Challenges Of Implementation Of Turn around strategy At The New Kenya Cooperative Creameries (NKCC) In Kenya
During the 21st century, organizations will continue to experience discontinuous and abrupt change. Successful organizations will be those that implement turnaround strategies successfully. The New KCC is one of these institutions that is yet to effectively manage challenges facing the implementation of its turnaround strategy. The firm has failed to take off since its revival in June 2003 and has continued to depend on government grants and loans. This study therefore sought to determine the challenges faced in implementation of turnaround strategy at New Kenya Cooperative Creameries Ltd (NKCC). The study adopted a case study research design. The case study was chosen because it gave an in-depth investigation of the key information on the implementation of turnaround strategy at New KCC. The researcher conducted individual in-depth interviews that were guided by unstructured and open ended questions for the key informants. The data was analyzed using content analysis technique because it was qualitative in nature. Data was summarized and presented under thematic areas in response to the objectives. The study found out that the New KCC Management adopted a number of strategies in order to turnaround the institution. These strategies included; rehabilitation of machines and requisite infrastructure, operationalization of the institution, drawing up of a management structure and manning levels in line with the business and functions of the corporation, provision of funds by the government, recruitment of new staff, cost saving/cost management measures. The study concluded that challenges faced in the implementation of turnaround strategy at New KCC were ineffective leadership, frequent breakdown of the machinery, cash flow problems, negative culture/resistance to change, limited funds to undertake adequate marketing, poor planning especially on milk processing. The study recommends that the government should put in place reforms that will enable enhancement of infrastructure e.g. distribution of electricity and construction of roads. It should also give the management of NKCC autonomy in leadership and decision making in the implementation ofturnaround strategies.