Strategic Responses to Changes in the Dynamic Business Environment by Tausi Assurance Company Limited in Kenya

Abstract

Organizations are open systems where they depend on the environment for resources which are processed and consumed by the environment. The environment in which the organizations operate is turbulent and there is need to scan for opportunities and threats. Organizations use their internal capabilities to exploit opportunities to achieve the set objectives. Threats within the business environment impact on the achievement of set objectives, hence critical to manage them. Strategic responses enable organizations adapt to changing business environment for survival and success. Strategic responses should be carefully crafted to match the changing business environment .Monitoring and review is important to ensure successful implementation. The study was conducted to establish Strategic responses by Tausi Assurance Company Limited to changes in the dynamic business environment. The study had three objectives: Strategic responses by Tausi Assurance Company to the changes in dynamic business environment, the benefits of implementing strategic responses and challenges faced in crafting and implementing. This was a case study where an interview guide was used to collect data through face to face interview. The researcher interviewed the Managing Director and Heads of Department in Actuarial, Human Resource, Information Technology, Accounts, Claims and Reinsurance. Content analysis was used to analyse the data and the findings presented in narrative form. The study found that Tausi Assurance Company Limited crafted various strategic responses among them Training of the Staff, Building relationship with the Brokers, Branding, Recruitment of qualified staff, market segmentation, Use of Technology and Risk Management. The Company was facing challenges in implementing the strategic responses from PESTEL factors, Lack of qualified Staff, Resistance to change, Regulations among others. Study findings would provide the management with useful information on how to successfully craft and implement strategic responses and mitigate effects of Challenges. The study is also useful to other industry players who can use the results to understand the dynamism of the business environment and replicate some of the strategic responses in the context of their organization .The results can also be used for further research into the field of strategic responses and dynamic business environment. The findings confirm that organizations are creation of the environment and to survive they have to align their activities to the environment. Success of organizations depends on successful crafting and implementation of strategic responses. The study findings confirm organizations craft strategic responses unique to their business environment since they operate in a unique environment despite being in the same industry. Strategic responses are a source of competitive advantage enabling the organizations to outperform rivals and earn above average returns. Tausi Assurance Company through implementation of strategic responses has been able to sustain profitability despite the cut throat competition within the insurance industry. The Government should ensure that the policies being developed for the industry are appropriate to promote the industry growth. The penetration rate is low in the insurance industry compared to other financial services like banking and mobile phone services. The main driver in growth has been identified to be innovation which is lacking in the insurance industry hence needs to craft laws that promote innovation to drive growth