Application of Outsourcing Strategy at East African Breweries Limited, Kenya
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Date
2018Author
Onyango, Judith; A
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
Organizations in today’s dynamic world must stay competitive for which outsourcing
strategy is a viable option. As such, outsourcing has become a common practice in the
business field and managers have begun to understand that in some instances it is better
to bring in services from outside to achieve quality services than to do everything on their
own. The operating environment of the breweries industry in Kenya has changed
considerably such that there is need to understand the outsourcing strategies of activities
in the industry. This led to the analysis on the application of outsourcing strategy at East
African Breweries Limited, Kenya. Specifically, the study sought to determine: the
application of outsourcing strategy at East African Breweries Limited, Kenya; and the
challenges associated with outsourcing strategy at East African Breweries Limited,
Kenya. The study adopted a case study research design. Qualitative data was derived
through semi-structured interviews and collected data analyzed using content analysis.
The study revealed that EABL had outsourced transportation of products from the factory
to the depots, clearing and forwarding of all international shipments, Catering, Security,
Drinking water, Contracted Staff, Travel, Courier Services, Payroll Processing and IT
help desk. Among the benefits of outsourcing included cost cutting, increased
productivity and efficiency, spread the risks that are associated with doing business and
improved customer service and operational control. However, outsourcing can lead to
loss of control of the function that is outsourced by the management. The study
concluded that outsourced activities are non-core to the business while some are core to
the overall operation therefore outsourcing gives the company enough time to focus on
the core functions of the organization to be able to meet the company objectives. The
research also concluded that EABL benefits from the outsourcing strategy. Among the
benefits include increased productivity and efficiency, spread of risks and improved
customer service. The study recommended that the company conduct a cost benefits
analysis of outsourcing process before engaging in outsourcing. The organization should
develop clear criteria on the choice of the service provider and should be ready to address
in details the challenges and how to overcome those challenges. The study suggested that
more time should be given into this study in future in various organizations and allow
comparative case study on more than one firm of similar nature and magnitude.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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