Effects of Kenya government regulations on the strategic planning process of National Oil Corporation of Kenya

Abstract

The objective of the study was to establish the effects of Kenya government regulations on the strategic planning process of oil marketing firms in Kenya with a focus on National Oil Corporation of Kenya. The research was conducted through a case study. This study sought to collect both primary and secondary data. The data was obtained in both oral and written form. Oral data was obtained from interviews based on an interview guide. There were five interviewees made of senior managers at NOCK namely; Managing Director, Finance Director, Marketing Director, Operations Director and the Human Resources Director. The interviewees were selected because they were in positions of authority and possess key strategic and operational experience on matters related to the strategic planning process at NOCK. Content analysis technique was used to analyze the cleaned data. The findings were presented in prose form. The study established that the government regulations address international safety standards public hygiene standards in order to provide individual safety to Kenyans, to address investors’ concerns about security-related increase in cost of doing business in Kenya, and to protect lives and property. the Kenya government safety regulations on business premises affect the strategy evaluation in that the government controls the evaluation of the corporations strategic millage, information delivery, technological advancement, new service/product & client taste and government regulations/laws and political environment. The government safety regulations on operating procedures affect strategy formulation by regulating the areas of business focus, controlling the legal compliance and price controls. The study concludes that Kenya government safety regulations on business premises affect the following strategic planning processes at NOCK. In addition, safety regulations, product quality regulations, price ceilings and price floors affect the following strategic planning processes at NOCK. The study recommends that it is important to put in place mechanisms for continued review of the legal and policy frameworks to ensure it is up to date and the industry remains competitive. Further, it is necessary to adopt a minimalist government intervention approach in oil production and distribution. The management of NOCK should seek to enhance their operating efficiency and quality of products or services in order to improve their strategic planning amid the many government regulations in the sector in which they operate.