Influence of strategy formulation practices on organizaton success at Airtel Limited, Kenya

Abstract

Strategic formulation practices are one of the challenges facing organizational management in today's market that is flooded with global waves. The purpose of the study was to determine the influence of strategic formulation on the success of the organization at Airtel Company Limited. This study was achieved by the following objectives: To establish the influence of environmental analysis practices on the success of the organization in Airtel, Kenya; determine the influence of stakeholder involvement practices on the success of the organization in Airtel Kenya and establish the influence of strategic choice practices on the success of the organization in Airtel, Kenya. The study based on resource-based theory, stakeholder theory, and the Strategic Choice Theory. The study used a descriptive correlation research design. The target population was 184 respondents, whom are permanent employees working at their head offices in Parkside Towers, Nairobi County. A consensus survey was used to determine the target population. The response rate was 139 questionnaires representing 76%. The study collected the primary data using structured questionnaires. Data were analyzed using inferential statistics including correlation, ANOVA, and multiple regression. The collected data was coded into SPSS Version 25.0 for analysis and presentation. Analyzed data was presented in the form of tables, pie charts, and figures. Basically, it was found out that Environmental analysis practices influence organizational success, specifically that the organization periodically gather and analyses data about market and other external factors which affect the business as supported by a mean of 2.178 and a standard deviation of 0.820. Mostly Stakeholders' involvement practices improve the strategy formulation process and therefore it facilitates the smooth running of the process hence organizational success. It found out that the organization has improved its decision-making process through stakeholder’s involvement as supported by a mean of 2.123 and standard deviation of 0.638. Overally strategy formulation process strategic choice practices were found to be possible through generating alternatives through Employee’s suggestions as supported by a mean of 4.012 and a standard deviation of 0.869. Results from the study showed that the Environmental analysis practices and organizational success (β =0.253), Stakeholders’ involvement practices and organizational success showed a statistically significant influence on organization success at Airtel in Kenya. (β=0.053), and Strategic choice practice and organizational success (β=0.363) showed that a significant influence existed between the variables. The research concluded that strategy formulation practices could influence organizational success. Airtel Kenya Limited just like other Telecommunication industries develop a scheme of service that ensures Environmental analysis practices, Stakeholder involvement practices, and Strategic choice practices are based on merit. The study recommends that Airtel Kenya limited should invest in relevant training schedules and programs that are accorded to all staff fairly that would enhance mastering strategy formulation process.