Strategic Choices and Performance of Del Monte Kenya Ltd
Abstract
Strategic choices pursued by businesses throughout their lifetimes have a substantial
bearing not only on the development of the organization, but also on its level of
success in the long term. It has been discovered that the strategic choices that an
organization makes are the major way by which it may align itself to its environment
and, as a consequence, enhance its performance. The choices that are ultimately made
are determined by a wide range of contextual factors, including those that stem from
events in the past, conditions in the here and now, and predictions about the future.
The RBV emphasizes the significance of a firm's own internal resources and the ways
in which those resources may be used in the process of formulating a strategy that can
assist the company in gaining a sustainable advantage over its competitors. According
to the contingency theory of leadership, leaders need to consider all relevant factors in
any given scenario before making operational choices inside their companies.
Organizations must be able to adapt to a constantly changing external environment,
and the dynamic capabilities hypothesis analyzes their abilities to do so via the use of
both internal and external talent. Generally, globalization has increased competition in
businesses that operate in countries that embrace open market structures.
Internationalization is therefore important for growth of companies in countries that
allow free market model of business. However, entry into new markets requires tact
and strategy. The study sought to determine the effect of strategic choice on
performance of Delmonte Company. This was informed by the gaps that occur from
diverse methodological approaches and varied country and sector contexts by seeking
to address the research question: how does strategic decision effect performance of
foreign enterprises that are operational in Kenya? The inquiry was based on case
study model and it targeted all managers at Delmonte Company. Information was
gained through interview. The research found that differences in the strategic
decisions made by Delmonte Company impacted performance as judged from the
customers' and employees’ points of view. Strategic partnerships, internal
restructuring, and diversification had greater impacts on firm success and growth as
well as learning and development as a performance indicator. The study's results
suggested that international firms having operations in Kenya should shape their
internal structures to better achieve their long-term objectives. When it comes to
management, studies have shown that MNCs may boost the quality of their services
by instituting leadership development programs inside their own organizations. It is
important that firms develop strategic options and alternatives in managing their
operations to enjoy success and stable value in their major operations. This is
imperative for their long term value and management in different regions or markets.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
- School of Business [1515]
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