Turnaround Strategies and Their Influence on the Financial Performance of Organizations: A Case Study of Uchumi Supermarkets Ltd-Nairobi County Branches
DOI:
https://doi.org/10.47604/ijfa.46Keywords:
debt restructuring, change management, asset restructuring, performanceAbstract
Purpose: The main purpose of this study was to establish the influence of turnaround strategies on the performance of Organizations: A case study of Uchumi Supermarkets Ltd, Nairobi branches.
Methodology: This study employed descriptive case study design. Uchumi supermarkets Ltd, Nairobi branches was the unit of study. This study purposively sampled 35 respondents from the 90 managers at all the management levels with equal representation. This was a 40% representation. This research was conducted through a case study to enable the researcher explore the matter in depth. Primary data was gathered by use of closed ended questionnaires, which were self-administered. A pilot study was conducted in order to establish the validity and reliability of data collection instruments. After data had been collected through questionnaires, it was prepared in readiness for analysis by editing, handling blank responses, coding, categorizing and keying into Statistical Package for Social Sciences (SPSS) computer software for analysis. SPSS was used to produce frequencies, descriptive and inferential statistics which were used to derive conclusions and generalizations regarding the population.
Results: The study findings indicated that debt restructuring, change management, asset restructuring are positively and significantly related to performance. The results also indicated that debt restructuring explains 24.6% of performance of Uchumi Supermarkets Limited. The results also indicated that Changes in management explains 45.2% of performance of Uchumi Supermarkets Limited. The results further indicated that asset restructuring explains 21% of performance of Uchumi Supermarkets Limited. The results also indicated that staff rationalization explains 8.2% of performance of Uchumi Supermarkets Limited.
Unique contribution to theory, practice and policy: The study recommended that organizations aiming to turnaround and improve their financial performance should include debt restructuring, change management and asset restructuring. . The study also recommends that Uchumi supermarkets limited should continue with the turnaround strategies like engaging human resource consultants to head hunt for key individuals for managerial positions, having structured and competitive salaries for key managerial positions and implementing performance based bonus pay programs for key staff because they lead to improved performance.Downloads
References
Acur N. and Englyst L. (2006). Proactive Assessment of Strategy Formulation Processes- how to ensure quality in process and outcome, Int. J. of Operations & Production Management, Vol. 26
Babbie, E. (2004). The Practice of Social Research. 8th Edition Belmont California, USA: Wadsworth Publishing Company
Day, G.S. (2000). Comp render captary fidelizar los mejores clients, Gestio`n, Barcelona.Don Bosco Printing press.
Frank, M. Z., & Goyal, V. K. (2003). Testing the pecking order theory of capital structure. Journal of financial economics, 67(2), 217-248.
Igor, F. & Steve, T. (2006). Corporate governance and financial constraints on strategic turnarounds. Journal of Management Studies, 2: 433.
Kabii, L. K. K,(2009). Effect of manager's strategies in turning around Organizations.Kenyatta University.
Marvasti, A. (2000). Resources Characteristics, Extraction Costs, and Optimal Exploitation of Mineral Resources. Environmental and Resource Economics Journal 17 (4).
Morrow, J.L., Johnson, R. A. & Busenitz,L. W. (2004).The Effects of Cost and Asset Retrenchment on Firm Performance: The Overlooked Role of a Firm’s Competitive EnvironmentJournal of Management 30(2) 189–208
Mugenda, O.M., & Mugenda, A.G. (1999). Research methods: Quantitative and qualitative Approaches. Nairobi: ACTS Press.
Mutua, C.K. (2010). Strategic Responses by the Deposit Protection Fund Board to Changes in the External Environment. University of Nairobi: Unpublished MBA Project.Nation, pp 17, lih June.
Njihia N.N. (2009). Strategic responses of Kenya Commercial Bank limited to changes in the Kenyan banking industry. Unpublished MBA Project. University of Nairobi.
Omari, S. M. Ateka, M. R. & Nyaboga,B. (2013). The influence of strategic change management practices on organizational performance: a case of the operations of soft drink industries in western Kenya.International Journal of Human Resource and Procurement 1(3)
Pearce, J. A., & Robbins, D. K. (2003). Toward improved theory and research on business turnaround. Journal of Management, 19(3): 613-36.
Perrin, S. (2000). Intellectual capital: measure up or lose out, available at: www.accountancyage.com/news/1102805
Sparks, L. 2010. “Settling for second best?‟ International Journal of Retail &Distribution Management”. vol. 39, no. 2, pp. 114-129.
Zoppa, A., & McMahon, R. G. (2002). Pecking order theory and the financial structure of manufacturing SMEs from Australia’s business longitudinal survey. Small Enterprise Research, 10(2), 23-41.
Downloads
Published
How to Cite
Issue
Section
License
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work’s authorship and initial publication in this journal.
