Response strategies of International Non - Governmental organizations in Nairobi to changes in the Micro-environment

Abstract

The environment in which organizations operate is constantly changing with different factors influencing organizations. Since the turn of the millennium, the general business environment has become more volatile, unpredictable and very competitive. Decisions by managers have a strategic impact and contribute to strategic change. This study was designed to determine environmental challenges that face International Non Governmental Organizations and to identify the responses adopted by the company to deal with the changes in the macro environment. The study was carried out using a census survey design. Data was collected using a semistructured questionnaire which was administered using drop and pick method. Several personal visits to the premises were held to prompt the respondents to respond. The sample size for the study was 26 managers in the company. Statistical Package for the Social Sciences (SPSS) was used to generate data which was analyzed using descriptive statistics. Certain limitations were experienced by the researcher which may have influenced the final results of the study. According to the research, INGOs have certain categories of service. It was confirmed that several of these organizations specialized in more than one category. For example an INGO was found to specialize in Health and Relief development, Education and Youth development. Most of the organizations had operated in the country for over 20years, showing that they were fully established in the country . The study showed that the INGOs faced a lot of challenges from economical changes, technological changes, political changes, competition and finally socio- cultural changes respectively. The industry has responded to challenges in the economic environment by adapting multiple sources of funding from other institutions, for the political changes the organizations have widely adapted the joint venture strategy, where by the organizations join forces with the government, private organizations or NGOs so as to accomplish their objectives. Other changes i.e. socio-cultural, technological and competition, the INGOs applied the diversification into new products or services, computerization and outsourcing strategies respectively.