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Strategies Adopted by Supermarkets in Nairobi to Achieve Organizational Growth

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Strategies Adopted by Supermarkets in Nairobi to Achieve Organizational Growth STRATEGIES ADOPTED BY SUPERMARKETS IN NAIROBI TO ACHIEVE ORGANIZATIONAL GROWTH BY EPHANTUS MBIYAI KIBUGI A RESEARCH PROJECT PROPOSAL SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF MASTER OF BUSINESS ADMINISTRATION DEGREE SCHOOL OF BUSINESS, UNIVERSITY OF NAIROBI OCTOBER, 2015 DECLARATION This research proposal is my original work and has not been submitted for examination to any other university. Signature ………………………………… Date …………………… EPHANTUS MBIYAI KIBUGI D61/65161/2013 This project has been submitted for examination with my approval as the University Supervisor. Signature ………………………………… Date …………………… MR. JEREMIAH KAGWE SCHOOL OF BUSINESS UNIVERSITY OF NAIROBI ii DEDICATION I dedicate this research work to the Almighty God for His provision. To my Mum, Dad, Brothers and Sisters, they made me believe in myself. iii ACKNOWLEDGEMENT I would like to thank University of Nairobi facilitators who helped take me through the demanding course modules. My special thanks go to my supervisor, Mr. Jeremiah Kagwe who tirelessly and wholeheartedly offered me her assistance without reservations. iv TABLE OF CONTENTS DECLARATION ..............................................................................................................ii DEDICATION ................................................................................................................ iii ACKNOWLEDGEMENT .............................................................................................. iv LIST OF TABLES ........................................................................................................ viii ABSTRACT ..................................................................................................................... ix CHAPTER ONE: INTRODUCTION............................................................................. 1 1.1 Background of the Study .......................................................................................... 1 1.1.1 The Concept of Strategy .................................................................................... 2 1.1.2. Organizational Growth ..................................................................................... 5 1.1.3 Retail Industry in Kenya .................................................................................... 7 1.1.4 Supermarkets in Nairobi .................................................................................... 9 1.2 Research Problem ................................................................................................... 10 1.3 Research Objectives ................................................................................................ 11 1.4 Value of the Study .................................................................................................. 11 CHAPTER TWO: LITERATURE REVIEW ............................................................. 12 2.1 Introduction ............................................................................................................. 12 2.2 The Theoretical Foundation .................................................................................... 12 2.2.1 Institutional Theory ......................................................................................... 12 2.2.2 Strategic Choice Theory .................................................................................. 13 2.2.3 The Organizational Learning Theory .............................................................. 14 2.3 Strategy and Organizational Growth ...................................................................... 15 v CHAPTER THREE: RESEARCH METHODOLOGY ............................................. 20 3.1 Introduction ............................................................................................................. 20 3.2 Research Design ..................................................................................................... 20 3.3 Target Population .................................................................................................... 20 3.4 Sample Size and Sample Design ............................................................................ 21 3.5 Data Collection ....................................................................................................... 21 3.6 Data Analysis .......................................................................................................... 22 CHAPTER FOUR: DATA ANALYSIS, PRESENTATION AND INTERPRETATION ... 23 4.1 Introduction ............................................................................................................. 23 4.2 Demographic Information....................................................................................... 23 4.2.1 Highest Education Level ................................................................................. 23 4.2.2 Gender Distribution ......................................................................................... 24 4.2.3 Age Distribution .............................................................................................. 24 4.2.4 Period of Service ............................................................................................. 25 4.2.5 Knowledge on Strategy ................................................................................... 26 4.3 Types of Strategies.................................................................................................. 26 4.3.1 Knowledge on Types of Strategies .................................................................. 26 4.4 Strategy and Organizational Growth ...................................................................... 28 4.5 Discussion of the Findings ...................................................................................... 29 CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS .. 32 5.1 Introduction ............................................................................................................. 32 5.2 Summary of the Findings ........................................................................................ 32 5.3 Conclusion .............................................................................................................. 33 vi 5.4 Recommendations for Policy and Practice ............................................................. 34 5.5 Limitations of the Study ......................................................................................... 35 5.6 Suggestions for Further Research ........................................................................... 35 REFERENCES ............................................................................................................... 36 APPENDICES................................................................................................................. 41 Appendix I: Research Questionnaire ............................................................................ 41 Appendix II: List of Supermarkets in Nairobi .............................................................. 44 vii LIST OF TABLES Table 4.1: Highest Education Level ............................................................................ 23 Table 4.2: Gender Distribution ................................................................................... 24 Table 4.3: Gender Distribution ................................................................................... 24 Table 4.4: Period of Service ........................................................................................ 25 Table 4.5: Knowledge on Strategy .............................................................................. 26 Table 4.6: Types of Strategies ..................................................................................... 26 Table 4.7: Types of Strategies ..................................................................................... 27 Table 4.8: Types of Strategies ..................................................................................... 28 Table 4.9: Extent to which Strategies below Contribute to the Growth of Organization . 28 viii ABSTRACT Organizations adopt strategies for different reasons the major one being to bridge the gap between policy and tactics. The study sought to establish how strategies lead to the organizational growth of the supermarkets in Nairobi. The study is guided by institutional theory, strategic choice theory and strategic choice theory. The research design adopted for this study was the survey method. This study focused on 174 registered supermarkets in Nairobi. The sampling technique used was probability sampling as the chance of each supermarket being selected from the population is known and equal. Simple random sampling procedure was used to select the sample size to participate in the study. A sample of 36 supermarkets will be used to represent the target population. This sample size is deemed to be fit for analysis. Primary data was collected by means of a semi- structured questionnaire. The questionnaires were self-administered via drop and pick later method to the respective branch managers or equivalent of various supermarkets. The structured questions are in form of a five point Likert scale, whereby respondents were required to indicate their views on a scale of 1 to 5. The quantitative data collected by the questionnaires was be analyzed through descriptive statistics. The quantitative data generated was analyzed with the help of Statistical Package for Social Sciences (SPSS) version 20. The findings
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