Strategic responses by MP Shah Hospital to changes in the external environment in Kenya
Organizations without exception are environment dependent or serving and hence their interaction with environmental factors is essential for survival. For an organization to be able to retain competitive advantage, it needs to examine its environment both external and internal and respond accordingly. Organizations policies and incentives depend on their roles and functions as well as the beliefs and experiences of those who interact with them. This study was about strategic responses by MP Shah Hospital Nairobi to changes in external environment in Kenya. The objective of the study was to establish the strategic responses that MP Shah Hospital Nairobi has adopted to address changes in its changing environment. The study was carried out using a case study design. Both secondary and primary data was collected by the researcher. Secondary data included public reports and hospital’s own announcements. The primary data was collected by use of semi-structured interview guide administered on the hospital’s CEO and four departmental managers charged with responsibilities of strategy formulation, implementation and evaluation at the hospital. The hospital confirmed that MP Shah Hospital Nairobi has been affected by changes in the external environment and has responded to the challenges by taking various measures. The measures include staff training, product differentiation, adhering to government policies and regulations, promoting a learning culture within the organization to accommodate change, technological advancement and innovation. The hospital is more aggressive in its sales department, there is more emphasis in productivity in response to customer concerns innovations of new products, re-branding and enforcement of code of conduct. There were limitations to the study such as limited time for data collection due to respondents busy schedules and shielding of information by respondents due to fear of disclosing their hospital business secrets. This study implies that health industry is operating in ever changing and increasingly competitive environment and hence apart from the strategies, MP Shah Hospital Nairobi has employed the players in the industry should also consider other innovative entrepreneurial strategies that enable their survival in competitive environment. Organizations should continuously scan the external environment for any opportunities or threats and be prepared to respond effectively and appropriately with speed so as to avoid any mismatch which could result and must be flexible enough to allow adoption of strategies that enhance strategic fit between the organization and its external environment.