Factors affecting strategy implementation process: The case of pharmaceutical distributors within Nairobi County, Kenya

Abstract

To achieve greater business performance and profitability, every business must seek to understand and act upon factors both internal and external affecting strategy implementation process. This research was undertaken to understand the factors affecting strategy implementation process in the pharmaceutical distribution companies within Nairobi County. The objective of this study was to establish the challenges faced by pharmaceutical distributors in strategy implementation process. Previously, various studies have been carried out on strategy implementation but non has been carried out on factors affecting strategy implementation in pharmaceutical distribution companies in Nairobi County. The study was specifically to understand how factors of production, communication, focus on strategy, job change, information system, current Economic changes and organization culture and politics affect strategy implementation process in pharmaceutical distributors in Nairobi County. The researcher used descriptive survey by administering a questionnaire to the targeted respondent. Data was analyzed using SPSS software and presented using bar graphs, pie charts and frequency tables. The result showed a majority of the sampled pharmaceutical distributors have the guidelines to the process of strategy implementation. Inadequate factors of production i.e. time, labour and capital greatly affects the process of strategy implementation. Lack of structures and strict profit deadlines also act as impediments to the process since much time is spent in trying to achieve these short term goals. Lack of proper information systems or presence of less understood information systems also affects the strategy implementation process. Lack of planning on information systems also posses a major challenge to strategy implementation according to this study. External factors such as inflation, global economic changes, government policy and changes in taxation rates also pose a great challenge to strategy implementation in the pharmaceutical distributors in Nairobi County. Communication is also very important in the process of strategy implementation and the study showed lack of clear communication as well as poor modes of communication greatly affect strategy implementation. Lack of information by employees on the process of strategy implementation is also a major factor affecting strategy implementation process according to this study. According to the study inadequate allocation of financial resources greatly affected the process of strategy implementation. The respondent in the organisation sample agreed that financial resources were very important in the causes of strategy implementation. Presence of strategy plan which were not well understood by the participant in the process of strategy implementation also posed a challenge in strategy implementation process.