Strategy formulation in cooperative small firms and business performance
The South African minibus taxi industry continues to play a significant role in the national public transport market. The industry is credited with as much as 65% of all public transport commuter trips per day. The purpose of this paper is to investigate the importance of strategy formulation in improving business performance in the South African minibus taxi industry. The study used a mixed methods research approach by using qualitative study through focus group discussions involving minibus taxi owner-managers and quantitative phase used a survey technique to collect data from 256 minibus taxi owner-managers. The results show a relationship between appropriate strategy formulation and financial and non-financial performance and particularly; when properly executed, strategic planning has a positive influence on business performance. It has concluded that strategy formulation is positively related to performance of small businesses relative to financial and non-financial performance.
Keywords: Strategy formulation, Business performance, Minibus taxi, Co-operative, small business