Environmental Scanning and Strategy Formulation on Performance of Mama Lucy Kibaki Hospital, Nairobi City County

Kenyan health sector is undergoing reformation because of competition, improvement of Kenya’s health care system as it relates to the economy, and advancements in health care practices. Nairobi's health strategic and investment plan, which the county has committed to following, offers precise direction on major actions government will take to address health issues. However, city public hospitals are still not operating at their optimal level worldwide despite implementation of such frameworks. The study examined the effect of environmental scanning and strategy formulation on performance of Mama Lucy Kibaki Hospital. The study was anchored on Resource-based view theory. Descriptive research design was employed. Target population was management-level employees of Mama Lucy Kibaki hospital. A sample size of 166 was selected using census method. Data was analyzed using descriptive statistics and regression analysis. The study observed that the external environment such as policies of the health sector which are outside its control influence organizational performance greatly. Further, efficiency and quality of service rendered can only be achieved through employees who when involved in strategy formulation will see to it that organizational performance grows overall. In particular, strategy formulation and environmental scanning contribute significantly to the performance of Mama Lucy Kibaki Hospital. The hospital must remain proactive and responsive to these external forces to sustain growth. Broader involvement in the process would increase employee buy-in, drive stronger implementation, and enhance the overall effectiveness of strategic management at the hospital.