Strategic planning by tea manufacturing companies in kenya
Abstract
Organizations generally depend on the environment for their inputs and
outputs. The nature of this dependency is crucial for the survival of the
organization, particularly in the long-term. In an environment, which is
continually changing, it is imperative that organizations interact with the
environment in a way, which establishes a fit between itself and the
environment through corresponding changes in organizational capability and
the strategies adopted.
This research is aimed at studying and documenting strategic planning
practices by all the 15 tea-manufacturing companies, existing at the time of
the study, in Kenya. The data collection instrument used was a structured
questionnaire, which was dispatched to all the organizations participating in
the study, with the target respondents being the Chief Executive Officers of
these companies.
From the population of 15 companies, 9 responded to the questionnaire. The
data collected was first checked for consistency, coded and then analyzed to
arrive at various conclusions.
The study concluded that the tea manufacturing companies in Kenya
practice strategic planning. Generally, 89% of these companies have been in
existence in the country for over 40 years. Substantial foreign interest is
present in a majority of these organizations. Mission statements were
implemented, in 56% of these organizations, less than two years ago and a
majority of them place a lot of importance on the use of long-term goals,
analysis of key success factors and annual goals. Ongoing evaluation, shortterm
action plans and competitor analysis follow in that order in terms of
importance in strategic planning in these organizations. These indicate that
the changes in the operating environment particularly in relation to climatic
conditions, exchange rates and fluctuating tea auction prices have led to a
situation where these companies are tending towards the use of strategic
planning for their future survival. From the fmdings of the study, it is
recommended that further research be carried out in the area of strategic
planning practices for other players in the tea industry for instance, tea
blenders, packers, marketers and brokers in Kenya.
Citation
MBAPublisher
School of Business, University of Nairobi
Description
Master of Business Administration