Abstract:
This purpose of this research was to study some aspects of strategic management practices by Fast Moving Consumer Goods Multi-National Corporations. The research design was descriptive and the population sample of the study was the multinational FMCG firms that manufacture locally. A total of nine (9) firms in Nairobi were selected and the sample frame constituted key managers and the CEO's. The study targeted multinational FMCG firms with local manufacturing facilities in order to get the full scope of a diverse organization. Primary information was solicited from the target population through questionnaires. Data was analyzed using descriptive statistics and presented in frequency distribution tables and percentages.
The research revealed that in designing their strategies, the firms took into consideration long-term objectives. which were developed in relation to both products and markets. The long term planning was for a period or between 6 — 10 years. Firms conducted customer and competitor analysis to respond to changes in the levels of demand for the product with customer needs and organizational goals being key drivers of the organizational structure of the multinational FMCG firms, Further strategy created the need to have a structure that was team centered and one that allowed problems to be anticipated and sorted on site.
The benefits derived from incorporating strategy in the organizational structure were that the multinational FMCG firms attracted best technical/professional talent that met and exceeded labor market rates. The firms also maintained flexibility and skills of an experienced workforce and there was increased teamwork that enhanced productivity and performance of the employees.