Responses of Nzoia Sugar Company to challenges in its external environment

Abstract

This study was carried out to determine how Nzoia Sugar Company has responded to various changes in its external environment.

To do this a survey was conducted by use of questionnaires targeting the top managers of Nzoia Sugar Company. The questionnaire had both closed and open-ended questions. The researcher administered the questionnaire personally to the respondents. In chapter one, I looked at various definitions of organization and how they interact with the environment within which they exist. Success of organization depends on securing a proper “fit” or alignment between itself and its environment. The problem of the study was to examine how Nzoia Sugar Company has responded to challenges in its external environment. In chapter two, I have discussed how the various variables like organization structure, objectives, goals , strategy, integrated plan ,politics and organization scanning can determine how an organization responds to challenges in its environment.

In chapter three, I have outlined the methodology and chapter four the findings of the study how Nzoia Sugar Company has responded to the changes in its external environment by: developing a Strategic Plan to handle the challenges, creating responsive department and employing qualified staff to head these departments, redefining a new vision, mission and objectives for the company and each department, engaged into factory rehabilitation to manage higher and efficient production, has improved infrastructure to manage cane transportation to the factory and improving cane variety to have high sucrose content. The study further found out that the change in customer’s behaviors and performance improvement are some of the major external factors that led to change in the Company. Responding to the customer’s needs meant performance had to be improved which led to improved earnings in two consecutive years. Competition was a factor but to a small extent in that almost all sugar produced is sold. Chapter five is the conclusion and the recommendations for further study.