Relationship between Strategic Management Practices and Performance of Agro-Veterinary Based Industries: A case Study of Highchem Agro-Veterinary Division

Abstract

The general aim of this study was to examine the relationship between strategic management decisions and performance in HighChem Agro-veterinary Division. The objectives of the study were to establish the effect of strategic innovation on performance of the Agro-veterinary industry; to investigate the impact of effective cost leadership on the performance of Agro-veterinary based industry; to examine how product differentiation affects the performance of Agro-veterinary based industry; to establish the effects of resource allocation on of the performance of Agro-veterinary based industry. The study has been anchored on three major theories. These theories are the Porter’s framework of competitive advantage; Resource-based theory and blue ocean theory. The study adopted a descriptive cross-sectional analysis. The study’s target population comprised of HighChem Agro-Veterinary Division employees and their distributors. The sample size used was 98 respondents who were selected conveniently. Online questionnaires were used for data collection which had both open and closed ended question. Linear regression was used to establish the relationship between the study variables. The study concluded that strategic resource allocation decisions and cost reduction strategies positively affects the performance of HighChem Agro-Veterinary Division while, strategic innovations and product differentiation negatively affected the performance of HighChem Agro-veterinary Division. Consequently, the study recommended that HighChem Agro-Veterinary Division should continue with its cost reduction strategies as well as its strategic resource allocation decisions while re-looking at its product differentiation and strategic innovation techniques.