3673 research outputs found
Sort by
Strategic Responses to Technological Turbulence: A Case Study of IBM Africa
No full textA Research Project Report Submitted to the Chandaria School of Business in Partial
Fulfilment of the Requirement for the Degree of Master of Business Administration
(MBA)Change is a constant in life, and this is no different in business. As change is inevitable, how then can businesses respond, more so to technological dynamics? In order to ensure a business is sustainably profitable and competitive, it needs to make critical decisions which will determine its future. This means that managers need to know how, when and what to respond to; a question which this paper sought to investigate. The purpose of this project was to undertake an evaluation of the strategic responses to technological turbulence, utilizing International Business Machines, Africa (IBM) as a case study. The research was guided by three research questions which sought to establish the extent to which disruption, uncertainty, and product obsolescence
led to strategic response. The strategic responses examined were knowledge creation, research and development, skill development and strategic partnerships. The study was conducted using a descriptive research design, drawing from a population of 800 employees from IBM Africa. Data collection was done through a research survey with 72 out of the 105 sampled units reverting back with responses, which represented a sixty-nine percent (69%) response rate. After collection, the data was then analyzed using a computer analytical program with inferential and descriptive statistics to test the hypotheses. The study revealed effects of disruption, uncertainty and product obsolescence on strategic response. Uncertainty had a negative effect, while product obsolescence had a positive influence on the strategic responses examined. From the findings, it became evident that businesses should not ignore the dynamic nature of the environment they operate in, but rather take appropriate actions to safeguard or develop their competitive edge. The study also showed that product obsolescence was the highly affecting variable on strategic response, pointing to the constant need for companies in the technology industry to innovate and produce state of the art solutions. In order to stay ahead of the competition then, an organization needs to invest in strategies which will guide in implementing effective and adequate responses to change in the technology environment. The study concluded that there is a high level of disruption, uncertainty and product obsolescence in the technology industry, which when put together represent a high level of technological turbulence. It was also concluded that a firm should strive to react to turbulence present in the environment. In tandem with the findings, the study recommends that an organization should closely monitor the trends in their respective
environment, and adequately respond to them through avenues that would have the most impact and benefit. Moreover, although accuracy cannot be achieved as far as the prediction of the future is concerned, managers should observe the trends and be pacesetters in the industry, guided by the needs of customers and the prospects of tomorrow. Finally, the study revealed that firms should not stick to traditions or protect their existing portfolio, but would rather aim to constantly innovate, not only to beat the competition, but also to constantly improve. For further research, future researchers in this area should conduct studies on other aspects of technological turbulence which were not highlighted in the study. This would serve to holistically understand the component of technology in a business and how firms should correctly deal with it. In
addition to this, researchers can explore other components of the macroeconomic business environment such as political, legal, social, environmental aspects. Lastly, as this research used International Business Machines (Africa) as a case study, the same can be done in other firms across various industries. This would serve to consolidate the knowledge around technological change in various industries and inform business leaders and policy makers on how important and impactful technology is to an industry
The Interface between Sovereignty and the Integration Process: The Second East African Community (EAC II) In Empirical Context
No full textA Thesis Submitted to the School of Humanities and Social Sciences, Department of International Relations, in Partial Fulfilment of the Requirements for the Degree of Masters in International RelationsScholars and policy makers identify two major impediments to regionalization in East Africa: lack of people centeredness and inadequate political will. The first is widely addressed in academic and policy literature. The latter, political will, remains an illusionary concept. There are those who say that because of it, the second East African Community (EAC II) is doomed to meet the fate of the first. Others state that it will be overcome. But; what is it? It is a complex concept, hard to grasp and even harder to measure. One way to tackle this is by looking at the nexus between member states posturing on sovereignty and regionalization. This is the overarching objective of this study. There are scholars who argue that states which cannot broadcast power within their territories, provide adequately for their citizens or secure their borders lack real sovereignty. The deepness of integration in East Africa is also questionable. The picture that this paints is confusing, making sovereignty a topic to avoid and regionalization processes a point of contention. Using a conceptual framework anchored in hybrid integration theories and social constructivism, the actions of state leaders are analyzed to assess the level of inter-influence between member states and the second East African Community (EAC II). This is measured against contemporary International Relations (IR) theory, and more Africanized studies of the state, with the view of conceptualizing sovereignty and ideations of regionalization outside the IR field. These concepts are used as a tool of content analysis on key heads of state speeches, with the view of understanding member state attitudes towards sovereignty and the EAC II, which is making sure, albeit extremely slow, progress. This analysis of qualitative data against theoretical considerations yields surprising results. Sovereignty is not a waning concept in East Africa: it is growing, but not in the same nation-centric, xenophobic way as in Europe. There is an observable symbiotic relationship between the institutions of the EAC II and member states. The weakest states derive most of their sovereignty from the institution. Additionally, governments and heads of state have a form of comradery, which in some instances has kept unstable governments in power and provided security for even the stronger member states. In a region where borders are porous and others lack territorial integrity, the EAC II plays a reasonable role in statecraft – therefore sovereignty. These bold findings are outlined in this thesis, by studying the long history of regionalization in East Africa, reviewing available literature on the subject in Africa, assigning meaning to sovereignty in Africa and assessing regional integration. It is hoped that this study can create a platform for the questioning of the concept of Westphalian sovereignty in Africa, the assessment of the impact of colonization on the modern African state and the re-imagining on the way in which we view the African state, and by extension regional organizations in Africa
The Effect Of Financial Leverage On The Financial Performance Of Kenyan Energy And Petroleum Firms Listed On The NSE.
No full textA Project Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree in Masters of Business Administration (MBA)The purpose of this study was to examine the effect of financial leverage on financial performance of Kenyan Energy and Petroleum firms listed on the NSE. The study analyzed the effect of financial leverage on profitability and liquidity management. A descriptive research design was used. Data was collected from the annual financial statements of the Kenyan Energy and Petroleum firms listed on the Nairobi Securities Exchange for a five year period, from 2012-2016.
The study was done on a census scale since data was collected from all the 4 Kenyan Energy and Petroleum firms listed on the Nairobi Securities Exchange. Data was then entered into Microsoft Excel and analyzed for descriptive statistics on profitability, dividend payout ratio, liquidity management and financial leverage. Ratios were used to analyze the profitability, dividend payout ratio, liquidity management and level of financial leverage on the select firms.
Correlation and regression analysis were used to establish the effect of financial leverage on the financial performance of the select firms. Profitability (ROA), dividend payout ratio (DPR) and liquidity management (QR) were used as proxies for financial performance while debt to equity ratio was used a measure of financial leverage. The data was presented in tables.
On the effect of financial leverage on profitability, the study indicated that most of firms increased or maintained their level of profitability throughout the period. The results of the study found that there was a strong negative relationship between profitability and financial leverage, as those firms that relied more on debt had lower profits while those relied more on equity had higher profits.
On the effect of financial leverage on dividend payout ratio, the study indicated that most of the firms paid dividends to their shareholders annually during the period under study. Dividends were slightly reduced as financial leverage levels increased. The results of the study indicated that there was a weak negative relationship between financial leverage and dividend payout ratio.
On the effect of financial leverage on liquidity management, the study indicated that most of the firms efficiently managed their liquidity levels. The study also showed that most firms were able to cover their short term liabilities with their short term assets. The results indicated that there was a weak negative relationship between liquidity management and financial performance.
vi
The study recommended that firms should rely on less costly sources of finance to avoid exhausting funds in loan repayments, increase firms’ value so that shareholders can reinvest their earnings instead of demanding for dividends and that finance managers should match their borrowing needs with the available assets so as to ensure effective utilization of company assets. The study also recommended that firms’ put into consideration the industry specific factors affecting their financial performance as these differ from one industry to another
Factors Affecting Entrepreneurial Intention among Entrepreneurship Students in USIU- Africa
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 aim of this study was to investigate and explain factors that influence entrepreneurial intentions among university students in Kenya. The purpose/ general objective of this study was to establish the determinants of entrepreneurial intentions among university students in Kenya focusing on the United States Internation University ( USIU) - Africa with the main objectives in the study aiming to establish the effect of entrepreneurship of social norms, perceived barriers and Risk taking on entrepreneurial intentions among university students in Kenya. The research questions are: How do social norms affect entrepreneurial intent of entrepreneurship students? How does perceived barriers affect entrepreneurial intent of entrepreneurship students? How does risk taking propensity affect entrepreneurial intent of entrepreneurship students?
To achieve this objective, primary data was gathered through a survey using data from a sample size of fifty eight students from a population of one hundred and thirteen. As shown in the sample frame fifty eight questionnaires were issued to the target respondents. The selected students supplied data via administering a set of structured questionnaire. Descriptive statistics and inferential statistics were employed for determining and analyzing entrepreneurial factors. Correlation analysis was used to find out the relationship between social norms, perceived barriers and risking taking.
This study utilized the descriptive research design. The population was one hundred and thirteen consisting of entrepreneurship students at USIU-Africa. Simple random sampling was used to determine the sample size of fifty eight. For this study, data was collected using structured questionnaires. Descriptive statistics was used to analyze data for frequencies and percentages distribution tables, mean, and inferential statistics for correlation, linear regression and multiple regression.
The study showed that students’ impetus to venture into business is affected by different factors. It was established that social norms i.e. culture, family and friends are not significant in influencing student’s intentions to starting a business. The study found that the propensity to take risk was important in determining entrepreneurial intentions of students. The study found that perceived barriers financial and legal access among students was not significant in determining entrepreneurial intentions.
This study concluded that among the three factors of social norms, perceived barriers and risk taking. It is only the propensity to take risks that significantly influenced entrepreneurial intentions among students. The other two did not determine the entrepreneurial intentions of the students.
This research recommends that since this study focused only on three factors, this information may not be exhaustive and therefore tackle this problem, it is recommended that other studies be done to unearth more on the subject. This will ensure increased reliability of the data and results and permit some generalization. The study covered only one university, this shows that the results of this study are skewed to the perceptions and data from only one university. It is suggested that such a study be done in other universities to increase the statistical power of the study and more reliable results
The Effectiveness of Credit Reference Bureau (CRB) On the Provision of Credit by Commercial Banks in Kenya
No full textA Research Project Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Masters in Business Administration (MBA)The purpose of this study was to access the effectiveness of Credit Reference Bureaus on provision of credit among selected commercial banks in Kenya. The specific objective was to carry out an indepth analysis of the functionality of Credit Reference Bureaus, to investigate why Credit Reference bureaus encourage sharing of borrowers information, and to investigate the effect of Credit Reference Bureau on non-performance loans in the lending market.
The target population was 300 comprising of branch managers, credit analysts, credit administrators and loan officers working within the banks. The sample size was determined using simple random sampling method and this helps to reduce biases or prejudices in selecting samples A sample of 30% was selected resulting into 90 respondents out of which 79 responded. Primary data was collected by administering close-ended questionnaires, using a five point a likert scale to the respondents, which were self-administered through drop and pick method. Responses to the questionnaires were examined, processed and tabulated into meaningful data. Frequency tables and percentages were used to present the findings in an easily understandable format. A regression relationship was generated to show the extent to which the dependent variable was affected by each of the independent variables.
The first objective sought to establish functionality of Credit Reference Bureaus. The study established that to a great extent, credit bureau keeps a credit history record of the borrower, credit bureaus collect, organize and consolidate information from many lenders, who associate with the bureau by providing access to their databases, upon the request of a user, credit reference bureaus provide credit reports that contain particular individuals’ credit history. The second objective sought to establish how Credit Reference Bureaus influenced sharing of borrowers’ information. The findings revealed that to a great extent sharing credit information is critical in facilitating better assessment of risks associated with prospective borrowers, and information asymmetry has caused difficulty in differentiating good and bad credit risks. Also to a great extent, lack of information has contributed towards adverse selection or moral hazard problems in lending activity of the bank, while banks lack data needed to screen credit applications and to monitor borrowers.
v
The third objective sought to establish how Credit Reference Bureaus influenced non-performance loans. The study found out that all the respondents were aware of non-performing loans in the bank. The study found out that most of the respondents indicated that it took 1-2 months to process the loans before the adoption of CRB. The study also found out that the majority of the respondents indicated that it takes between 2-7 days to process a loan after the adoption of CRB. Majority indicated that the bank was requesting for credit reports for all credit applications, the researcher sought to find out how credit reports help identify, and monitor risks, while CRB decreased default rates as borrowers aim to protect their “reputation collateral” by fulfilling their obligations in a sensible manner, and financial institutions use information from Credit reports for risk identification through risk mapping and/or scenario analysis.
The study concludes that Credit reference bureaus compile credit information, public record data, and identity, makes this information available to the bank in the form of a credit report of individuals and organizations. The study also concludes that Credit Reference Bureaus create a mechanism that facilitates credit information sharing at an affordable rate. The study also concludes that the main factors that lead to credit risk include lending to borrowers with questionable characters, serial loan defaulters, high interest rates that make it hard for some to pay management and legal framework.
The study recommended that the government should license more bureaus to increase the availability of information among the banks and as well as individuals recommended that there be put strong control systems to monitor the use of CRBs in Kenya. Moreover, banks need to sensitize consumers to the importance and functionality of Credit Reference Bureaus in a bid to make consumers from all financial back grounds be keen on meeting their loan obligations and be eager to share truthfully credit information pertaining to their loan instruments. The study recommends that the government should be even more involved in the lending markets ensuring mandatory compliance to settlement of debts as constitutionally required of the integrity section of the Kenyan law. There is a need to therefore undertake further studies to establish the challenges facing CRB performance
Impact of Brand Equity on Consumer Buyer Behaviour of Smartphones among Millennials: A Case Study of the United States International University
No full textResearch Project Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Masters in Business Administration (MBA)The purpose of this study was to examine the impact of brand equity on consumer buyer behavior of smartphones among millennials: A case study of the United States International University. The study was guided by the following research questions; To what extent does brand awareness influence consumer buyer behavior of smartphones among millennials? To what extent does brand association influence consumer buyer behavior of smartphones among millennials? To what extent does perceived quality influence consumer buyer behavior of smartphones among millennials? To what extent does brand loyalty influence consumer buyer behavior of smartphones among millennials?
A cross-sectional descriptive research design was employed in conducting this study and addressed the questions posed above. The study population consisted of 763 MBA students. A sample size of 153 MBA students was derived, however only 115 responded resulting in a 75.2% response rate. The collected data was analyzed using descriptive statistics as well as correlation and regression analysis. Descriptive statistics was used to describe and summarize the data, whereas correlation and regression analysis was applied to determine the relationship between the dependent and independent variables, that is, the dimensions of brand equity and consumer buyer behavior.
The findings revealed that the variables brand awareness, brand loyalty and brand association have a positive and statistically significant relationship with consumer buyer behavior, with path coefficients of 0.598, 0.417 and 0.197 respectively. Perceived quality was the only independent variable found to have a non-statistically significant relationship with consumer buyer behavior. The R2 value indicated that a 59% variance in consumer buyer behavior of smartphones among millennials could be explained by factors of perceived quality, brand awareness, brand association and brand loyalty.
The study concluded that firstly, fundamentally high levels of brand awareness increases the probability of brand choice among millennials, produce greater consumer and retailer loyalty, and decrease vulnerability to competitive marketing actions. Secondly, consumers, more specifically millennials associate smartphones with attributes such as high technology, innovativeness, sophistication, distinctiveness, excellence and prestige. Therefore, the identity of the specific smartphone brand impacts brand associations and ultimately sales.
Thirdly, despite popular belief that perceived quality of smartphones may drive consumers to choose a certain brand over another competing brand which eventually will lead to an increase in brand equity, this line of thought does not necessarily apply to millennials. Finally, customers, particularly millennials who tend to be loyal towards a brand are those with high experience and involvement levels with that particular smartphone brand, as brand loyalty cannot exist without prior purchase and use experience.
The study recommended that, smartphones companies need to ensure that they not only sustain brand recognition and brand recall levels of brand awareness, but also strive to ultimately achieve top of mind awareness in the minds of their consumers; consistently maintain an identity that their consumers can, at any given point, link to positive cues such as credibility; to not only sustain but exceed the expectations of what their consumers deem to be as of a ‘high quality’, as well as ensure that their devices have the capability to deliver experiences that shape the consumer’s attitude of the brand, ultimately leading to loyalty to the brand.
For further studies, this study recommended that future research narrow down the scope and focus on a specific smartphone brand with an aim to provide relevant insights that could possibly prove beneficial to the particular smartphone company. Future research can also be done to measure factors other than brand equity that may influence consumer buyer behavior of smartphones so as to gain a more holistic understanding of the concept
A Study of Critical Success Factors Affecting Small and Medium Enterprises in Nairobi County: A Case Study of Small and Medium-Sized Enterprises in Nairobi City Central Business District
No full textA Research Project Report Submitted to Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Masters in Business Administration (MBA) – Strategic ManagementModern day business operating environment is characterized by dynamism that calls for constant adjustments of all business functions, strategies and alignment of the same to ensure sustainable growth of these organizations. Despite these changes, SMEs, in an attempt to remain competitive in this kind of environment have opted to applying various competitive strategies to ensure that they are not pushed out of business by their competitors and larger-sized firms. This study sought to reveal what constitute critical success factors which are central to the success of SME’s in Nairobi County. SME businesses are a dominant form of ownership in majority of the world economies. Small and micro family owned businesses contributed over 50% of new jobs created in the year 2005 in Kenya (Mumbua, 2013). The study sought to assess the influence of critical factors notably; innovation, access to finances, and effective leadership on the success of SME’s.
The study adopted descriptive research design methodology as the main approach for conducting the field survey. This approach allowed the study to gather quantitative data which can be analyzed quantitatively using descriptive and inferential statistics. This study brought out the critical factors that have been central to the success of SME’s within Nairobi City. The greater Nairobi county, has over 90,000 SME’s, with at least 21,100 located in the Central Business District. Stratified random sampling was used in the identification of respondents for this study. A total of 70 respondents agreed to participate in the study. A structured, closed-ended questionnaire was used as the primary data collection tool. A 5-point scale was used to assess the respondent’s level of satisfaction from the list of questions contained in the tool. Upon completion the field exercise, the data was inspected for correctness then coded using SPSS version 20. The results were presented using charts and tables.
The study found that innovation plays a crucial role in the success of SME’s with a cumulative average of 4.35 for all innovation factors which translates to 87% approval. Further, the study established that access to financing is a fundamental factor that influences the potential of success among SME ventures with a overall mean of 4.01 which translates to 80.2%. The study also found that leadership effectiveness has a significant influence on the success of SME’s with an average mean of 4.16, which translates to 83.2% approval.
The study concludes that the most critical factor in implementing innovation is the acknowledgement of its importance by the SME managers, through setting aside a portion of operational capital to fund innovation initiatives. The study concludes that interest rates are the biggest impediments facing numerous borrowers running SME ventures. Numerous borrowers cite high interest rates as the biggest deterrent in pursuing credit facilities with established lenders such as the commercial banks. The study makes a conclusion that effective leadership is critical in the success of any business establishment whether small or big. The study concludes that business owners and managers understanding of rapid changes in the business scene require continuous skill upgrade and training.
The study makes a recommendation that small business should strive to pursue a policy of allocating a significant amount of business returns towards innovation initiatives. The study recommends that, SME’s should clearly set-up financial priorities at the in stage when setting up the business. The SME should have a concrete business plan that lays down the financial projections for a minimum period of three financial years. Finally, the study recommends business leaders to continuously upgrade their skills to remain dynamic and informed of the changes in the business administration scene
Factors Affecting the Growth of Pension Fund Assets in Kenya
No full textA Research Project Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Masters in Business Administration (MBA)The purpose of this study was to investigate the factors that affect growth of pension fund assets. The study was guided by three specific objectives: To determine the effect of growth in equity market on the growth of pension fund assets in Kenya; To establish the effect of interest rates on the growth of pension fund assets in Kenya; To find out the effect of inflation on growth of pension fund assets in Kenya.
The study used descriptive research design and secondary data for the fourteen years starting with 2002 to 2015. Data regarding all the study questions was obtained from the Nairobi Stock Exchange, the Retirement Benefits Authority, Central Bank of Kenya and the NSE All-Share Index. The study used descriptive statistics to determine the distribution while the regression analysis was adopted in the data analysis to determine the relationship between growth in equity market, interest rates and inflation on growth of pension fund assets.
The study established that equity growth and interest rates have a positive and influence on the growth of Pension Fund Assets in Kenya. A unit increase in Equity Growth would increase Pension Plan Assets by 4.362. The study established that there is a significant positive relationship between growth of equities and the growth of pension fund assets as evidenced by as evidenced by a high t-value and a p-value less than 0.05(t= 9.634, p= 0.000).Multiple regression analysis was done to test the effect of Equity Growth, Interest Rates Growth and Inflation Growth on the growth of Pension Funds Assets in Kenya. The study also recorded an adjusted R-squared value of 0.889 stating that there is 88.9% chance that change in interest rate affects changes in Pension Fund Assets in Kenya.
It was conclude that interest rates have a positive and influence on the growth of Pension Fund Assets in Kenya.The data suggests that inflation movements do not stop growth of pension fund assets. It is also clear in the years when inflation hit the worst percentages; the growth in pension fund assets hit the best. Thus, the two enjoy an inverse relationship. The study shows that inflation rate was found to have a negative effect on the growth of Pension Fund Assets in Kenya.
The study recommends that as the Kenyan economy continues to grow many of the pension funds should incentivize and create a more conducive operating environment for many more Kenyans to invest in it, this should be initiated through making savings for retirement easier so that the sector has an ever-growing pool of assets to mobilize. Mutual fund trustees need to identify their scheme’s exposures to inflation risk, and they must decide how to hedge against it as pension schemes have many options for inflation hedging. Schemesshould have a hedging plan they should look for one to hedge the liability as soon as possible.
Further studies need to be done on the long term effects of growth of equity assets on growth in the pension fund assets. In addition, since this study found that inflation and pension fund assets have an inverse relationship, an inter-country study of the factors that keep inflation low in different countries should be carried out, with a thorough assessment of those countries’ fiscal policy. Interest rates volatility was found to negatively affect pension fund assets, this study recommends that more studies need to be done on the possible causes of interest rates volatility so as to keep the trustees on the knowhow
Effects of Corporate Scandals on Financial Performance of Selected Firms Listed At Nairobi Securities Exchange
No full textA Research Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Masters in Business Administration (MBA)The purpose of the study was to investigate the effects of corporate scandals on the financial performance of the firm listed in the NSE in Kenya. Three research questions guided the study namely; what was effect of corporate scandals on the NSE listed firm’s share prices? Do corporate scandals have any effect on the NSE listed firm’s profitability? And what is impact of corporate scandals on the NSE listed firm’s liquidity?
The research methodology included the research design which includes a multiple case study of five selected and listed firms in NSE which were Uchumi Supermarkets, Eveready, Mumias Sugar, National Bank and Kenya Airways. The study has found that corporate scandal influence the firms share price negatively, however in some companies the scandals did not influence the firm’s share price
Also, those corporate scandals affect the firm’s profitability and sales performance. Thus the study found that there was statistical significance between the corporate scandal and the firm’s profitability and sale performance on NSE listed firms in Kenya. The study found that there was statistical significance between the corporate scandal and the firm’s profitability and sale performance on NSE listed firms in Kenya. The findings indicated that corporate scandal has a greater influence to the sales performance. This is because once the company is reported to be involved on fraud customers and suppliers who are partner in businesses tend to withdraw. Hence reducing the sales and also the supply in the company respectively.
Finally, the study found that corporate scandals affect the firm’s liquidity negatively. Thus, there is statistical significant between corporate scandals and the NSE listed liquidity. Also the found that corporate scandals affect the firm’s liquidity negatively. Thus, there is statistical significant between corporate scandals and the NSE listed liquidity
Factors Affecting Budget Preparation: A Case Study of USIU-Africa
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)The study intended to determine the factors that influence budget preparation and it was guided by the following research objectives. To determine the external factors that influence budget preparation, to determine the internal factors that influence preparation of Organizational budgets, to investigate the challenges in budget preparation and to determine what can be done to enhance budget preparation.
The study used a descriptive survey and the population under study staff of United States
International University of Africa based in all the departments. The study therefore focused on about 38 departments with knowledge on budget preparation however only 30 responded giving a 79% response rate. Data was collected through the administration of questionnaires to the relevant people. Data was first input and coded in excel before exporting into SPSS for analysis, the result was presented in figures and tables.
The study established that inflation, inflationary levels, taxation and product pricing affected budget preparation. On the other hand, most respondents were neutral on whether inclusion of
supply chain management, Receipt of Funding, Politics and incremental Budgeting affected budget preparation at USIU-A. It was also noted that availability of financial resources was a major factor in budget preparation while staff involvement improves accountability. The correlation findings revealed that the receipt of funding in foreign currency r(28)=0.713, p<0.05; inflation in the funded countries r(28)=0.623, p<0.05; taking into account variances caused by inflationary levels r(28)=0.438, p<0.05; had a significant impact on budgeting
The study established the challenges in budget preparation as lack of Budget preparation skills, lack of training, rigid and non-adaptable budgetary planning and control systems and failure to respond to environmental changes, To Improve budgeting, USIU-A should allocate more resources to the activities or departments that generate more profit. A Pearson correlation done revealed that availability of financial resources r(28)=-0.400 p<0.05; The managers skill in presentation of budgetary and financial information r(28)=-0.584 p<0.05; Lack of enough skilled manpower r(28)=-0.461 p<0.05; managers’ Participation in budgeting r(28)=-0.408 p<0.05; and continuous budget monitoring r(28)=-0.757 p<0.05 had a significant impact on the budgeting process.
It was revealed that to enhance budget preparation training of personnel involved in the
budgeting process will help enhance budget preparation. A correlation done revealed that
Training of personnel involved in the budgeting process r(28)=-0.631 p<0.05, and adoption of flexible budgets r(28)=-0.421 p<0.05 significantly affected Budgeting.
The study concluded that internal factors in USIU-A have the potential of influencing
budgeting, such include continuous monitoring, lack of Budget preparation skills and lack of training in budget preparation. It was also concluded that when firms undertakes the necessary training of personnel it enhance budget preparation, and there is a need to adopt flexible budgets which will help enhance the budgeting .
The study recommended that it is essential for the institution to plan well and devise ways of mitigation. Such could include putting up inflation allowance and making prompt payments where applicable. USIU-A needs to device other ways of generating revenues to avoid shortage of financial resources. The firm also needs to undertake regular periodic evaluation to deter mismanagement. The organization needs to consider equipping its employees with budget preparation skills through offering training in budget preparation. For further studies there is a need for a similar study to be undertaken across other private university so as to be able to generalize the findings. There is also a need to access the exact training needs required in the organization