Relevance of Strategic Management Strategies on Organizational Performance of Craft Brewery Industries in Kigali City, Rwanda :A Case of Craft Brewery Industries in Nyarugengedistrict

Abstract

Generally, this research examined relevance of strategic management strategies on organizational success within craft brewery industries, Kigali City, Rwanda. Specifically, the researcher assessed the influence of cost leadership, differeriantion, and focus strategies pon organizational success at craft brewery industries, Kigali, Rwanda. The study used the following theories : five forces models, and market sharing theorem.The study used descriptive research design and correlation regression with a mixed approach. The population comprised owners and top managers. Stratified sampling technique was used to select a representative group in which 237 respondents were selected. A questionnaire and interviews were used to collect data. Research instrument was piloted to test validty and relaiability using a Cronbach Alpha methods. Data was analysed using descriptive statisctics and correlation regression, with the support of statiscal product and service solutions as an analytical tools. Results on cost leadership indicate a tihht cost in business activities with a mean of 4.333), economies of scale with a mean of 3.666), cost saving efficiency for design with a means of 4.000) and the reduction of operational costs with a mean of 3.666 have been used as a cost leadership component. A significant relationship was between cost leadership and sales (r=0.231**, p value 0.006) investment rise (r=0.159**, p=0.043) and profit (r=0.174**=0.014).Results on differentiation felt that cost allocated to the control of quality of goods and services (mean of 4.333), effort in reputation management (mean of 4.000), identifying names (mean of 4.833). A significant correlation was between differentiation strategy and sales (r=0.274**, p value=0.039), investment rise (r=.187, p=0.035) and profit (r=0.324, p=0.032).results on market focus found that focusing on marketing specification for products ( mean of 3.833) is the measurement that has the highest level of application in Skol Brewery Ltd products to the high extent. Narrowing products offered (mean of 3.333). A significant relationship was beteeen market focus strategy and sales (r=0.854**, p=0.018), market focus strategy and investment (r=.873**, p=0.035), market focus strategy and profit (r=.750**, p=.0.036). The study concludes that there was no correlation between strategic management strategies and organizational perfomance. This study recommended that the management of brewery compamies should assess the execution of cost leadership , conduct a research on market stratey to respond to various market niches adequately as any gap in customer centric products whould yield customer non responsponsiveness, benchmark differentiation, hire competent staff to achieve its success. Keywords: Cost leadership strategies, Differentiation strategies, Focus strategies, Organzational performance, Strategic management strategies.