Operations strategy and performance among motor vehicle assemblers in Kenya

Abstract

Competitiveness of organizations is mostly dependent on their ability to perform well in dimensions such as cost, quality, delivery, dependability and speed, innovation and flexibility to adapt itself to variations in the environment. This study was motivated by the need to establish the effect of the operations strategies on the performance of the motor vehicle assemblers. The study collected data using semi-structured questionnaires and interviews from the motor vehicle assemblers in Kenya. The data was analysed using both descriptive statistics and the inferential statistics. The study found that motor vehicle assemblers are facing stiff competition which has made them adopt some operations strategies to remain competitive in the market. The companies have adopted strategies on quality production, costs control, reliability, flexibility and innovativeness. The study found that the strategies have greatly improved profits, efficiency, quality of services to the customers, market share and the employee satisfaction. However, the companies face challenges such as the second hand imports, competition, delivery constrains, unfriendly policies and regulations, long lead times, high inventory cost among others.