BCOM Research Projects (2021)
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- ItemThe Effect of business incubators on start-ups in Nairobi(Strathmore University, 2021) Munywoki, Mwendwa AndrewStart-ups are the root of all organisational success and failure. This is to mean that at one point in time every single organisation was in its start-up phase, as their respective founders identified a gap in a specific market and took the opportunity to fill that gap by incorporating their ideas. It has been argued that it is in this stage that the business is either set for success of imminent failure. Successful, well-thought out start-ups act as a primary source of rejuvenation for industries as the sector goes through its life cycle. This is through the new ideas that they bring onboard, giving rise to radical or gradual innovation for the industry; both ways increase the competition as businesses battle to win over their consumers and gain advantage over all others. Those who keep up and employ adaptive measures to keep ahead, stay afloat. However, those unable or too rigid to adapt with the change brought about by these start-ups decline in relevance and eventually die out under changing consumer needs.
- ItemThe Effect of selected macroeconomic variables on earnings management: a case study of Co-operarive Bank of Kenya.(Strathmore University, 2021) Mungai, Naomi WacukaThere has been a rise in the cases of big companies losing their upward trajectory and eventually falling off the market space. Industry reports have shown that most of the big companies that were flourishing have now lost their pace and are unable to make profits let alone paying their debt as and when they fall due. This study is aimed at investigating whether the selected macroeconomic variables; interest rates, inflation and money supply have an effect on the choice by managers to manage the earnings of Co-operative Bank of Kenya. A recent study already concluded that banking institutions engage in earnings management therefore the main aim of this study is to investigate the possible effects that these selected macroeconomic variables have on earnings management in the bank. This study focused on a descriptive research design. The company the study is Co-operative Bank of Kenya that is one of the banks listed on the Nairobi Securities Exchange (NSE). This study used secondary data from the financial statements and financial reports and notes of Co-operative Bank to gather the required data. Regression modelling was used by using a regression equation to evaluate the strength of the independent variables through the multi-collinearity diagnostic test. The regression analysis of the total current accruals (constant) and the other independent variables indicated a weak relationship between the independent variables and earnings management. This concluded that there could be other factors that affect the decision of managers to manage the earnings in Co-operative Bank Limited other than the factors considered herein.
- ItemThe Effects of financial risk management on the performance of agricultural companies listed at Nairobi Securities Exchange (NSE)(Strathmore University, 2021) Mwangi, Lucy WanjikuThe effects of financial risks has been one of the major challenges that companies are facing today. This is due to the changing business environment, globalization and increase in competitors among many others. The study examines the effects of financial risk management on the performance of agricultural firms listed in the Nairobi Securities Exchange. Descriptive research design was used to examine the effects of financial risk management on the performance of agricultural firms listed at the NSE. Data was collected from 10 consecutive years (2010-2019). Secondary data was collected and analyzed using descriptive statistics. Out of the six agricultural companies data from only five was obtained thus a response rate of 80%. Data was collected from annual reports and financial statements of the companies from the year 2010-2019. From the results of the descriptive statistics, liquidity risk management depicted a positive effect on the performance. The companies maintained high level of liquidity through sustainable level of current liabilities, current ratios above zero and higher levels of operating cash. This improves the level of production levels hence a higher level of net income. Credit risk management also has a positive impact on performance. From the results of descriptive statistics, the companies maintained low levels of bad debts which will reduce their provisions for bad debts. This in turn results to higher profits and a higher net income. In addition, operational risk management depicts a positive impact on performance. Higher sales to working capital ratios increases the ability of the company to generate higher level of sales from utilizing their working capital ratios. This results to higher level of income and hence higher return on equity ratios. The study concluded that companies should adopt risk managements practices that are effective in order to manage liquidity, credit and operational risk as their occurrence can negatively affect performance. In addition, the study concluded that further studies be done which will be inclusive of market risks, interest rates risk and commodity price risks.
- ItemImpact of capital structure on financial performance: a case study of Naivas supermarkets in Nairobi region(Strathmore University, 2021) Wairimu, Ken KagoCapital structure is one of the most vital topics in finance majorly on the optimal capital structure that will bring about greater financial value of a given organization. This study attempted to determine the impact of capital structure on a firm’s performance in the case of Naivas Supermarkets in Nairobi County as little research on this area had been done to private limited companies and instead most works had focused on other sectors such as the banking sector, manufacturing and construction sector, non-financial sectors as well as companies listed in the Nairobi Stock Exchange. Financial performance was be expressed in terms of Return on Assets whereas capital structure was expressed in terms of Long-Term liabilities to Total Asset ratio with size of a firm expressed as revenue being the control variable. Furthermore, this study addressed on the vital theories related to capital structure as well as what others have said on the same area as well as the gaps involved for further inquiry and future research. Descriptive statistics techniques such as mean, mode , median, kurtosis and the like as well as multi-regression tests were used to quantitatively analyze the data and found out that average size of firms measured by sales was 20.7089 whereas for profitability in form of Return On Assets and capital structure expressed in terms of Long-term liabilities to Total Assets ratio were 0.8363 and 1.1493 respectively. Long-term debt had a strong negative impact on financial performance whereas revenue had a positive impact on financial performance hence a recommendation of variety of strategies to boost up firm sales as well as minimal use of debt to finance daily operations.
- ItemInfluence of non-governmental organisation in promoting the growth of women entrepreneurial ventures in Nakuru county(Strathmore University, 2021) Rotich, Sally JebetNon-governmental Organizations (NGOs) play a vital role in the socio-economic development in Kenya. They complement the government‟ efforts in providing sustainable development and funding activities in different sectors including entrepreneurship. This study sought to analyze the factors that influence the growth of women entrepreneurial ventures in Nakuru county Kenya. The specific objectives for the study were: to examine how financial support through NGOs influences the growth of women entrepreneurial ventures in Nakuru County; to investigate how digital technology influences the growth of women entrepreneurial ventures in Nakuru County; to assess how networking and mentoring through NGOs influence the growth of women entrepreneurial ventures in Nakuru County and final to examine how training and development through NGOs influence the growth of women entrepreneurial ventures in Nakuru County. The target population was made up of 50 women ventures operating in various industries in Nakuru County. The primary data was collected through a structured questionnaire and analyzed using descriptive statistics; frequencies, percentages, and mean. The results of the analysis were presented using tables and pie charts. Research findings show that the majority of the women in business in the area of study have received support from NGOs specifically financial support and training and development whereas digital technology and networking, among the factors studied, recorded a low percentage of support received from the NGOs to the women in business. The study recommended that financial institutions should have flexible lending policies and provide financial advice to women in business before the actual funding. NGOs have been encouraged to market their services, especially in rural areas to ensure people benefit from the programs they offer to entrepreneurs. Women have been encouraged to adapt to new technology and finally, to network with other women in business.
- ItemThe Influence of supply chain management strategies on supply chain performance within the food and beverage industry in Kenya(Strathmore University, 2021) Mwaura, Joan WanjiruThis study aimed to see how supply chain management affected supply chain success in Kenya's food and beverage industry. The importance of the food and beverage industry in Kenya's economic development cannot be overstated. The market, however, is underperforming due to the fierce competition it faces from the importation of food and drinks from other countries. Previous analysis has also shown that the food and beverage industry has a long way to go before realizing the full benefits of a fully connected supply chain management scheme. Since this aspect has not been thoroughly studied, most distribution departments, for example, do not grasp precisely how supply chain management provides value for their clients. Previous studies have been conducted in various geographical areas. They have used several factors, scopes, and methodologies, resulting in a wide range of findings that, to the best of the researcher's understanding; do not contribute to analyzing supply chain management's effect on supply chain success in Kenya, necessitating the need for this analysis. The food and beverage sector was used as the target demographic in this analysis, and it was analyzed using a quantitative method. Besides, the researcher used questionnaires to gather accurate information about the company's behaviors, beliefs, and perceptions. The research used linear regression and correlation statistics to analyze the relationship between supply chain management and supply chain efficiency. The findings indicate that organizations in the food and beverage industry strive to achieve high supply chain performance levels. As was revealed by their coefficients’ magnitudes, Supply chain agility at .611 had the most negligible impact on supply chain performance. Supply chain integration at .813 had the highest impact on supply chain performance and was closely followed by supply chain collaboration at .779. The research concluded that for organizations to achieve sufficient supply chain performance levels they had to employ all the three variables analyzed in unison as initiating one and living out the others was found to have minimal impact.