| dc.description.abstract | Parastatals are institutions owned by the Government through its Ministries and are more business oriented as compared to mainstream Ministries. The study sought to establish the Turnaround strategies adopted by New Kenya Cooperative Creameries (New KCC) Ltd and the situational factors that were cause, hindered and helped the turnaround process.
The study was conducted using a case Study research design. The researcher conducted in-depth interviews with New KCC Ltd Heads of Departments who were and are involved in the turnaround process. Information was also obtained from the company’s records, which were useful in the compilation of the study report.
The study identified that to a large extent the company adopted Turnaround Strategies by pursuing two distinctive strategies namely decline stemming that reverse the decline and recovery strategies that yield a defensible competitive position to the firm. In the decline stemming the company instituted corporate avenues like change ownership, financial controls, and improving the processing capacity which reversed the downward trend. Next they instituted measures like quality certifications, putting its employees on performance contracts, forming partnership programs with stakeholders, indulging in Corporate Social Responsibility (CSR) activities and embracing the latest technology such as Enterprise Resource Planning (ERP) that has and will help the company to be in a defensible competitive position to fight off competition.
From the interviews conducted, it was identified that the situational factors played a vital role in the turnaround process. The downfall of the company caused a downfall in the Dairy Sub-sector and therefore all stakeholders were motivated to revive the company.
The results of this study can be used as a point of reference to other parastatals and other public sector organizations that are undergoing or are likely to undergo similar turnaround process. For the academicians and other researchers wishing to carry out further research, the empirical information will contribute to existing literature in the field of strategic management. | en |
