Influence of Strategic Planning on Performance of Naivas Limited in Kenya

Abstract

Strategic planning involves analyzing the external and internal environment through environmental scanning and analyzing the organization’s strengths, weaknesses, opportunities and threats. This is fundamental in the formulation, implementation and evaluation of strategy success that leads to improved performance of an organization. Strategic planning envisions the future and comes up with strategies and procedures to achieve the desired future. Strategic planning incorporates planning from the top management, new product development and employee motivation. Organizations in the retail industry need to put into place strategic plans that are realistic and effective to achieve organization’s objectives, goals and positive change. Naivas Limited is amongst the leading organization in the retail industry in Kenya with a total of 46 branches in the country. Strategic planning is often practiced to positively influence organizational performance. This study reviewed theoretical foundation of the study, strategic planning and organizational performance and the measures of organizational performance. This study was set out to investigate the influence of strategic planning on performance of retail industry in Kenya in reference to Naivas Limited in Kenya. An interview guide was used as the research instrument and the focus of the study was qualitative. Primary and secondary data was used and edited for consistency and completeness. The study found out that to have effective strategic planning, the top management incorporated the organization’s vision, mission and core values in a strategic plan that was within the budget laid out. External and internal analysis of the organization was also important in making strategic decisions concerning the strategic plan. The management was also expected to formally communicate the strategic plan to enhance commitment and to fully support implementation and finally evaluate the strategic plan. The study recommended that all organizations should have a documented vision, mission and core values, conduct budgeting and perform environmental scans to guide the top management strategic decisions on strategic plans. The limitations of the study were that the respondents were few and they came from one organization in the industry and that the research was conducted on only one firm. The study focused on Naivas Limited in Kenya. The study suggested further research on strategic planning and performance of retail organizations in Kenya to find out whether there is consistency among them regarding strategic planning and performance.