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.