The in gaining a comparative correlation from both

purpose of the study is to investigate Strategic planning practices and
challenges among SME’s;  which as Peter
Ducker (1993) states is the continuous process of making entrepreneurial
decisions systematically and with the greatest knowledge of their futurity,
organizing systematically the efforts to carry out these decisions and
measuring the results against the expectations through organized feedback. The
researcher seeks to determine why SME’s in Kitengela are challenged in their
businesses as entrepreneurs; the main objectives are centered around
determining these challenges, what strategic planning  practices are in place as tools for
management and what strategic planning practices the SME’s can implement in
order to achieve the highest results and returns amidst the available
competition. As Julian (2013) states, Strategic planning is a backbone support
to strategic management and it is a major process in the conduct of strategic
management. According to Wagner (2006) the importance of strategic planning can
be explained from four points of view including environmental scanning,
strategy formulation, and linking goals to budgets and strategic planning as a
process. The linkage between strategic planning and organizational performance
needs analysis to get a better understanding on how strategic planning is
applied in practice and to improve performance Julian (2013).

research will be carried out by applying both quantitative and qualitative
approaches using descriptive survey as research design. Data will be collected
using Questionnaires and Interviews targeting 100 SME’s in various fields in
Kitengela as respondents from a target population 200 under the assumption that
2 people will be given a questionnaire in each SME. This will assist in gaining
a comparative correlation from both the owner and the worker and determining if
the human resource theory is an effective strategic planning tool for enhancing
competitive advantage and that decisions and effective management is based on
proper information and organized structures. The data will be analyzed using
Social Package for social science (SPSS) software (version 16) where
conclusions will be drawn from the tables of the packages.

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literature review will be anchored on the human resource-based theory, which
emphasizes the importance of the human element in the strategy development and
business success of organizations. This will give the research a platform to
assess and determine how strategic planning can help SME’s to zero in on
decision-making, information, and the future based on available data and taken
in the light of their possible effects and consequences over time. In other
words, strategic planning which is concerned with identifying foreseeable
thrusts and weaknesses to avoid and strengths and opportunities to pursue is
the assessment the researcher seeks to evaluate as the best practice for SME’
to enhance their growth and increase on profit margins.

findings will be used assessing if the challenges faced by SME’s can be best
solved through building the human capital as a tool of effective organizational
development and strategic management are the best practice for SME’s in

will hence be made based on the findings with the main aim of proving if the Human
resource-based theory which is the major theory used to support this work
emanates from the principle that the source of firms competitive advantage lies
in its highly skilled and efficiency workforce which is not easily copied by
competitors. The human resource-based theory of the firm’s competitive
advantage in particular provides the underlying theoretical foundation for this
paper. As Drucker (1993) views Capitalism – and discusses the shifts and
transformations that are affecting politics, business and society itself;
knowledge is the resource of society today, and the key concept in our future
society, the ‘person’ will be central because knowledge, although stored in
books and databases, is actually embodied in a person. 


P. F. (1993). Post Capitalist Society. New York: Herper Collins Publishers.

O (2013) Relationship between Strategic Planning and
Organization’s Performance in Non Governmental Organizations (Ngos): A Case of
Action aid, Kenya

W. P. (2006). Strategic alliance of small firms in knowledge industries:
consulting perspective. Business Process Management Journal, 12(2), 206- 233.

K. S. (1997). Managing strategic contradictions: a top management model for
managing innovation streams. Organization Science, 16(5), 522-536.