Strategic Management Practices Within Pharmaceutical Distributors in Kenya

Abstract

Presently, more and more organizations are adopting strategic management practices to attain their objectives. This is influenced by the complexities involved in decisions making. Strategic management practices identify approaches appropriate for firms to gain a competitive advantage and maintain sustainable growth. Pharmaceutical distributors are adopting these strategies be shielded from the turbulent environments they operate in. Considering the tight ethical requirements imposed on the pharmaceutical industry and strategies implemented to avoid degeneration of the sector into a hawker industry, this study sought to evaluate the strategic management practices adopted by pharmaceutical distributors in Kenya. The Study adopted a cross sectional survey research design and target to collect data from firms registered with the Pharmacy and Poisons Board. A sample was chosen using the Slovin's Formula and only included most ranking officers as they were in charge of strategic decision-making. Data was collected using a structured questionnaire and in SPSS (Statistical Package for Social Science) was used for analysis. Descriptive statistics like means, standard deviations, and frequencies were used to identify patterns in the data and the findings were presented in charts, graphs, and tables. This study established that pharmaceutical distributors have adopted strategic management practices that influence their operations. The strategies have caused expansion of the firm by increasing the firm’s financial capacity. The expansion has been as a result of transport outsourcing, adopting new technologies and increased sales. Firms that reported a decline in operation blamed it on supply chain disruption, lack of qualified workforce, increased competition, lack of agility and transparency, pharmaceutical fraud and increased competition. The respondents confirmed that the firms had a well laid out mission statement, vision statement, core values and organizational structure that guide their operations that they used both internal and external data to plan for long-term goals. Lastly, the study found that the firms were using balance score card, evaluating products and the market, getting feedback from clients and using sales turnover to as methods of evaluating strategies implemented in the firm. The study concludes that strategic management practices vary widely among pharmaceutical distributors. It suggested that the team involved and degree of participation influence the success of the practices. Additionally, it recommends firms analyze their internal and external environment to support planning for long-term goals which can be achieved by exploiting strengths within and cashing on the opportunities present. This will help them increase the capital base and manage competition. To conclude, the study called upon the government to support pharmaceutical distributors by developing strict legislations and laws that ban illegal imports and sell of counterfeit products.