ASSESSMENT ON BUSINESS STRATEGY IMPLEMENTATION OF AWASH INSURANCE COMPANY

Abstract

Currently companies are using Strategic Management to keep their profit in the market and to win challenges from their competitors. Strategic Management has four steps which are environmental scanning, formulation, implementation and monitoring and evaluation. Among this phases strategy implementation can be taken as the center and challenging phase of strategy management. This is due to the fact that formulation by itself cannot ensure the success of the strategy and changing a strategy into reality should consider many organizational factors. The objective of this study is to make assessment on business strategic implementation practice of Awash Insurance Company. To make the assessment the study used theories of strategic implementation and barrier and challenges of strategy implementation from different literatures. The variables which were included for the study were management competency, resource strength, innovation strategy, staff compositions, structure and different barriers of strategy implementation are considered from literatures. Proportional Stratified sampling technique is used to select the samples for the study and questionnaires were distributed to 175 respondent and 170 were collected. A brief interview was made with two officials of the company. So data’s were collected using both primary and secondary sources of data. The collected data’s were organized, coded and analyzed using SPSS version 20 software and the results which were analyzed using simple descriptive statistics like frequencies and percentage were presented by using tables. The finding majorly shows the existence of loopholes in areas of structure, innovation strategy and staff composition of Awash Insurance and main barriers of implementation were poor communication, vague strategy and misunderstanding of the employee. Periodic revision of the structure, product improvement and development, change in human resourcing strategy and effective communication session that include employee from the formulation steps up to implementation were some of the main recommendation of the study to alleviate the gaps. An in-depth investigation of the implementation strategy process as well as factor that affect it can be a future area of study.