Benchmarking Practices and Performance of Supermarkets in Nairobi County

Abstract

The purpose of this research was to establish the correlation linking benchmarking practices and the performance of supermarkets in Nairobi County. The study adopted a descriptive research design aimed at exploring the correlation involving benchmarking practices and performance of supermarket in Nairobi County. The target population for this study was all the 32 supermarkets in Nairobi County. Primary data was obtained using self-administered questionnaires. The questionnaire was made up of both open ended and closed ended questions covering issues associated to benchmarking practices. All questionnaire forms were collected and inspected to ensure that they were complete and consistent. Once data screening was complete, descriptive statistics for all variables was run. Initial descriptive analysis was performed using SPSS 22 including frequencies, percentages, mean score and standard deviation. For the parametric data, Pearson’s Product Moment Correlation Coefficient (r) was employed to establish the correlation among variables. Then data was presented using Frequency tables and graphs. The study established that benchmarking practices has been applied in the supermarkets in Nairobi County. The study revealed that in relation to process benchmarking companies have focused on achieving improvements in key processes to obtain quick benefits. The research also summarizes that in order to improve on functional benchmarking supermarkets compare the business functions with others which have lead to incremental innovation. The research noted that less time and resources are needed for internal benchmarking. The findings were clear that companies benchmark with partners drawn from the same sector. Based on the research findings, the study concludes that process benchmarking leads to improve the performance of supermarkets in Nairobi County. Basing on the finding and conclusions the study recommends that operation managers of supermarkets should focus highly on accomplishing enhancement in key processes to attain fast results. The operation managers also have to improve on specific critical processes relative. The study also recommends that operation managers of supermarkets in Nairobi County to compare the business functions with others which have lead to incremental innovation. The study further recommends that operation managers of the supermarkets in Nairobi should increase the level of internal benchmarking in their industries since internal benchmarking requires less time and resources. In order to suppress stiff competition in the industry the study recommends to operation managers to take into account competitive benchmarking, in relation to this the operation managers of the supermarkets should benchmark their products with partners drawn from the same sector. The study finally recommends that operation managers of the supermarkets have to improve on overall performance of their supermarkets by focusing on general approaches that have facilitated high-performance to thrive.