Doreen Gakii Matumbi, Dr. Yusuf Muchelule


The main objective of the study was to investigate strategy formulation on performance of tea processing firms in Kiambu County, Kenya. The specific objectives of the study were: to establish the role of mission and leadership on organization performance tea processing firms in Kiambu County, Kenya. The study adopted a descriptive research design. The target population of the study consisted of 281 respondents in the tea processing firms in Kiambu County, Kenya. Yamane’s formula was used to determine 165 respondents in tea processing firms in Kiambu County, Kenya. Structured questionnaires which comprise of closed ended questions was used to collect primary data due to their effectiveness of capturing respondent information in a structured manner. Data collected was analysed using analytical tools which are: descriptive statistics, correlation and regression methods. Before regression analysis, diagnostic tests such as Kaiser-Meyer-Olkin, Bartlett’s and multicollinearity tests was conducted. The research results were tabulated for easier interpretation. The study established that there was significant positive correlation between the strategy formulation and performance of tea processing firms in Kiambu County, Kenya. The study also found positive relationship between the independent variables (mission and leadership) strategy formulation have a correlation with performance of tea processing firms in Kiambu County, Kenya. The study found strong positive correlation between strategy formulation (mission and leadership) with performance of tea processing firms in Kiambu County, Kenya. The coefficient of determination (R2 = 0.784) indicated that strategic formulation accounted for 78.4% of the performance of tea processing firms in Kiambu County, Kenya. From the findings the study concludes that strategy formulation (environmental scanning, mission, firm resources and leadership) have significant positive correlation with performance of tea processing firms in Kiambu County, Kenya. The study recommends that there is need for the employees in the industry to be educated on the importance of these factors in enabling competitiveness. Due to the uncertainty regarding factors necessary for firm resources it is necessary for the industry to ensure that the teams are well informed about use of the balanced score card and dash board in the business. All firms also need to establish an effective system for measuring performance.

Key Words: Strategy formulation, Mission, Leadership, Organization performance, Tea processing firms 

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