1 UNIT 4: STRATEGIC MANAGEMENT IN KENYA

2 A.Development/Empirical Evidence Tremendous developments in strategic management since 1960s. -Theory developed -Technology Increased knowledge in strategic management derives from developed country contexts.

3 Little is known about strategic management in developing countries. -Africa -Kenya Knowledge gap on strategic management in: -Africa -Kenya

4 B. Comparative Management The similarities and differences among business and management practices form different contexts. -Variation in management practice between countries -Variations in management practice between organizations

5 Basics of managerial work are similar all over the world. –Environment dependence –Leadership, motivation –Planning, organizing, controlling

6 Comparative Management: Some Research Results –There is no one way one way of doing things. Managers may achieve given objectives through various methods. –There is no universal applicability of either dictatorial or participative management styles.

7 –There are similarities and differences among managers around the world. Cultural factors are considered the most influential variables.

8 Influence of Context Management is sensitive to the context in which it is practiced. Management context is defined by two sets of factors: –Environmental factors –Organizational factors

9 Replication Research Repetition of research that has already been done. –Investigating the influence of context –Validating previous research –Facilitating theory building –Knowledge accumulation

Ansoff 1. (1987), “The Emerging Paradigm of Strategic Behaviour”, Strategic Management Journal, 8(6). - Theories advanced to explain strategic behaviour often differed because they are based on observations of companies in different settings. 10

Hussey D. (1990), “Developments in Strategic Management”, In, Hussey D. (ED.), International Review of Strategic Management, Vol. 1. -Environmental and organizational differences across countries may affect the way strategic management is practiced. Nelson R. (1990) “ Is there strategy in Brazil?” Popular strategic management concepts may have no application in developing countries. 11

12 C. Empirical Evidence (Africa, Kenya) Woodburn T. (1984). “Corporate planning in South African Companies”. 17(1), February. -Companies practiced formal strategic planning. -Foreign companies more involved in formal strategic planning than local ones.

13 Fubara B. (1986) “ Corporate planning in Nigeria”, LRP, 19(2). April. -Planning in Nigeria was informal - Only formal plans were budgets. -Study focused on indigenours Nigerian companies.

14 Adegbite (1986). “ Planning in Nigerian business”. LRP, 19(4), August. -Formal strategic planning widespread in Nigeria. -Study covered companies which had substantial foreign ownership.

15 Aosa (1992). “An Empirical Investigation of Aspects of Strategy Formulation and Implementation within Large, Private Manufacturing Companies in Kenya”. Unpublished Doctoral Thesis. -Formal strategic planning practiced in Kenya’s large manufacturing companies. -Foreign companies more involved in strategic planning than local ones.

16 -Indigenous Kenya companies more involved in formal strategic planning than Indian Kenya companies. -Professional companies differed from family companies in strategic practices -Family companies largely informal in the strategic planning activities.