Abstract:
This research focuses on the SME's in the food processing industry in Kenya. Mainly due
to the realization that the Agricultural sector especially with regard to food processing is
still vastly unexploited and with great potential for contributing in the economic growth
of this country. Adoption of Operations based strategies in the : processing of food
products is key to realizing the contribution anticipated in this sector in terms of creation
of employment and contribution to the country's gross domestic product. Becoming more.
competitive globally, improving customer service and making operations faster and more
responsive while drarna reducing costs are the challenges facing Kenyan SME's
today. To meet these challenges, SME's must rethink strategy and rework manufacturing
operations.
The research objectives are geared towards determining the extent of adoption of the
operations based strategies and also determining the problems that firms fact: when trying
to implement the strategies. The research was conducted by a survey of the SMEs in the
food processing industry in Nairobi. The instrument used for data collection was a
questionnaire that was designed having both open and closed ended questions.
The research findings revealed that most firms are aware and indeed have adopted the use
of operations based strategies in food processing as a tool for achieving competitive
advantage. The most critical strategies being based on quality, cost and delivery (speed
and reliability). The research recommends the replication of this study in other SME
sectors such as: textile, wearing apparel and leather industries, manufacture of wood and
wood products, manufacture of paper products, printing and publishing among others.
