Influence of Strategic Planning On the Performance of Selected Small and Medium Enterprises in Nairobi, Kenya
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Date
2016-06
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Daystar University, School of Business and Economics
Abstract
This study sought to examine the influence of strategic planning on the performance of selected Small and Medium Enterprises (SME’s) in Nairobi, Kenya.. The objectives for the study were to examine the relationship between strategic planning process and performance of SMEs, to establish the existence of strategic planning in SME’s in Nairobi Kenya and to determine challenges faced by SMEs engaged in strategic planning. Descriptive research design was employed. The total population for this study was 563, and the total number of all manufacturing SMEs in Nairobi. The target population was all food industries in the category of manufacturing SMEs, which total to 71. Stratified sampling technique was employed to select the study sample while questionnaires were used as data collection instruments. Descriptive and inferential statistics were used to analyze the data, SPSS Version 22 was used. Similarly, frequency distribution tables, means and standard deviations as well as inferential statistical tables were used to present the data and also show comparison. The study concluded that SME`s in Nairobi have adopted various strategic planning activities. The study found that the adoption of strategic planning improved on the current level of sales. In addition, this positively influenced SME performance. The study looked into SME’s and their involvement in strategic planning components which include; and vision statement, mission statement, core values and formulate well thought of organizational objectives. One recommendation would be that SME`s need to readily adopt and embrace strategic planning completely if they are to remain competitive in the current business world. SME`s need to adopt democratic leadership styles in order to consider employees input in policy formulation. In addition, SME`s need to improve their communication systems to facilitate feedback on adopted strategies.
Description
Master of Business Administration
in Strategic Management
Keywords
Strategic Planning On the Performance, Selected Small and Medium Enterprises in Nairobi, Kenya
Citation
Njihia, M. (2016). Influence of Strategic Planning On the Performance of Selected Small and Medium Enterprises in Nairobi, Kenya: Daystar University, School of Business and Economics. Nairobi.