Strategic planning practices in audit firms in Nairobi,Kenya

Abstract

The objective of this study was to establish the strategic planning practices audit firms in Nairobi, Kenya have adopted. A descriptive survey design was used in the study in order to facilitate an all encompassing data from the respondents. The study population was the registered audit firms operating in Nairobi, Kenya as at January 2008, whose number stood at three hundred and thirty. The respondents in each of the audit firms were either the managing partner or a senior member of the firm charged with the responsibility of

shaping the strategic direction of the firm. A questionnaire was used to collect data to achieve this objective. The study utilized both quantitative and qualitative techniques in the collection of data. Primary data was collected using a structured questionnaire, divided into two sections with both open ended and closed ended questions. A study was done from a sample of sixty audit firms, thirty two firms responded to the questionnaire. The data collected was checked for consistency and then analyzed to arrive at various conclusions. The data was analyzed by use of descriptive statistics such as the

percentages, frequencies and tables. Statistical Package for Social Sciences (SPSS) was used to aid in analysis. Computation of frequencies in tables, charts and bar graphs were used in data presentation.

The study concluded that strategic planning is being adopted in most of the audit firms especially the medium and big firms had started using the plans to be able to develop their vision and mission and implement their objectives for better performance. The strategic planning practices that are being adopted by audit firms in Nairobi are similar to those proposed in strategic management theory and also reported in the literature review from studies conducted in other industries. From the findings of the study it can be concluded that by implementing strategic plans firms are able to respond to the turbulent environment in an appropriate manner to ensure their continued survival and profitability hence providing the partners with value for money invested. The current research focused on audit firms in the City of Nairobi. Despite the fact that Nairobi contains a high concentration of small, medium size and big audit firms in the country; a research needs to be focused on other areas apart from Nairobi. This would enable a complete documentation of strategic planning practices adopted by audit firms in Kenya.