Professional Documents
Culture Documents
BY
AUGUST 2022
DECLARATION
Declaration by the Student
This research project is my original work and has not been presented to any other
Institution or examination body. No part of this project should be reproduced without my
consent or that of Kenya Institute of Management.
KIM/ DBM/
Lecturer Supervising
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DEDICATION
This research study is dedicated to my family: my husband xxxxx and children xxxxx
and *****, for the inspiration, support and most importantly for believing in me to
complete this project. They were my cheerleaders throughout the study period and
demonstrated a helping hand in various challenging circumstances. I also dedicate this
study to my mum and siblings who encouraged me throughout the study.
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ACKNOWLEDGEMENT
I would like to thank the almighty God who has seen me through my studies at KIM. I
thank the institution of KIM for having given me the chance to be nurtured and mentored.
I extend my utmost gratitude to my supervisor xxxxxxxx who has immense knowledge in
the various concepts on the research project and has accorded me step-by- step guidance
to complete my research successfully. Lastly, let me express my sincere gratitude to the
management and employees of Tetra Pak East Africa Limited for allowing me to
conduct this study in their organization and for their willingness to participate in the
study.
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ABSTRACT
The purpose of this study was to establish factors affecting the implementation of
business growth strategies in the manufacturing industries in Kenya. The study sought to
examine the effect of funds allocation, organizational culture, employee skills,
Government policies and management style on business growth strategies in the
manufacturing industries. The study was beneficial to the Management of Tetra Pak,
other manufacturing firms as well as other researchers.
The study adopted descriptive research study design. The target population was two
hundred (200) employees of Tetra Pak East Africa Limited. The study adopted a stratified
random sampling method to select fifty respondents which represented 25% of the total
population. Semi-structured questionnaires containing open-ended and closed-ended
questions were used to collect primary data. Data collected was analyzed using
qualitative techniques. The results were presented using tables and figures for ease of
understanding.
The findings of the study showed that 87% of the respondents agreed there was a
significant effect of funds allocation on the implementation of a business growth strategy
whereas 13% disagreed. The study found out that organizational culture influences the
implementation of business growth strategy by 91% and only 9% disagree. On employee
skills, the study found out that 83% of the respondents agreed that skills set affects the
implementation of a growth strategy but 17% disagreed with the findings. Also, the study
found out that government policies affect growth strategy implementation by 89%
whereas 11% disagreed. Management style influences the success of the business growth
strategy by 78% while 22% of the respondents disagreed.
The study recommended that management establish a fund allocation methodology that
reduces wastage and helps maximize profits. Also, the study recommended a review of
the skills of all employees to ensure they meet the needs of strategy implementation and
also establish an organizational culture that supports implementation. Finally, the study
recommended compliance to government policies as well as management style aimed at
succeeding in strategy implementation.
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TABLE OF CONTENTS
DECLARATION ................................................................................................................ II
DEDICATION .................................................................................................................. III
ACKNOWLEDGEMENT ................................................................................................ IV
ABSTRACT........................................................................................................................V
TABLE OF CONTENTS .................................................................................................. VI
LIST OF TABLES ..........................................................................................................VIII
LIST OF ABBREVIATIONS .............................................................................................X
OPERATIONAL DEFINITION OF TERMS .................................................................. XI
CHAPTER ONE
INTRODUCTION OF THE STUDY
1.1 Introduction ................................................................................................................. 1
1.2 Background of The Study ........................................................................................... 1
1.3 Statement of The Problem .......................................................................................... 4
1.4 Objectives of The Study ............................................................................................. 6
1.5 Research Questions ..................................................................................................... 6
1.6 Significance of The Study........................................................................................... 7
1.7 Limitations of The Study ............................................................................................ 7
1.8 Scope of The Study ..................................................................................................... 8
CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction ................................................................................................................. 9
2.2 Review of Theoretical Literature ................................................................................ 9
2.3 Review of Critical Literature .................................................................................... 21
2.4 Summary ................................................................................................................... 22
2.5 Conceptual Framework ............................................................................................. 23
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CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.1 Introduction ............................................................................................................... 29
3.2 Research Design........................................................................................................ 29
3.3 Target Population ...................................................................................................... 29
3.4 Sample Size And Sampling Procedure ..................................................................... 30
3.5 Data Collection And Instrumentation ....................................................................... 31
3.6 Data Analysis Methods ............................................................................................. 32
CHAPTER FOUR
DATA ANALYSIS, PRESENTATION, AND INTERPRETATION OF FINDINGS
4.1 Introduction ............................................................................................................... 33
4.2 Presentation of Findings .........................................................................................33
4.3 Summary of Data Analysis .....................................................................................53
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
5.1 Introduction ............................................................................................................... 56
5.2 Summary of Findings ................................................................................................ 56
5.3 Conclusions ............................................................................................................... 58
5.4 Recommendations ..................................................................................................... 59
5.5 Suggestion for Further Studies.................................................................................. 60
REFERENCES................................................................................................................ 62
APPENDICES ................................................................................................................. 65
Appendix I: Introduction Letter
Appendix II: Questionnaire
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LIST OF TABLES
Table 3.1 Target Population ........................................................................................... 30
Table 3.2 Sample Size .................................................................................................... 31
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LIST OF FIGURES
ix
LIST OF ABBREVIATIONS
x
OPERATIONAL DEFINITION OF TERMS
xi
CHAPTER ONE
1.1 Introduction
Chapter one presents the background of the study, its statement of research problem, the
purpose, research objectives and research questions. Also, the chapter provides the
significance of the study, scope and limitations of the research.
The top management in the organization must put measures to reduce strategy failure and
ensure all people in the organization have the required skills, competencies and
willingness to implement the business strategy (Hrebiniak, 2016). An organization’s
growth strategy is critical; therefore, people should be involved in decision making to
reduce on resistance. Effective communication helps the organization to disseminate
relevant information regarding their strategy. Organizations that have managed to
implement their growth strategies without failure believe that management is crucial to
the operations of the business. Manufacturing firms face the greatest challenge of
implementing a growth strategy because of the many issues surrounding planning,
coordination and execution (Chakravarthy and White, 2012).
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The factors that determine success of any growth strategy should be planned and
executed well to avoid issues of delay and failure.
According to Higgins, (2015), Businesses must develop a framework to help them when
coming up with a growth strategy and how to implement it to ensure success. The
strategy can only be successful if the idea is planned and coordinated well. Also,
management has the responsibility of assigning roles and duties to competent staff that
will assist in the implementation of the strategy. Ogbeide, et.al, (2018) established that
leadership is needed in any organization that supports strategy implementation, and is
also competent enough to align systems to help the business in its growth and
development strategy. The organization must put measures to avoid spillage and wastage
of company resources by ensuring funds allocation is done in a way that reduces losses
and assigns responsibilities to well-equipped staff, with relevant skills and that
compliance is observed.
In 1950, it was incorporated as Tetra Pak (K) Ltd. Tetra Pak (K) Ltd serves nine food
packaging categories namely dairy and dairy alternatives, juice and drinks, wines and
spirits, food, ice cream and cheese, pet food and whey powder. This is done through the
supply of technologically advanced and cost-efficient processing and packaging
machines as well as packaging materials. This is all carried out with Tetra Pak (K) Ltd’s
environmental goal in check. The company’s environmental goal is to operate the
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business minding the climate change, recycling methods and renewability (Tetra Pak
Annual Reports, 2020). The organization focuses on manufacturing ways that support
recycling and reduction in environmental degradation.
In 1955, Tetra Pak opened its office in Nairobi Kenya as a full market company with a
packaging materials factory. The office oversees Uganda, Rwanda, Burundi and Eritrea
which form the Great Lakes region, Madagascar, Seychelles, Mauritius and the Comoros’
Island which form the Islands region and lastly Tanzania and Kenya. Tetra Pak (K)
Limited serves in four main categories for both packaging and equipment i.e., Juice and
drinks, wines and spirits, dairy and soy and dairy alternatives. Tetra Pak (K) Ltd had
developed its Strategic plan 2010/2020 after realizing that time has taken its toll and the
business is now like a very well-built house in need of renovation. This is because the
conditions are changing, and there is need to get things sorted before the storms set in.
The 2010/2020 strategy was to address growth, innovation, environment and
performance.
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Figure 1.1: Organizational Structure of Tetra Pak East Africa Limited
Over the years, the Tetra Pak management has appreciated that there is a gap between the
strategic intent and how it’s translated into action. The expected returns have not been
forthcoming over the years and which has raised more questions than answers.
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It’s with this concern that the management at Tetra Pak has made a deliberate decision to
get a deep understanding of the challenges affecting the successful implementation of the
growth strategy. As an example, strategy implementation may face resistance by
employees as the culture may not be appropriate and this may not be a unique scenario to
Tetra Pak.
Organizations put allocate resources to help develop and implement a growth strategy for
the benefit of the business owners. It is essential for companies to evaluate the whole
spectrum of strategy implementation to avoid issues during the implementation phase.
There are many factors that influence growth strategies and as Joyce and Drumaux
(2014) highlights, corporates must plan and put enough financial and human capital
resources when planning and executing a strategy.
The manufacturing sector enjoys greater support in the recent past due to its perceived
benefit to job creation and economic development. In Kanya for instance, the government
has developed measures to support businesses involved in production. The effort has seen
the formulation of policies to assist the informal sector to get funding and favourable tax
policies as they improve their levels of manufacturing (Hope, 2014).
However, fewer researches have focused on examining the factors affecting business
growth strategy for manufacturing firms in the region. For instance, Andrews, et.al,
(2017) focused on the style of strategy implementation in the public service. The public
service gets more support from government policies and a research on manufacturing
firms will create a large pool of knowledge to guide managers. Also, Elbanna, Andrews
and Pollanen, (2015) examined strategic planning and implementation and failed to
assess the factors that influence business growth strategies in the manufacturing industry.
Further, a study by Zheng, Yang and McLean, (2011) focused on determining the
relationship between organizational culture, strategy and organizational effectiveness but
did not assess the factors that impact the success of a growth strategy. Manufacturing is
an essential industry and this research sought to explore and investigate the disconnect
that existed between the strategic intent of Tetra Pak and the translation of the intent into
actions that would promote and bolster the successful implementation of the company’s
strategies.
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1.4 Objectives of the Study
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1.6 Significance of the Study
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1.7.2 Tight Schedule
The employees of many organizations, including Tetra Pak East Africa Limited work in
busy environments which makes them not readily available. The researcher faced the
challenge of some staff not being available to fill the questionnaire due to their tight
schedule of work. To overcome this challenge, the researcher made an effort to go to the
workplace during free times and made calls to find out the convenient time when the
staffs are free and this boosted the rate of response.
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CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
Chapter two of this project examined various literature on five crucial aspects to guide
the research on the objectives of the factors that influence the business growth strategy
implementation in the manufacturing industries in Kenya. This research identified funds
allocation, organizational culture, employee skills level, government policies and
management style as the main factors. The section also contains the critical review of the
study, its summary, and the conceptual framework.
In the manufacturing sector, funds form the basis of any business growth strategy and all
firms look for different financing options to allocate to their projects (Allio M., 2015).
The use of expansion as a growth strategy for most manufacturing firms depends on how
well the company obtains financing and the appropriate allocation. Studies reveal that
organizations get financing from two main sources and they include equity financing and
debt financing (African Development Bank, 2014). The effectiveness of any form of
financing depends on the level of funds received and the repayment terms as well as the
ease of allocating to company projects. In Kenya, companies choose between debit and
equity financing depending on the ease of access to the facility. Debt is obtained from
commercial banks while the equity type of financing is acquired when established
businesses sell their shares at the securities exchange.
International companies like Huawei obtain their funds and allocate them in a manner
that supports their growth strategy. A business is deemed successful when it allocates its
resources effectively after analysing viable segments of the business (Deloitte, 2018).
Studies show that Huawei as a company plans how to develop selectively by choosing
where to put effort and financial support and where not to. The company focuses on its
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core business and principles that guide their business operations and this helps in
allocating resources in the business operations (Huawei annual reports, 2020). Firms
develop a plan that they use when budgeting to ensure maximization of profits and this is
done through optimal allocation of finances in the business. To promote corporation
between universities, academic associations and industry players, the company states that
“In 2020, we set up the scientific research funds in the China Computer Federation and
Chinese Association for Artificial Intelligence. We actively participate at academic
conferences and have initiated special sessions at the International Conference on
Communications in China” (Huawei annual reports, 2020).
The global manufacturing companies like Coca Cola have access to both equity and debt
financing (World Bank, 2020). Studies show that organizations need to develop strategies
to benefit from the society they operate, and part of allocating funds influences the
company’s success in the market (Hope, K., 2014). The opportunities to grow a business
come at a cost and it is evident from the Tetra Pak LTD case that expansion is possible in
the Kenyan market. The effect of debt financing is the fact that their repayment becomes
a fixed obligation on the company’s operations. For instance, a loan from a commercial
bank is repaid every month and once the firm acquires the loan, they must pay monthly
until it is cleared. A fixed obligation on the business impacts their expansion plans
because they must factor in the part of revenue to be used in repaying the loan.
Companies that rely on equity financing end up losing their control of the strategies they
employ in the operations of the business (Hrebiniak, 2016). There exist conflicts of
interests for most organizations as the competing interests of the shareholders would stall
the management’s plan for expansion. Optimum utilization of funds acquired through
equity will however help the business to expand to new products or regions. The growth
strategy of an organization can be affected by the allocation of funds, especially if
management allocates funds to product line or region that may turn out ineffective
(Higgins, 2015). Studies show that management must do thorough analysis and develop a
plan that uses the acquired capital effectively and ensure money is prioritized to projects
that will be profitable.
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Also, businesses must analyse the conditions for funding to determine viability of the
funding. The commercial banks in the region have in the recent past warmed up to the
idea of extending loan facilities to manufacturing firms. However, the uncertainties and
other risks have made it difficult or made interest rates be high (Alamsjah, 2011). In the
country, corporations have benefited from availability of funding from commercial banks
and other sources like equity financing. The availability of capital enables businesses to
allocate enough funds to growth projects and ensure they manage them in a way that
improves their performance. The various ministries in Kenya have put measures to
reduce risk and increase the chances of small firms involved in manufacturing to access
credit from banks (Ministry of Industry, Trade and Cooperatives, 2016). The access to
finances was made possible by the government’s urge to develop small scale
manufacturers to create employment opportunities and curb the growing youth
unemployment. For established manufacturing companies like Tetra Pak limited, access
to commercial loans and sale of hare in the securities exchange serves as the main source
of financing.
The resource availability and allocation boosts the implementation of a growth strategy
(Yazici, 2014) and organizations must put enough measures to reduce the funding risk.
Organization’s management must come up with a plan to guide their financing and
ensure commitment does not affect strategy implementation negatively. According to a
study by the African Development Bank (2014), the East Africa region has grown over
the years and availability of many source of funding plays a critical role in the
development. The World Bank report in 2020 indicated that the region has turned to
manufacturing to increase job creation and help the economy to grow. The
implementation of a growth strategy must be followed by enough resources and
management is responsible for marshaling those needed funds and other forms of
resources. The government agencies like CBK have also assisted in developing
guidelines to help small scale manufacturers to know how to register, formulate policies
and get access to banking services to boost their operations (Central Bank of Kenya,
2021).
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2.2.2 Organizational culture
Organizational culture is the company’s way of doing things and serves to give the
business identity. Organizational culture can also be explained as the norm at the
company.
Culture in the organization forms an important aspect of the growth strategy and serves to
boost the success rate when establishing a plan. A company’s shared beliefs and values
strengthen the plan for growth; however, management must ensure the culture supports
its strategy (Yazici, 2014). A stable culture that fosters partnership, unity and cooperation
is likely to assist the management in realizing their growth and development goals.
Managers are tasked by the shareholders to ensure the company operates well, makes
profits and creates wealth for them, and as such, organizational culture plays an important
role in meeting a firm’s objective (Alamsjah, 2011). The relationship between the
management and its employees’ impacts how the workers perceive a strategy.
Implementation of a strategy will succeed if the management allows employee
participation and helps workers to understand what is required of them.
A change in any business is an essential element and it impacts on the success of the
operations of the company. The different types of organizational culture impact the
business performance and management is responsible for ensuring employees understand
what the strategy entails and its effect on their operations (Acar & Acar, 2014). If the
company’s culture and that of employees is aligned to the general objective, the business
growth strategy can be seamless and easily achieved. In the Kenyan market, expansion
strategy requires that all employees are involved and participate actively to avoid issues
of resistance and sabotage. According to (Andrews, et.al, 2017), the management must
formulate a strategy that is easy to understand and apply and let workers air their views
and use the feedback to better the strategy. An effective strategy is believed to be one that
is flexible and helps management incorporate new ideas as they implement.
In the manufacturing sector, the companies employ both skilled and unskilled workers
and therefore a culture of inclusion should be developed to avoid discrimination. A study
by Andrews, et.al, (2017) establishes that there must be unification of the company goals
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to achieve effectiveness and efficiency when operating. The Kenyan market is vast and is
growing at a faster rate, hence the need for better and accurate development strategy.
Hope, K. (2014) establishes that Kenya is largely an informal economy and the purpose
of any business should be aimed at expanding to develop products that suit the market.
The implementation of any expansion strategy should take into concern the needs of the
larger part of the population and be flexible. The best organizational culture is one that
supports and accommodates the views of all the people in the organization. Employees
will always be open to a culture that serves their interests and this will increase their
productivity. A strategic implementation requires the organization to ensure the people in
the company have shared values and that they understand the corporate organizational
culture.
According to Acar, Z. and Acar, P. (2014), organizations can control their overall
performance if they are in touch with the culture. The management must learn how to
assess their beliefs and values in a way that helps them govern the people in the
organization. The effectiveness of any business strategy depends on the company’s
organizational culture. A study by Allio, (2015) sought to determine the relationship
between culture and strategy implementation and the findings showed that there is a
correlation between an organization’s culture and the business growth strategy
implementation success. Schein, (2018) states that organizations must determine and
create a culture that supports strategies because there is a significant correlation between
a company’s culture and the effectiveness of their strategy implementation. Therefore,
companies should employ various methods to ensure their beliefs and vision is well
articulated for everyone in the organization to understand. Effective communication of
the organization’s direction to employees helps create an environment that allows staff to
be critically involved in the management of the business.
The people in the organization form a very important element for the implementation of
any company strategy. Braton & Gold, (2016) established that the process of
implementing a growth strategy must be formulated in a way that incorporates all the
relevant issues and considers employee skills. Skills that employees have impact the
success of the strategy because it purely depends on them for implementation. The
manufacturing companies need to train their employees and align their personal
objectives to the overall goals to ensure unity of purpose. Training can be conducted in
various ways to support the existing and new employees in acquiring needed skills for the
work, strategy implementation and subsequent operations. On-the-job training is one of
the effective methods of imparting knowledge and company policies to individuals in the
organization. Once employees acquire relevant skills, they help in implementing the
company’s growth strategy and facilitate outcomes that favours organizational objectives.
The type and level of skills workers possess will determine the success rate of the growth
strategy, and especially in the manufacturing sector. Alamsjah, F. (2011) establishes that
organizations must adopt key elements of the strategy to help incorporate into the training
manual. The relevant skills needed for a particular strategy must be identified at the onset
of the project and communicated adequately to people in the organization. The effective
communication and dissemination of information will help to reduce resistance, increase
information uptake, and guide workers on what is required of them.
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Also, studies show that management must drive accountability by giving employees
necessary information and allowing them make decisions in their areas of operation
(Eden, & Ackermann, 2013). Accountability helps in creating a work environment that
allows people to take responsibility and use their expertise to do their work.
Schein, (2018) established that human resources management must come up with an
organization policy that is aligned with the company’s culture. The management has to
incorporate strategies to attract qualified staff that will be responsible for the
implementation of critical strategies in the company. During recruitment, HR must ensure
they bring on board a team that is ready and committed to the values of the organization.
The skills that employees possess greatly influence the success of a growth strategy and
as such, Higgins, (2015) believes that HR plays an important role in determining the
direction the business takes. The key objective of the human resources in a manufacturing
company should be to employ qualified staff and keep training them to acquire skills and
competencies that will help them deliver for the business.
Manufacturing companies need special kind of skills to operate in all their vast and
unique departments. It is important for organizations to employ individuals with relevant
skills to help manage the work in both the factory sites and the office space. According to
studies by African Development Bank, (2014), technical departments must be managed
and run by people with technical skills while management and other professional
departments like finance and accounting need employees with competence in those fields.
An expansion strategy will fail if the level of skill set by the workers does not fit the
company’s manufacturing policy. Higgins, J. M. (2015) advises that strategy
implementation is critical, and management must put enough resources to recruit
motivated and skilled workers in line with the job role at the office or site. The
manufacturing industry faces a lot of challenges and as such, management of any
company operating in that space must ensure employees are committed and possess
requisite skills to propel the company to success.
The manufacturing companies must continue training their staff in all cadres to ensure
they meet the required skills in the market and to also compete. The labour market has
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evolved over the years and there is a stiff competition for which the HR must protect to
avoid employee turnover. Andrews, et.al, (2017) established that the responsibility of the
employer was to keep training its employees to ensure they meet the demand in their
daily duties. The top management must also allocate enough resources and support the
recruitment of qualified staff and subsequent training to improve their skills and ensure
increased productivity. In the current market, it must be understood that factors that
improve an employee’s performance also increases the overall productivity of the
organization and measures must be put in place to align organizational objectives and its
values and the mission (Schein, 2018).
2.2.4 Government Policies
Government policies are the rules or regulations that government agencies put in place to
govern the management of various business entities.
The taxation polices developed by a government affects how the business operates and
any strategy proposed for implementation must consider the type of taxes and the rates
levied by the government. In Kenya, the government levies 30 per cent corporate tax and
this informs a company’s decision regarding expansion and growth strategies (CBK,
2021). The effect of tax on strategy implementation includes plans by organizations to get
government approvals, application for exemptions and other favorable terms that
sometimes take long. Andrews, et.al, (2017) proposes formulating strategies that are
flexible and allows implementers to adjust on timelines and other issues that may cause
delays. The government’s involvement in the operations of a manufacturing company
delays some functions because of the many approvals and certifications required before
an organization sets up a plant. However, favourable tax polices like exemption and
relaxed rates help manufacturing firms to use their revenue to plan for expansion and
even grow their profits (Deloitte, 2018).
Governments formulate policies around legal that affect business strategies like minimum
wages and consumer protection measures (Deloitte, 2020). Manufacturing companies
employ both skilled and unskilled workers and the minimum wage law usually affects the
unskilled workers. Organizations must consider the impacts of the law when recruiting
and therefore should not employ workers and pay them less than the government’s set
minimum salary. Therefore, the law will increase the operating cost of the company and
business strategies must be implemented with the knowledge of the requirements of this
rule. Eden and Ackermann, (2013) acknowledges the importance of government policies
on consumer protection and states that firms must strategically position themselves to
benefit from good governance and put measures to safeguard their consumers.
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goods for export (Ministry of Trade, 2020). The government agencies have remained
resilient and working hard to ensure policies that are developed will go a long way to
assist business owners. The Organisation for Economic Co-operation and Development
(2019) established that management of small scale manufacturers need government
assistance to grow and produce quality goods and services that can attract export to the
regional countries.
The manufacturing companies venturing into production must meet the set standards and
be issued with certification by the Kenya Bureau of Standards to operate (KEBS, 2020).
The government of Kenya gazetted projects that it needed to prioritize to create
employment and that included manufacturing. The sector is labour intensive and thus
creates high number of employment opportunities and therefore government’s focus on
manufacturing means setting up support systems for organizations venturing into
production (Ministry of Industry, Trade and Cooperatives, 2016). The incentives included
developing industrial parks to offer serviced land to companies manufacturing leather and
textile. The government’s agencies responsible for trade and industrialization have rolled
out policies aimed at helping manufacturers to expand their businesses. The creation of
support service to companies in manufacturing helps them in setting up plants for
production of the goods they deal in and in turn increase their revenue.
The government through many policy interventions helps organizations incorporate good
governance and other measures to grow. Organizations involved in production have
received a boost by the ministry’s effort to facilitate the education regarding production
and access to finances and policy support. Small sale firms find it difficult to identify a
niche and produce enough to supply, thus, the government comes in to create an enabling
environment for such businesses to thrive. The Kenya Association of Manufacturers
helps their members to build capacity and ensure there is market for their produce (KAM,
2020). Companies in the manufacturing industry are advised to diversify and acquire
enough resources to assess the market and find a solution to produce enough for sale. The
East African market has grown exponentially and the access to overseas markets makes it
possible for companies to expand and produce goods to be exported (Overseas
Development Institute, 2016). The role of government is to create an environment that
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allows individuals and companies producing goods and services to sale within the region
and beyond.
2.2.5 Management Style
Management style is the way managers carry out their functions and how they manage
the affairs of the company.
In the manufacturing industry, managers are tasked with formulation and implementation
of business strategies to give direction to the company (Mason, 2011). A persuasive
management style will deliver more in an environment that requires support of all people
in the organization like production. The company’s leadership must be visionary and help
in mobilizing employees to develop a common goal and work towards achieving the set
goals (Sami, 2012). Management style plays a critical role in the success of a growth
strategy and businesses must choose leaders who motivate and promote the ideas of the
company. The ease of executing a strategy depends on how versed the management is
and their ability to bring the best out of the company’s employees. Managers serve to
guide the rest of the people in the organization on what is required of them to develop the
company’s framework for growth.
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Management style reflects on how the organization manages its operations and the affairs
in the company (Nongo, 2015). The current business structures have changed over the
years and strong leadership is required to help the organization to develop. An effective
management style is one that understands critical operations in the business and has
competencies to help them propel the company to other greater levels. The role of
management includes steering the organization to attain its set objectives and managers
must possess attributes to help them. Managers have the power to build relationships and
help the employees to perform and grow the business (Neha, 2014). Therefore, the
management style an organization adopts plays an important role in running the
operations of the company and the business will benefit greatly when the style is flexible.
A company’s management style impacts the business in many ways and the
implementation of growth strategies is one of them. The success of most manufacturing
companies like Tetra Pak Ltd is attributed to good leadership and the management
involvement in matters that boost their trade strategy. Okumus, F. (2013) establishes that
a good leader in the organization will use their expertise and skills to help the company
develop a framework that will guide the business. The leadership must have the vision
and communicate it to the organization so that all the people in the company understand
their role is achieving their objective. Studies reveal that management plays a critical role
in formulating company policies and the company direction in terms of growth depends
on the success of those measures (Harrington, 2015).
It is important for companies to appoint managers who have the required competency and
expertise to make manufacturing successful.
The management style adopted by a company’s top leadership determines the level of
success in their production. Apple Company’s CEO is believed to apply democratic
management style and various articles have had employees say that “Tim Cook
encourages consensus building among high-level employees.” A democratic manager
will let employees find a way of doing things and involve them in making critical
company decisions (Joyce, & Drumaux, 2014). The empowerment of other employees in
the organization boosts their morale and improves their productivity. In 2015, Nike’s
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chief finance officer Andy Campion said that the company’s CEO Mark Parker uses
questions "leaves other leaders empowered to find the answers themselves and act on
them." The more effective a company’s management is, the easier it gets when
implementing polices of strategic nature. In Kenya, studies reveal that professionals
advise managements to adopt persuasive style to deliver desired outcome (Neha G.,
2014). The management must be at the centre of the company’s decision making and
focus their energies and abilities to growing the business.
This study seeks to analyse the Factors that impact the implementation of business
growth strategies in the manufacturing industries in Kenya. The existing literature points
to the issue of corruption, cost of setting factories and operations, challenge of financing
and aces to market for local products (AfDB, 2014). To achieve the objective of the
study, the researcher identified the study variables which include allocation of funds,
organizational culture, employee skills, government policies and management style.
Fewer researches has focused on factors affecting strategic plan implementation like
Rajasekar (2014), who focused on factors affecting effective strategy implementation in a
service industry. This study sought to bridge the gap and create an understanding of the
factors that impact on the implementation of business growth strategy for manufacturing
21
firms in East Africa. The sampled organization for case studying is Tetra Pak East Africa
Limited.
There are criticisms on the government’s effort to make manufacturing a top sector and
boost employment and economic development. Studies show that the government has put
measures, but the implementation is a problem (Yazici, K., 2014). The policymakers
have the responsibility of developing feasible plans and support organizations to expand
into production in the country. The research sought to bridge the gap and develop an
understanding of how various factors like employee skills, organizational culture,
financing, and management style influence an organization’s growth strategy.
2.4 Summary
The goal for every profit-making institution is to make huge profits for the business
owners. One of the channels to attain this goal is by successfully implementing growth
strategies for the institution. Translating strategy into action leads to a competitive
advantage and a better performance for an institution.
Manufacturing industries must identify how to fund projects and initiatives that drive
business growth. Capital to fund the initiatives can either be through equity or debt
financing. For manufacturing companies, studies reveal that most companies rely on
commercial loans to implement their strategies.
The management of an institution is normally tasked with adopting a leadership style that
will persuade employees in the organization to support an agenda and ensure its success.
Studies show that the success of the manufacturing industry depends on the goodwill and
management style that supports innovation and creativity. A persuasive management
style will facilitate an organization’s ability to implement change and grow.
22
managers. Also, businesses should endeavour to comply with laid-down government
policies to ensure compliance and avert penalties.
The researcher examined employee skills and how they affect strategy implementation.
Organizations that hire employees who have the right skills to do their roles or better still
continuously train their employees on a regular basis boost the performance of the
organization. Skills are very important when manufacturing firms start to develop and
implement growth strategies because employees in the organization must possess what is
necessary for the projects. For instance, a project that requires technical skills must be
headed by an individual who understands processes and who will assist others to
understand and implement the project.
The culture in an organization defines its values and helps in designing a growth strategy
that gets the support of all the employees. Studies have shown how critical it is for
companies to develop a culture that employees can identify with and are proud of. A
strong culture will benefit the company through reduced resistance, shared values, and
increased productivity by the workers.
2.5 Conceptual Framework
The conceptual framework creates an interconnection of the study variables and shows
how they relate in providing an understanding of the research objective. It helps to show
how the concepts identified by the researcher relate as well as how they support the
narrative by the various studies. This section presents a figure with the dependent and
independents variables and the diagram sought to show the interconnections.
23
Figure 2. 1: Conceptual Framework
Independent Variables Dependent Variable
Funds Allocation
Business Growth
Strategies in the
Organizational Culture
Government Policies
The Kenyan labour market is well educated but some studies reveal that it is not well
skilled for manufacturing roles. Manufacturing needs specific skills and the management
must develop guidelines to train staff and equip them with the relevant skills to carry out
their duties effectively. In the country, there is a belief that there exists a skills mismatch
which means organizations venturing into manufacturing must get enough resources to
train their staff.
The workers who the HR recruits should be willing to go an extra mile and learn new
skills to help them perform. Employee individual performance is essential for the overall
productivity of the company. At Tetra Pak limited, the management has regular
24
workshops and conferences aimed at equipping their staff with relevant and up-to-date
skills (www.tetrapak.com).
Kenya’s population has kept growing and the unemployment levels are quite high. The
recent measures by the government are focused on boosting manufacturing to enhance
job creations and improve the country’s trade through exportation. The population is
educated, and as such, management of these manufacturing companies must develop a
recruitment strategy that attracts talented and motivated individuals. Also, the
organization needs to set aside enough resources to train the staff. A highly skilled staff
forms the foundation for the growth of a manufacturing company.
The other available source of finances is selling shares in the securities exchange and is
referred as equity funding. However, some companies do not prioritize equity financing
because they feel that they will lose some control to outsiders when they sale their shares
in the NSE. Organizations that need to control all their operations rely on commercial
loans as opposed to equity financing.
Therefore, manufacturing firms that are established can sell shares or access loan
facilities from banks and help them execute their growth strategy (World Bank, 2021).
Management has to be careful to avoid too much debt which may run the organization
into solvency.
25
2.5.3 Management Style
The management style practiced by most people in the organizations creates an
environment for business growth. Tetra Pak limited prides itself with a management style
that is flexible and open where all staffs are allowed to give their opinion. A participative
and visionary leadership creates an environment that increases employee confidence and
this helps them to come out and participate in the affairs of the organization (Neha,
2014). A visionary leadership is one which allows the views of all employees and treats
all staff with respect and regards their contribution. When employees are left to make
decisions and participate in the affairs of the organization, their productivity increases
and the overall organizational goal can easily be attained. Also, the style of management
should reflect what the organization stands for and build trust between the people in the
company.
The style of leadership in a company plays a crucial role in how people will carry
themselves and the commitment they will put to deliver for the business (Northouse,
2014). Management must be committed to allocating enough resources to train
employees and develop their skills to match the needs of the market. Manufacturing is a
significant sector in the country’s GDP and plays a crucial role in creating employment
opportunities for many citizens. Therefore, the style of leadership that allows people to
air their views, supports them and reduces bureaucracies goes a long way boosting the
productivity of the workers.
26
unwritten rules in the organization that define the company should be neural, universal
and transparent.
The manufacturing sector has seen tremendous changes over the past few years and
therefore, management must create an environment that keeps a proper culture in the
business. Some organizations adopt a normative culture that defines how things are done
in the company. The normative culture is where the organizational norms and the
procedures are set in accordance with various underlying factors in the company. Here,
employees strive to behave and act as laid down procedures and ensure their actions are
within the confines of the rules (Alvesson, 2013). Setting a corporate culture that is
widely accepted and supports various functions in the company boosts their productivity
and reduces resistance.
27
supplies to enterprises and reduction of corporate tax from 30% to 10% for setting up
new manufacturing companies in the country for a period of 10 years (Kenya Revenue
Authority, 2019).
28
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.1 Introduction
The chapter examined and established the research design and methodology by showing
the data collection tools applied by the study in achieving the set objectives. The
methodology explained the ways used to collect primary data, the research instruments,
population sample and the actual analysis methods on the collected data. The focus of
this section of the study was to show how data was identified, collected, and analyzed.
This was achieved by showing the target population, sampling design, and data collection
methods as well as the analysis of the collected data.
29
This study targeted two hundred (200) employees of Tetra Pak East Africa Limited and
were all selected from the different cadres from the company structure. The company is
extensive and has over 2,000 employees which made it impossible to select all employees
for this study. To be representative, the researcher targeted the organization’s employees
who have worked for a minimum of three years due to their vast knowledge of the
company’s growth strategy.
Top management 9 4
Middle management 16 8
30
Table 3. 2: Sample Size
Category Target Population Sample Size Percentage (%)
Top management 9 3 6
Middle management 16 5 10
3.5.1 Questionnaire
There were closed ended and open-ended questions used by the study. In the closed
ended type of questions, all possible alternatives from which respondents would select
the answer that best describes the situation was provided. The closed ended questions are
easier to analyze since they are in an immediate usable form, economical and easier to
administer (Wilson, J., 2011). The open-ended type gives the respondents the choice to
respond in their own words. Open ended question also give the respondent freedom to
respond giving greater depth of response; it gives insight to the feelings of the response
among other advantages. Therefore, the researcher found this instrument to be very
appropriate for this study.
3.5.2 Validity
Data validity determines whether the research truly measures that which it was intended
to measure and how truthful the research result is (Muthoni, 2011). The researcher must
focus on collecting data that is accurate and meaningful to support the research. Data
validity is ensured by avoiding errors in the collected data. To achieve this, the
31
instrument was pilot tested by administering it to 5 respondents whose results were not
incorporated in the final data collection for the main study. The pilot study sought to
achieve construct validity of the instrument (Kombo & Tromp, 2016). After the pilot
study, the questionnaire was revised and issues that were identified amended to ensure
accuracy of data collection during the actual exercise.
3.5.3 Reliability
Reliability shows how accurate and consistent data collected and used for analysis was.
Data is considered reliable when the research produces stable and consistent results
(Oluwatayo, J., 2012).
32
CHAPTER FOUR
4.1 Introduction
This chapter presented the background information of the respondents, the findings of the
study. The section started by summarizing the general profiles of the respondents
including their age, gender and education level. Then, the study analyzes the factors
influencing the implementation of business growth strategies in the manufacturing
industries. The study intends to show the influence of employee skills, organizational
culture, management style, government policies and allocation of finances on the
implementation of a growth strategy.
Response 46 92
Non-Response 4 8
Total 50 100
33
Figure 4. 1: Response Rate
Non Response, 8%
Response,
92%
34
Table 4. 2: Gender
Category Frequency Percentage (%)
Male 28 61
Female 18 39
Total 46 100
Source: Author (2022)
Figure 4. 2: Gender
Female, 39%
Male, 61%
35
Table 4. 3: Age Group
Category Frequency Percentage (%)
18-24 Years 11 24
25-35 Years 15 33
36-45 Years 8 17
46-55 Years 7 15
Total 46 100
25
20 17%
15%
15 11%
10
5
0
18-24 Years 25-35 Years 36-45 Years 46-55 Years 56 years and
above
Category
36
4.2.4 Highest Level of Education
The research sought to find out the highest level of education for the respondents and
below table and figure shows their responses.
Certificate 13 28
Diploma 10 22
Degree 16 35
Postgraduate 7 15
Total 46 100
30 28%
Percentage (%)
25 22%
20
15%
15
10
0
Certificate Diploma Degree Postgraduate
Category
The researcher wanted to examine the number of years that the respondents have worked
in the organization and therefore gave a range of years for them to indicate. The table and
figure below show the summary from the respondents.
6-10 Years 13 28
11-15 years 8 17
16-20 years 6 13
Over 21 years 1 2
Total 46 100
38
Figure 4. 5: Years Served at the Organization
45
39%
40
35
28%
Percentage (%)
30
25
20 17%
15 13%
10
5 2%
0
Less than 5 6-10 Years 11-15 years 16-20 years Over 21 years
years
Category
The figure 4.4 shows that most of the respondents have worked at the organization for
less than 5 years and only 1 has worked the longest time, over 21 years. Those who have
worked for a period of six to ten years was 13, between 11 to 15 years were 8
respondents and 6 participants indicated they have been in the company for a period of 16
to 20 years.
Out of the 46 respondents, it is clear that over 39% of them have only been in the
organization for less than 5 years. This represents the highest percentage of the
participants.
Here, the researcher sought to find out the level at which they work in the company and
the levels provided in the questionnaire were top management level, middle management,
and support staff. The results of the respondents are presented in the below table and
figure.
39
Table 4. 6: Management Levels
Top Management 1 2
Middle Management 3 7
Support 42 91
Total 46 100
60
50
40
30
20
7%
10 2%
0
Top Management Middle Management Support
Category
From the figure above, the researcher found out that 41% of the respondents were support
staff, 37% were top managers in the company while 22% represented middle
management in the team. The respondents were drawn from different head office
departments and shows that more people who participated were the support staff and the
fewest were in the middle management level.
40
4.2.7 Effects of Funds Allocation
Here, the researcher sought to establish whether the company’s funds allocation affects
the implementation of business growth strategies and to what extent it does. The
participants responded with a yes/no question and went ahead to state the extent starting
from very high to no effect and explained their choice of answer.
Yes 40 87
No 6 13
Total 46 100
No, 13%
Yes, 87%
From the findings, 40 respondents agreed that fund allocation influences the
implementation of a business growth strategy while 6 disagreed by stating a NO. Those
who agreed represented 87% of the respondents and only 13% disagreed. The table and
figure below show the findings in terms of the extent of their agreement.
41
4.2.8 Ratings on the extent of the effects of funds allocation
Table 4. 8: Extent of the effect of funds allocation on the implementation of business
growth strategy
Category Frequency Percentage (%)
Very High 29 63
High 7 15
Moderate 3 7
Low 1 2
No Effect 6 13
Total 46 100
70
63%
60
50
Percentage (%)
40
30
20 15%
13%
10 7%
2%
0
Very High High Moderate Low No Effect
category
From the table 4.8 and figure 4.8 above, more respondents believe the method of funds
allocation used by the organization affects very highly the implementation of the
42
company’s business growth strategy. 63% of the respondents believe the funds allocation
has a very high effect on implementation of growth strategy and 15% believe the effect is
high. However, 6 participants believe the funds allocation does not have any effect on the
strategy implementation by the organization. From the explanations, most of the
respondents believe that a strategy implementation relies on the way the company
allocates its resources. One respondent stated that “in our organization, it is important for
management to review and apply better funds allocation methods to avoid wastage and
also ensure the growth strategy is successful”.
Yes 42 91
No 4 9
Total 46 100
43
Figure 4. 9: Whether organizational culture affects the implementation of a business
growth strategy
No, 9%
Yes, 91%
Table 4.9 and figure 4.9 above shows the responses from the participants. The
participants were asked to state if they agree with the statement by indicating YES/NO
and then indicate to what extent they think organizational culture impacts the
implementation of a business growth strategy in the company. From the results, 42
respondents agreed that organizational culture affects strategy implementation
representing 91% of the respondents while 4 disagreed, representing 9% of the
respondents.
44
4.2.10 Ratings on the extent of organizational culture
Very High 25 54
High 11 24
Moderate 4 9
Low 2 4
No Effect 4 9
Total 46 100
50
40
Percentage (%)
30
24%
20
9% 9%
10
4%
0
Very High High Moderate Low No Effect
Category
Table 4.10 and figure 4.10 shows that 54% of the respondents believe that organizational
culture affects the implementation of business growth strategies for the organization to a
very high extent. The findings in the study reveal that only 4 people, representing 9% of
the respondents believes the company’s organizational culture has no effect on the
45
business growth strategy implementation. Also, 9% of them stated that the company’s
culture has a moderate impact on the implementation of the growth strategy. On the
statements provided by the respondents, most of the participants indicated that it is
important for management to examine the organizational culture when planning to
develop and implement a growth strategy. One of the respondents said, “it is the
responsibility of our management to assess the organizational culture before embarking
on any project to avoid resistance and increase chance of the project succeeding”.
Table 4. 11: Whether level of employee skills affect the implementation of a business
growth strategy
Category Frequency Percentage (%)
Yes 38 83
No 8 17
Total 46 100
46
Figure 4.11: Whether level of employee skills affect the implementation of a business
growth strategy
No, 17%
Yes, 83%
Table 4.11 and figure 4.11 shows that 83% of the respondents agreed to the fact that
employee skills in the company determines the success of the strategy implementation
while only 17% disagreed that the level of skills in the firm does not have any impact on
the implementation of the company growth strategy.
Table 4. 12: Extent of the effect of employee skills on the implementation of business
growth strategy
Category Frequency Percentage (%)
Very High 15 33
High 12 26
Moderate 8 17
Low 3 7
No Effect 8 17
Total 46 100
47
Figure 4. 12: Extent of the effect of employee skills on the implementation of
business growth strategy
35 33%
30
26%
Percentage (%) 25
20 17% 17%
15
10
7%
0
Very High High Moderate Low No Effect
Category
From the figure and table above, it was found that more people believe the level of skills
in the organization affects how businesses plan and execute their growth strategies.
15 respondents representing 33% agreed that employee skills greatly affects the success
of a growth strategy, 12 stated that the extent of the effect is high, 8 indicated that it is
moderate while 3 said it has low effect. However, 8 respondents indicated that there is no
effect on the strategy implementation by the level of skills in the company. The
respondents also said that employees must be trained, and their skills updated regularly
through workshops and conferences to ensure they keep themselves updated on the
current trends in the market. A notable statement from one respondent said, “Relevant
skills play a critical role in the implementation of a growth strategy and the business must
develop mechanisms to train staff on market trends”.
48
Table 4. 13: Whether government policies affect the implementation of a business
growth strategy
Category Frequency Percentage (%)
Yes 41 89
No 5 11
Total 46 100
No, 11%
Yes, 89%
The table and figure above show that 89% of the respondents agreed that government
policies affect the implementation of a business growth strategy while 11% disagreed.
The study revealed that more people agreed that government policies like taxation and
minimum wages influences the success of implementing business growth strategies.
49
Table 4.14: Extent of the effect of government policies on the implementation of
business growth strategy
Category Frequency Percentage (%)
Very High 15 33
High 12 26
Moderate 10 22
Low 4 9
No Effect 5 11
Total 46 100
30
26%
25 22%
Percentage (%)
20
15
11%
9%
10
0
Very High High Moderate Low No Effect
Category
The table and figure above show that the highest number of respondents representing
32% believed that government policies affect the growth business strategy
implementation very highly. There were 26% and 22% who believed the extent of the
effect is high and moderate respectively.
50
However, 11% of the respondents believed government policies do not have any effect on
the implementation of the business growth strategies. Among the responses provided, one
respondent said that business make decisions when and how to develop and implement a
strategy with little or no concern on what government policies are in place. Another
respondent noted that taxation is the major policy from the government that greatly
affects how businesses make decisions regarding growth.
Yes 36 78
No 10 22
Total 46 100
51
Figure 4.15: Whether management style affect the implementation of a business
growth strategy
No, 22%
Yes, 78%
From the findings, 36 responded saying they agree to the statement and 10 disagreed.
Therefore, 78% of the respondents established that management style influences the
business growth strategy implementation. On the other hand, 22% said that management
style has no effect on the success of a growth strategy in the organization.
Very High 14 30
High 11 24
Moderate 5 11
Low 6 13
No Effect 10 22
Total 46 100
52
Figure 4. 16: Extent of management style on the implementation of business growth
strategy
35
30%
30
24%
25 22%
Percentage
20
15 13%
11%
10
0
Very High High Moderate Low No Effect
Category
Table 4.16 and figure 4.16 above show that the researcher found more people believing
that management style affects strategy implementation, and 30% of them stated that the
extent of the effect is very high, 22% said no effect whatsoever while 11 stated that the
extent of management style affecting growth strategy was high representing 24%. From
the findings, the least number was 5, representing 11% of the respondents depicted that
the extent is moderate but suggest that the type of management practice in an
organization has an influence on how successful the strategies can be implemented in the
organization. One respondent said, “a visionary management style finds ways of dealing
with dissenting voices and reduce resistance to change, thus makes management style a
critical element in strategy planning and implementation.
The findings of the research revealed that 87% of the respondents believed funds
allocation has an effect on the implementation of the company’s growth strategy while
13% declined to support the findings.
The findings showed that most of the respondents supported the fact that the level of
employee skills influence the implementation of business growth strategy with a
representation of 83%, but 17% of them declined to support the assertion that employee
skills affect the implementation of a growth strategy.
54
4.3.5 Government policies
There were 41 respondents who believed government policies like taxation and minimum
wage affect implementation of a business growth strategy while 5 of them declined to
support. The findings showed 89% support from the participants while the 5 who
declined represented 11%.
The study findings showed that management style at Tetrapak Limited affects the
implementation of a business growth strategy and this was supported by 78% of the
respondents while 22% of them declined. It was evident from the findings that a
supportive management style will influence positively the success of a growth strategy.
55
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
5.1 Introduction
This chapter provides a summary of the study findings, the conclusions and finally
recommendations relating to the literature reviews and the study objectives. The
researcher presented the chapter in three coherent subsections to bring out a broader
understanding of the study objectives. The section presents summary of the findings
meant to answer the research questions, and the conclusions that presented the
concluding remarks for each variable and then recommendations that included the
suggestion for further studies.
5.2 Summary of Findings
5.2.1 To what extent does funds allocation affect the implementation of business
growth strategies in the manufacturing industries in Kenya?
The study found out that 87% of the respondents believed fund allocation is one of the
factors that influence the implementation of a business growth strategy. There was a 63%
of the respondents who believed the effect was very high, 15% stated that it was high and
7% indicated that the extent of the effect was moderate. However, only 2% noted that
there was low effect and a further 13% of the participants believed there was no effect.
5.2.2 How does organizational culture affect the implementation of business growth
strategies in the manufacturing industries in Kenya?
The shared values in the company play a crucial role in determining the success of a
growth strategy. The findings show that 91% of the respondents believe the
organization’s culture affects the implementation of their growth strategy in a big way.
From the findings, 54% of the participants believed there was a very high effect of
organizational culture on the growth strategy, 24% noted that the effect was high and 9%
said it was moderate. The research also noted that 4% responded saying there was a low
effect and 9% believed there was no effect.
56
5.2.3 In what ways do employee skills levels affect the implementation of business
growth strategies in the manufacturing industries in Kenya?
The researcher sought to examine the effect of the level of employee skills on strategy
implementation. The findings show that 83% of the respondents believe their level of
skills influence the success of a growth strategy while the 17% did not believe the skill
set affects strategy implementation. Management is therefore tasked with the
responsibility of ensuring the organization has the right people in the job. From the study
findings, 33% of the respondents stated that the effect was very high and 26% said it was
high. On the other hand, 17% of the participants believed the effect of employee skills
was moderate while 7% said it was low and a further 17% stated there was no effect of
employee skills on implementation of business growth strategy.
57
visionary leadership and management. The findings showed that 30% of the participants
believed the effect was very high, 24% said it was high and 11% noted it was moderate.
Also, the study showed that 13% believed the effect as low and 22% stated that there was
no effect of management style on implementation of growth strategy.
5.3 Conclusions
Fund allocation plays a crucial role in strategy implementation success. Businesses must
put enough measures to ensure projects are evaluated and necessary company resources
allocated optimally to achieve growth. The respondents concluded that companies rely on
the optimal utilization of company resources to succeed in growth strategy
implementation. In manufacturing business, the organization must know which type of
financing to choose, to what extent they need to be indebted and debt repayment
commitment that will not affect the operations of the business.
The organization’s culture must be developed in a way that it supports the
implementation of growth strategies. Culture is the backbone of the company because it
defines the company and lays the foundation for acceptance when implementing changes
in the organization. Companies with supportive organizational culture have fewer issues
to deal with and reduce resistance. In the manufacturing sector, the study revealed that
culture must be aligned to the company’s overall goal and development of objectives
should be based on the nature of the shared values. The study revealed that management
must cultivate a culture that sees respect for all and reduces resistance.
On the employee skills, the study concluded that employees must possess relevant skills
to boost the success of a business strategy. Business growth depends on how well the
people in the organization will support and help meet set goals. The main objective of
businesses is growth and development, and this is achieved through profit maximization.
It is therefore advisable for organizations to analyze the skilled required for a particular
project in the company and ensure their employees have them. The employees can be
trained on regular basis to keep updating their skills to the level required in the market.
Government policies included the economic and social guidelines that government put in
place to ensure businesses follow some set rules when dealing.
58
The study concluded that taxation affects the decision-making process for companies
regarding strategy implementation because 89% of the respondents believed the
government’s policy on taxation influences the decision to invest in a project. Therefore,
management has the greatest responsibility of ensuring compliance to avoid penalties and
propel the business to great heights and maximize profits.
Finally, the management style adopted by the organization needs to help increase
compliance and reduce issues of resistance. The study concluded that management must
ensure a participative and visionary leadership style is practiced because 78% of the
respondents believe the type of management being practiced in a company influences
their strategy implementation. However, the study recognizes the organizational diversity
and managers should be allowed to choose a style that suits them. It is important to adopt
a management style that is acceptable and brings the best out of the subjects or people in
the organization.
5.4 Recommendations
5.4.1 Funds Allocation
The study recommended adopting a fund allocation strategy that considers reduction in
wastage, maximization of profits and business growth. The management of the
manufacturing firm should plan and determine the amount of funding needed for a
particular project and establish a form of funding that is reliable and sufficient. The study
suggested establishing a budgetary team to analyze projects and strategies to determine
how well to fund such strategies for implementation.
This study recommended that employee skills must be analyzed to ensure they are valid,
relevant, and updated to the needs of the strategy. The success of any strategy depends on
the skill set available, and the study recommended implementation of a training program
to ensure employees are trained on needed skills and enough information shared to all
workers. The required skills to carry out a specific task should be advised to all
employees so that they are aware of the needed skills to complete their roles.
59
5.4.3 Organizational Culture
60
factors could include and are not limited to organizational structure that supports strategy
implementation, communication and stakeholder support and commitment.
61
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64
APPENDICES
65
APPENDIX II: Questionnaire
Instructions
Answer the questions by ticking in the appropriate box and writing in the space provided.
SECTION A: GENERAL INFORMATION
1. Gender
Male [] Female []
2. What age group do you belong
to18-24 years [ ]
25-35 years [ ]
36-45 years [ ]
46-55 years [ ]
56 years and above [ ]
3. What is your highest level of education?
Certificate [ ]
Diploma []
Degree []
Postgraduate [ ]
4. How long have you served at the organization?
Top management []
Middle []
Support []
i
SECTION B: FUND ALLOCATION
6. Does fund allocation affect the implementation of business growth strategies in your
organization?
Yes []
No []
7. To what extent does fund allocation affect the implementation of business growth
strategies in your organization?
Very high []
High []
Moderate []
Low []
No effect []
Explain how……………………………………………………………………………….
……………………………………………………………………………………..
Yes []
No []
Very high []
High []
ii
Moderate []
Low []
No effect []
Explain how……………………………………………………………………………….
……………………………………………………………………………………..
10. Does the level of employee skills affect the implementation of business growth
strategies in your organization?
Yes []
No []
11. To what extent does employee skills affect the implementation of business growth
strategies in your organization?
Very high []
High []
Moderate []
Low []
No effect []
Explain how……………………………………………………………………………….
……………………………………………………………………………………..
12. Does government polices affect the implementation of business growth strategies in
your organization?
Yes []
iii
No []
13. To what extent does government policies affect the implementation of business
growth strategies in your organization?
Very high []
High []
Moderate []
Low []
No effect []
Explain how……………………………………………………………………………….
……………………………………………………………………………………..
14. Does management style affect the implementation of business growth strategies in
your organization?
Yes []
No []
15. To what extent does management style affect the implementation of business growth
strategies in your organization?
Very high []
High []
Moderate []
Low []
No effect []
iv
Explain how……………………………………………………………………………….
……………………………………………………………………………………..