Responses of Inter -urban Bus Companies in Kenya to Environmental Changes

Abstract

Organisations must continuously adapt their operations to the constantly changing environment in order to succeed in business. Since the last quarter of the twentieth century to date, several changes have taken place in the world economies in particular the transport industry. In order to survive in this dynamic environment, organisations need strategies that are focused on their activities and deal with the emerging environmental challenges accordingly. The Kenyan business environmental has been undergoing through transformational changes for a while now. Some of these changes include the accelerated implementation of economic reforms, the liberalisation of the economy, removal of price controls. Privatisation and commercialisation of the public sector and increased competition in all spheres of business. In this changing environment, organisations have to constantly adapt their operations and internal configurations to reflect the new external realities. This study set out to establish the responses, being utilised by the inter urban bus companies in the face of increasing environmental changes. The objective of the study was to determine how the public passenger bus firms that ply between Kenya towns are responding to changes in the environment in which they operate. The researcher collected data through the administration of a structured questionnaire. 28 out of the targeted 43 bus companies participated in the study. tV It became clear from the research findings that the major challenge facing the bus companies was how to maintain and improve profitability and survival in the face of high competition. The responses by bus companies were therefore geared towards cost cutting strategies. The study documented the following key responses by bus companies to changes in the environment. These are sourcing of fuel and spare parts, improvement of services, reducing the incidence of loss of baggage, capital investment in technology, sales promotions, adherence to arrival and departure time and varying of fares. Understanding of the respondents on the subject was a major limitation. A number of respondents did not have time and capability to respond to the study. Greater participation would have, undoubtedly, enhanced the research findings. This is particularly true in that the total population stood at 43 firms. The bus companies operating to the coast were particularly cautious as the terrorists search at the coast was being pursued vigorously by the security apparatus and any stranger to them was not welcome