Munyalo, Meshack Mutisya2024-07-302024-07-302024-07https://ir-library.ku.ac.ke/handle/123456789/28510A Research Project Submitted to the School of Business in Partial Fulfilment of the Requirement for the Award of the Degree of Master of Business Administration (Strategic Management Option) of Kenyatta University, June 2024 Supervisor Elishiba M. MurigiOrganizations are continually seeking to expand their businesses in order to remain competitive in their markets of operation. As a result, expansion strategies are oftenly deployed to ensure business sustainability and improve organizational performance. This study focused mainly on how businesses are expanded, the strategies applied, and the impact they have on performance of selected telecommunication firms in Kenya. Managing the formulation and implementation of expansion strategies requires that the managers of telecommunication firms identify what actions are supposed to be taken to increase performance. The study was aimed at examining how expansion strategies affects performance of selected telecommunication firms in Kenya. The key aspects of focus in expanding the businesses were products development, market development,market penetration and diversification strategies. This study was based on the Ansoff matrix theory, balanced scorecard model, and modern portfolio theory. This research adopted a descriptive survey research design. The study targeted three selected telecommunication firms in Kenya namely, Safaricom Plc, Airtel Kenya Limited and Telkom Kenya. The target population was 225. Sampling of respondents was done through stratified technique which involved non-subordinate staff mainly managers, sales executives and customer care staff from the respective telecommunication firms. The size of the sample was 144 respondents whom were randomly picked. 126 respondents participated in the study. Collection of primary data involved closed questionnaires and secondary data was obtained from the firms’ annual reports in Communications Authority of Kenya. The questionnaire was piloted to 10 respondents from Telkom (K) ltd to test its effectiveness in gathering the required information. Validity test on the questionnaire was done by seeking opinion of 5 experts in research work and their suggestions on corrections and improvement on was done. Reliability study on the questionnaire was done to 15 managers using Cronbach’s alpha test, which gave an aggregate score of 0.9 that confirmed reliability. Data in quantitative nature was descriptively analyzed. Further analysis using Karl Pearson’s scale was done to determine relationship of the variables. The study concluded that the expansion strategies (market development, market penetration, diversification and product development) affected the performance of the selected telecommunication firms. Further, correlation analysis showed that the expansion strategies adopted are related to organizational performance of the telecommunication firms in the study. While regression analysis showed a positive and significant relationship for market development, market penetration and product development to organizational performance, diversification strategy showed a negative and insignificant relationship. It was recommended that the telecommunication sector consider increasing investments in strategies that significantly boost performance and recheck the diversification strategy approach to prevent its negative effect on how firms perform.enThesis