Strategic Planning Practices and Performance of Large Manufacturing Firms in Kisumu, Kenya

Abstract

This study sought to determine the strategic planning practices adopted by large manufacturing firms operating in Kisumu , Kenya and their relationship to firm performance. This was a census study conducted on senior management of the target population. Descriptive study design was adopted by the researcher. Questionnaires were used as the main instruments for data collection. Respondents from all the firms studied indicated that their respective organizations practice strategic planning , have strategic departments and have formal documentation of vision and mission statements. A correlation of strategic planning practices and key indicators of overall firm performance showed a high positive correlation co-efficient. It was concluded that strategic planning practices have a positive impact on firm performance. The study recommends that all categories of employees be involved fully in strategic planning process to create firm ownership. All manufacturing firms were also suggested to be ISO- Certification compliant. The study recommended further research on informal planning practices and firm performance , a study of strategic planning practices on firm performance but carried in different set-ups.