Turnaround Strategies and Performance of Cement Manufacturing Firms in Machakos County, Kenya
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Date
2023
Authors
Githinji, Esther Watare
Journal Title
Journal ISSN
Volume Title
Publisher
kenyatta university
Abstract
Any changes with the market place, the customers, legal and regulations and the industry means that the organizations must re adjust and shift their strategies and operational system so as to remain competitive, profitable and thrive. Performance of cement manufacturing industries has been declining leading to closure of other firms. This has been occasioned by poor management strategies and decline in the economy. This research will aims bridge the gap by exploring the effect of turnaround strategies on performance of cement manufacturing firms in Machakos County, Kenya. The research objectives are; to explore the effect of managerial turnaround strategy, operational processes turnaround strategy, financial turnaround strategy and cost management strategy on performance of cement manufacturing firms in Machakos County, Kenya. The survey was ground on causality of the Distress Theory, Mckinsey 7’s model and Resource Based View. The research embraced a descriptive research design and it will target the senior management team from the five cement manufacturing companies. The population was stratified as per their department and the HR managers, Finance managers, operational managers and workshop managers will be considered. The primary data was gathered through structured questionnaires. A pilot test was conducted among the senior managers of cement companies to assess validity and reliability of the instrument. Multiple regression analysis was utilized to analyze the data by correlational analysis. The results of the study were displayed through frequency and percentage tables, pie charts and bar graphs. The findings show that turnaround strategies (managerial turnaround strategy, operational processes turnaround strategy, financial turnaround strategy and cost management strategy) affect performance of cement industries since the P-value<0.05. From findings, the research concludes that managerial turnaround strategy, operational processes turnaround strategy, financial turnaround strategy and cost management strategy positively affect the performance of cement industries. The turnaround strategies used cement industries enhance critical process improvements, cost-cutting initiatives, financial restructuring, and organizational restructuring. According to the findings, organizations should implement the best turnaround techniques to improve the achievement of their corporate objectives. The managers of the company should consider all potential outcomes and decide on the organizational structure that would help them achieve their objectives. Effective managers should be employed to manage many subordinates, not the other way around.
Description
A Research Project Submitted in Partial Fulfillment of the Requirements for the Award of a Degree in Master of Business Administration (Strategic Management) Kenyatta University
Keywords
Cement Manufacturing Firms, Machakos County, Kenya