| dc.description.abstract | A successful turnaround is a complex procedure that requires a strong management team
and sound business core. The stage of decline of a business will determine the type of
action that must be taken to accomplish the turnaround. Turnaround is a sustained
positive change in the performance of a business to obtain a desired result, it is the
process by which a business with inadequate performance is analyzed and changed to
achieve a desired result. In a turnaround, analysis and action is simultaneous. The
contemporary business environment is increasingly becoming competitive due to changes
in the external environment characterized by risks and uncertainties. Turnaround
strategies are seen as essential components of managing, stabilizing, funding and fixing
an underperforming or distressed organization. These strategies provide the basic
direction for actions and forms a basis for coordinated efforts directed towards achieving
long-term business objectives. The study reviewed Turnaround Strategy and Performance
of Kenya Commercial Bank. The study employed a case study research design. Data was
collected using an interview gui65de which was administered to bank managers of Kenya
Commercial Bank. Qualitative data collected was analyzed using content analysis
technique. This enabled the researcher to make general statements in terms of the several
attributes and conceptualization of the study. The study established that turnaround
situation is one where a company suffers declining economic performance for an
extended period of time, such that the performance level is so low that the survival of the
company is threatened unless serious efforts are made to improve its performance.
Turnaround strategy emphasizes the improvement of operational efficiency and is
probably most appropriate when a corporation‟s problems are pervasive but not yet
critical. They stand on the belief that the market cycle doesn‟t describe an inevitable
course of growth followed by decline. The bank effectively manages its operating costs
and has more room to maneuver during the current credit crisis. This is particularly
important especially when it is struggling to rebuild capital positions damaged by the
crisis. The study concludes that turnaround strategy has a positive effect on the
performance of the Kenya Commercial Bank. The bank manages to halt the decline,
return to profitability and growth. The bank has continually grown and has a successful
listing in the recent years which has enabled it to increase its capital base. The study
recommends that for turnaround to be successful there is need to pursue a strategy at any
given time. Whenever a firm is faced by a decline and it desires to attempt turnaround it
should consider replacing the current management and hire an experienced team to steer
the turnaround process. The study implies that policy makers should obtain knowledge of
banking sector dynamics and the appropriate turnaround strategies to enhance economic
performance and therefore obtain guidance. | en_US |
