MPPM Theses and Dissertations (2016)

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Browsing MPPM Theses and Dissertations (2016) by Subject "Business"

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    Effects of mergers and acquisitions on market equilibrium performance measures for processed milk market in Kenya
    (Strathmore University, 2016) Chege, Patrick Nderitu
    The evaluation of the mergers and acquisitions effects on the main equilibrium performance measures is essential to the understanding of the competition policy dynamics in a market with few players. There is need for adoption of a robust mergers analysis model to address the shortcoming of the traditional SSNIP model which only focuses of prices and leaving out other important aspects of mergers and acquisitions. This study aimed to determining the effects of the mergers and acquisitions on market prices, consumer welfare, and aggregate profit of the merging firms and those of the non-merging firms and therefore answering the question on the overall effect of mergers and acquisitions on the equilibrium performance measures on milk market using data from all the 34 licensed and active milk processors in Kenya. A new model of analysis as developed from the Canadian Competition Policy maker i.e. The Canadian Competition Policy Merger Simulation Model was used. The study found that mergers and acquisitions lead to increase in market shares of the merging firms. Their non-merging counterparts also record a significant increase in their market shares after mergers and acquisitions have taken place even though they are not directly involved in the merger or acquisition. Herfindahl-Hirschman Index, or HHI which is a measure of the size of the firms in relation to the industrial and an indicator of competition and the concentration ratio (CR4) of the four largest firms in the industry increased. The study also found that mergers and acquisitions have a significant effect on product price. From the findings, the study concludes that mergers and acquisition not only leads to increase in market shares of both merging and non-merging firms but also creates market dominance due to reduction in the number of market players in the industry. This firms ends up dictating major terms of trade affecting different equilibrium measures such as product prices, volume of output released in the market, quantity produced and the social welfare. Therefore there is need for all competition policy practitioners to carry out robust analysis for proposed mergers or acquisitions before approval. However, due to the short-comings of the Canadian Competition Policy merger Simulation Model where only companies with a market share of one percent and above can be used, a mixed model approach can be used to help arrive to near accurate conclusions.
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    An examination of the effect of Access to Government Procurement Opportunities (AGPO) programme on performance of youth owned enterprises in Nairobi County in Kenya
    (Strathmore University, 2016) Gichuhi, Monica
    Through Access to Government Procurement Opportunities (AGPO), the government seeks to unlock the potential of the youth by empowering and giving them more opportunities to do business with the government. Out of 30,000 youths, People with Disabilities (PWDs) and women owned companies, only 6,000 have benefited from government procurement opportunities between 2013 and 2014. Empirical evidence on AGPO and its influence on performance of youth owned enterprises in Kenya are non-conclusive as it fails to clearly link the effect of preferential procurement policy, capacity building component of AGPO and availability of information on AGPO to performance of youth owned enterprises in Kenya. This study sought to investigate the influence of access to government procurement opportunities programme on performance of youth owned enterprises in Nairobi County in Kenya. Specifically, the study aimed to; establish the effect of preferential procurement policy on performance of youth owned enterprises in Nairobi County in Kenya; establish the influence of capacity building component of AGPO on performance of youth owned enterprises in Nairobi County in Kenya; and determine the effect of availability of information on access to government procurement opportunities programme on performance of youth owned enterprises in Nairobi County in Kenya. This study used an exploratory research design. The target population was 1000 youth owned enterprises in Nairobi County that have registered with AGPO program. Stratified random sampling and proportionate sampling techniques were used to select a sample of 150 youth entrepreneurs. Self-administered questionnaires were used to collect primary data while secondary data was obtained from AGPO related publications. Quantitative data was analyzed using descriptive statistics; nonparametric test (Chi-test) and correlation analysis. The qualitative data was analyzed using content analysis. Reliability of the instrument was estimated using Cronbach’s Alpha Coefficient after pilot study. Findings indicated that preferential procurement policy, capacity building component and availability of information on AGPO have a significant effect on performance of youth owned enterprises in Nairobi County in Kenya. The study recommends that the government should scale up capacity building by AGPO to be carried out nationally and make it mandatory for all its agencies to publicize tenders through channels that are easily accessible to the general public particularly the youths. There should be monitoring of AGPO programme to ensure that government agencies set aside 30% tenders for the youths and other special interest groups. Youth entrepreneurs should actively build their skills and knowledge on how to participate in public procurement to fully benefit from the 30% government tenders allocated for them. The study recommends for formulation of new theories to guide public procurement meant for special interest groups that do not follow the classical theories of procurement but seem to contradict them.