INFLUENCE OF TURNAROUND STRATEGIES ON ORGANIZATIONAL PERFORMANCE: A CASE OF COAST DEVELOPMENT AUTHORITY, KENYA
Abstract
This study was aimed to determine the influence of turnaround strategies on performance of Coast Development Authority, Kenya. Specifically the study sought to examine the influence of retrenchment strategy, liquidation strategy, divestment strategy and repositioning strategy on organizational performance of Coast Development Authority in Kenya. A case study research design was adopted for this study. The target population of the study comprised of 35 senior staff directly involved in strategic decisions of the firm. Census was used in this study since the target population was small. For this study, data was collected using structured questionnaires based on the research questions. Data analysis was done with the help of Statistical Package for Social Science (SPSS) version 23. Descriptive statistics included frequencies distribution, and percentages and mean, while inferential statistical analysis used included correlations, and multiple regression analysis. From the study findings the results showed that there was a moderately strong positive significant correlation between retrenchment strategy and performance. Further the study postulated that there was positively insignificant influence of liquidation strategy on performance. On divestment strategy results proved that there was positively insignificant influence of divestment strategy on performance. Finally the results confirmed that there existed a positively significant influence of repositioning strategy on performance. The study concluded that retrenchment strategy enabled the institution to shift organizational structure from what it was now to what it has to be in order to sustain competitive edge and satisfy customers’ needs. The study further concluded that institute had divested in non-core assets. The study recommended that the Coast Development Authority management should retrench non-core assets and staff so as to improve its performance.
Key terms: Divestment, Liquidation, Repositioning, Retrenchment, Strategy, Turnaround strategy
CITATION: Muzny, A. M., & Simba, F. (2019). Influence of turnaround strategies on organizational performance: A case of coast development authority, Kenya. The Strategic Journal of Business & Change Management, 6 (2), 225 – 243.
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DOI: http://dx.doi.org/10.61426/sjbcm.v6i2.1109
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