STRATEGIC MANAGEMENT: ASSESSING ITS IMPACT ON ORGANIZATION PRODUCTIVITY IN INSURANCE COMPANIES IN CAMEROON

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Like many service industries, the insurance sector in Cameroon is driven to provide high-quality client service while contending with a wide range of domestic and international rivals for market share. According to Raduan, Jegak Haslinda, and Alimin (2019), business organizations should aim to achieve two key goals: gaining a competitive edge and improving their performance in comparison to their rivals. Therefore, they must implement strategic management tools in order to increase their competitiveness and gain strategic advantages. Strategic management can be defined as the process of using systematic criteria and rigorous investigation to formulate, implement and control strategy and formally document organizational expectations (Higgins and Vincze, 2018). According to Berry (2019), strategic management is a tool for figuring out the best path forward for a company and how to get there. Through the process of strategic management planning, managers or leaders of organizations can create the policies and processes that will allow them shape and realize the future they want. Similar to many other professions, strategic planning experts frequently dress up their job in arcane scientific terminology in an effort to exalt it and foster client reliance. However, strategic management procedures are not complicated or scientific in reality. Organizations can create and oversee a continuous and successful planning programme with minimal upfront help and the sporadic services of an outside facilitator. Furthermore, an organization's desired outcome can be created or manipulated through a series of underlying activities that make up strategic planning (Muogbo, 2020). This is not at all like traditional tactical planning, which is mostly defensive in nature and depends on the competition's actions to determine the company's course of action. Olanipekun et al.(2019) asserts that strategic management gives insurance firms' many departments, such as marketing, financial focuses, initiatives, and resources overall direction. When there is agreement on the purpose and when most work procedures rely on technology or technical concerns, strategic management planning help increase productivity. The study therefore aims to conduct a survey in order to assess the impact of strategic management on organization productivity in insurance companies in Cameroon.

1.2 Statement of the Problem

In the past few years, there has been a significant focus on study about the productivity of organizations. Managers in both public and private organizations are becoming more conscious of the fact that having a proper system in place for attracting and managing the organization's human resources, state-of-the-art technology, best public relations practices, and indigenous goods and services are frequently important sources of competitive advantage. Although, one might define strategic management in a broad or specific way. Nevertheless, managers in insurance companies are still left with the difficult decision of whether to create strategic plans in the first place and how to approach them from a wider or a more focused viewpoint. However, the strategic planners of an organization frequently have a good idea of what will be included in a strategic plan beforehand. While the creation of the strategic management plan is crucial for ensuring that the organization's intentions are clear and that its key executives are in agreement, the strategic management process itself is even more significant than the document itself (Pearce et al., 2019). On the other hand, according to Ilesanmi (2021), an evaluation of the existing state of the economy is the first step in the strategic management process. First, looking at external elements that may have an impact on the productivity of the organization. Additionally, it has been determined that strategic management enhances an organization's productivity; more precisely, the amount of strategic planning an organization engages in enhances its financial performance. Given that insurance companies served as the case study for this research project, it is important to comprehend the connections between organization productivity and strategic management in insurance companies. Thus, it is in the light of this, the study seeks to assess the impact of strategic management on organization productivity in insurance companies in Cameroon.

1.3  Objectives of the Study

The main purpose of this study is to assess the impact of strategic management on organization productivity in insurance companies in Cameroon. Specifically, the study will;

Determine the extent strategic management practices is adopted by insurance companies in Cameroon.

Determine whether there is a relationship between strategic management practices and organizational productivity. 

Determine the impact of strategic management on organization productivity in insurance companies in Cameroon.

1.4 Research Questions 

The following questions have been prepared for the study:

To what extent are strategic management practices adopted by insurance companies in Cameroon?

Is there a relationship between strategic management practices and organizational productivity?

What is the impact of strategic management on organizational productivity in insurance companies in Cameroon?

1.5 Research Hypotheses

H0: There is no significant impact of strategic management on organization productivity in insurance companies in Cameroon.

Ha: There is a significant impact of strategic management on organization productivity in insurance companies in Cameroon.

1.6 Significance of the Study

From this study, insurance companies will be able to improve their competitive position and attain long-term sustainability in the market by gaining insights that will help them refine their current strategies, adopt new ones, or invest in certain resources. Also, organizational leaders will be better equipped to make strategic decisions using the insights gathered from the research. Additionally, the findings of the study will help insurance companies to be able to streamline processes, distribute resources wisely, and optimize their tactics in order achieve better results. Furthermore, it will serve as a valuable resource for scholars conducting literature reviews in this area, contributing to the academic discourse and serving as a foundational text for future research endeavors. 

1.7 Scope of the study

The scope of this study is boarded on the impact of strategic management on organization productivity in insurance companies in Cameroon. Empirically, this study will determine the extent strategic management practices is adopted by insurance companies, determine whether there is a relationship between strategic management practices and organizational productivity and the impact of strategic management on organization productivity in insurance companies in Cameroon.

Geographically, the study will be delimited to employees in insurance companies in Cameroon.

1.8 Limitation of the study

In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents.In addition, there was the element of researcher bias. Here, the researcher possessed some biases that may have been reflected in the way the data was collected, the type of people interviewed or sampled, and how the data gathered was interpreted thereafter. The potential for all this to influence the findings and conclusions could not be downplayed. 

More so, the findings of this study are limited to the sample population in the study area, hence they may not be suitable for use in comparison to other schools, local governments, states, and other countries in the world.

1.9 Definition of Terms

Strategic management: refers to the systematic process of formulating, implementing, and evaluating long-term organizational objectives and strategies to achieve sustainable competitive advantage.

Productivity: the ability of an insurance firm to fulfil or surpass customer expectations in the production of outputs by making efficient and effective use of its resources.

Strategic planning: is a process by which managers of insurance firm can envision the future and develop the necessary procedures and operations to influence and achieve that future.