| dc.description.sponsorship | A strategic plan is an approach used to build a range of tactics that are used to attain an organizational direction. Consequently, this makes it quite clear that companies need to step up and develop plans that would help them achieve their goals and objectives. The purpose of the study was to investigate the effect of strategic formulation drivers on performance of selected three-star hotels in Mount Kenya east region. The specific objectives of the research focused on determining how communication, leadership style, financial resources, and stakeholders affected the performance of three-star hotels in Mt. Kenya East Region. The following theories anchored the study; strategic behavior theory, resource dependency theory, leadership theory and communication theory. This study adopted descriptive survey design on a target population of 21 general managers, 21 supervisors and 84 section heads in 21 hotels with a 3-star ranking. Census method was used to include 21 general managers, 21 supervisors and 84 section heads. Quantitative data inform of questionnaires was used to get primary information from respondents. Additionally, the study gathered secondary data for objectivity purpose from 2021-2023. A pilot study at the Izaak Walton hotel Embu County was conducted to establish validity and reliability. Descriptive statistics such as frequencies, percentages and mean were provided. Inferential statistics such as Pearson correlation, model summary, ANOVA and regression coefficients approaches were also employed. Data was presented using tables and figures. The study found out that the leadership styles and financial resources had strongest influence while stakeholder had the least influence on performance. The conclusions made on stakeholders was that the management had a rough time trying to satisfy all stakeholder’s interests. On financial resources, the availability of financial resources enabled the process of formulating strategies easier since the hotels had financial capability to even suggest more challenging strategies that would be implemented with less strain. On leadership styles, it was noted that most hotels practiced mostly bureaucratic leadership style that did not take into considerations the opinion of the workers on how formulated strategies could be improved. On effective communication, it was concluded that the chain of communication was one way whereby it was the management that sent information to the staff for action but not from the staff to the management. The study’s recommendation on stakeholders is that the management should consider using recent business models that could enable them combine various proposal into a more suitable strategy suitable for all stakeholders. On financial resources, the hotels shareholders should ensure that they widely consult financial experts on the best strategies they could apply to enable the hotels have a cutting edge and a niche in the market. On leadership styles, the management should attend leadership courses to learn on other critical leadership styles that can be applied to include junior staff into decision making. On effective communication, the management should strengthen a two-way communication policy framework to enable efficient communication pattern between the workers and the management. | en_US |
