Business process outsourcing as a strategic decision and performance of Coca Cola Kenya Limited

Abstract

The aim of the study was to establish how business process outsourcing enhances performance of Coca Cola Kenya Limited in Kenya. This study adopted a case study design for the Coca Cola Kenya Study Unit. This research relied on both secondary and primary sources of information. The study utilized an interview guide to collect data. Data analysis was done using content analysis. Computer software was utilized to tabulate, code, and process the responses obtained in the interview guide. Fully filled out feedback forms were proofread and edited for uniformity and completeness. The researcher also coded and checked the data for any omissions and errors. Frequency distribution tables with graphs and percentages were used to present the final product of data synthesis. The study found that the organization has outsourced 85% of their marketing activities, 80% of its packaging services to PET Recycling Company (PETCO), research and development, as well as bottling services to other bottling companies to do its sales. The study found that reputation risks affects implementation of business process outsourcing in their organization. The study found that the company has a strong brand name and when choosing an agency to work with, the company follow strict guidelines to ensure that the appointed agency does not misuse the company brand name when doing marketing on its behalf. The study concluded that compliance risks affect the business process outsourcing implementation. The Coca- Cola Kenya Limited has its own policies which it would want the distribution agencies to comply with. The study recommends that Coca Cola Kenya Limited should ensure that service providers satisfy the need of clients by formulating a client approach plan and insist that outsource provider remains committed to the plan. The outsourced services by the company should focus on the bringing quality and minimize cost which could enhance operational performance of the company. The government should also come up with ways on how to work with these organizations so that to moderate the different services and activities which falls within their mandate and those which are a statutory requirement for their clients.