Abstract: This was a study on the relationship between turnaround strategies and the performance of state owned Sugar Companies in Kenya. Two specific objectives formed the study and these were: to assess the relationship between cost reduction strategies and diversification strategies respectively on the performance of state owned sugar companies in Kenya. The total target population was 406 managers cutting across all the management levels in all the selected companies from which a sample of 197 respondents were randomly selected after having employed the stratified and random sampling techniques. Descriptive Survey research design was employed for the study with closed ended questionnaires as data collection instruments. One questionnaire was administered to each sampled respondent. The strata earmarked for questionnaires were the top management, middle level management and the operational level management as they are all involved in organization turnaround process. Data analysis and interpretation was done quantitatively based on descriptive statistics such as measures of location (mean) and measures of dispersion (standard error mean) as well as inferential statistics mainly, the bivariate Pearson correlation, multi-linear regressions and the Analysis of Variance (ANOVA). The hypotheses was tested at 95 percent confidence level (level of significance, α = 0.05). Modernization strategies presented insignificant results to organizational performance though the correlation studies showed moderate positive relationship to organizational performance for all the two independent variables. Both cost cutting and diversification strategies presented insignificant results to organizational performance though the correlation studies showed moderate positive relationship to organizational performance for all the two independent variables. The study concluded with an emphasis on human resource restructuring as the key indicator for successful turnaround process. Key recommendations included the realignments of cost cutting strategies to cut on the costs as a cost reduction strategy.
Keywords: turnaround strategies, organizational performance, cost reduction, diversification.
Title: Relationship between Turnaround Strategies and Organizational Performance: A Study of the State Owned Sugar Companies in Kenya
Author: Joseph Ogwobo Wandera, Prof Maurice M. Sakwa, Dr. Fred Mwirigi Mugambi
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
Research Publish Journals
