GROWTH STRATEGIES AND PERFORMANCE OF TUSKYS’ CHAIN OF SUPERMARKETS IN NAIROBI COUNTY, KENYA

Atuti Brian Ogero

Master of Business Administration

(Strategic Management Option)

Dr. Philip Wambua

Department of Business Administration

School of Business

CITATION: Ogero, A. B & Wambua, P. (2020). Growth Strategies and Performance of Tuskys’ Chain of Supermarkets in Nairobi County, Kenya: International journal of strategic management. Vol. 9 (11) pp 1 – 23.

ABSTRACT

Currently, the retail industry in Kenya is experiencing an exponentially increasing competition from other industries in the same sector. Business organizations also strive to grow and to increase their sales and profit. Therefore, business enterprises should then be in a position to embrace effaceable strategies that are likely to yield growth and boost performance as a result. Various supermarkets in chain industries are facing some challenges in achieving long term goals and this has led many to close up. In the efforts of growing and also increasing profitability, companies in retail industry have adopted various growth strategies. Growth strategies help business enterprises to grow, develop and expand its operations hence in return there is increase of sale of goods hence profit is maximized. Therefore the general objective of the research study was to establish the influence of growth strategy on performance of Tusky chain of supermarket in Nairobi County. The specific objectives were as follows: the first objective was to identify how diversification strategies affects the performance; the second one was to determine how technology innovation influences the performance; the third one was how to investigate extent which Business partnerships affects the performance and fourth one was to establish how Market penetration affects the performance of Tuskys chain of supermarket. The research study was underpinned by related theories and models and they include: Ansoff growth matrix, Dynamic theory and Balance scorecard theory. For research design the descriptive survey method was adopted. The target population comprised of 16 units of Tuskys’ chain of supermarkets. That consisted of 80 employees drawn from all functional departments. The target population consisted branch managers who are overall in charge of performance, purchasing supervisors in charge supply management, receiving clerks and deputy branch managers of branch managers and head of departments from every Unit. The questionnaire was the instrument that was used for collection of data. The secondary data was collected from published academic and empirical reviews. It was then analyzed for the purpose of clarity and resolution by SPSS version 21 software. Census survey method was used to pick a sample of 80 respondents. This approach is significant because it enables the researcher through statistical measures of tendency to distribute the scores, frequencies, distribution and percentages. The presentation of data was through the use of tables and figures. In additional inferential statistics were also considered. Multiple regression analysis was used to quantify the relationship between the independent and dependent variables. Both Linear and correlation analyzes was used to test predictor element of both independent and dependent variables. The results show that Diversification, Technology innovation, Business partnerships and market penetration have an important positive effect on performance of Tuskys supermarket. The research findings further indicate that company has ventured product diversifications that have different packages and e commerce equipments such as ERP to run their operations efficiently. The company has joint ventures in licensing, franchising and other distributors in the market industry, through advertisement; promotional sales are highly carried out in the company. The study concludes that company should adopt promotional mixes and marketing strategies. The diversification that consists of Branding of product attributes synergistic diversification and renaming of the products for purpose of quality. The research therefore recommends that the management of Tuskys supermarket should adopt more on product diversification in order to increase their product range that would help to grow drastically into international stage; the research study therefore recommends the management to adopt technology innovation to all aspects organization operations. The business partnerships are recommended in the study to ensure the company is expanding to every target market

Keywords: Growth; Strategies; Performance; Supermarkets; Nairobi County; Kenya

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