Challenges to Implementation of Business Strategies: Implications on Business Sustainability of Transnational Tea Firms in Kenya.

Abstract

The tea industry in Kenya, as in most other growing countries, is characterized by great unpredictability in terms of markets, growing conditions and cost of inputs. Strategy formulation and implementation, in these circumstances, cannot be a simple exercise, but getting it right is more important than for organizations in more predictable environments. This study seeks to establish the challenges facing successful implementation of the formulated business strategies by multinational tea companies in Kenya, their effect on business sustainability and how the negative effects of these challenges can be mitigated. The study aims to identify the challenges to successful implementation of business strategies in the   transnational tea firms; the effect of these challenges on business sustainability and finally to find out ways of mitigating the effects of these challenges on successful strategy implementation and business sustainability. The respondents were 30, comprising of Managers of the strategic Business units at these companies. Most of the data was collected by way of Questionnaires, personally administered to ensure clarification is offered where necessary. Data analysis was done using descriptive statistics (percentages, frequencies and averages) and Pearson’s Product Moment Correlation Coefficient (r) followed by data presentation on tables.The study established that the main challenge to successful implementation of business strategies is currency exchange rates, followed by changes in international tea prices and weather patterns. The study further found out that in order to mitigate the effect of these challenges to successful implementation of strategies, the firms need to use flexible strategies while ensuring that where more than one strategy is used, the strategies are integrated so that they support and justify one another.

Key words: Business strategies, Strategy formulation, Strategy implementation, Business sustainability