Strategic Responses Adopted by Kenol Kobil Limited to Changes in the Business Environment in Kenya

Abstract

Organizations are environment serving and have to align themselves well to cope with the ever changing business environment. Every organization depends on the environment for its survival and prosperity. Today’s business environment is dynamic, complex and highly competitive. Thus, every organization encounters numerous changes in its environment and needs to adapt its strategies in response to these changes. This study sought to identify changes that have occurred in the environment that have affected KenolKobil and how the company has strategically responded to these changes. Data collection was done through a case study approach that sought to elicit general and specific information on changes in business environment and how the company has responded to the changes. Data analysis method applied for this case study was content analysis. This enabled focus on issues that bring out the theme of changes in the environment and how organization strategically responds to these changes. Research findings from the study indicate that the biggest threat to the future survival and profitability of KenolKobil is government regulation on fuel prices. The second threat is expansion strategy by rival oil marketers. This study has confirmed that KenolKobil has put in place strategies to position itself ahead of the competition. Since the biggest threat to KenolKobil is regulation of fuel prices, the company has embarked on a regional expansion strategy to become a Pan-African oil marketer. In view of the findings, the study recommends KenolKobil together with other oil marketers to lobby the government to remove fuel price controls to allow free market dynamics and industry self-regulation.Equally, important is to get a strategic partner to inject capital for the regional expansion strategy, and/or issue corporate bond to finance the expansion strategy. Since the study was on one oil marketer, data gathered might differ from data that may be collected from other oil marketers. This is because different organizations even if operating in the same industry adopt different strategies even for a similar change in the business environment.The study also faced a number of challenges. Two main ones were time and financial constraints.