Strategy implementation challenges facing insurance industry: a case study of insurance companies in Meru County
Abstract
Strategic management is fundamentally about setting the underpinning aims of an organization,
choosing the most appropriate goals towards those aims and fulfilling both over time In the
strategy implementation often called the action phase - the firm is required to translate its
strategies and policies into action through the development of specific budgets and procedures.
Due to increased challenges facing insurance companies in Kenya, management of the
companies have sought strategic management as a tool to save the industry by formulating and
implementing strategies. Strategy implementation has attracted much less attention in strategic
and organizational research than strategy formulation or strategic planning. The study adopted
descriptive research design. The population of this study comprised of 36 branch managers and
their deputies from the 18 licensed insurance companies operating in Meru County. The study
carried out a census survey where 36 managers and their deputies were selected for the purpose
of data collection. Statistically, in order for generalization to take place, at least 30 elements must
exist (Cooper and Schindler, 2003). The researcher used both primary and secondary data.
According to Sproul (1998), . The study concluded that the level of commitment of employees
affects the strategic implementation at the insurance companies to a very great extent. The
management should avoid budget restriction as it negatively affects strategy implementation in
the company; there must be a clear assignment of responsibilities and that the involvement of
middle managers valuable knowledge for strategy to work. In addition, the top management
commitment should also be enhanced for strategy implementation to succeed, communication
should be well effected throughout the process of implementing a strategy, and teamwork
activities should also be emphasized. Moreover, the study encourages activities coordination;
and indicates that it is important to have an integrative point of view when formulating a strategy
and that staff implementing strategy are capable enough and that strategy implementation took
more time than expected.