Changes In Business Environment In Kenya: A Study Of Their Influence On Food Manufacturing Firms In Nairobi.

Abstract

The study was carried out between May and July, 1998. The principle objective of the study was to identify changes in food manufacturing firms internal corporate behaviuor which may be as a result of changes in the external environment. The firms studied were those in Nairobi. Fifteen food manufacturing firms agreed to participate in the study. Questionnaires were completed and provided information in this report. To assess the influence of changes in external business environment, primary data was collected through personally administered questionnaires. They had both structured and unstructured questions. It was observed that food manufacturing firms studied indicated changes in the internal behaviour due to changes in their external environment. Government policy and competitive activities appear to be the major factors in the external environment that affect internal behaviour. Government's policy should therefore aim at creating an enabling environment for business firms to pursue their business objectives. These changes in the external environment have led firms to concentrate on their brands, competition information gathering and advertising as a competitive strategy. The changing buif~iesS environment is infl~ncing firms to change the way in which they carry on their operations. Firms have been forced to focus on the external environment and determine which elements they can manage by changing their internal posture.~he study reveals various internal changes that have been adopted by firms to react to the changing external environment.