GROWTH STRATEGIES AND PERFORMANCE OF FOOD AND BEVERAGE MANUFACTURING FIRMS IN NAIROBI COUNTY, KENYA

Ezekiel Njuguna, Dr. Dennis Juma

Abstract


The performance of food and beverage manufacturing firms in Nairobi County has been on a decline in recent years. According to the Kenya National Bureau of Statistics (KNBS) Economic Survey of 2023, the growth rate of the food and beverage manufacturing sub-sector slowed from 4.3% in 2020 to 2.9% in 2022. The main objective of this research was to determine the effect of growth strategies on the Performance of food and beverage manufacturing firms in Nairobi County, Kenya. Specifically, the study focused on the effect of market development on performance of food and beverage manufacturing firms in Nairobi County, Kenya and establishing the effect with which diversification affects performance of food and beverage manufacturing firms in Nairobi County, Kenya. The study employed descriptive research design. According to KAM (2022) report, there are 76 are food and beverage manufacturing firms in Nairobi City County, Kenya. This study therefore target 456 management employees working in the 76 food and beverage manufacturing firms in Nairobi City County, Kenya. The study’s sample size was reached at using Krejcie and Morgan sample size determination formula. The sample size was 209 respondents. Stratified random sampling was applied in selecting the sample for this study. The study then used simple random sampling in selecting the sample. Questionnaire was used for data collection. Administration of the questionnaires was done by the research assistant using the drop and pick later techniques. The study used a total of 21 individuals in the pilot test. Quantitative data collected was analyzed using descriptive statistics techniques such as means, standard deviation, frequencies and percentages. SPSS version 23 was used to analyze the quantitative data. Qualitative data was analyzed using content analysis and presented in prose form. The study also analyzed the data using inferential statistics which include correlation and regression analysis. The study concludes that market development has a positive and significant effect on performance of food and beverage manufacturing firms in Nairobi County, Kenya. The study also concludes that diversification affects has a positive and significant effect on performance of food and beverage manufacturing firms in Nairobi County, Kenya. Based on the findings, the study recommends that the management of food and beverage manufacturing firms should intensify their focus on expanding their distribution networks and enhancing their market reach. This can be achieved by establishing strategic partnerships with local distributors and retailers to improve product availability and visibility across diverse geographic regions

Key Words: Growth Strategies, Market Development, Diversification Affects


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