital expenses and capitalization rates. Kenya’s mortgage market has more than quadrupled in the last 5 years with its value growing from Kshs. 19 billion in 2006 to just slightly over Kshs. 81 Billion by June 2010 (CBK, 2010). There is no known study done on factors influencing strategies adopted by Mumtaz Trading and Investment Company limited in its operations in Kenya, thus the purpose of the study therefore was to fill this gap in literature by addressing the following questions; what are factors influencing strategies adopted by Mumtaz Trading and Investment Company limited in its operations in Kenya. The study Research Design was a case study research design. Primary data which was collected from key informants using interview guides. The data was qualitative in nature and was analysed using content analysis. From the findings, the study concluded that MTIC Limited has adopted varied forms of strategic plans which include organizational strategies and organizational goals. MTIC Limited updates its policies on strategy implementation to incorporate the changes in the real estate industry to retain a competitive edge in the market. The staffs were fully involved in strategy formulation and implementation which enhanced the success of the strategy as well as helped to reduce resistance among the employees. The board of directors and employees were highly motivated in supporting the strategic choice in Mumtaz Trading and Investment Company limited. The study found that organizational structure has a role in implementation of strategic change in an organization. The strategic change was communicated both internally and externally using top down communication approach. The study recommends that the management should conduct regular market analysis to establish the changing customer needs to invent strategic choices that work best for the company. The study recommends that the government should review the regulations governing the real estate to address the existing bottlenecks limiting the growth of investment in the sector and streamline the sector to encourage more investors. This should be coupled with offering the investors incentives as well as reducing the high taxes charged. The study further recommends that the management of Mumtaz Trading and Investment Company Limited should relook at their value chain to reduce wastes and enhance efficiency in strategic choices implementation.