INFLUENCE OF CORPORATE STRATEGIES ON FINANCIAL PERFORMANCE OF OIL MARKETING COMPANIES IN KENYA
DOI:
https://doi.org/10.47941/jbsm.240Keywords:
Outsourcing Strategy, Positioning Strategy, Mergers and Acquisitions Strategy, Diversification Strategy and Financial PerformanceAbstract
Purpose: Strategy is the direction and scope of an organization over the long term, which achieves competitive advantage in a changing environment. Strategic marketing is an organization's process of defining its strategy and making decisions on allocating its resources to pursue this strategy, including its capital and people. The main purpose of the study was to stablish the influence of corporate strategies on financial performance of the oil marketing companies in Kenya
Methodology: This study adopted descriptive survey design. The target population for this study was23 oil companies in the oil industry in Kenya. The study used primary data which was collected through self-administered questionnaires. The researcher utilized mixed method which included qualitative and quantitative techniques in analyzing the data.
Results: The findings showed that all the strategies under study lead to significantly affects financial performance Oil Marketing Companies in Kenya. The greatest variation in performance is led by diversification strategy diversification at 0.398 increase, followed by positioning strategy will lead to 0.376, Mergers and acquisitions strategy, at 0.355 and finally Outsourcing strategy at 0.332. This means that if companies employ these strategies especially diversification and positioning strategies, then their investment opportunities will increase thereby increasing their revenue and financial performance
Unique contribution to theory, practice and policy: In order for Oil marketing Companies to enhance their financial performance through outsourcing strategy, they need to take outsourcing idea a step further to collaborate with competitors so as to find shared solutions. The Oil marketing companies in Kenya also need to train their personnel so as to appreciate the concept of outsourcing strategy, and the best practices and systems that will enhance their financial performance.
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