LEADERSHIP
STRATEGY
AND BUSINESS
ENVIRONMENT
By Dr. Kellen Kiambati
J
ones and Hill (2009) define
strategy as a set of actions that
managers take to increase their
company’s performance relative
to rivals. Strickland, Thompson
& Gamble (2010) view strategy
as management’s action plan for
running the business and conducting
operations.
It is all about how management
intends to grow the business, build a
loyal clientele and outcompete rivals,
how each functional piece of the
business for instance, R & D, supply
chain activities, production, sales and
marketing, distribution, finance and
human resources will be operated and
how performance will be boosted.
They argue that the heart and soul
of any strategy are the actions and
moves in the marketplace that
managers are taking to improve the
company’s financial performance,
strengthen its long term competitive
position and gain a competitive edge
over rivals.
Pearce and Robinson (2011) states
that the environment of a company is
what gives the company its means of
‘‘ Pearce and Robinson (2011) states that
the environment of a company is what gives
the company its means of survival. It creates
opportunities and it presents threats to the
company. Although the future can never
be predicted perfectly, it is important that
entrepreneurs and managers try to analyze
their environment as carefully as they can in
order to anticipate and if possible influence
environmental change.’’
38 MAL 19/17 ISSUE
survival. It creates opportunities and
it presents threats to the company.
Although the future can never be
predicted perfectly, it is important
that entrepreneurs and managers
try to analyze their environment
as carefully as they can in order to
anticipate and if possible influence
environmental change.
Internal analysis, a component
of the strategic planning process,
serves to pinpoint the strengths and
weaknesses of the organization. It
focuses on reviewing the resources,
capabilities and competencies. An
industry can be defined as a group
of companies offering products or
services that are close substitutes
for each other, that is, products or
services that satisfy the same basic
customer needs.
A company’s market consists of
close competitors and its rivals
that serve the same basic customer
needs. The external environment
in an organization context refers
to conditions, entities, events, and
factors surrounding an organization
that influence its activities
and choices and determine its
opportunities and risks. Macro-