ABSTRACT

The main challenge facing the Kenya Ports Authority is how to effectively and efficiently pursue its goals in order to be able to fully execute its key mandate of being open to Eastern and central Africa. The cha11enge with the managers is to strategica11y plan for an action that works best for any given situation. As a result, the purpose of the study was to investigate the effects of strategic management on the organization's effectiveness. Specifically the study sought to: identify the strategic plans that have been adopted by the different management teams at Kenya Port Authority; determine the effects of strategic management towards the different management teams in their departments and evaluate how strategic management programs affect organization effectiveness at Kenya Ports Authority. The study was conducted within the Kenya Ports Authority headquarters namely; Mombasa Kenya Ports Authority. A descriptive research design was adopted. Stratified sampling was the major technique applied because respondents were categorized according to their respective departments after which all (54) managers working in KP A were included in the sample. The study used a sample size of 54 respondents. However, only 51 managers responded, thus recording a response rate of 94.4%. The choice of study area and identification of key informants was purposive. Questionnaire was the main instrument for data collection. However, interviews were also used to collect qualitative data. Analysis and interpretation of the data was done using both qualitative and quantitative methods according to research objectives and research questions. The data collected was summarized, classified, tabulated and analyzed qualitatively. Data was presented using tables, charts and percentages. The study found that marketing strategy, business plan, equipment modernization and acquisition plan, Port development and expansion plan, information technology strategy, services outsourcing strategy, improvement of stakeholders relations, environment management, adoption of e-business, improvement of port productivity, cost minimization and revenue diversification strategies were the major laid strategies in the Kenya ports Authority. Secondly, strategic management practices have improved organizational effectiveness. Finally; team cohesion, leadership support, resource allocation, group potency, management collaborative and customer focus have affected organization effectiveness. The study recommended that there is therefore need for the management of the Port to prioritize these strategies and execute them one by one in that order. Further studies could be done to link strategy planning and effective implementation. Another area of study could be done is on Middle level Management perception on strategy planning.