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Impact of Social Media on Consumer's Decision Making Process among the Youth in Nairobi
No full textA Project Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Masters in Business Administration (MBA)This project sought to assess the impact of social media on the decision making process among the youth in Nairobi. The study’s general objective was to establish the impact of social media on consumer’s decision making process among the youth in Nairobi. The study was guided by the following specific objectives: to find out how social media influences the pre-purchase stage in buyer’s decision process, to determine how social media influences the purchase stage in buyer’s decision process, and to determine how social media influences the post purchase stage in buyer’s decision process.
A descriptive research design was used for the study. The total population for this study was 1,713,437 youths in Nairobi County aged 18-35 years. The study was undertaken using random sampling technique while the Yamane sampling formula was adopted to establish a sample size of 400 out of which 389 responded to the questionnaires. A quantitative approach was adopted to collect data using questionnaires that were administered physically and collected. The data was interpreted with use of the Statistical Package for Social Sciences (SPSS). The results and findings of the study were represented in the form of tables and figures.
The results of the findings indicated that the social media has an impact on the respondent’s pre-purchase stage; the respondents agreed that social media provides them with external stimuli to recognize a need for something before purchasing, it does trigger their need to purchase through advertisements it displays, provides them with ideas or solutions to address what to buy, where to buy, why to buy through interaction with peers/friends, influences them to try new brands/products/services based on the reviews by peers/friends, and provides enhanced easy information search about different products and services.
Findings of the study also established that during purchase stage, social media is more reliable if one has uncertainties regarding a purchase, it contributes towards changing initial purchase preference after attaining relevant information available on social media, social media platforms contribute towards one’s perception of quality of the products and services they want to purchase based on their updated information on the same platforms, and that social media motivates one’s direction towards a product based on comments from friends/family.
The findings of the research also established that post-purchase behavior is influenced by social media since the study’s results revealed that feedbacks on social media affect future purchase, that information regarding product/service has a higher credibility on social media than on other media channels and that social media does enable them to convey their satisfaction and dissatisfaction directly to the service providers and manufacturers.
This study concluded that social media does encourage one to recognize a need for something before buying it, information search in social media is straightforward and easy compared to other mass media platforms, and it is more reliable if one has doubts regarding a purchase. Unpleasant advertisements on social media makes one have a terrible attitude towards a product, perception about product/service price, quality and risks depends on the brand status on social media. Feedbacks and comments about a product/service on social media by friends and family influence future purchase.
The recommendations of the study are that organizations should make sure that they use social media platforms that are interactive and popular among the youth such as Instagram, WhatsApp, Facebook and YouTube to freely interact with them and keep track of their product experiences. Pleasant advertisements on social media should be increased so as consumers develop a positive attitude towards products/services. Evaluations of feedbacks on social media should be given top priority as this is the another way for consumers to convey their satisfaction and dissatisfaction of a product/service
Revenue Generation and Its Effect On The Profitability of Football Clubs
No full textA Reserach Project Submitted To The Chandaria School of Business In Partial Fulfilment of The Requirement for The Degree of Master IN Business Administrtaion (MBA)The main purpose of the study was to examine the most prominent ways football clubs from around the world make revenues and if football clubs are viable sources of profits. The study also set out to investigate why some clubs have higher revenues, profits and turnovers than others from other confederations and regions from around the world. The study had three main objectives; i) to examine the most prominent ways football clubs earn revenues, ii) determine if football clubs are profitable organizations and iii) examine the extent to which supporters play a direct role in determining revenue and profit levels of their clubs.
The study used a descriptive research design with the population in question being the entire 16 clubs in the Kenya Premier League while the sample size was made up of the ten clubs in the division that are based in or around Nairobi. A Likert scale form of structured questionnaire was used to collect data from respondents. Data analysis was carried out with the help of SPSS whereby the mean and standard deviations were found and, along with ANOVA analysis, were used to determine the difference between variables. Data was presented in the form of tables and charts (bar and pie).
To analyze the most prominent channels through which football clubs make their revenues, the study looked at the three most important ones; commercials, broadcasting and matchday receipts. The study found that in Kenya, the major source of revenue for KPL clubs was grants and sponsorships. It also found that while commercialization was the general major generator of revenue around the world, it was not quite the case in Kenya. In terms of the profitability of clubs in the country, the club found that expenses such as wages and recruiting young talent constituted the largest portion of expenses for clubs in their attempt to generate profit. Just under half of the clubs realized profit. As far as supporters direct contribution to revenue generation is concerned, it was found that membership subscribers formed the most direct contributions to clubs from their own fans.
The study concluded that over the past five seasons, grants and sponsorships (both in tournaments and league sponsors) formed the highest sources of revenue and that this was over 50% of the overall revenue for most clubs. Matchday ticket sales was also one of the top generators of revenue. However, there was still someway to go in terms of continental tournament participation generated revenue as well as TV rights and kit sponsors. In terms of expenses, wages and youth recruitment and development accounted for over 60% of the expenditure of clubs in general while the expenses that least contributed to overall expenditure were CSR and legal feels.
The study recommended that clubs in Kenya should push the Football Kenya Federation (FKF) to strike a deal with more sponsors and improve the dynamics surround Kenyan football such as better stadium infrastructure. Clubs were also recommended to widen their nation wide promotion by expanding their social media presence as this allows them attract more youth and getting them to focus on the Kenyan game more instead of just domestic leagues and competitions of other nations, mainly from Europe. Clubs were also advised to engage in more CSR activities in their communities and increase membership programs for fans as well as possibly setting up fan groups as stakeholders allowing more voice and direct contribution from supporters
Influence of Digital Communication Platforms on Competitive Advantage: A Case Study of Kenya Revenue Authority
No full textA Research Project Submitted to the Chandaria School of Business in Partial Fulfilment of the Requirement for the Degree of Masters in Business Administration (MBA)The objective of the study was to determine the influence of digital platforms on competitive advantage with a focus on Kenya Revenue Authority (KRA). This study aimed at determining the influence of social media on competitive advantage, assess the influence of mobile phone platforms on competitive advantage and examine the influence of organizational website on competitive advantage of KRA.
The study adopted a descriptive correlation research method design to measure the influence of digital communication platforms on competitive advantage with a focus on Kenya Revenue Authority. The descriptive research method was the best for this study because it focused on the relationship between digital communication platforms and competitive advantage of KRA. The study used questionnaires to get data from respondents. The study focused on 40 employees at KRA head office in Nairobi. The study used census approach on the targeted population. The study used inferential and descriptive statistics adopted in analysis of data and presentation. Statistical Package for Social Sciences (SPSS) was used to analyse the data for this research. Tables and figures were used in data presentation.
The study determined the influence of social media on competitive advantage. The study found that social media activities at Kenya Revenue Authority are aligned with other forms of traditional advertising and this has helped the organization address misconceptions from customers. The study also revealed how mobile phone platforms influence competitive advantage of Kenya Revenue Authority. The study found that KRA uses mobile devices for communication networks in business activities for Customer Relation Management (CRM). The study examined the effect of organizational website on competitive advantage of Kenya Revenue Authority. The study reveals that through the use of website, KRA has improved on its revenue collection through the expansion of their reach.
The study concludes that social media activities at KRA are aligned with other forms of traditional advertising. This has helped KRA address misconceptions and errors through dialogue with customers. The E-business services have enabled KRA to increase its revenue collection. Mobile Commerce (m-Commerce) has improved commercial activities at KRA hence the use of M-commerce has provided a modern image to the organization. The study also concludes that through the use of website, KRA has improved on its revenue collection by expanding their reach. The website has changed the balance of power in relationships with the KRA and its customers.
The study recommends the management of Kenya Revenue Authority and other organizations to align their social media activities with other forms of traditional marketing. The organizations should enhance adoption of pull marketing strategy to attract contends through their respective customers’ mobile devices. The study also recommends the use website because it was found to improve on revenue collection and employ promotion strategies to provide a direct link with customers to enter into dialogue with then about their services
The Determinants of Profitability of Commercial Banks: A Case of Kenyan Banks.
No full textA Project Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Masters in Business Administration (MBA).This study assesses the factors that influence bank profitability in Kenya. The factors that influence banks profitability are numerous, hence the classification of the factors into 3 generic categories; bank-specific factors, industry-specific factors and macro-economic factors. This study has three objectives; to identify the effect of bank-specific factors on profitability level of commercial banks in Kenya, to examine the effect of industry-specific factors on profitability level of commercial banks in Kenya, and to determine the effect of macro-economic factors on profitability level of commercial banks in Kenya.
This study uses secondary research approach due to the availability of secondary data as well as the projected challenges associated with sourcing primary data from commercial banks in Kenya. Additionally, a census approach is recommended due to the relatively small number of cases as well as the relatively high diversity of the cases. The study has a population of 43 commercial banks, although one bank (Charterhouse Bank) was under receivership during the period of the study hence its exclusion from the population. Data analysis has been conducted using the SPSS (Statistical Package for Social Sciences), which is an acceptable software application commonly used in the analysis of quantitative data. Presentation of data has been done in the format of tables and figures. Descriptive statistics and inferential statistics have been used in this study.
The study finds that bank specific factors present mixed results although in each case, the correlations are significant. That is, bank capitalization has a negative correlation with profitability, while bank size has a positive correlation with profitability. Industry specific factors have a significant negative correlation with bank profitability. That is, both industry concentration and market growth have a significant negative correlation with bank profitability. Macro-economic factors in both instances have significant negative correlation with bank profitability. That is, both GDP (Gross Domestic Product) and interest rates have a significant negative correlation with bank profitability.
Bank specific factors are internal factors that are within the control of internal stakeholders, i.e. management and board of directors. Therefore, these factors can be monitored, controlled, and directed to achieve the desired results, i.e. profitability. Hence, a bank’s internal stakeholders should ensure minimal bank capitalization as well as maximize bank size (total net assets) to achieve maximum bank profitability. The industry regulator can encourage new entrants or growth by minimizing bank capitalization requirements, or increase barrier to entry (promote consolidation) by increasing bank capitalization requirements. Industry specific factors are beyond the direct control of internal stakeholders (management and board of directors, but are a result of the dynamics and structure of the industry players.
This study recommends that, to achieve bank profitability, monopolistic tendencies should be discouraged through specific policy and decisions to encourage competitive behavior. Additionally, banks should limit customer deposit levels to the bare minimum to maximize profitability. The industry regulator can use customer deposit ratios/requirements to encourage or discourage bank profitability thereby limit new entrants (encourage consolidation) through increased customer deposit requirements or encourage new entrants by reducing the customer deposit requirements. Macro-economic factors are also external environmental factors, over which internal stakeholders (management and board of directors) have no control. This study recommends that banks should puts in place monitoring mechanisms and contingency plans for macro-economic factors so that management response to their movements can be proactive – strategic response. Increasing GDP should prompt banks to put in place robust pricing strategy, focus on volume business, improved operational efficiency. Increasing interest rates should prompt bank management to broaden and deepen income streams (except income from loans and advances), focus on non-interest income (except investment in government securities)
Effects of Strategy Implementation on the Performance of Digital Media Industry in Kenya
No full textJournal ArticleThe increasing competition of digital media space and the high demand of real time news content has completely changed the media industry as we traditionally knew it. The change has brought about new a challenge which has resulted in formulation and implementation of digital media strategies to help cope with these challenges. One Key area that the media houses have used to rate the effects if these strategies on performance of their digital platform is analyzing their platforms financial performance in terms of sales level. This formed the basis of this study with the purpose of the study being to determine the effect of digital strategy implementation on organizational performance looking at the digital mediaindustry also known as online news platforms. The study is guided by the following specific objectives; to determine the extent to which innovative digital ad tools affects digital media sales, to establish how online market share affects sales volume and to determine how internal processes affects sales turnover.
The study was limited to twenty (20) online publishers all located within Nairobi, Kenya. The study was conducted for a period of 3 weeks beginning 27th March 2017 to 17th April 2017. Confidentiality of the respondents’ questionnaire was maintained for accuracy by ensuring only the researcher and the assistant have access to the data. The study adopted descriptive research design. The population of interest will consist of 140
employees of online media companies. A sample size of 104 was selected using stratified sampling method. Data was collected using structured questionnaires. The data was analyzed using the Statistical Package for Social Sciences (SPSS) into frequency distribution and percentages. The data was then presented using tables and charts.
The study established that innovation is key in boosting sales volume for online media companies. The study revealed that online media companies ensure that their platforms are fully optimized and accessible on all internet enabled devices-desktops, tablets & smartphones, this enhances sales level as their platform can be viewed across all devices. The ad tools apart from acting as display tools also served other functions such as tracking consumer behavior, measuring conversion rates, measuring sales volume as well as help to project future sales. The study also revealed that market opportunity and past buyer behavior should be the guiding factor while coming up with innovative ad tools ads. As opposed to benchmarking competitors.
The study established that large volume of traffic on a website is key. The traffic on the webpage is the market share. Much traffic on an online platform means that advertisers want to advertise on the page as they are assured of views. The study is able to establish that most online news platform leverage on their social media pages to drive traffic to their actual news webpage as indicated by 72.2 % of the respondents. The study
also reveals that partnering with the right partners helps increase the market share as indicated by 61.1% of the respondent as the partners drive member traffic to the webpage as well as place ad on the page which generates traffic for the company. The period of time a user spends on a webpage –Bounce rate- was also revealed to be key as advertisers are looking to advertise on a site with low bounce rate. Finally, the research was able to establish that content is key in determining the market share as indicated by 60% of the respondents as the right content will keep the reader
coming back.
The study established that internal processes determine whether or not a company is successful. The study reveals that it is a company’s resources and capabilities that ensure either directly or indirectly that the sales targets are achieved. The various systems in place should always ensure customer satisfaction as indicated by 78% of the respondents, employee motivation as indicated by 95% of the respondents, quality assurance as indicated by 74% of the respondents, asset utilization as indicated by 93% of the respondents and finally structures and policies should be in place to ensure the above mentioned are well facilitated, this will lead to productivity which can be directly or indirectly felt through sales volume.
The study concludes that strategy implementation process is important on the performance of digital media in Kenya as many individuals are relying on online news platform to presents them with real time news article this which has been made possible by the availability in internet. Also, online media companies are heavily relying on technology thus a great need to implement the digital strategy and also a lot of opportunities have cropped up with the emergent of this new.
The study recommends utmost flexibility in innovation adoption for the media industry as a whole with the audiences need as the reason for innovation as that’s where opportunity lies. Encouraging Creativity is also recommended as a key component in the innovation process for the effect of innovative digital ad tool to online market share research objective. The study also recommends, well thought strategies to be put in place to ensure increase in market share e.g. production of unique, quality content, increased online presence through ways like sponsored ads and Partnerships for the effect of online market share on digital media sales objective. And finally, the study recommends day to day monitoring, evaluation of internal functions and resources to ensure efficiency for the effect of internal processes in digital media sales objective. For further research, the researcher recommends application of the same research objectives to determine the effects of strategy implementation on the performance of the banking industry in Kenya as it is another industry that has been greatly affected by adoption of the technology
The Effect of the Balanced Scorecard on Organizational Performance in the Public Sector in Kenya: A Case of Kenya Bureau of Standards
No full textA Research Project Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Master of Business Administration (MBA)The study was carried out at Kenya Bureau of Standards (KEBS), which is a state corporation situated in the Southern part of Nairobi County on Popo road off Mombasa road in South C. The study used a cross sectional descriptive design. From a total population of 700, a sample of 250 250 was the sample selected using proportionate stratified random sampling method. Data collection was done using a self-administered questionnaire. Informed consent was sought before the questionnaire was administered. The questionnaire was first pre-tested in another government organization, the Kenya power Company where a sample of 20 was used to validate the questionnaire. Data analysis was done using the IBM SPSS® version 23. Presentation of the results from the analysis was done using tables and bar charts. Bi-variate analysis and Pearson’s product-moment correlation co-efficient (r) were used to establish the relationship between dependent variable, performance and the independent variables. Each employee was assigned an employee motivation score generated based on their responses to the questionnaire.
The findings of this study indicated that the four factors under study namely; finance, internal business perspective, innovation and customer perspective; do have an effect on the performance of the organization and on the overall there was good organizational performance at KEBs despite the lack of profitability. On the financial perspective, the study revealed that there was good use of financial resources which promotes organizational performance. This was noted by the fact that there was very good system of financial reporting. Good use of financial resources (β = 0.45, p = 0.04) significantly predicted higher employee perception of organizational performance as shown in the multivariate analysis.
However, the organization was found not to be making any profits. The correlation of between good use of resources and profitability was -0.019 showing that it did not affect the company profitability. The reason for lack of profitability was due to a non-effective cost minimization strategy. The company was not able to meet its financial obligations and this kept it constantly seeking other avenues of revenue. From the study of the internal perspective, it is noted that KEBS provided high quality services to clients not only locally but worldwide and this had promoted organizational performance. Being able to provide good quality services (β = 0.36, p = 0.02) significantly predicted higher employee perception of organizational. On the aspect of employee and innovation and learning perspective, the study revealed that, the organization accorded employees opportunities for professional development, and the management took the initiative to encourage employees to pursue further studies. Opportunities for professional development (β = 0.43, p = 0.001) and better remuneration than similar organizations (β = 0.29, p = 0.01) significantly predicted higher employee perception of organizational performance. The study revealed on the customer perspective that none of the customer perspective variables were related to organizational performance at KEBS. However, the organization was well aware of its customers that included, the employees, the shareholders, external customers covering clients and prospective customers and there was the general public and the government.
In conclusion, good financial reporting; good use of finances leads to shareholder satisfaction and it also impacts positively on the employee perception of the organization; which promotes organizational performance on the overall. Lack of profit is not an impediment to an organization’s performance, as long as the organization seeks new ways to raise revenue through innovation that will enable it to meet its financial obligations. Further, a strong strategic plan is imperative to businesses as it gives guidance and needed focus. A learning organization is a performing organization. This is due to the fact that in learning, skills and new competences are acquired that enhance the performance of employees. Key to this aspect however, was the fact that, despite employees being willing to go acquire more skills, top management have to believe in it and support it
Relationship between Performance Management Practices and Employee Engagement: A Case Study of Safaricom Limited
No full textA Research Project Report Submitted to the Chandaria School of Business in Partial Fulfilment of the Requirement for the Degree of Masters in Business Administration (MBA)The general objective of the study was to determine the relationship between performance management practices and employee engagement with a focus on Safaricom Limited. The study was guided by the following research questions: How does participative management practice affect employee engagement? How does reward and recognition influence employee engagement? And what is the effect of training on employee engagement at Safaricom Limited?
This study used the descriptive research design. The design was suitable for this study
because the factors are quantitative in nature. The study adopted a quantitative approach to analyze the relationship between performance management practices and employee
engagement. The dependent variables included participative management practices, reward and recognition and employee training, and the implications on employee engagement as the independent variable. The target population comprised of 86 Safaricom employees in Safaricom Care Center, Nairobi. Stratified sampling was used to divide the population into two strata. The demographic profiles of the respondents were analyzed using percentages and frequencies. Descriptive statistics was used to establish the mean, reliability and validity of the data. Additionally, inferential statistics was used to test for the relationship between the independent and dependent variables using correlation and regression analysis.
The findings of the study showed that Participative Management Practices were found to
be positive and significantly related to Employee Engagement (r = 0.498, pvalue= 0.000<0.05). Reward and Recognition was found to be positive and significantly related to Employee Engagement (r = 0.504, p-value=0.000<0.05). Employee Training as
a management practice was found to be positive and significantly related to Employee Engagement (r = 0.394, p-value=0.000<0.05).
With regards to whether participative management practices affect employee engagement, the findings found that employee involvement in decision making and performance appraisal promotes a sense of belonging among employees leading to improved employee engagement.
On the influence of reward and recognition on employee engagement, the findings
suggested that reward and recognition system has significant influence on employees.
When a manager to formally rewards or recognizes good employee performance, this leads to improved employee engagement. In addition, when good performance is recognized and then rewarded, the chances of the good work being repeated are increased. On the influence of employee training on employee engagement, the research findings indicated that employee training is important for any organization to meet its target. Relevant training builds employee capability and helps increase the productivity of both employees and managers. This provides job satisfaction which eventually translates to improved employee engagement.
The study has recommended that Safaricom Limited should encourage participative
management practices as a way to improve employee engagement and subsequently
performance. In addition, the organization should reward and recognize high performers as this will improved employee motivation. Finally, the organization should invest heavily in providing relevant training to employees as this will improve employee capability and
thereby enhance job satisfaction as employees are able to complete tasks at ease
Determinants of Consumer Buying Behaviour for the Domestic Tourists in Kenya
No full textA Research Project Report Submitted to the Chandaria School of Business in Partial Fulfilment of the Requirement for the Degree of Masters in Business Administration (MBA)The purpose of this study was to analyze the factors that determine consumer buying decisions for the domestic tourists in Kenya. This study was guided by the following research questions: What is the influence of market mix factors on consumer buying behaviour for domestic tourists in Kenya? What is the influence of situational factors on consumer buying behaviour for domestic tourists in Kenya? And how do personal factors influence consumer buying behaviour for domestic tourists in Kenya?
The study employed a causal comparative design. The target population for this study was the middle and upper class residents of Nairobi of the 3,138,295 Nairobi residents, 878,722 of the residents belong to the classes targeted, and from the data, a sample size of 310 was established. Data was collected using a structured questionnaire, and analyzed for descriptive and inferential statistics using the Statistical Package for Social Sciences (SPSS) version 22. Data has been presented using tables and figures.
The findings of the study on the influence of market mix factors show the existence of a statistically significant relationship between market mix factors and consumer behavior in the tourism sector in Kenya. The components examined including price, place, promotion contributed to the significance of the relationship
The findings of the study on the influence of situational factors show the existence of a statistically significant relationship between situational factors and consumer behavior in the tourism sector in Kenya. Components that were examined including physical environment, social factors, and time factors contributed to the significance of the relationship
The findings of the study on the influence of personal factors show the existence of a statistically significant relationship between personal factors and consumer behaviour in the tourism sector in Kenya. Factors such as age, lifestyle, stage in life and personal self-concept contributed the significance of the relationship. On market mix factors, this study conclude that place, promotion, and price are of significant importance to consumer customer behaviour in the tourism sector. On situational factors, this study concludes that environment, time and social factors are important in examining and studying consumer behaviour in the tourism sector. The study also concludes that personal factors such as age, lifestyle, and stage in life do inform consumer behaviours in the tourism sector in Kenya.
This study recommends that managers in the tourism sector should aggressively promote the tourism products as a way of enhancing consumer behaviour. On situational factors, this study recommends that managers in the tourism sector should enhance holiday and vacation environments as a way of attracting more consumers to their sites. Equally important, the time and seasons for holidays should be made friendly for different age groups as a way of target marketing to enhance consumer adoption of tourism products and service.
Finally, on personal factors, this study recommends that there is need for targeting advertisements on people with different lifestyles, age groups, and income levels. The ability to do effective market segmentation and targeting based on consumers’ personal factors would enhance their purchasing behaviour for tourism products and services
Factors Affecting Call Center Performance in the Banking Industry in Kenya: A Study of Sidian and Chase Bank
No full textThis study sought to determine the factors affecting call center performance in the banking industry in Kenya. The research was guided by three research questions. These were: how does outsourcing affect call center performance in the banking industry, what role do call centers play in customer satisfaction in the banking industry and how does technology impact performance of call centers in the banking industry.
This study used descriptive research design and was selected because it is best for collecting original data as it gives a certain degree of accuracy. The population of this study was formed from two banks, namely Sidian Bank, and Chase Bank whose total population was 680. The sample frame for the study was a list of management staff, and employees from each of the banks. This study applied stratified sampling followed by simple random sampling technique. The sample size was 340. Primary data was collected by directly administering questionnaires to the respondents. Prior to launching of the study survey, a pre-testing on randomly selected 5 employees was carried out in the banking industry. The collected data was edited and entered into the Statistical Package for the Social Sciences (SPSS) software to enable the carrying out of the analysis. The data was represented in form of figures and tables.
The study revealed that the call center was easily accessible through various channels, and its staff had adequate knowledge to handle all queries raised by clients. The call center agents responded professionally to calls, emails and social media queries, and they were a valuable team to the bank. The study showed that the call center was fully supported in terms of technology and processes, and it was fully integrated into the organizational structure. The call center had sufficient human resource, and it was aligned to the organizational strategy.
The study showed that outsourcing companies had business continuity plans to ensure that work continued in emergency cases, and that, the bank outsourced due to inadequate resources. The firms that had been outsourced, understood the banks’ organizational needs. Outsourcing had negatively affected staff morale in the banks, although it had led to improved bottom line. Outsourcing in the banks had not led to any loss of jobs, and it had not reduced the cost of doing business. Outsourcing had a negative impact to the call center whereby the outsourced organization did not to focus on its core business, and this had created a sense of dependency on the banks to the outsourced organizations.
The study revealed that applying technology minimized staff turnover in the call in the center and the use of technology improved the call center performance. Call center technology helped the agents to have a faster turnaround time when responding to customer queries, and it improved call center processes. Technology had led to impersonalized services, although it facilitated the production of conclusive reports that were used in decision making. Call center technology has led to improved productivity in the call center which in turn had improved the banks bottom line, and the call center had made a return on investment on the technology procured.
The study concludes that the call center had a positive impact on service delivery in the bank, and it had played a key role in customer retention. The call center had made a considerable impact on the business growth of the bank, and the banks’ clients appreciated the services offered by the call center. Outsourcing had a negative impact to the call center whereby the outsourced organization did not to focus on its core business, and this had created a sense of dependency on the banks to the outsourced organizations. The study concludes that, the call center technology has led to improved productivity in the call center which in turn had improved the banks bottom line, and the call center had made a return on investment on the technology procured.
This study recommends Sidian and Chase Bank to define the desired performance from their outsourced companies and show their agents what an excellent performance looks like and set clear expectations. The organizations should ask their outsourced company to educate its employees to ensure that their employees understand the business from the customer’s perspective. This may facilitate the ability of the call center agents to understand the consequences of their performance on the customers’ satisfaction levels
Effects of Macroeconomic Variables on Financial Perfomance of Insurance Companies in Kenya
No full textThe purpose of the study was to establish effects of macroeconomic variables on financial performance of insurance companies in Kenya.
The study was guided by the following research objectives: To determine the effect of inflation on financial performance of insurance companies in Kenya; To establish the effect of interest rate on financial performance of insurance companies in Kenya; To establish the effects of exchange rate on financial performance of insurance companies in Kenya.
The study utilized longitudinal design where performance of insurance firms was analyzed over a four year period from 2012-2015. Statistical Package for Social Sciences (SPSS) and excel applications was utilized to describe the data and determine the extent used and this was through descriptive analysis of means, standard deviations, and frequencies. Inferential statistics was utilized via regression analysis to determine the relation between the dependent variable and the independent factors. The information was displayed by use of tables and graphs.
Results indicate that all the performance indicators were negatively correlated to inflation. A regression analysis established that only 12.9% of the variation in return on asset (ROA) of insurance firms was explained by the variations in inflation rates. Results further show that all the performance indicators were negatively correlated to average interest rates and only 3% of the variation in return on asset (ROA) of insurance firms was explained by the variations in average interest rates.
Lastly, all the performance indicators were negatively correlated to average exchange rates. A regression analysis done established that 85.1% of the variation in return on asset (ROA) of insurance firms was explained by the variations in average exchange rates.
The study concluded that inflation rates have a negative effect on a firm‘s performance, in terms of ROA, Debt Ratio, Equity Ratio and Debt to Equity Ratio. Although this is the case inflation only affects 12.9% of the variation in return on asset (ROA) of insurance firms.
The study also concluded that interest rates is volatile and has a negative impact on the ROA and its impact on the performance indicators is limited as it influences minimal the variation in return on asset (ROA) of insurance firms. It was also concluded that exchange rate negatively affect ROA, Current Ratio, Debt Ratio, Equity Ratio, Debt To Equity Ratio and Profits. Apart from this it has a very high influence on return on asset (ROA) of insurance firms.
It was recommended that for the insurance firms to make ample adjustment for inflation so that during seasons of high inflation the firms do not run at a loss. It was also recommended that insurance firms need to employ more strategies where they can purchase more futures contracts on government bonds or interest rate futures in order to be able to lock-in interest rate and hedge their various portfolios. Finally it was also recommended that the firms may mitigate these risks by hedging the foreign exchange risk by purchasing spot contract to cushion against any negative swing.
For future studies a longer period needs to be studied. In addition, other macroeconomic studies should also be studied to establish how they affect performance of insurance firms