RELATIONSHIP BETWEEN CRISIS MANAGEMENT PRACTICES AND PERFOMANCE OF PHARMACEUTICAL MANUFACTURING COMPANIES IN KENYA; A SURVEY OF PHARMACEUTICAL MANUFACTURING COMPANIES IN NAIROBI.

Abstract

The purpose of this study was to evaluate the relationship between Crisis-Management (CM) and the pharmaceutical manufacturing firms’ performance. As such, the research examines the connection between CM and the performance of firms in Kenya’s pharmaceutical manufacturing companies. The study seeks to identify prevention of crisis influences pharmaceutical manufacturing companies performance; to explore the influence of crisis containment on pharmaceutical manufacturing company’s performance; to evaluate business communication affect pharmaceutical manufacturing company’s performance. The research relies on the descriptive survey design, where the study’s target population included 1 Managing director and 1 Chief finance officer from the 22 registered pharmaceutical manufacturing companies in Nairobi County since they will provide response on different aspects of performance. This brought the total to 22 Managing directors and 22 chief finance officers. The total population was 44 respondents. Census was used for the study where 44 respondents. Firms were unit of analysis while the population was the unit of observation. A fact-based conclusion was made using primary research. Questionnaires were used to obtain primary data. Data analysis was done through SPSS Version 22.0 and the descriptive statistical methods which included the averages, mean and percentages. The data was presented through tables, bar graphs and pie charts. On whether activities are well planned during crisis, majority of respondents disagreed as evidenced by (M=2.0750; SD=0. 47434). On whether activities are well coordinated to handle crisis, majority of respondents disagreed as evidenced by (M= 1.9500; SD=0.95943). On whether activities are well coordinated to handle crisis, majority of respondents disagreed as evidenced by (M= 1.9500; SD=0.95943). The study recommended that to effectively detect crisis, pharmaceutical firms should have in place a team to analyze crisis before they happen. To effectively prevent crisis from happening, they should have clear plans on how to come out of crisis. The companies should have improved capacity and well-coordinated crisis management activities by regularly training and equipping staff with necessary equipment’s required to respond to crisis on time. The firms should ensure that the communication channels used to communicate crisis reaches many people. Suggestion for further study is recommended to identify other crisis management practices which can improve performance of pharmaceutical manufacturing companies. The study concluded that pharmaceutical company’s management did not take time to analyze the crisis in the organization. Pharmaceutical companies lack effective monitoring mechanisms. There was regular assessment by pharmaceutical companies to detect crisis. On whether crisis is well explained, companies tried to explain the crisis. There was no proper planning to prevent crisis from happening. There were no proper policies in place to enable pharmaceutical firms deal with crisis. There were no effective quality control measures in place to prevent crisis from occurring. Employees of pharmaceutical firms were not well equipped with skills that can enable them prevent crisis from happening. Pharmaceutical firms had put in place physical system has been put in place to handle crisis. There was regular audit on crisis management activities. Crisis containment activities were not well coordinated. There was no proper evaluation during crisis. Many pharmaceutical firms lacked capacity to handle crisis. There were no proper measures to prevent income loss in the company during crisis. Pharmaceutical firms have invested in proper monitoring activities which enable them monitor crisis. The communication channels used by pharmaceutical firms were not effective in communicating crisis. There was no effective communication between customers and pharmaceutical firms; this affected the ability to handle crisis on time. Further study was necessary to identify more crisis management practices.