Strategy development in food manufacturing companies in Nairobi
The objectives of this study were to determine the strategy development process used by food manufacturing companies operating in Nairobi and to identify the factors that influence strategy development by the food manufacturing companies. The factors to be considered included number of competitors, possibility of new entrants, clients, products offered, competitor future goals, current strategies and government regulation. The main aim of the study was to establish the process used by food manufacturing companies to come up with their strategies and how successfully they have implemented them to meet the existing challenges such as high competition. It was noted that the, food manufacturing companies use various tools to guide them in the process of coming up with their strategies. SWOT analysis came out to be the common tool used in developing their strategies with 100% companies confirming use of the tool. Key success factor analysis and forecasting were also other key techniques used by the companies. The respondents included the food manufacturing companies operating within Nairobi. A survey was carried out using a detailed questionnaire which was completed by officers in charge of strategy development in these companies. I managed to get twenty five completed questionnaires from the officers. Results indicated that majority of the food manufacturing companies consider strategy development as an important aspect in their operations. They formulate vision and mission for their companies. Further, results showed that factors that influence strategy development in food manufacturing companies and were considered the most important were; number of competitors, possibility of new entrants and customers. The expectation of this study was that the customers would be the main factor to be considered. This is because the food manufacturing companies develop strategies in line with the changing customer tastes and preferences. The study is in five parts. The first part contains an introduction to the study, research questions, objectives of the study and significance of the study. The second part provides theoretical framework of strategy development processes and also strategic management as applied in organizations. Part three gives details of research methodology. Part four presents the fmdings and the' fifth part contains the summary, conclusion and recommendations of the study. The questionnaire and list of companies used in this study is appended at the end of the paper.