Factors Influencing Strategy

Sookram, Nushil
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The major oil companies in South Africa constitute an important part of the South African economy. They enable the economy to keep moving by means of the fuel they produce and the thousands of people they employ directly or indirectly. The purpose of this study was to identify the factors influencing strategy implementation in major oil companies in South Africa, be it positively or negatively. Such information, when known and acted upon, could facilitate the obtaining of strategic goals by the companies. A survey was conducted including both qualitative and quantitative data. The survey also contained a ranking section and an open-ended question section to determine any factors other than those in the literature review. The literature review suggested that there were 23 possible variables that could influence strategy implementation. The results of this study concluded that 14 of the 23 variables identified from the literature review were important. These variables were then grouped into six proposed factor groups from the literature review. The results of the factor analysis grouped these into three factor categories rather than the proposed six categories from the literature review. These three were managerial influence, organisational structure and interactions, and formulation and structured planning of strategy. Vague strategy was recorded as the highest ranking variable. From the open questions, six new variables were also identified that could influence strategy implementation in major oil companies in South Africa. As a result of this study, management of the major oil companies in South Africa can be made aware of these factors that influence the strategy implementation in their companies; it is hoped that this will assist the major oil companies to arrive at their strategic goals
Strategic planning, Petroleum companies