dc.description.abstract | This study was designed to document strategic management practices within the shipping
industry. The study had two main objectives:
1 To establish the strategic management practices within the shipping companies in
Kenya.
2 To determine whether the kind of strategy being used by the shipping companies
in Kenya is related to performance.
To achieve these objectives primary data were collected using structured questionnaires
with close- ended and open-ended questions. One questionnaire per Shipping line was
administered to the Chief Executive Officer (CEO) or a senior Manager. A drop and pick
later approach was adopted. On many occasions the researcher discussed the contents of
the questionnaire with the respondents.
The data were analyzed with the aid of SPSS software. Simple descriptive statistics were
used to present this data. Relationship tests were done to determine the influence of
strategy on performance. Marin-Whitney U test was used to determine any significant
differences between subgroups. Except for the importance attached to corporate
Leadership during strategy implementation, and the problem of availability of funds
during strategy implementation, the findings did not reveal any significant difference
between Vessel owning companies and Non Vessel owning companies (NVOCCs).
The objectives of this study have been met. The shipping companies in Kenya practice
Formal Strategic Management in various forms, which include annual, Developmental
and Complete Strategic Management. Strategies are mainly developed through deliberate
Managerial intent as well as imposed by agencies or forces external to the organization.
The Managerial intent of Strategy development within the shipping companies in Kenya
is characterized by planning view of Strategy and the notion of logical incrementalism.
Well-articulated explicit strategies have positively impacted on the performance of
shipping companies in Kenya. Written strategies, which are proactively conceived and
well communicated within the organization, tend to improve overall performance of these
companies.
Strategies which come as a result of planning and deliberate learning through doing and
innovation yielded better performance. Strategies which are largely dependent on one
individual in the organization and which come as a result of doing things the way they
have always been done adversely affected performance.
The findings of this study, further revealed that shipping companies have been successful
over the last five years, recording above average levels of performance thus making the
industry attractive. This is contrary to the literature review that the shipping industry is in
turmoil due to over capacity, fragmentation and politicization of the industry that made it
lack adaptability and remain stagnant. This contradiction could be attributed to
environmental and time context
Based on the findings of this study we would like to recommend that shipping companies
in Kenya broaden their focus on strategic issues beyond their current focus on marketing
strategies. Generic Strategies of cost, differentiation and focus should be used to define
the fundamental options since they form the basis of competitive advantage. Grand
strategies based on these generic strategies should then be used to provide basic direction
for strategic action. | en |