DETERMINANTS OF DIVERSIFICATION STRATEGY IMPLEMENTATION AMONG CONSUMER GOODS AT UNILEVER KENYA LIMITED COMPANY
Abstract
The overall objective of this study was to examine the determinants of diversification strategy implementation among consumer goods companies in Kenya the focus being Unilever Kenya. The study reached out to 43 respondents thus department managers, management directors and Unilever Kenya Board of Directors. This study adopted a cross-sectional research design. The research focused on primary data that was collected from questionnaires distributed to the target groups. This study collected both qualitative and quantitative data. The qualitative data collected was subjected to content analysis. The researcher used descriptive and inferential statistics to analyse the quantitative data. The findings indicated that human resources capacity, financial resources, environmental monitoring and organizational culture have an influence on diversification strategy implementation. From the study findings it was concluded that the purpose of implementing diversification strategies is that managers and employees collaborate to perform formulated strategic planning, implementation of diversification success depends to motivating employees. Business owners need to undertake a comprehensive and clinical review of their present fiscal standing and future prospects before expanding a business into a new area. Firms are more innovative than are non-group firms, especially in industries that rely more on external funding and in groups with more diversified capital sources before of extensive environmental monitoring. Organizational culture leads to fundamental changes in many aspects of the organization, including organizational structure, human resource selection and deployment, job characteristics, performance measures and the reward system which might have an influence on diversification strategy implementation. The study recommended that it is necessary for companies to have regular training before embarking on strategy implementations and they need set aside enough capital to sustain diversification strategy implementation. Companies need to carry out environmental appraisal to assess the suitability of the environment to support diversification strategy implementation and companies need to have cultural traits that provide leeway to diversification strategy implementation resulting in organizational effectiveness.
Keyword: Diversification Strategy, Human Resource Capacity, Financial Resources, Environmental Monitoring, Organizational Culture
CITATION: Muyera, C., & Mukanzi, C. (2020). Determinants of diversification strategy implementation among consumer goods at Unilever Kenya Limited Company. The Strategic Journal of Business & Change Management, 7 (4), 1345 – 1355.
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DOI: http://dx.doi.org/10.61426/sjbcm.v7i4.1864
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