Strategic Management Drivers and Performance of Unilever Kenya Limited in Nairobi City County Kenya
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Date
2025-06
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Kenyatta University
Abstract
Unilever Kenya Limited has recently reported poor financial results, raising concerns among investors and stakeholders. The company's performance has been characterized by several key challenges that have contributed to its subpar results. Consequently, this research aimed to examine the influence of strategic management drivers on the performance of Unilever Kenya Limited in Nairobi City County, Kenya. The precise aims of the research wwere to determine the influence of cost leadership strategy, ICT strategy, human resource development, and marketing strategy on the performance of Unilever Kenya Limited in Nairobi City County, Kenya. The study was guided by the following theories related to the variables: human capital theory, technology acceptance model, generic Porter’s strategy model, and theory of the industrial market. This research employed a descriptive research design. The subject of analysis was Unilever Kenya Limited. The study focused on 125 employees from different departments within Unilever Kenya as the units of observation. This study adopted a census technique where every individual was incorporated. The pilot test was done at the Kericho tea Company in its offices, which falls under the tea sector. Piloting consisted of 12 respondents. The study adopted the following validity testing methods including construct, content and face validity testing. This study used internal consistency method to check and ensure the questionnaire is fit using Cronbach Alpha test. In order to examine relationships between study objectives, Descriptive statistics like means and standard deviations as well as inferential statistics like Pearson correlation were employed in the analysis. The direction and strength of these associations were assessed using multiple regression analysis. According to the study, Unilever Kenya Limited's performance in Nairobi City County, Kenya, was positively and significantly correlated with cost leadership strategy, information and communication technology, human resource development, and marketing strategy. The study concludes that Unilever offer competitive prices by prioritizing cost efficiency, attracting a wider customer base in a price-sensitive market leading to increased sales volume and a larger market share, essential for growth in a competitive landscape. The integration of advanced ICT tools facilitates improved communication and collaboration among employees, leading to more efficient workflows and quicker decision-making processes. A well-implemented human resource development strategy fosters a culture of continuous learning and professional growth among employees. A well-defined marketing strategy allows Unilever to effectively identify and target its consumer base enabling the company can tailor its products and marketing messages to resonate with the specific demographics of Nairobi. The study recommends that the company should optimize supply chain management by streamlining logistics and reducing transportation costs to achieve greater efficiency. To make sure the technology is consistent with the strategic goals of the company, the organization should carry out a thorough evaluation of the current ICT infrastructure, highlighting its advantages, disadvantages, and potential areas for development. The business should concentrate on putting in place specialized training programs that emphasize both technical and soft skills, as they can greatly improve employee capacities. To be able to customize its products and marketing messages to the target audience's unique needs and preferences, the business should carry out in-depth market research.
Description
A Research Project Submitted to the School of Business, Economics and Tourism in Partial Fulfilment of the Requirement for the Award of the Degree of Master of Business Administration Strategic Management Option at Kenyatta University, June 2025.
Supervisor
Felistus Makhamara