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- ItemThe Relationship between marketing programs and customer loyalty in the banking industry in Kenya(Strathmore University, 2013)The development of sound and vibrant commercial banks is a crucial engine for economic growth in Kenya. Over the past decade, the commercial banks sector has not only undergone fundamental growth but the environment has become highly competitive. To this end, commercial banks have to adopt sound strategies that will enhance sustainable growth and profitability. Modem theories such as commitment-trust theory emphasize customer loyalty as a driver of sustained profitability and further purport that relationship marketing programs are vital for attracting and retaining profitable customers. The purpose of this study was to analyze the relationship between marketing programs and customer loyalty in the banking industry in Kenya. The study adopted four objectives. The first objective sought to identify a Descriptive research design that was used for analysis. Primary data was used for analysis. The Nairobi area was identified as the sample frame. Stratified-Random sampling was adopted, four large banks were identified as strata, and data were collected randomly from each bank. Ordinary Least square was used for analysis. Five main variables were identified including relationship marketing, innovative products, and loyalty program as independent variables and customer loyalty as the dependent variable. The results showed that the majority of customers were satisfied with the services offered by the bank. Descriptive statistics results confirm that the majority were loyal to the banks and further agreed that relationship marketing was an important factor that increased customer satisfaction. ANOVA results revealed that customers ranked innovative products differently across the four banks. Regression results showed that identified relationship marketing, innovative products, and loyalty programs were significant determinants of customer loyalty. Relationship marketing has a coefficient of 0.66 which means that a unit increase in relationship marketing increases customer loyalty by 0.66. Innovative products and loyalty programs had a coefficient of 0.396 and 0.35 respectively. It was recommended that banks should focus on strategies that improve relationship marketing. Secondly, product innovation was identified as a competitive driver. It was recommended that commercial banks should focus their resources on innovating products that may enhance their competitive edge and improve both customer needs and expectations.
- ItemVoluntary disclosure after the adoption of international financial reporting standards : a study of companies in the Nairobi Securities Exchange(Strathmore University, 2013) Nguyo, Margaret WairimuDisclosed reports are usually out of audited accounts and may therefore lack credibility and verifiability. For this reason, they are usually ignored by investors due to their flimsy nature. On the contrary, high quality reports would increase the credibility of disclosed information. Basically, IFRS increase the quality of financial reports making them more credible and verifiable. Thus, the information disclosed based on reports generated from the application of IFRS is more credible and verifiable which in the long run, investors take more seriously and this has urged the management of listed companies to voluntarily disclose information using the IFRS. The study intended to look at the impact of the international financial reporting standard on voluntary disclosure among listed companies the case being the Nairobi Securities Exchange. Among the study objectives included: an establishment of the voluntarily disclosed items by listed companies after the adoption if the IFRS, an identification of the voluntary disclosure determinants among listed companies and finally the industrial implication of voluntary disclosure post IFRS adoption. The scope of the study entailed companies listed in the Nairobi Securities Exchange form the year 1996-2011 bearing in mind that IFRS was introduced in the year 2000 thus the breaking point. The research design was correlational in nature while the data was secondary in nature and entailed financial reports from the listed companies. The study concluded that indeed since the introduction of the IFRS, in the quest for transparency and accountability, listed companies have generally increased their voluntary disclosure levels and are benefiting from its fruits such as information asymmetry and investor confidence. Policies and guidelines that promote voluntary disclosure have also been effected after IFRS adoption regardless of the size of a company, governance structure and also the ownership structure. An industrial implication is also created by the adoption of IFRS since the obligation to disclose information can either impact a company that is listed positively or negatively
- ItemA supply side view of factoring as a financing method for SMEs in Kenya(Strathmore University, 2013) Maina, Kenneth MuchiriThe trade receivables of a typical SME constitute 21%-35% of its assets. Trade receivables provide an opportune alternative from the more traditional borrowing methods that SMEs use to obtain financing. That alternative is factoring. Factoring is a financial service enabling enterprises to sell their accounts receivable to a factoring company in exchange for cash. This study explores the supply side of factoring by banks in Kenya by looking at the profiles of enterprises receiving factoring services and the criteria that banks consider in making the decision to factor receivables. The study establishes that only about a third of banks in Kenya are offering factoring services. The study also finds that factoring services are provided exclusively to SMEs. Using correlation, the study also determines that in arriving at the decision to factor accounts receivable, banks in Kenya consider the creditworthiness of the SME’s accounts receivable. Factoring as a financing method draws its security from the receivables of the enterprise and not the financial health of the enterprise itself. Given the growth of factoring in the world, Kenya through its financial intermediaries, government and other agents must exploit the opportunity that factoring provides to drive the rapid growth of SMEs.
- ItemThe influence of international market entry strategies on the performance of manufacturing multinationals in Kenya(Strathmore University, 2013) Gideon, Linah NdukuThe study was on the influence of international market entry strategies on the performance of manufacturing multinationals in Kenya. Mode of entry into an international market is the channel which organization that wants to operate in international markets employs to gain entry to a new international market. The choice for a particular entry mode is a critical determinant in the successful running of a foreign operation. Therefore, decisions of how to enter a foreign market can have a significant impact on the results. The research design used in this study was descriptive research design. There are 213 Multinational Corporations in Kenya. Out of the 213 Multinational Corporations, 108 firms are in the manufacturing sector and are located in Nairobi. The population of the study is therefore 108 firms. The sampling frame was retrieved from the online yellow pages. It is for this reason that the study considered 50% of the population. This yielded 54 firms. The study used a questionnaire as the preferred data collection tool. Descriptive statistics included frequencies and measures of central tendency mainly means and frequencies. Inferential statistics included regression modeling, t-test and Analysis of Variance (ANOVA). Results indicated that manufacturing multinationals used various international market strategies to venture into business. These strategies include licensing, whole owned subsidiaries, joint venture, exporting, direct investment and strategic alliances. Results further indicated that the firms used these market strategy entries to a large extent. Regression results indicated that market entry strategies had an influence on performance of the firm (profitability and market share). The study findings also indicated that there are various factors to consider behind the choice of a market entry strategy. These factors or considerations include resources available, company competence, competition in the market, size of the host country, availability of possible partnering firms with host country, host country requirements and state of firm development. The study concludes that manufacturing multinational firms used more than one market entry strategy to venture into business. This was probably to enhance the firm’s performance. It was also possible to conclude that the firms used licensing and direct investment to a very large extent and wholly owned subsidiaries, joint venture, franchising and strategic alliances to a large extent. It was possible to conclude that there are various factors that manufacturing multinational firms consider before choosing the market entry strategy to use. These factors are resources available, company competence, competition in the market, size of the host country, availability of possible partnering firms with host country, host country requirements and state of firm development. It was possible to conclude that all market entry strategies had a positive and significant relationship with performance of firms. The study recommended that the multinationals firms to carry out research on the market entry strategies before venturing into international market. This is to ensure they use the appropriate entry strategy to enhance the organization performance. The study also recommends that the management to evaluate the factors to consider when choosing an entry strategy thoroughly so as to make sure they know the market very well and that the management to evaluate the factors influencing the choice of market entry modes. This is to ensure that they choose the best mode.
- ItemThe relationship between safety audit effectiveness and client satisfaction : a case study of private schools in Embakasi Constituency, Nairobi, Kenya.(Strathmore University, 2013) Oyoo, Willis OdhiamboThe purpose of this paper was to establish if there exists a relationship between safety audit effectiveness and client satisfaction amongst private schools in Embakasi constituency in Nairobi. To address this objective, a cross sectional design approach was adopted whereby the various heads of the school safety programs were surveyed using research questionnaires. Safety audit effectiveness was established by key indicators of effectiveness as identified from related literature. The indicators studied were: Standard Setting, Feedback Mechanism and Behavior Modification. The study found a strong positive relationship between Standard setting and client satisfaction. Between feedback mechanism and client satisfaction the study found a weak positive relationship which was not significant. Behavior Modification and client satisfaction depicted a negative relationship. The study also established that half the schools had a good understanding of the school safety and procedures manual despite about 68% of the institutions indicating that the levels of emergency preparedness in the institutions were not enhanced by the safety audits. Primary data was obtained by using a questionnaire which was submitted to the various schools heads of safety programs within Embakasi Constituency. Embakasi constituency consist of 38 private secondary schools and is the most populous zone in Nairobi County. The National Institute of Health (2006) in its study on emergency call workload and population density concluded that the higher the population density, the higher the emergency call rate. Feedback derived was used to draw relationships between the safety audit effectiveness and client satisfaction. The research further made recommendations on areas based on it findings it felt the safety officers would improve to enhance satisfaction. Additionally, the research has made proposals for additional research into client satisfaction with safety audits. This paper contributes to the body of occupational health and safety program within Kenya which was enacted in 2007 with an objective of minimizing business and human losses to organizations arising from emergencies. The findings give incite to what could be a contributor to the rising levels of emergencies in schools despite having legislation in place.