Influence of Strategy Implementation on performance of Privately Owned Sugar Factories in Western Kenya

Abstract

Privately owned sugar companies are established institutions with a written strategic plan. It has been noted that there is declining performance in Kenya’s Sugar Industry. Strategies are formulated in a systematic way and from a well-informed background by the Top Management Teams (TMTs). If well implemented by middle and line managers, there is a high expectation of increase in performance. In view of this performance, there is need to find a suitable solution for this perennial problem of declining performance in terms of profitability otherwise the problem will escalate and affect the whole economy of the country in a great deal. The findings of the study were that Growth Strategy formulated by privately owned firms has not been implemented. Cost Minimization Strategy was significantly correlated with firm performance with a correlation coefficient = 0.327, and Product Differentiation Strategy was significantly related and had a regression coefficient = -0.1756133. Market demand was the moderating variable and it had a significant effect on performance with a p-value of 0.0057. Thus the study concluded that there existence of a significant relationship between strategy implementation and performance.