Diversification Strategy and Factors Affecting Production of Sugar in Kenya

Dominic Chungani Muteshi, Zachary Bolo


The project involved an investigation into the dimensions affecting production of sugar andits diversification in Kenya and how it’s pursued by different sugar processing andmarketing factories. An inquest in understanding competitiveness between industryplayers has primarily been pursued in accordance to economic, surrounding and marketconditions. This research integrated perspectives of strategic management on the resourcebased view of factory performance to formulate a theoretical model of factors affectingproduction of sugar and its diversification. The main objective of the paper was to analyzefactors affecting sugar production and its diversification in Kenya. The objective wasanchored on predetermined variables of dimensions for establishing a sugar factory. Thefactors included technological capability, materials capability and financial capability. Thepaper employed cross sectional survey methodology by applying factor analysis ofcomparison between different sugar factories in Kenya. A series of prepositions werepresented on the factors identified as influencers of production of sugar and itsdiversification in Kenya. The study results revealed that there exist a majorinterdependency between the variables of organization technological, material andfinancial capabilities on sugar production and its diversification in Kenya. The researchersconsidered the varied approaches of diversification for performance improvement andoutlined implications for further research, policy and practice.

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