Corporate strategy development at Nakumatt holdings Ltd
Corporate strategy is primarily about the choice of direction for an organization as a whole and the management of businesses or product portfolio for maximum value (Wheelen and Hunger, 2008). Corporate executives are therefore concerned with the orientation towards growth, coordination of cash flow among business units and building of corporate synergies through resource sharing and development. Thus, the study sought to understand the process of corporate strategy development and its challenges at NHL. The rationale of the study arose out of the realization of the Nakumatt’s tremendous growth and diversification over the last five years. The challenge of managing a diversified company with arrays of businesses lies in the development and management of well crafted corporate strategies. The objective of this research project was to establish the corporate strategy development processes and challenges faced by Nakumatt Holdings Ltd. An interview guide was used to facilitate personal and in-depth interviews of the Managing Director, Operations Director, IT director and all the departmental heads as well as Branch Managers at NHL. This was a case study of Nakumatt Holdings Ltd. An in-depth and comprehensive inquiry was conducted on the corporate strategy development processes and its challenges at NHL. Primary data was collected using an interview guide and posing of mostly open-ended questions. The questions were administered through personal interviews of the respondents. This was a qualitative study in which data was analyzed using content analysis. The research findings established that corporate strategy development at Nakumatt Holdings limited is both planned and emergent. Planned process of strategy development exists because there is evidence of strategic planning activities at Nakumatt Holdings. The presence of vision and mission statements indicates the strategic direction and path of Nakumatt. Some strategies are considered to emergent because Nakumatt strategy formulation is continuous and response to emerging environmental challenges is called for. Poor infrastructure has been a major challenge to NHL in the development of her corporate strategies. The study suggests that further studies can be carried out on the entire industry or all the major supermarkets, other aspects of strategic management; strategy implementation and control and finally, a post IPO period when NHL is expected to be public company.