Strategic responses by weighing scale dealers in Kenya to changes in external environment

Abstract

The environment in which organizations operate is constantly changing with different factors influencing them. Since the turn of the millennium, the general business environment has become more volatile, unpredictable and very competitive. Coping with the increasingly competitive environment has called on firms to rethink their marketing strategies. Industries are responding to customer‟s demand by becoming more innovative in their new ways of approaching the changed environment. The objectives of the study were; to establish the changes that have taken place in the external environment for Weighing Scale firms in Kenya and how the weighing scale firms in Kenya have responded to changes taking place in their external environment. The population for the study covered all top ten firms based in Nairobi as at December 2012 as registered by the Weights and Measures Department of Kenya. The primary data was collected by use of questionnaire. The basic data collection method “of Drop and pick later techniques" was used. Descriptive analysis was used. Data analysis was done using descriptive statistics. The study found that Weighing Scale firms in Kenya use decisive strategic responses in the changing external environment to a great extent such as pricing, product diversification and embracing technological changes. Strategic responses by Weighing Scale firms in Kenya aim to improve organizational efficiency and it is aimed at improving productivity. The study found that Weighing Scale firms in Kenya use strategies in responding to changing external environment such as staff reduction, keeping overheads lower than others, use knowledge from past experience, keeping overheads same as industry and keeping charges same as competitors. The financial requirements and staff skills and motivation influenced the strategies in the organization were industry regulations, changing customer needs, demands from suppliers and actions of competitors. The study also found that Weighing Scale firms in Kenya use reactive strategies in responding to the changing external environment such as after sale service, product promotion and reliability of the marketing. Weighing Scale firms in Kenya have also introduced new products and services in the market and have technological and/or marketing strategies in line with existing products. The study recommends that in order to overcome the challenges of change in external environment the companies should devise specific strategies to counter specific threats from external environment.