Effect of manager's strategies in turning around organizations (a case of uchumi supermarket-kenya)
Abstract
This study sought to investigate the process employed in implementing Turnaround strategy in
the Uchumi supermarket, an organisation that had positioned itself as a market leader since 1976
until 2000 when it started experiencing difficulties. The problem is that when Uchumi got into
decline in year 2000 the former managers could not save it from its woes despite employing
various strategies, however with appointment of new managers there is a new lease of life. An
organisation is said to be in decline when it experiences a resource loss sufficient to compromise
its viability. Turnaround is said to have occurred when an organisation recovers adequately to
resume normal operations. The objectives were to determine the effect of shareholder
repositioning in turning around Uchumi supermarkets, to determine influence of top management
re-organisation in the supermarket, to determine effects of cost reduction strategy in Uchumi
supermarket and to establish whether asset reduction resulted to Uchumi's turnaround. The
objectives are guided by independent and dependant variables. The study used a case study
approach in order to get an in-depth insight of what happened in implementation of strategies.
The target population is three hundred eleven staff members of Uchumi supermarket comprising
of top level and middle level managers. Stratified sampling was used to get the sample size out
of the target population which comprised of ninety managers. Sample random was then used to
get actual individuals. Data to be collected was primary and questionnaires were used. Data was
analyse during descriptive statistics for quantitative data and content analysis for qualitative data.
The study concludes that adjusted basic earnings per share decreased during decline. New
management highly considered stakeholders interest in their strategic decisions and Process
elimination was considered during decline. Company's productivity during turn around
increased. This study concludes that human capital in the areas of specialisation during decline