Growth Strategies and Performance of Milk Processing Firms Registered with Kenya Dairy Board, Kenya

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dc.contributor.advisorElishiba M.Murigien_US
dc.contributor.authorNjogu, Joseph Kimiti
dc.date.accessioned2023-08-09T10:38:55Z
dc.date.available2023-08-09T10:38:55Z
dc.date.issued2023
dc.descriptionA Research Project Submitted to the School of Business, Economics & Tourism in Partial Fulfillment of the Requirement for the Award of Degree in Master of Business Administration (Strategic Management), Kenyatta Universityen_US
dc.description.abstractThe Kenyan milk processing companies are currently facing intense competition from local and regional brands from across East Africa. This is primarily attributed to many players venturing into the sector to get a market slice to share. Thus, for milk processing firms to survive, they have to employ growth strategies that increases their performance and competitive edge. In the context of Kenya, the proportion of marketable milk is estimated at 70%, with 56% of this milk being sold in informal markets (Mbaya, Maina, Namusonga, 2021). Large dairy manufacturers control approximately 85% of milk sales through formal channels. The limited access to narrow markets poses a challenge to the performance of small dairy processors. Despite Kenya's milk processing industry ranking well in the African market, many processing firms continue to face performance-related challenges. Therefore this study sought to investigate the growth strategies and performance of Kenyan milk processing companies licenced by the Kenya Dairy Board. In particular, the study aimed to analyze how cost leadership, differentiation, focus, and products diversification strategies affect the performance of Kenyan milk processing companies. The study was anchored on Porter’s Competitive Advantage Theory, Goal-Setting Theory, Diffusion Innovation Theory, and The Balance Score Card Method. The study adopted a descriptive survey research design. It collected data using structured questionnaires from respondents. A census study targeting managers of all the 35 milk processing firms that were operational between February 2017 and February 2021 and registered with Kenya Dairy Board, was conducted. The data acquired was analysed utilizing descriptive and inferential statistics. Frequencies, percentages, means, standard deviations and cross-tabulations were computed to summarise the data. To test the predictive nature of the independent variables, the study used a regression analysis model. The regression results indicated that cost leadership strategy, and product diversification strategy had no significant influence on the performance of Kenyan milk processing companies. The results also showed that differentiation strategy and focus strategy had a significant positive partial influence on the performance of Kenyan milk processing companies. The study concludes that differentiation and focus strategies are significant predictors of Kenyan milk processing companies’ performance. Based on the research findings, the researcher recommends that the management of Kenyan milk processing companies should develop and invest in sound strategies to drive the growth of milk processors from a local scope to national and eventually global. The researcher also recommends that the boards of the individual milk processing companies should spend a lot of money on managers' and employees' knowledge acquisition about how to successfully adopt and implement various growth strategies in order to create competitive advantage in the sector. The researcher also recommends that the Kenya Dairy Board should have adequate engagements with the respective firms in designing suitable policies and strategies to sustain the milk processing industry’s expansionary programs.en_US
dc.description.sponsorshipkenyatta universityen_US
dc.identifier.urihttp://ir-library.ku.ac.ke/handle/123456789/26692
dc.language.isoenen_US
dc.publisherKenyatta universityen_US
dc.subjectGrowth Strategiesen_US
dc.subjectMilk Processing Firmsen_US
dc.subjectKenya Dairy Boarden_US
dc.subjectKenyaen_US
dc.titleGrowth Strategies and Performance of Milk Processing Firms Registered with Kenya Dairy Board, Kenyaen_US
dc.typeThesisen_US
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