Influence of Strategy Evaluation Approaches on Performance of Milk Processing Firms in Kiambu County

Abstract

This study sought to determine the strategy evaluation approaches embraced by milk processing firms as well as the influence of strategy evaluation approaches on the performance of milk processing firms in Kiambu County. Organizations in Dairy industry are supposed to direct their strategic objectives and ways to refer their strategic intent and importance. Strategy evaluation is the last stage in the strategic planning process, it initiates a new beginning. Information obtained in this process is used to make decisions about the appropriateness of the firm’s goals, strategy and execution plan. Strategy evaluation results in refusal, changing or ratification of the available strategies and plans. It influences the ability of the firm to efficiently transform and utilize it scarce resources with the purpose of achieving its goals. This study utilized the census survey design. The population contained 17 Milk processing firms in Kiambu County. Close-ended questionnaires were employed in collecting data. Descriptive statistics was used in analyzing the quantitative data gathered. The data was presented in forms of means, standard deviation, frequencies, and percentages. The data was split down into different aspects to offer a systematic and qualitative answer to the study objectives. This research found that the strategic evaluation approaches used by milk processing firms are; Benchmarking, outcome based and process-oriented evaluation, Business Process Redesign and Balanced Scorecard approach. The study also found that the challenges faced by the firm in the strategy evaluation process include; inadequate resources, unclear strategy evaluation process, inadequate and trained personnel and resistance from the employees. From the research, we concluded that Balanced Scorecard is the greatest approach used by the firms to evaluate their strategy. Many firms use this method to drive the unique strategy into the company. This is because the method combines the financial measurement that tells the results of the actions already taken with the operation measurements. The research recommends that the firms should come up with the clear evaluation of strategies. The firm should also involve all employees from the earliest stage of strategy evaluation. This reduces the employees’ resistance in the firm. Finally, the research also recommends proper training of the personnel to oversee the successful strategy evaluation processes. In future, same research can be conducted in other counties or the same county but focus be placed on other firms other than milk processing firms in the county.