The state of strategic management practices in the retailing sector: the case of supermarkets in Nairobi

This study was conducted with the objective of finding out the \nstate of strategy practices in the retailing sector in Kenya. The \nfocus of the study was supermarkets situated in Nairobi. \nDevelopments in strategic management theory and practice have \ntended to reflect business circumstances in developed country \ncontexts. Some studies have been done to document such practices \nin Africa. Even then, none of these studies is hased in the \nretailing sector. This study investigated strategic management \npractices in the retailing sector. \nThe study had two main objectives. \n(1) To investigate (establish) the state of strategic \nmanagement in the retailing sector in Kenya with special \nreference to supermarkets. \n(2) To investigate (establish) the use of strategy by these \nreta\\lers, for attaining a competitive edge. \nt, .• .; \nTo achieve these objectives, primary data was collected. Data was \ncollected through personal interviews with directors or senior \nmanagers in the supermarkets. The interviews had both structured \nand unstructured components. \nThe data were aria Lysed using sijnpLe descriptive statistics. A \nMann-Whitney U test was also conducted to test for any \nstatistically significant differences between the various \nsubsamples. During the analysis supermarkets were divided into two \nix \nsubsamples, one based on ownership and the other on \nsize. All the supermarkets were analysed together and then each \nindividual group was analysed. Inter-group comparisons were done. \nThe findings did not reveal any significant differences between \nthe various groups. \nComparisons were also made with results of a few studies done in \nKenya and other countries. Similarities and differences existed \nbetween these three sets of studies .. The variations may be \nexplained by sectorial as well as environmental differences. \nThe theoretical advances in strategy development are way ahead of \nthe practice in the retailing sector in Kenya. The findings from \nthis study revealed that supermarkets practised minimal and \nbudgetary forms of strategic management. Most of the supermarkets \nwere run on intuition and they relied on an individual's ability \nto pursue long-term goals and visions. Most of the activities \nwere informal~,Budgets were used to support operations. '. ,; i \nOne of the main purposes of strategic management is to assist \nbusinesses to gain a competitive edge. The supermarkets studied did \nnot appear to be using strategy to gain an edge over their \ncompetitors. Almost all the supermarkets appeared to be doing the \nsame thing in the same way. \nIt may not be possible to draw general conclusions due to the \nlimitations of this study. Nevertheless the study provides some \ninsights into strategy practices in the retailing sector in Kenya.