Strategic control systems in strategy implementation and financial performance of Bamburi cement limited, Kenya

Abstract

Bamburi Cement Limited (BCL) continues to publish impressive financial results despite heightened competitive and cost pressures in Kenya's cement industry. It is in the backdrop of a turbulent business environment that the case study sought to provide in-depth insight of the company‟s strategic control systems (SCS) in implementation of its competitive strategic thrusts over five years. The study relied on both primary and secondary data sources to identify the SCS applied and financial performance of the company while examining the relationship between them. Content analysis was used to summarize and infer findings from interviews while the Pearson‟s product moment correlation coefficient and regression analysis was used to examine the relationship between the financial performance and SCS application. Interviews with the company‟s top management revealed that BCL applies various administrative SCS in implementation of strategy. It was established that the selection of SCS depends on the type of strategies implemented while the intensity of their application is influenced by both internal perceptions and external forces. The research established a significant and positive relationship between the intensity of SCS application and financial performance of the company. The aim of the study was to contribute to the minimal research base of SCS application practices in Kenya and more-so ascertain the importance and role of strategic control systems in a company‟s financial performance