Asian Journal of Economics, Finance and Management

Operational performance of supermarkets globally is marked by a mix of trends and challenges due to a highly competitive and unstable environment. Supermarkets in Kenya have thus experienced a reduction in sales and lowered performance, which has in one way or the other led to the closure of some supermarkets. The business climate of today is defined by a swift succession of market adjustments, a surge in technological advancements, and modifications to the legal working environment. Due to this, they aim to work effectively and efficiently without taking their performance into consideration. The research examined the effects of strategic management procedures on the operational performances of selected Nairobi City County’s supermarkets in Kenya. Specifically, this study aims to investigate the effects of strategy formulation, implementation and evaluation on the operational performances of these supermarkets. Resource-Based View, Activity-Based Costing Systems, Balance Scorecard Theories and the Dynamic Capability Theory served as the theoretical review of the research. The investigation utilised a descriptive research methodology to structure its approach. Primarily, data obtained by employing semi-structured questionnaires. The target population comprised employees of 104 supermarkets presently functioning in Nairobi City County, Kenya. The survey deployed a purposive sampling technique. Data was gathered primarily through semi-structured questionnaires and was distributed to the supervisors, upper management, sales support staff and supermarket personnel of the supermarket. Analysis of the collated information was performed utilising descriptive statistics, which includes frequency, mean and standard deviation and inferential statistics utilising a multiple linear regression model. All ethical morals were duly followed. Findings noted that strategy formulation has a positive yet insignificant effect on the operational performance of these supermarkets; strategy implementation has a statistically positive and significant effect on these supermarkets’ operational performance; and strategy evaluation has an effect that is insignificant effect on the operational performance of these supermarkets. The management should prioritise enhancing the implementation of existing strategies rather than focusing solely on the formulation of new ones. This can be achieved by investing in training programs that equip employees with the skills necessary to effectively execute strategic initiatives. Therefore, supermarket management should consider focusing their efforts on refining their strategy implementation processes and ensuring alignment between strategic goals and operational activities, as these factors are likely more critical in achieving desired performance results in the competitive retail landscape.