Strategic Choices and Performance of Del Monte Kenya Ltd

Abstract

Strategic choices pursued by businesses throughout their lifetimes have a substantial bearing not only on the development of the organization, but also on its level of success in the long term. It has been discovered that the strategic choices that an organization makes are the major way by which it may align itself to its environment and, as a consequence, enhance its performance. The choices that are ultimately made are determined by a wide range of contextual factors, including those that stem from events in the past, conditions in the here and now, and predictions about the future. The RBV emphasizes the significance of a firm's own internal resources and the ways in which those resources may be used in the process of formulating a strategy that can assist the company in gaining a sustainable advantage over its competitors. According to the contingency theory of leadership, leaders need to consider all relevant factors in any given scenario before making operational choices inside their companies. Organizations must be able to adapt to a constantly changing external environment, and the dynamic capabilities hypothesis analyzes their abilities to do so via the use of both internal and external talent. Generally, globalization has increased competition in businesses that operate in countries that embrace open market structures. Internationalization is therefore important for growth of companies in countries that allow free market model of business. However, entry into new markets requires tact and strategy. The study sought to determine the effect of strategic choice on performance of Delmonte Company. This was informed by the gaps that occur from diverse methodological approaches and varied country and sector contexts by seeking to address the research question: how does strategic decision effect performance of foreign enterprises that are operational in Kenya? The inquiry was based on case study model and it targeted all managers at Delmonte Company. Information was gained through interview. The research found that differences in the strategic decisions made by Delmonte Company impacted performance as judged from the customers' and employees’ points of view. Strategic partnerships, internal restructuring, and diversification had greater impacts on firm success and growth as well as learning and development as a performance indicator. The study's results suggested that international firms having operations in Kenya should shape their internal structures to better achieve their long-term objectives. When it comes to management, studies have shown that MNCs may boost the quality of their services by instituting leadership development programs inside their own organizations. It is important that firms develop strategic options and alternatives in managing their operations to enjoy success and stable value in their major operations. This is imperative for their long term value and management in different regions or markets.