Strategic Management Practices and Operational Performance of Selected Supermarkets in Nairobi City County, Kenya
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Date
2024-11
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Kenyatta University
Abstract
The operational performance of supermarkets globally is characterized by a mix of trends and challenges arising from a highly competitive and unstable business environment. In Kenya, supermarkets have experienced reduced sales and declining performance, leading in some cases to closures. Consequently, many supermarkets aim to operate effectively and efficiently without giving adequate attention to overall performance. This research examined the effects of strategic management practices on the operational performance of selected supermarkets in Nairobi City County, Kenya. Specifically, the study sought to investigate the effects of strategy formulation, strategy implementation, and strategy evaluation on the operational performance of these selected supermarkets. The study was anchored on the Resource-Based View, Activity-Based Costing Systems, Balanced Scorecard Theory, and the Dynamic Capability Theory. A descriptive research design was adopted to guide the study. The target population comprised 104 supermarkets currently operating within Nairobi City County, while the unit of analysis was the supermarkets and the unit of observation consisted of their employees, including supervisors, upper management, sales support staff, and general supermarket personnel. A purposive sampling technique was used to select the respondents. The research instrument employed was a semi-structured questionnaire used to collect primary data. A pilot test was conducted to assess the questionnaire’s validity and reliability, ensuring that the instrument accurately measured the intended variables and produced consistent results. Data were analyzed using descriptive statistics (frequency, mean, and standard deviation) and inferential statistics through a multiple linear regression model. Ethical considerations were duly observed throughout the study. The findings revealed that strategy formulation had a positive but statistically insignificant effect on operational performance; strategy implementation had a positive and statistically significant effect; and strategy evaluation had a positive yet insignificant effect. The study concluded that supermarket management should focus on enhancing the implementation of existing strategies rather than merely formulating new ones. This can be achieved by investing in employee training programs to build the necessary skills for effective strategy execution.
Description
A Research Project Submitted to the School of Business, Economics and Tourism in Partial Fulfilment of the Requirements for the Award of the Degree of Master of Business Administration (Strategic Management Option) of Kenyatta University
Supervisor
Lawrence Wainaina