INFLUENCE OF ORGANIZATIONAL STRATEGY ON TO ENVIRONMENTAL SCANNING OF ORGANIZATIONS IN MANUFACTURING SECTOR
Abstract
In today’s business environment, competition is order of the day. Any business that is not aware of its environment is bound to run into some crises that will definitely arise from the increasing complexity of the environment in which such business operates. Environmental scanning is the tool used in analysis of the environment and its effectiveness depends on some underlying factors.Hence the purpose of this study was to investigate some of these factors affecting the environmental scanning of organization using Kenya Breweries Limitedas a case study. The research problem was studied through the use of a case study research design. The target population of this study was the staff working at Kenya Breweries Limited. A sample of staff drawn from the population of 250 management staff comprising of the top, middle and low level management ranks. Using stratified sampling techniquesa sample of 75 respondents was drawn. Primary data was collected through the use of questionnaires. A pilot study was undertaken on seven to test the reliability and validity of the questionnaire. Whilst the data was analyzed using descriptive statistical tools, the inferential statistical tools were used to determine the relationships between the various variables. From the findings of the regression analysis, the R square value is 0.875 which suggest that the independent factors under study greatly affect the environmental scanning activity accounting for 87.5 % of variation of environmental scanning. The results of the ANOVA test showed that the independent variables are important in predicting Environment Scanning as indicated by significance value=0.001 which is less than 0.05 level of significance (p=0.001<0.05). It was found out that among the independent variables, Human Capital Investment contributes more to increase Environment Scanning at Kenya Breweries Limited. Thestudy recommendthat organizations should invest heavily on human capital in order to improve their scanning activity. Organization should also adopt a definite strategy that fits its own situation and that each organization should craft a comprehensive stakeholder engagement strategy to ensure adequate involvement and participation of stakeholders. Finally the study recommend that all organization should embrace information and communication technology in order to ensure identifications and acquisition of appropriate information and subsequent processing, analysis and interpretation of the same.
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