Strategic management practices and performance of Hotels in Kabarnet Town, Baringo County of Kenya

Abstract

Strategic management remains a key tool for firms to steer them through turbulent and competitive business environment. Organizations can only deliver superior and sustained performance in such environment through adopting strategic management practices with a goal to give the organization competitive advantage. The hotel industry is increasing becoming competitive facing numerous challenges. It’s against this premise that strategic management is necessary in the sector to guarantee their survival. The overall objective of this study was to determine the strategic management practices adopted by hotels in Kabarnet town, Baringo County and how it influences on their performance. A descriptive survey design was adopted for the investigation. The population that was targeted was 11 hotels in Kabarnet town that had accommodation services, meal and drinks services. A census was applied for all the 11 hotels. The primary data was obtained from the junior and senior hotel staff in Kabarnet town using a questionnaire. The study findings indicated that, hotels in Kabarnet town had adapted a number of strategic management practices that include; having a vision and mission, situational analysis, strategic goals development, Strategic analysis, institutionalization and operationalization of strategy, development of Performance measures and evaluation and control. The study also established that strategic management practices; formulation, implementation and strategic evaluation and control led to improved performance of hotels in Kabarnet town. The study recommends that management of hotels to adopt the various strategic management practices in their hotel which would enable them attain competitive advantage even in the market. The government through its distinct ministry has been recommended to provide enough funds and training to help the hotel industries on strategic management practices. The government was also recommended to formulate proper policies that will motivate and encourage hotels to adopt proper strategic management in their activities. It is also important for the government to come up with favourable policies that will enable the hotel industries to involve strategic management in their day to day activities.