Strategy Implementation at Aig Insurance Ltd

Abstract

Strategy implementation involves organization of the firm's resources and motivation of the staff to achieve objectives. The environmental conditions facing many firms have changed rapidly. Today's global competitive environment is complex, dynamic, and largely unpredictable. To deal with this unprecedented level of change, a lot of thinking has gone into strategy formulation. Strategic management is about managing the future, and effective strategy formulation is crucial, as it directs the attention and actions of an organization. In Kenya, the main players in the insurance industry are insurance companies, reinsurance companies, insurance brokers, insurance agents and the risk managers. American International Group, Inc. (AIG), a world leader in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. The research design employed in this study was a case study method. The study investigates strategy implementation in AIG insurance company in Kenya. The primary data was collected using both the interview guide and the questionnaire. The researcher used qualitative and quantitative technique in analyzing the data. Qualitative data analysis seeks to make general statements on how categories or themes of data were related .The qualitative analysis was done using content analysis. From the study, the researcher concludes that the factors that influence strategy implementation in AIG Insurance Ltd were financial capacity of the organization, top management support, involvement of board of directors and the employees in the strategy implementation, appropriate organization structure and also motivating them and capability of the human resource in the organization in managing and implementing new strategic direction. The study also concluded that the effect of strategy implementation and performance in the organization was that the organization will have a competitive advantage over other organizations in the industry and the performance in the organization will be improved both in the service of the customers and in terms of the profit.