RELATIONSHIP BETWEEN STRATEGIC PLANNING PRACTICES AND PERFORMANCE OF TOUR FIRMS IN THE TOURISM SECTOR IN KENYA: A SURVEY OF SELECTED TOUR FIRMS IN NAIROBI, KENYA
Asha Mohammed - Masters Degree in Strategic Management, Kenya Methodist University, Kenya
Dr. Evangeline Gichunge - Kenya Methodist University, Kenya
Elizabeth Were - Kenya Methodist University, Kenya
ABSTRACT
In today’s competitive business sector organizational success highly depends on the planning that is carried out. Strategic planning is therefore essential particular in maintaining a focused, long term vision of the organisation’s mission and purpose. Strategic planning is extensively used in business and industry, government, and non-profit organizations worldwide to formulate strategies and align business activities to the vision of the organization, improve internal and external communications, and monitor organization performance against strategic goals. It also aids in decisions making particularly on issues related to the allocation of human and financial resources. The purpose of this study therefore was to determine the relationship between strategic planning practices and performance among tour firms in the tourism sector in Kenya. Specifically the study determined the effect of strategic environmental scanning, goal setting, resource identification strategy and strategy evaluation on performance among tour firms in the tourism sector in Kenya. The study adopted the descriptive research design. 15 tour operating firms were targeted. The target population was 75 respondents; however 61 respondents participated in the study. Questionnaires were used in data collection. Data was analysed using descriptive and inferential statistics. The study established that majority of respondents with an average mean of 3.549 indicated that strategic environmental scanning influenced performance. It was further established by majority of respondents as indicated by a mean score of 3.872 that goal setting had an influence on performance in tour firms in Kenya. On resource identification the study established that majority of respondents as shown by a mean score of 3.525 indicated that resource identification influences performance. The study established that majority of respondents with an average mean of 3.656 were of the view that strategic evaluation had an influence on performance. On strategic environmental scanning the study recommends that internal scanning should be carried out often. The actual process of scanning the environment and gathering new ideas can, and should, be done by management more often. In relation to goal setting, it is recommended that tour firms should ensure that realistic goals are set. In relation to resource identification, tour firms should focus on delivery of superior service quality. The study also recommends that evaluation should be an on-going process.