Response Strategies Adopted by Mastermind Tobacco Kenya Ltd to Changes in the International Macro-environment

Abstract

The integration of the global economy over the past few decades has led to the creation of an environment full of opportunities for firms to increase business. But in order to take advantage of these opportunities firms have to face certain challenges. Entering a new market means that business managers have to contend with the challenge of doing business in a different and somewhat unknown environment. Firms who achieve success in their international business are those that perceive the changes in the international environment and are able to develop strategies that enable them to respond accordingly. On this basis, the study aimed to establish the response strategies that Mastermind Tobacco (K) Ltd has adopted to changes in the international macro-environment. The study also sought to establish the challenges that the company is facing while responding to the changes in its international macro environment. The open systems theory and contingency theory of organization were used to explain the organizational structure and changes. Data was collected by use of interview guides for the primary data while secondary data was obtained from the company's strategic plan, internal publications and magazines. The data was of qualitative nature and from past studies content analysis was found to be the most appropriate in analyzing these type of data hence the study adopted content analysis technique in analyzing the data; the analysis was presented in a narrative form. The study established that indeed Mastermind Tobacco (K) Ltd macro-environment was full of uncertainties and rapid change; the response strategies that the company was using were identified as, comply, stakeholder involvement, product development, market development, exporting, contract manufacturing, manipulation, corporate social responsibility, afforestation, agro-forestry, diversification and vertical integration. It was also established that the company was grappling with the challenges of dulled motivation, systems delay, action disconnects and distorted perception in the formulation and implementation of the response challenges. The study recommends that the company enhances its environmental scanning, competitor analysis and SWOT analysis. The study also does recommend a change in the organization structure from centralization to decentralization. Finally, it recommends that the policy makers engage the industry players in the formulation of policies concerning them and to also review the current policies and regulations.