Developing a strategic management model for a multi-currency system in Zimbabwe.

Abstract

Strategy-making has traditionally utilised strategic management, underpinned by rational strategic planning, to craft and implement strategic moves. However, rapidly changing environmental dynamics have created a business environment contrary to the traditional paradigm of predictability, linearity and controllability expected by the rational strategic planning approach to strategy-making. The aim of the study is to explore the strategic management model in running a multi-currency system, for the purposes of developing a conceptual strategic thinking framework for the delivery of strategy in this kind of business environment. In addition, this study aims to identify the extent to which internal and external organisational dynamics impact the development and execution of strategy in order to strengthen the robustness of a strategy-making approach. To achieve this purpose, this study investigated and proved that a strategic thinking approach exists as an alternative to rational strategic planning. The study utilised both quantitative and qualitative approaches. Data was collected through questionnaires and interviews. Using the convenience sampling technique, 340 questionnaires were evenly distributed between the participating departments. SPSS was used to analyse quantitative data, as both thematic and content analysis was used for qualitative part of the research. Findings showed that most organisations try to manage strategically by aligning initiatives with strategy, engaging staff fully in strategy implementation, keeping staff fully informed about corporate strategic direction, monitoring strategy and implementation in order to adapt it where necessary to meet the challenges and realities of the times and structuring the organisation to be effective in its strategy implementation. The study also showed that all the strategic management practices had significant positive effects on organisational effectiveness and efficiency. Furthermore, the study showed that the most ensnaring pitfall of strategic management is the inability of organisations to translate strategy into a corporate purpose. This was followed by short term planning, failure to create accountability for results, inability to foster belief in the strategy, ignoring external trends, overconfidence based on existing success and failure to respond to structural changes in the market. Based on the findings, the study recommended that organisational management weigh in their strategic management decisions, the business environment and the prevailing macro conditions to create a successful strategic plan with a positive impact on corporate efficiency.