An Assessment of the factors affecting the achievement of turnaround strategies at Kenya Airways
Date
2023
Authors
Wanyama, E.
Journal Title
Journal ISSN
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Publisher
Strathmore University
Abstract
By December 2019, the turnaround strategy at Kenya Airways had shown improved revenue. There was an increase in number of revenue passengers and new routes were opened to Geneva and Rome with connections to Malindi. Just as the turnaround strategy was gaining success, the emergence of the Covid-19 pandemic resulted in suspension of flights and government lockdowns which severely impacted the achievement of the turnaround strategy. These factors forced Kenya Airways to implement significant cost-cutting measures. The purpose of this study was to assess the factors that affect the achievement of turnaround strategies in airlines, with a focus on Kenya Airways. The specific objectives were; to examine the effect of strategic alliances, competitive strategies, leadership and Covid-19 pandemic on the achievement of turnaround strategies at Kenya Airways. The study was grounded on the strategic turnaround theory. Descriptive research design was adopted for this study and the researcher probed for information from employees using survey methodology. The unit of observation was managers at Kenya Airways from the following departments: Strategy and Finance department, Human Resources, Technical Operations, Ground Services and Flight Operations. The unit of analysis was 155 employees drawn from senior level, middle level and lower level of management at Kenya Airways. The sample size for the study was 112 employees drawn from the 4 departments. Primary data was collected using a structured questionnaire. Simple random method was applied on respondents earmarked for participation in the study then descriptive and inferential statistics were finally used to analyze and interpret the data. The researcher ensured that the study complies with research quality standards including validity, objectivity and reliability. The study was able to obtain 78% response rate which is adequate when conducting quantitative analysis. Correlation tests showed strategic alliances, competitive strategies and leadership have a positive effect on competitiveness and profitability of Kenya Airways. The study concluded that achievement of turnaround strategies within Kenya Airways is positively related to the execution of strategic alliances, competitive strategies, leadership and Covid-19. Independently the research concluded that strategic alliances, competitive strategies and leadership do have a significant positive effect on achievement of turnaround strategies. The research further concluded that Covid-19 had a negative and insignificant effect on the achievement of turnaround strategies at Kenya Airways. The research recommended that the airline should cooperate more with other major airlines globally that will help in enhancing the diversification of the services offered by the airline. The study recommends that management should consider more hybrid strategies that are more practical when operating in a fluid environment. This will help in avoiding any corrosive effects to the profitability and competitiveness of the airline. The study also recommends that management should implement better recruitment and retention of a highly qualified and diversified workforce which will enhance the effective execution of strategies which can lead to better performance.
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Citation
Wanyama, E. (2023). An Assessment of the factors affecting the achievement of turnaround strategies at Kenya Airways [Strathmore University]. http://hdl.handle.net/11071/13456