Determinants of Strategic Plan Implementation in Organizations: A Case Study of Chai Trading Company Limited

Abstract

During this era of severe competition, organizations have to strive in order to remain competitive within any industry. Strategic planning and proper implementation can be used as a tool for achieving organization goals, thus is important to critically examine the determining factors of plan implementation.

The main aim of this study was to establish the determinants of strategic plan implementation in Chai Trading Company Limited (CTCL). The specific objectives of the study were: to determine the effects of corporate leadership on strategic plan implementation in CTCL, to establish the extent to which strategic competitiveness influences strategic plan implementation in CTCL, to establish the effects of organization culture on strategic plan implementation in CTCL and to establish the influence of strategic HRM on strategic plan implementation in CTCL.

The specific focus of the study was CTCL a subsidiary of Kenya Tea Development Agency (KTDA) and the respondents were management level staff. CTCL is the trading arm of KTDA incorporated in the year 2003. During the year 2013-2014, tea earning from export fell greatly resulting to a 44% drop in tea bonuses to farmers. The drop was associated to overproduction in China and India and market related challenges, (KTDA Annual Report, 2013- 2014). These are strategic issues which call for strategic solutions in strategic planning and implementation and thus need for a research study to address the problem. Descriptive research design was used and a case study approach adopted. The target population was the 120 permanent employees of CTCL. The sample size for the study was 36 respondents representing 30% of the population which were selected through stratified sampling. Questionnaires were used for primary data collection.

  From the research findings, the researcher concluded that strategic plan implementation is dependent on Strategic Human Resource Management (SHRM), strategic competitiveness, organization culture and corporate leadership at CTCL. Each of the variables was found to have a significant effect on strategic plan implementation. The researcher therefore recommends more efforts in manpower planning to nurture strategic human resource resulting in better competitive edge. The use of more competitive remuneration can be applied in recruitment and attraction of qualified strategic human resource and especially in special assignments such as strategic plan implementation. It is also critical for organizations to develop ways of enhancing competitiveness. The researcher identifies value addition strategy as an efficient way to achieve the same. Finally the researcher observes the importance of corporate leadership and positive culture in driving organization, strategic plan implementation and recommends more efforts to nurture leadership which contributes to the nature of culture in an organization.