Strategy Development Processes and Factors Influencing Them at Kenya Pipeline Company Limited

Abstract

The motivation for this research project was the researcher's deep desire to establish the strategy development processes and factors influencing them in Public sector enterprises (PSE) especially during the time when chief officers in these corporations were for the first time, required to sign performance contracts. A fundamental expectation of these performance contracts was to provide a basis for evaluating the performances of these officers and by extension a justification for contract extensions and rewards or for contract termination as the case may be determined. In setting out the goals to be achieved and the time frame in which the stated objectives are to be met, the strategy to accomplish the goals takes on an integral role. Being held responsible for the performance of PSE's, what factors would affect the strategy development process? In public sector enterprises, profitability as an objective is usually relegated in importance and seldom features as such. Indeed, amongst the objectives for which the KPC was formed, none of these relate to profitability. A primary objective of any Government is to create employment for its citizenry and this tends to run counter to the profit objective. It is for this reason, amongst other things that profitability as an objective occupies an ob cure position. onetheless the performance of the chief officers needed to be evaluated in this context therefore how did the corporation develop its strategy and what are the factors that influence the development of strategy.....