Effective strategy implementation within the manufacturing (engineering, iron and steel) companies in Zimbabwe (2009 - 2013)

Abstract

Over the past one and half decades, Zimbabwean manufacturing companies and in particular the Engineering, Iron and Steel industry (EISI) has faced serious viability challenges owing to the political and economic decline. This has left the various companies in this industry in need of effective strategy formulation and implementation in order to regain competitiveness on the market. The objectives of the study were to investigate why effective strategy implementation remains a problem in the manufacturing engineering sector with emphasis on the major barriers and drivers to effective implementation. Another objective was to determine the extent to which the macro environment affects effective implementation. Literature on strategy implementation was reviewed in line with the objectives of this study. The literature review enabled the researcher to adopt a framework of strategy implementation by Okumus (2003) and a supporting framework known as the McKinsey 7s Model.

In order to accomplish the objectives of the study, a survey of 10 manufacturing engineering companies was carried out. A quantitative approach was adopted where data was collected using a structured questionnaire and analysed on SPSS. The major findings of the study were that the problem of effective implementation is due to lack of funding thus organisations seem unable to align the scarce resources available to their strategies. It was therefore concluded that the economic and political uncertainties are the critical variables to the problem. It was further recommended that companies need to evaluate their resource base before embarking on strategies and to politically align themselves for survival as evidenced by the government’s new policies such as Indigenisation Policy.

This study was carried out during a highly economic and political uncertainty environment and the results of the study were greatly influenced by the macro environment. It is therefore essential to repeat the study in a different macro environment situation to ascertain the changes that can be brought out by the impact of the environment on effective strategy implementation.