MBA Theses and Dissertations (2015)

Permanent URI for this collection

http://hdl.handle.net/11071/4292

Browse

Recent Submissions

Now showing 1 - 5 of 28
  • Thumbnail Image
    Item
    Effect of outsourcing on performance of logistics industry in Kenya
    (Strathmore University, 2015) Kogoh, Zachary Brian Kipchirchir
    The research was undertaken to explore the extent of outsourcing of the logistics function within the logistics industry. The research included a study of the effect of order processing, warehousing, packaging and transport logistics outsourcing on the performance of the logistics in Kenya. The population of the study were logistics companies in Kenya. Taking logistics companies based in Nairobi to be representative of the rest of the country, the study employed random sampling to arrive at a sample of 96 companies. Data was collected by means of in-depth questionnaires with senior management staff representing the players in logistics industry. The response rate was 73%. The findings of the research demonstrated that the industry players outsourced order processing, warehousing, packaging and transport logistics albeit partially. Order processing, warehousing and transport logistics outsourcing were found to have a statistically positive effect on the performance of the logistics industry in Kenya.
  • Thumbnail Image
    Item
    Farmer factors for targeting in the certified maize seed market of Western and Coastal Kenya
    (Strathmore University, 2015) Githinji, Pauline Bilha Wairimu
    Agricultural input organizations at best group farmers on the basis of geography and yet customers, the farmers, are the final arbiters on the financial performance of the organization. This research investigated multiple characteristics of farmers for farmer factors that may be used for targeting in the certified maize seed market of Western and Coastal Kenya. The latent class finite mixture method of cluster analysis was used to model a survey sample data of 313 observations and, therefore, to first define the farmer groups or segments in the study market and then investigate for those farmer factors that would be influential in targeting social or extension initiatives and marketing strategies to the farmers. The study found that the study market is dominated by smallholder farmers at 98%, and that the farmers may be grouped into two distinct farmer groups, the empowered smallholder farmer and the challenged smallholder farmer, with a proportion of 85% and 15% respectively. The empowered farmer has the desired positive agronomic practices but is socioeconomically challenged, while the challenged farmer has poor or negative agronomic practices and is socioeconomically adverse. Socioeconomic status and gender continued to be significant factors in the smallholder dominated market but negative or resistant agronomic practices were found to have the strongest associations. Consequently, farmers may be addressed as belonging to one of either profiles, and the empowered farmer profile may be the focus for marketing strategies design while the challenged farmer profile may be the focus for social initiatives design. Additionally, seed recycling resistant behavior should be a key factor and in the context of other factors as well.
  • Thumbnail Image
    Item
    Evaluating employee turnover and the adoption of modern retention strategies in Kenyan insurance firms
    (Strathmore University, 2015) Kinyanjui, Njeri
    Employee turnover and its relationship to retention strategies employed by firms is a complex area of study. Many investigations have been published about employee turnover and job satisfaction however; there is a paucity of information in the literature about the traditional and modern employee retention strategies and their effect on employee turnover. The purpose of this study therefore was to evaluate employee turnover and the adoption of modern employee retention strategies in the Insurance industry with a view of recommending strategies to reduce employee turnover. The study used the descriptive design and the methodology was quantitative. A multi stage sampling technique was used to select a sample of the top five insurance companies in Kenya and the respondents from the selected firms. The main instrument of data collection was a questionnaire. The findings indicate that the employee turnover rate in the insurance firms was moderately high but there were efforts by the respective management to reduce this rate. Inadequate and mismatched employee pay package as well as few promotion opportunities was regarded as the greatest cause of employee turnover in the firms. The most common traditional retention strategy employed by the firms was salary increments and subsidized insurance premiums for the employees. The findings also indicated that most of the modern retention strategies were used to a less extent though the develop-deploy-connect seemed to be gaining traction in use by the firms. The highlighted recommendation was that the firms should seek to employ modern retention strategies as they have been proven to be effective in developing economies.
  • Thumbnail Image
    Item
    An evaluation of the role of information sharing in mitigating non-performing loans in Kenya’s banking sector
    (Strathmore University, 2015) Maina, Naomi Wanjiku
    This research was an evaluation of the role of information sharing in mitigating non-performing loans in Kenya’s banking sector. Guided by five research objectives, the study established quarterly distribution trend of the non-performing loans (NPL) from 2004-2013, identified factors accounting for NPL, examined the relationships between the key factors, evaluated the effect of information sharing on NPL and proposed strategies on improving information sharing towards mitigating NPL for Kenya’s banking sector. A census of 44 banks and 2 credit reference bureaus (CRBs) was undertaken using self-administered questionnaires and interviews, respectively. Descriptive statistics, factor and regression analysis were employed on the primary and secondary data collected. Limitations to the study included denied access by Central Bank of Kenya (CBK) and some commercial banks resulting in a 63% response rate. The study confirmed that information sharing practice is only one among other factors that account for NPL. The behaviour of the NPL trend in 2004-2013 was observed as affected directly or indirectly by bank lending rates, real GDP, annual overall inflation and specific provision. Three factors account for NPL behaviour – regulation, macroeconomic and bank-specific factors. In a multiple regression model bank-specific factors - bank lending rates and specific provision- have significance; macroeconomic factor overall annual inflation showed significance; real GDP showed non significance. As a bank specific factor, information sharing role is critical in mitigating NPL as it corrects the moral hazard problem of information asymmetry. All banks confirmed submitting and receiving ‘full file’ credit information to either of the CRBs. Negative credit information received from CRBs assists banks’ decision to ration credit, demand collateral and reject loan application; while positive information guides banks’ as one of several other assessment criteria required before loan approval. Strategies to improve the mechanism include expansion of borrower data captured by CRBs, CBK to promote innovation in information sharing products, quality and reliability of the data. The peculiar and contradicting behaviour of macroeconomic factors – overall annual inflation and real GDP – in affecting levels of NPL in a multiple regression model is a suggested area of further study.
  • Thumbnail Image
    Item
    The effects of working capital management on profitability of public listed energy companies in Kenya
    (Strathmore University, 2015) Musau, Januaris Wangoma
    The Kenyan energy sector is highly regulated by the government such that, among other things, the government sets all prices of energy products. This challenges attaining profits by only focusing on the external factors, thus, the need for internal measures like working capital management. The purpose of this study was to assess the effect of working capital management on the profitability of listed energy firms in Kenya. To achieve this purpose the study investigated the role of inventory management on the profitability; how cash conversion cycle affects profitability; the effect of account receivable days on profitability; and effect of account payable days on profitability of public listed energy companies in Kenya. An explorative design was used to conduct the study. Both secondary data and primary data were collected. In primary data, the researcher targeted senior managers concerned with working capital management, and employees from the accounts/finance department who interact with the variables of working capital. Stratified random sampling method was used to arrive to a sample size of 36 who were interviewed using a questionnaire. Secondary data was collected from financial statements of the four target companies for 7years (2006-2013). The study used descriptive analysis and random effects regression to analyze data using STATA 12. Tables and graphs were used in presentation. The findings show that listed energy companies take 48.63 days to sell their inventory and they sell it 9.353 times a year. The companies have a cash conversion cycle of 1.1333 and take long to pay their creditors than they take to collect payment from their debtors. Inventory turnover ratio is not used by these companies to determine profits (P=0.464). The companies implement shorter cash conversion cycles to enhance their profits (P=0.027). Accounts receivable days has no effect on the profits of listed energy firms (P=0.126) while the companies take long to pay their creditors to enhance their profits (P=0.031). The study concludes that listed energy companies do not use inventory turnover ratio and accounts receivable days as determinants of net profit-related decisions and that managers of these companies reduce the number of days for converting assets into cash as well as take long to pay their creditors to enhance profits. The study recommends that managers of listed energy companies aspire to eliminate the time it takes to convert non-cash assets into cash by, for instance, introducing services that allow customers to pay in advance-for instance using pre-paid cards and enhancing efficiency in billing. The companies should develop better relationships with their suppliers which will enable them make favourable agreements concerning the accounts payable and accounts receivable days.