Strategy, structure and performance: a survey of food processing companies operating in the Nairobi Metrpolitan area
Organizations with high level of adaptation that have the best prospector strategy mechanistic structure fit, will have the highest performance as measured by value, profitability, and risk, compared to. other high level adaptation, prospector strategy organic structure organizations. The objectives of this study included determining if strategy - structure fit contributes to better performance in food processing companies as well as identifying the factors that influence strategy - structure fit in a firms' performance in food processing companies in the Nairobi Metropolitan. The study used a survey design where the target population consisted of companies in the food processing sector located in the Nairobi Metropolitan Area. Primary and secondary data were used in this survey. The secondary data in quantitative form was sourced from company information like the annual financial reports, company newsletters, and other from research articles, books and casual interviews. Since the data collected was quantitative, analysis was conducted using descriptive statistics, which included measures of central tendency, measures of variability and measures of frequency among others. From the findings, the researcher concludes that, internal measures of performance relate to the efficiency and effectiveness of the internal manufacturing and selling process within the firm. These categories of performance reflect competences in specific areas of manufacturing and selling including cost, delivery speed and reliability, quality, flexibility, customer service and distribution. In addition, strategy and structure of a firm leads to better performance because the structure provides the necessary systems and processes essential for successful strategy implementation. The study also establishes that the existing strategy in many firms has improved profitability of the company. The current strategy and structure in many firms have improved the market share by a large extent furthermore current strategy enhanced the customer service by a very large extent. Therefore, food processing firms should examine their operation in terms of what of what value it add in the eyes of the final customer.