Strategic Planning Practices Within Hotels and Restaurants in Nairobi

Abstract

Organizations continually consume resources from the environment, transform and release them. The success and, indeed, survival of every organization depends on how well it relates with its challenges and how it positions itself to the environment. The study investigated on whether strategic planning is practiced in Kenya's hotel/restaurant industry. The research considered all hotels/restaurants in Nairobi as the population. A sample of 100 hotels and restaurants was randomly selected. Out of the 100 selected, 52 organizations responded. The data was collected using a questionnaire where a method of "drop and pick" later was adopted. The data analysis was done by computing proportions, means and percentages. The study concludes that the major task of the top management is to ensure that their organizations' survive long into the future. The study reveals that 87 percent of these organizations have mission statements, 90 percent set objectives, 83 percent develop plans, 83 percent have formal planning meetings, 87 percent have timetables for the preparation of plans and 78 percent have clear-cut responsibilities for planning. However, only 39 percent have planning departments. In addition, 79 percent of these orcanizalions develop strategies for their operations. Further, 74 percent gather exl~rnar data and informationlabout competitors, all the organizations studied indicate that they make assessment of the resources available and 78 v percent have Board of Directors. The role of the board includes developing organizational policies, setting the overall objectives and making major decisions. Strategic planning is therefore, indeed practiced in the hotel/restaurant industry in Kenya. -