Growth Strategies and Performance of Large Oil Companies in Kenya
The study aimed at establishing how growth strategies adopted by major oil companies in Kenya influence organization performance. The specific objectives were to identify the growth strategies adopted by the major oil companies in Kenya, and to establish how these growth strategies influence the performance of major oil companies in Kenya. The study adopted a cross sectional survey of all the major oil companies in Kenya. The descriptive survey is useful in obtaining primary data for the study and describes issues as they are. A descriptive research design was appropriate as the study involved fact finding to describe adopted growth strategies and their influence on performance of large oil companies in Kenya and documenting the findings. The target population for this study was the 15 major oil firms in Kenya. The respondents were selected from strategic department, operations, customer service making a total sample of 45 respondents. Census was used hence the entire target population of 15 oil companies was studied. The main instrument for data collection was a semi-structured questionnaire. The study collected primary data. Primary research enables a focus on specific subjects. It also enables the researcher to have a higher control over how the information is collected as well as deciding on the time frame and goal. Questionnaires gives the researcher comprehensive data on a wide range of issues. Data was collected from 36 respondents in all levels at the 12 major oil companies in Kenya. Before processing the responses, the completed questionnaires were sorted, checked and edited for completeness and consistency. The data was then coded to enable the responses to be grouped into various categories. Descriptive statistics technique was used to analyze the quantitative data. Coding was done in SPSS, analyzed and the output interpreted in frequencies, percentages, mean scores and standard deviation. To determine the effect of growth strategies on organization performance, the study adopted a multiple regression model. The study found that market development strategies have been adopted within by large oil companies to a great extent. The study also established that the primary objective of market development is to secure future volume and profit growth. The study established that diversification strategies have been adopted by large oil companies to a great extent. The study also established that better diversification involves directions of development which take the organization away from its present markets and its present products at the same time. The study found that market development strategy contributed the most to the performance of large oil companies. At 5% level of significance and 95% level of confidence, Market development strategy, Diversification strategy, Market penetration strategy, Product development strategy, Turnaround strategy, and Strategic alliance strategy were all significant strategies to increased performance of large oil companies. The study concluded that product development strategies have been adopted by large oil companies to a great extent. In addition, the study concluded that product rebranding and repackaging was the product development strategy that was used always. The study also concluded that large oil companies engage in new product development or improvement of existing service products to a great extent. Further the study concluded that growth strategies greatly influence company‟s performance. The study recommended that oil companies consistently adopt growth strategies to improve their performance. The study also recommended oil companies to put more resources on market development and diversification strategies since the two strategies impact the performance of large oil companies the most compared to the other strategies studied.
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