TURNAROUND STRATEGIES AND PERFORMANCE OF SAVINGS AND CREDIT COOPERATIVE SOCIETIES IN KIRINYAGA COUNTY, KENYA
Abstract
This research study determined the relationship of turnaround strategies and the performance of Savings and Credit Cooperative Societies in Kirinyaga County, Kenya. The study adopted the descriptive research design where a target population of all 128 SACCOs in Kirinyaga County Kenya was used. Out of these a sample size of 117 SACCOSs was used. Stratified random sampling was used. The data was obtained by use of questionnaires. Pilot test was conducted to ensure content validity while Cronbach alpha was used to test the instrument reliability. The data results was sorted by the use of descriptive analysis, mean, multiple regression and correlation coefficient. The study findings were presented in the form of tables, charts, graphs, percentages and frequencies. The study established that cost reduction strategies, revenue generation strategies, managerial reorganization strategies and culture change strategies had a positive significant relationship with the performance of Savings and Credit Cooperative Societies in Kirinyaga County, Kenya. The study concluded that cost reduction causes a definite increase in margins. The saving in cost may also be passed to consumers in the form of lower prices or more quantity in the same price. Increasing revenues are a sign of good financial health of a business. When an organization eliminates layers of management during its restructuring, communication and decision-making often improve. The organizational culture change brings about a better work environment. The right culture improves employees’ day-to-day interactions and helps create a smoother, more streamlined workplace. The study recommended that the organization should outsource non-core activities, such as payroll, call handling, and transaction processing; aggressively control of overheads and use their bargaining power to negotiate better pricing with suppliers. The organization should define its revenue goals in each stage of its business operations. The organization should focus on upselling or cross-selling current customers. An organization reorganization process must be undertaken with sensitivity, strategy and foresight. This can be done by finding out the reason why the upper management wants to reorganize in the first place. The organization should define desired values and behaviors by articulating how those would translate into actionable behaviors at all levels.
Key Words: Cost Reduction, Revenue-Generating, Managerial Reorganization, Culture Change
CITATION: Munene, N. I., & Kiiru, D. M. (2022). Turnaround strategies and performance of savings and credit cooperative societies in Kirinyaga County, Kenya. The Strategic Journal of Business & Change Management, 9 (3), 378 -396.
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DOI: http://dx.doi.org/10.61426/sjbcm.v9i3.2377
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