Implementation of turnaround strategy at opportunity Kenya Limited
Muthusi, Boniface Mwanza
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This academic research aimed to answer the question: which turnaround strategies did Opportunity Kenya adopt and what challenges did they encounter in implementing them. This research was conducted through a case study where an interview guide with openended questions was used to collect in-depth information from the Senior Management at OKL. The research took off by identifying the main causes of business failure in organizations including Opportunity Kenya. The findings were that weak management and governance of institutions, changes in operating environment which leads to intense competition, economic factors such as inflation which leads to high cost of living, poor performance management, weak internal controls, poor spread of risk and turbulence in political environment are among the reasons why businesses fail or go in to decline. From the findings of the study, OKL adopted five key strategies in turning around the situation, these are; strengthening of management and governance (leadership), enhancement of supervision through regional / decentralized offices, refinement of product offering to match changing customer needs, review of business processes to increase efficiency and acquisition of other business in the same field to leverage on deficient areas. Further highlights the critical success factors that make implementation of turnaround strategies easier as; a simultaneous focus on leadership, communication, people management, embracing of good business processes, establishment of other supportive functions and budget allocation for the process. Challenges identified in the strategy implementation process include; resistance to change from stakeholders, failure to meet set milestones within desired time periods, exit of key players such as senior management in the implementation process, lack of inclusiveness and poor buy in due to bad experiences by customers and other stakeholders. From this study, we conclude that a consistent approach in managing change coupled with a clear and consistent communication will provide a very good environment for implementation of turnaround strategies. For implementation of turnaround strategies to be successful, this study concludes that there is need to adopt a combination strategy that does not only stabilize the business but also sets base for future growth and long-term sustainability.