Thesis:

Influence of strategic management practices on performance of sugar industries in western Kenya, case of Mumias sugar company

The sugar subsector, which serves as the one of the main contributors to agriculture gross domestic product, has been facing serious challenges over the recent past. Sugarcane is the main cash crop in western Kenya, supporting the livelihoods of more than half of the local households. The sub sector faces a risk of near collapse of sugar companies like Chemelil and Trans Nzoia which have reported poor performance, leading to the placement of most of the sugar companies under receivership. This poor performance has had a significant effect on the livelihoods of more than six million Kenyans who depend directly or indirectly on the sugar industry. Mumias Sugar Company, the largest among the seven sugar factories in western Kenya, faces uncertainties regarding its performance. The purpose of this study was to examine influence of strategic management practices on performance of sugar industries in western Kenya, case study of Mumias sugar company. Specifically, this study sought to: evaluate the influence of transformative leadership, assess the influence of strategic marketing, investigate the influence of employee engagement and determine the influence of customer retention on performance of Mumias sugar company. The study was guided by Transformational leadership theory, Upper echelons theory and the Resource based view theory. The target population was the permanent employees of Mumias sugar company, totaling to 362. The study employed stratified random sampling, to categorize the population into strata. Simple random sampling was used to select middle level managers, supervisors and operations to get 190 sample respondents out of the 362 .Data was gathered through mixed methods. Middle level managers, supervisors and operations staff sampled for the study were issued with structured questionnaires. A pilot study of 10 employees was conducted at the Chemelil Sugar Company and was utilized to measure the consistency of responses over time. The study ensured validity through expert judgement of the respondents. Data analysis involved the use of the SPSS version23.0 and Cronbach alpha of 0.7 was considered reliable. Descriptive and inferential statistics were used for data analysis. Findings for analysis were presented through graphs, narratives and APA tables. Ethical considerations in terms of confidentiality were maintained at all times during the study. The study revealed that all the four variables namely transformative leadership, strategic marketing, employee engagement and customer retention positively and significantly influenced performance of Mumias Sugar Company. Transformative leaders are instrumental in inspiring and transforming employees to strive for excellence to success and shape the strategic direction for the company. Strategic marketing is fundamental to increase company visibility in the Market. Employee engagement is critical in terms of employee recognition and motivation to perform coupled with relevant training programs. Customer retention strategies are important to ensure royalty, repeat purchases and wider customer base. Consistency in advertisements featured prominently as new technique that Mumias Sugar Company needed to adopt in marketing to gain visibility in the Market The study suggested areas for further studies to include organizational agility and technology innovation as critical variables that needed further investigation.