Stakeholder involvement in strategic management and performance of British-american investments company limited (baicl)
Today’s business operating environment is increasingly volatile and to compete successfully, organizations continually need to improve their performance. When stakeholders are meaningfully involved in organizational activities the benefits for the organization and the stakeholders tend to be greater than if they had not been involved. The study sought to establish the relationship between stakeholder involvement in strategic management and performance of British American Investments Company Limited (BAICL) using descriptive research design. The study targeted five interviewees from each of the three branches of BAICL in Nairobi all of whom participated in the study. The study used both primary and secondary data. Secondary data was obtained from the published annual reports of BAICL spanning five years (2010-2014) while the primary data was obtained through an interview guide. In analysing the quantitative data, the study used descriptive statistics with the findings presented in the form of tables, graphs and charts. Qualitative data was analyzed using content analysis through developing a thematic framework from the key issues, concepts and themes emanating from the open ended questions. The study established that BAICL had embraced the concept of strategic management with stakeholder involvement on various matters of significance to the firm’s operations such as financing, investment, expansion, restructuring, strategic alliances and company management. The study established that stakeholder involvement in the firm’s strategic management process led to clarity in organization direction, coherence in organizational decision making, increased ability to effectively deal with market turbulence, better coordination of organizational activities, effective communication, increased operational efficiency and employees’ productivity, better operational cost management, creation of innovative products and services, enhanced product and service quality, increased output, better resource utilization and increased ability to handle the ever increasing competition in the market place. The study concluded that stakeholder involvement in strategic management in BAICL had helped enhance the firm’s performance as contributions and suggestions given by the stakeholders informed crucial decision making of the firm in critical areas such as financing, investment, expansion, restructuring, strategic alliances and company management. The study recommended that the management of BAICL should develop mechanisms to evaluate the success of and/or challenges of stakeholder involvement in the company’s strategic management process so as to ensure that the stakeholders of the company are at all times meaningfully engaged in the firm’s strategy planning and decision making. The study further recommended that the Government of Kenya and key industry players should not only come up with a mechanism/legislation that will streamline the insurance industry’s operating environment, but also put up mechanisms for having such policies fully implemented.