Challenges Facing the Implementation of Diversification Strategy at UAP Insurance Company.

Abstract

Strategy implementation is an enigma in many companies and may have good plans which will never be implemented. Strategy implementation and its success is influenced by how the organization interacts with its environment and adjusts to changes within its context. Strategy implementation involves organization of the firm's resources and motivation of the staff to achieve objectives. Strategy implementation differs completely from the formulation process and requires much more discipline, planning, motivation and controlling processes. Strategy implementation in organizations is important because its success or failure rate may have a significant impact on the success and sustainability of the business as the firms gains competitive advantages. However the success of strategy implementation is not assured. Strategy Implementation is recorded to have a unsatisfying low success rate in most organizations. The objective of the study was to address the challenges of implementing diversification strategy at UAP Insurance Ltd... The study adopted a case study where primary data was gathered using the interview guide. Data obtained from the interview was analyzed qualitatively to derive findings, conclusions and recommendations. The results indicated that the industry forces especially competition, government regulation, internal factors and changes in economic conditions greatly influence strategy implementation in UAP Insurance Ltd. Further results indicated that employees and managers were fully involved in strategy implementation but competing projects affected the success of implementation of Diversification strategy. Recommendations provided that strategy implementation process should create high level staff involvement, periodically evaluate the firm's strategy plans and critically analyze external environment prior strategy implementation to ensure success.