Challenges of Strategy Implementation and Performance of Cement Manufacturing Firms in Kenya

Abstract

The project objective was to determine the challenges of strategy implementation and performance of cement manufacturing firms in Nairobi. The data was collected from senior level managers of cement manufacturing firms in Nairobi. The collected data was analysed using descriptive statistics. The study recorded a response rate of 92% having collected 23 out of the 25 that were administered. Reliability test revealed that the questionnaire was internally consistent as shown by the aggregate Cronbach’s Alpha co-efficient of 0.818 and therefore it could be relied upon in determining the challenges of strategy implementation and performance of cement manufacturing companies in Nairobi. The study concluded that cement manufacturing firms in Nairobi are facing strategy implementation challenges to a moderate extent. The challenges faced most include uncontrollable factors in the external environment and inadequate budget to implement the strategies where they were faced to a great extent. The other key challenges include inadequately defined key implementation tasks; Resistance to change by the staff; Lack of understanding of the strategy by implementers and inadequate implementation personnel. The study concluded that the most effective methods of overcoming strategy implementation challenges are training of the personnel to be involved in implementation followed by setting aside adequate budget to implement the strategies; involvement of staff from the start of strategy formulation; preparing for any interference from the external environment and clear definition of key implementation tasks and activities. Further, the study concluded that corporate performance of cement manufacturing firms in Nairobi is affected by strategy implementation challenges to a great extent. The most affected parameters of corporate performance are increase in market share; increase in sales and Reduction in fixed costs. Reduction in operational cost and increased customer satisfaction were also greatly affected. The study established that the most effective methods of overcoming strategy implementation challenges are training of the personnel to be involved in implementation; setting aside adequate budget to implement the strategies; involvement of staff from the start of strategy formulation; preparing for any interference from the external environment and clear definition of key implementation tasks and activities. The study therefore recommends that the cement manufacturing firms in Nairobi should implement these interventions in order to reduce the impact of challenges when implementing strategies.