MBA Theses and Dissertations (2017)

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    An Analysis of customer satisfaction with procurement practices in manufacturing state corporations in Nairobi
    (Strathmore University, 2017) Ogwang', John
    This study analyzed customer satisfaction with procurement practices in manufacturing State Corporations in Nairobi. This study was informed by the contingency theory of management and the resource-based view of strategy. The study focused on six manufacturing State Corporations with headquarters in Nairobi. A descriptive survey research design was adopted for the study. Structured questionnaires were administered to 66 respondents drawn from procurement, user departments, and external institutional customers of manufacturing state corporations. Quantitative data collected was summarized through the use of frequency distributions and analyzed using chi-square tests to show relations between respondents' ratings on procurement practices and study variables. The findings show that staffing levels in manufacturing state corporations do not affect cost efficiency in procurement processes in manufacturing state corporations. Cost efficiency, time efficiency, and quality control efficacy in procurement practices are cross-cutting issues that affect all manufacturing state corporations in a similar manner. To a moderate extent, cost efficiency in procurement processes in manufacturing state corporations is affected by transparency in the processes, the wastage due to paperwork, transport, and postage costs, many failed/abortive procurement processes, and the lengthy processes of sourcing for suppliers. The major causes of delays in the procurement processes, in manufacturing state corporations, are lengthy procurement process, requisition having to wait to be signed by the head of department, understaffing of procurement department, negligence by staff, lack of finance, Staff with vested interests and delays in paying of suppliers. The main measure of quality in manufacturing state corporations is whether goods supplied meet specifications or not. Price plays a significant role in quality determination due to the practice of picking bidders with the lowest pricing. Correlation analysis shows that lead times are strongly correlated to most complaints received from customers (end users and user departments). Additionally, there is a correlation between the quality of goods (measured in terms of meeting specifications) and most complaints from customers (internal and external). There is a correlation between procurement costs and common complaints from suppliers. There was no correlation between lead times, quality of goods procured, procurement costs, and the number of complaints received in the organization about procurement practices. The study recommends benchmarking among manufacturing state corporations and the adoption of e-procurement as ways of dealing with cost efficiency, time efficiency, and quality control challenges. The study also recommends a review of the Public Procurement and Disposals Act (PPDA) in order to shorten the lengthy procurement process but also provide mechanisms so that procurement managers can proactively purchase the best quality supplies at market prices.
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    Factors influencing outsourcing decision making of non-core functions in the pharmaceutical industry in Kenya: a case of GlaxoSmithKline
    (Strathmore University, 2017) Kagambi, Claire
    GlaxoSmithKline bas in the recent past embarked in outsourcing most of the functions that are deemed to be non- core to the business. There has been reported challenges' in regard to outsourcing experiences in the company. Both internal and external auditors attributed the challenges of outsourcing decision on lack of employee competence in handling non-core functions, increased costs on non-core functions which could be as well outsourced at a cheaper rate and lack of innovative measures set by GlaxoSmithKline. The aim of the study was to review the general factors influencing outsourcing decision making of non-core functions in the pharmaceutical industry in Kenya. Specifically, the study aimed; to determine the effect of employee competence cost reduction and innovativeness on outsourcing decision making of non-core functions in the pharmaceutical industry. This study employed explanatory research design in this study. The company has 116 employees in the management level who acted as the study target population. A total number of90 employees were sampled. This study utilized the simple random sampling technique where every element in the sampling frame had an equal chance of being picked as stratified. In the study a questionnaire was used as the sole primary data collection instrument. The data was qualitative in nature. The study utilized quantitative method of data analysis. Pearson correlation was used to test for relationship between the independent variables. Factor analysis was further used to explain con-relations among multiple outcomes. The study found that employee competence had an effect on outsourcing decisions as it enabled the organization to engage highly skilled personnel to efficiently handle employee issues. The study also found that cost reduction was a determinate to outsourcing decisions in GSK. The findings from the study show that innovativeness had an effect on outsourcing decisions as the outsourced companies helped GSK to concentrate more on innovation of products and other related services. The conclusion, five most critical factors influence outsourcing decision making of non-core functions were established as follows: level of employee specialization, employee time worked, new product development, exploring new markets and operational cost of the term. The findings show that several factors constitute outsourcing decision making of non-core functions in pharmaceutical industry in Kenya. The study noted that Glaxosmithkline applies outsourcing decision making of non-core functions. The study recommends that managers in GlaxoSmithKiine need to ensure that research, development and market investments are concentrated in areas of a firm's established competence to improve employee competence development related to the core business. To increase resources, to share risks or to lower costs, GlaxoSmithKline needs to collaborate with other firms or organizations in product development. This collaboration can be in the form of, for example, partnership, joint ventures, networks, research contracts or alliances. The GlaxoSmithKiine management needs to enhance technology and innovative work fonns as the successful improvement of products and services is inextricably intertwined with proficient and success and in a perfect world streamlined development of procedures that deliver them.
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    Assessing effect of client relationship management on business development of law firms: a case of Nairobi County
    (Strathmore University, 2017) Kamau, Caroline Muthoni
    Past studies on law firms indicate that for business development, client retention is key and would be best achieved through priority adoption of CRM strategies. The studies pointed out that law firms were suffering from a bad case of tunnel vision and were having slow uptake of CRM strategies. Our study therefore assessed the effect of CRM on Business Development of Law Firms with a focus on Nairobi County. This assessment was carried out in light of other general business development strategies in use by law firms so as to be able to capture the trueness of our problem statement in light of these general strategies. The research objectives were: -to establish and assess law firm business development strategies; to establish client relationship management strategies and to evaluate how client relationship management affects business development for law firms. Data was collected based on a sample size of 80 Law firms, with the respondents being a mix of proprietors, partners, senior associates and associates. The research design adopted a quantitative and qualitative design. A questionnaire was used to collect primary data and was administered by email as this was most convenient for the respondents. The analysis used for the data was descriptive analysis, correlation analysis, regression analysis and factor analysis. Factor analysis results indicate that Client friendly pricing : (Discounted fees), Client friendly pricing: (Installments payments), Feedback Surveys, Knowledge management and Online Services and IT Infrastructure have the highest cumulative significance to business development at 70%. The study results therefore indicate that CRM strategies are indeed considered as having a level of effect on business development by law firms with some, more significantly than others and there still being room for improvement for ultimate business development. Client loyalty was also said to be most likely sustainable where mode of service delivery was face to face with online platforms being the mode of service delivery with least impact on client loyalty. Qualitative analysis on an open-ended question, revealed that client retention, increased profitability, staff turnover and location and service expansion are most recognized as key performance indicators for law firms. Understanding the priority given by law firms with regard to business development strategies will enable existing and upcoming firms redirect their energy on strategies that are voted as being most effective for business development and most importantly client loyalty. The findings of the research will provide a platform for further studies into the client's point of view on service attributes for client loyalty and their expectations on service delivery by Law firms and also, since staff turnover is reported by firms as a key performance indicator, further studies can assess its effect on business development. The findings will go a long way in enabling firms to stream line their services to meet those expectations so as to have an edge in business development.
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    The Effect of fuel regulation on consumer protection in Kenya: a case study of Gulf Energy Limited
    (Strathmore University, 2017) Mutero, Priscilla Nduta
    Fuel is widely used across all sectors of Kenyan economy with no effective cost-beneficial substitute available. The industry was liberalized in 1994 which resulted in increase in number of independent oil distribution companies in Kenya. Kenya imports all its fuel through the Open Tender System, whereby petroleum products are purchased by a single company for the entire market on the basis of a public tender and shared among all marketing companies in proportion to their share of the market. Over the years, fuel price dynamics became relatively volatile which resulted into the regulation of fuel through the ERC in December 2010.The main objective of the study was to investigate the effect of Government fuel regulation practices on consumer protection (quantity, quality and price of the fuel products) in Kenya. The study was carried out at Gulf Energy Limited. Secondary data on fuel prices and transport costs was collected and analyzed while questionnaires were being administered. A total of 105 questionnaires were administered to employees with 81 actually responding representing a response rate of 77%. In addition, out of the 400 possible responses from consumers, 53% responded and this was considered adequate. The study used a descriptive research design. Questionnaires were the main data collection instruments. In addition, descriptive analysis was used; this included the use of standard deviation, relative frequencies and percentages. The data is presented using charts, tables and graphs. The findings revealed that the relationship between independent variables consumer satisfaction, regulating costs and ensuring or enforcing compliance and dependent variable consumer protection was significant i.e. P<0.05. When fuel regulation factors were considered individually, regulating costs had a very strong positive correlation with consumer protection at 1=.834 followed by consumer satisfaction at r=.661 then ensuring or enforcing compliance at r=.596. This shows that on the overall, the most important factor that affects consumer protection is regulating cost although consumer satisfaction and ensuring or enforcing compliance are also important. Furthermore, when regression analysis was carried out on costs and prices for year 2004-2014, R2 showed that 15.1% of variation in consumer protection is explained by regulating costs. This implies that besides regulating costs, there are other factors under fuel regulations that explain variations in consumer protection which in this study could include consumer satisfaction and ensuring or enforcing compliance. The study recommends that ERC should regulate costs, enhance compliance and ensure consumers are satisfied especially through price stability.
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    Effect of customer satisfaction strategies on customer experience among professionals service firms in Kenya
    (Strathmore University, 2017) Maitho, James Nyamu
    In the modem business world, companies are struggling as they try to motivate customers to purchase more and make more frequent visits. There are challenges facing professional service providers like law and audit firms as clients are continuously expressing dissatisfaction. Hence, professional service providers need to be aware of drivers of customer loyalty in order to build effective business strategies for customer retention. The study hence sort to establish the effect of customer satisfaction strategies being implemented by service providers on customer experience.From the findings, various service providers can improve their customer experience. The study is hinged on the Assimilation theory and Resource based view theory. The study specifically examined the effect of Information communication Technology, supplier management, staff management and service strategy on customer experience. The study adopted an explanatory research design . The target population was the top four audit firms in Kenya that is Deloitte Consulting, Ernst & Young, KPMG Consulting and PricewaterhouseCoopers (PwC) . The study also targeted the customers of these firms which are 42 firms listed at the NSE and are audited by the four audit firms. A census was conducted on all the four firms as well as the 42 listed firms which are the customers. The study findings led to the conclusion that ICT, staff mmanagement and service strategy are positively and significantly related to customer experience while supplier management is positively but not significantly related to customer experience. Since the findings indicated that ICT is positively and significantly related to customer experience, the study recommends that audit firms and other service provision firms should invest more in ICT systems that involve having have a well established work flow billing system, staff and sub contractor capacity scheduling system and knowledge and research databases for better service deliver y. Another recommendation made based on the study findings is that audit firms and other service firms should aim to improve their customer experience by establishing better staff management practices and investing more in them for instance staff on boarding , staff talent management and on the job training. There should also be fair and undiscriminated staff recruitment as they lead to improved customer experience. The study also recommends that since service strategy positively influences customer experience, audit and other service firms should aim to ensures that there is a clear service definition so as to ensure better service delivery as well as constant revisions of service strategies they employ. Furthermore, market segmentation as well as having a well established and strictly adhered to service delivery system should also be considered. The study tested the applicability of Resource Based view theory concept to the service providers in Kenya. The study proved that a firms unique resources for instance strategies gives it a competitive edge over its competitors and improves its performance. In so doing, it improves its customer satisfaction. The study has indicated that when a firm is capable of formulating strategies for instance staff management , ICT related strategies and service strategies, that will lead to better performance thus improving the customer experience. The study also contributes to the Assimilation theory which argues that customer dissatisfaction is based on expectation and perceived product performance and that if customers are given contrary services to what they expected, they become dissatisfied. The study findings indicated that among customers of service providers in Kenya, consumer post-usage evaluation to establish their satisfaction is key. This is a key argument by the assimilation theory.