Implementation of the outsourcing strategy in cement manufacturing industry in Kenya
The dynamic market situation in the 21 st century has led to the emergence of various strategies to counter the ever changing environment. In the manufacturing industry and cement in particular one such strategy has been on outsourcing, the industry has been able to sustain both core and non core competencies in past, however there has emerged a need for the focus to be on what is core and outsourcing the non core activities. The research will be undertaken to establish the extent of outsourcing as a strategy in the cement industry. The nature of the study is a census and therefore a total of four cement manufacturing companies in Kenya were involved in the study. The study targeted the cement manufacturing companies in Kenya. To enable for the collection of the data from the field a questionnaire was used as the instrument of data collection and administered through personal interview with the respondents. The data captured from questionnaire was analyzed using descriptive statistics. Additionally averages and percentages were used in the analysis of data collected in the study. Distribution tables, charts and or graphs have been used to present the data and show where most responses featured and thus make the research more focused. The study has laid a foundation on the nature of outsourcing and the application of outsourcing in the cement industry, also the factors affecting outsourcing as expressed in the cement manufacturing industry. Some of the major findings of this study included; the establishment that there exists a strategic plan in all the cement companies. Out of the total responses received 43% of the responses showed that the strategic plan in their company has been communicated. The study also showed that there are several factors that have influenced the outsourcing decision in the cement industry and brought out the main outsourcing practices been utilized in the industry. Additional findings showed there are several merits and demerits that can be associated with outsourcing. The research identified some areas of improvement with regards to the fact that strategic plans have been established in the cement manufacturing companies but they have not been well communicated. The recommendation in dealing with this issue was to put in place proper communication policies in the companies which will ensure proper communication to the general business of the strategic plans so as to ensure that the business is working together towards the same targets.