Effect of Integration Strategies on Performance of Dairy Firms in Kenya: A Case of Brookside Dairy Limited

Abstract

This study aimed at determining the effect of both vertical and horizontal integration strategies on the performance of Brookside Dairy Limited. The study focused on the lower, middle and top-level management at Brookside Dairy Limited. The researcher adopted descriptive research design and used census method, where all the target population of 132 respondents was sampled. The data from middle and lower management category was collected using questionnaires and the interviews were carried out on the respondents from the senior level management. Statistical Packages for Social Science (SPSS 23) was used to analyze quantitative data while thematic analysis was used to analyze qualitative data. The study established that 97.8% of the respondents agreed that the firm had adopted fully integrated strategy in its operations. The study also established that 75.3% of the respondents agreed that strategic integration contributed to increased customers’ satisfaction resulting from product differentiation. The study found that the major challenge in strategic integration was huge initial capital investment required. However, there has not been increased business risk due to strategic integration. The study recommended that firms planning to integrate should take their employees through change management programs; to prepare them for incorporation into the new firm.