ABSTRACT

Strategic management can be beneficial when an organization applies approach to strategic management which matches the situation they are in. The economic environment is changing rapidly and this change is characterized by phenomena such as globalization, changing customer and investor demands and ever increasing product-market competition, thus the importance of strategic management practices for the organization to compete successfully in this environment. Food manufacturing companies in Nairobi are performing poorly and facing intense competition from the imported food stuffs from overseas. The general objective of this study was to investigate the influence of strategic management practices in enhancing organizational competitiveness in Premier Foods Industries Limited in Nairobi County, Kenya. The specific objectives of the study were to examine the influence of product differentiation, product modification and product innovation on organizational competitiveness in Premier Foods Industries Limited, Nairobi County, Kenya. The findings are useful to the management of the food manufacturing industries in Kenya and management of Premier Food Industries Limited in improving its competitiveness. This study employed a descriptive survey research design. The target population was 196 respondents from sales department, production department, quality assurance department and marketing department. The sample size was 59 respondents. Stratified sampling method was used to group the respondents into 4 departments (sales, production, quality assurance and marketing) to ensure that all different subgroups were adequately represented in the sample, then simple random sampling method was used to select respondents from each stratum. Questionnaires were used to collect data from the employees. The study concluded that product differentiation, product modification and product innovation had a positive significant effect on the organizational competitiveness. Premier Foods Industries Limited gives careful consideration to the products beneficial quality, product composition and design. Product differentiation requires great deal of resources for doing a statistical surveying to know the client needs, product development, market penetration, promotion, monitoring and evaluation. Product modification builds the allure of a product to company’s faithful clients and furthermore permits a firm to expand the interest of its products to competitor’s dedicated clients. Product innovation helps in keeping or expanding market share, prompts utilization of new business chances to a huge degree and furthermore product innovation prompts authoritative development, extension and picking up an upper hand in the market and brand exchanging. The review recommended that Premier Foods Industries Limited ought to concentrate and contribute more on product differentiation as it could be utilized as a noteworthy competitive advantage instrument against rivals in the business and it is fit for ensuring the long drag survival of the organization. Product modification ought to be utilized by Premier Foods Industries Limited as a method for expanding its product life cycle. The organization needs to survey the open doors and dangers postured by innovative change. In addition, it is prescribed that the organization ought to survey the interdependencies of its products and others in the blend and how adjustment would affect upon the general cost structure. For product innovation to happen, Premier Foods Industries Limited need to change the way it maintains its organizations, since this could prompt the separating of connections between the business and its clients, providers and business accomplices.