| dc.description.abstract | The environment is constantly changing. Organizations have to pro actively or continuously adapt
their operations in order to survive the environmental challenges. The environment presents firms
with opportunities, threats and constraints, but rarely does a single firm exert any meaningful
reciprocal influence. The liberalization of the economy, privatization, increased competition and
the general economic reforms in all sectors are some of these changes in the operating
environment. The environment is highly dynamic and continuously presents opportunities and
challenges. To ensure survival and success, firms need to develop capability to manage threats
and exploit emerging opportunities promptly. Strategies that match capabilities to environment are
required.
The objectives of the study were to identify the challenges in the sugar industry in the face of
changing operating environment and to establish the strategic responses of how Sugar companies
in Kenya are responding to the changes in the environment. The study employed census survey
design in addressing the challenges and responses to the environment. This research was
conducted through a census survey of the Sugar companies operating in Kenya. The research
design investigated the relationships between challenges and the specific strategic responses
applied by the respective companies. The population was composed of all the seven sugar
companies currently in operation. They are all located in the Western part (Nyanza and Western
provinces) of the country. Data was collected by means of a questionnaire, which had open-ended
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questions, closed-ended questions. The questionnaires were administered to the respondents using
hard copies sent by hand and soft copies sent via electronitrrnail. For those send by hand, the
"drop and pick later" method was used. The respondents were the Chief Executive
Officers/Managing Directors of the seven sugar companies. General information about the
industry analysis was done in terms of measures of frequency, measures of central tendency or
dispersion using SPSS software package. The results of analysis were be presented in tables, bar
and pie charts and short descriptions. The challenges and strategic responses adopted in the
industry were analysed through narrations.
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The study found out that key challenges in the sugar industry were, impact of COMESA and
WTO Protocols, debt factor, inadequate funding of the industry, dilapidated state and poor
performance of a number of the sugar factories, low crushing capacities of the factories, poor
technology, mismanagement and corruption, poor states of the roads infrastructure, inadequate
research, high cost of production of sugar, socio economic factor at the farm level, organized
marketing of sugar, government policies and lack of strategic direction. These challenges cut
across all the companies in the sugar industry. The strategic responses in place to counter the
environmental changes and challenges included; financing of the industry, intensified research,
enforcement of standards, socio economic development, lobbying for Industry and product
diversification.
The findings also highlighted that the Kenya sugar industry has been affected by developments in
the world sugar environment. This arose as a result of world sugar regimes based on trading
blocks. The preferential trading blocks subsidise their own sugar industries and their markets are
highly protected and based on preferential quotas. On the other hand the world open markets
where prices are low tend to be saturated with surplus stocks due to low production costs.
The study was limited to a number of factors such as the sample size limited to seven sugar
companies excluding Jaggeries operating in Western Kenya due to time factor. The scope and
depth of study was also limited by the time factor and financial resource constraints. The
researcher also encountered immense problems with the respondents' unwillingness to complete
the questionnaires promptly. The study recommended further research to be carried out to
establish the competitive strategies adopted by the Jaggeries Q.perating in western Keny | en |
