Challenges in the Implementation of Strategic Plan at the APA Insurance Company Ltd in Kenya

Abstract

With the accelerating dynamics of competition, the key to competitiveness no longer lies in employing strategies, which have been successful in the past or in emulating strategies of successful competitors. Real competitive advantage results from developing strategies that will differentiate the organization from its competitors in the eyes of the customers. The aim of this study was to establish challenges i n implementation of strategic plan faced by APA Insurance Co. Ltd. As well as determine how the company has overcome these challenges. The study was conducted through a case study design, focusing on implementation of strategic plan at APA Insurance Company Ltd, interpreting in-depth details concerning the challenges of implementation of a strategic plan and how these challenges have been overcome by the insurance comp any. The targeted respondents were the management team in at APA headquarters in Westlands, Nairobi. The researcher used primary data collected by use of interview guide with both closed and open-ended questions. Data analysis was done using content analysis. From the study the researcher concludes that, the major challenges encountered by APA Insurance Co. Ltd while implementing strategies included some aspects of organizational culture and structure, high degree of staff turnover and resistance to change. Others included lack of infrastructural facilities, government decisions, inadequate resources and conflict among some employees. Therefore Insurance companies should ensure that employees affected by the strategy are the core aspect in implementation of strategic plan focusing on the outcome and also ensure that the necessary resource s are available during implementation of strategic plan. Moreover, insurance companies should assess the customer-employees needs to ensure that it is in line with implementation of strategic plan and make sure that implementation of strategic plan is a team effort. This study has policy implications as there has not been a standard benchmark for the insurance companies as it is for other sectors in Kenya. Currently most insurance companies have implied their course in implementation of their strategic plans and thus this study should act as a bench mark in the industry for results and quality assurance across the sector. This will thereby promote comparability of challenges among the insurance companies in Kenya and particularly during implementation of their respective strategic plans. This makes this study therefore a critical part of the link between theory and practice within the confines of strategic management in Kenyan insurance sector. The research er encountered several limitations including some interviewees being tight on their schedule to get time for interview might not be able to have personal interviews with the respondents due to their work schedules. The researcher however managed to secure their appointment upon promise that the interview would be brief. Other interviewees were not willing to divulge information for fear of reprisal. There is a need to carry out further studies on strategy monitoring. At the same time, this study should be iterated after some time afterto find out if there are any changes that have taken place and comparison with the findings of this study done. One may also wish to carry out a study on the challenge s facing the insurance companies in regards to regulating insurance industry. A study m ay also be carried focusing on the other aspects of the strategic management process apart from implementation of strategic plan