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Master of Business Administration

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    Evaluation of the Factors that Determine the Success of Small Scale Retail Businesses:
    (KeMU, 2009-01) Gatobu, Rintaugu Mugwika
    ABSTRACT. The main purpose of this study was to evaluate the factors that determine the success of small-scale retail businesses within Meru Municipality. Small-scale retail businesses play a significant role in the country's economy. This sector provides goods and services and is also a driver in promoting competition and innovation; hence enhancing the enterprise culture, which is necessary for private sector development and industrialization. In this study small scale retail businesses are treated as MSE"s for purposes of this research. Many countries in the world have realized the importance of small-scale retail businesses and therefore are working to increase performance and competitiveness. This is necessary if the small - scale retail businesses can effectively respond to the challenges of creating productive and sustainable employment opportunities, promoting economic growth and poverty reduction. In Kenya, small scale retail businesses cut across all sectors of the country's economy and provide one of the most prolific sources of employment not to mention the breeding ground for medium and larger industries, which are critical industrialization today, these enterprises are found in every corner of Kenya they have great potential for creating a variety of jobs, while generating widespread economic benefits in order to enhance the capacity of small scale businesses to create durable and decent jobs, the government, in consultation with key stakeholders have reviewed a way forward for the millennium goals. It was in the light of the above that the study was designed to evaluate the factors that determine the success of small scale retail businesses. The scope of the study was limited to Meru Municipality. The location was chosen because it gave good representation of small scale retail businesses. The enterprises provided good characteristics and results of small-scale retail businesses. The research design for the study was a survey, where both qualitative and quantitative data was collected, in order to evaluate the factors that determine the success of small scale retail businesses. The population of the study was small scale businesses operating within Meru municipality. The target respondents were owners of small scale retail businesses. Random sampling method were used, which realized a sample size of 265 businesses out of the 1325 registered retail businesses ,across all sectors of the total population. Questionnaires were the main data collection tool. Secondary data was from Meru municipal Council records. Analysis of the data used multiple regressions to check the relationship between the independent variables i.e. financial resources, external business environment, education, experience of entrepreneurs and dependent variable i.e. business profits. It was established that most of the retail businesses in Meru Municipality are Some of the major challenges these businesses face include lack of business skills, unfavorable governments polices and dynamic consumer behavior. Among the recommendations that the government should initiate are incentives to encourage the retail traders to train in basic business management skills, as this be achieved by liaising with prospects.
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    Impact of Performance Contracting in Public Service Delivery
    (KeMU, 2009-04) Kenneth, Ndungi Nduati
    ABSTRACT Public sector reforms have become the norm in the present world. This has been necessitated the poor performance of the state enterprises that have become a burden both financially and administratively. Tax payers have come out openly demanding the value for their money i.e. efficient, effective and ethical delivery of service to the citizens. In Kenya, these public sector reforms have been• embraced partly through signing of performance contracts. This research project looks at the impact of such performance contracts in the National Registration Bureau. The department charged with registering Kenyans of 18years and above in the former Meru Central District. It tries to find out whether "Not Previously Registered" figures increase with the signing of performance contracts. Not Previously Registered refers to Kenyans acquiring identity cards for the first time. It is also aimed at finding out whether there are other variables that the government can tap to enhance the "Not Previously Registered" figures. These independent variables include financial resources and events taking place like elections and referendums. The project encountered its own limitation when some data could not be found in the initially designed offices. This was overcome by consulting the National Registration Bureau Headquarters Nairobi, at an extra cost of time and money. The officers at the National Bureau Headquarters were hesitant to give the data until when permission was granted by the director. Justification of the project is outlined as well as the objective. The project encompasses both theoretical and empirical literature review, showing what other writers views on performance contracts are. Using secondary data from the North Imenti District Registrar's office, covering the period 1999 - 2008, and analyzing it using descriptive statistics, the research was able to identify the periods with high and low "Not Previously Registered" figures. During this period, Kenya has had 2 general elections and a referendum in 2005 factors that affect the performance of the department. It is during the later years of this period that the National Registration Bureau embraced use of performance contracts and this paper tried to establish if the 'NPR' figures go up with the signing of the PCs, thus better Public Service Delivery. The project sampled 49068 cases from a population of 135292 cases. Data presentation and analysis was done using bar graphs and percentages.
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    An Analysis of Staff Utilization
    (KeMU, 2009-05) Ntongai, David
    ABSTRACT Staffing is a critical function of management and the most crucial aspect of manpower planning. The staffing function consists of three related activities: recruitment, selection and outplacement. Staffing is also very important in strategy implementation of any firm. The main purpose of this study was to analyze staff utilization on strategy implementation of Samaritan's Purse MET Program in Meru North District. Other specific objectives included. To determine the staffing levels with strategy requirements, to determine the factors considered when allocating each member staff the workload, to identify the challenges faced by the Samaritan's purse employees when performing their duties and give recommendations based on the findings. A descriptive survey method was used to conduct this study. The survey method was applied for; it is used to gather data from a large population at a particular point in time in a highly economical way with an intention of describing the nature of the existing situations. The target population was all the 30 employees of Samaritans purse who are the implementers and the 150 chairpersons of the MET groups. A simple random sampling technique was used to identify the respondents. A sample of 90 persons was selected. The main data collection tool that was used in this study was questionnaires. Data analysis was done by mainly descriptive statistics. The analysis outputs are presented in terms of pie charts, graphs frequency tables, and percentages. The study is expected to help Samaritan's purse MET Program recruit, develop and deploy talent required to meet changing MET programme issues. The study will also raise the fight of HIV/ AIDS in Meru North District because the staffing issues will be addressed in a better way. Results from the study indicate that SP MET had competent staff members and majority of the staff (53.3%) were community mobilizers reaching out to as many people as possible. 66.7% of the staff members rated their staffing Ievels to he adeouate and maioritv (66.7%) of the staff members agreed that their staffing levels were in line with their strategy. The main challenge experienced when training was absconding (73.3%) trainings by the trainees. Other challenges included inadequate time (20%) and lack of follow up programs (6.7%) which was regarded as the least. Majority (80.0%) of the SP staff are utilized to the required level. Comparing the level of education and the number or CVBTs and number of youth educators, one way ANOVA results reveal that there was no significant relationship between level of education and number of CVBTs. However there was a significant relationship between level of education among chairpersons and number of youth reached. In conclusion, the study indicates that there is a strong relationship between competence and strategy implementation (number of youth educators trained). Therefore a balanced focus in manpower planning in terms of quality and quantity of employees is vital for the success of the project. The researcher recommends that there is a need to increase both trainers and community mobilisers because the ones already there, have been over utilized.
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    Analysis of Factors that Affect Employee Training in Local Authorities
    (KeMU, 2009-02) Lydia, Nkirote Mwiti
    ABSTRACT This research project aimed at analysis of factors that affect employee training in Local authorities. It was a case study that involved employees of all cadres in Meru Municipal Council. The research project was developed after observation that employees in Local authorities were not adequately equipped with skills, abilities and knowledge for effective service delivery. Assessing the present situation of Local authorities in terms of service delivery, it is obvious that urgent steps are required to upgrade employee skills in order to improve performance is critical. The Local authorities have over the years not responded to this urgent need to improve the quality of their workforce. The local authorities have over the years not responded to this urgent need to improve the quality of their workforce .The research intended to analyse the factors and offer appropriate recommendation. Descriptive research design was employed, which involves an indepth analysis of the factors. Questionnaires were distributed to all employees of the sampled group. Data was then analysed using Statistical Package for Social Sciences(SPSS). Data was analysed to establish the factors that affect employee training. From the study it was established that several factors are responsible for the state of training in LAs which include, the quality of the workforce, poor Human Resource Practices, Low budgetary allocations to training and employee attitude to training.The respondents expressed dissatisfaction with their jobs which they said offered them no room for personal growth, skill advancement, and career development. Employees are not guided on matters concerning future plans for personal development and training, promotion and upward mobility prospects. From the above it is clear that HRM practices are professionally employed in LAs. There is need for a strategy for systematic HRD programmes especially in the area of training, recruitment, and retention of employees. This will promote the need for annual budgetary Provision to support HRM activities especially training. A deliberate effort is required to reinstate the funding for LAs training programmes which according to this research have dwindled to almost zero over the years. The findings and recommendations of this study will significantly contribute to advancement of service delivery in LAs through improved performance of employees after effective training. Fundamentally, the research findings have availed information key towards implementation of Kenya's Economic Blueprint Vision 2030 and accomplishment e Millennium development goals by 2012.
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    The Management Concerns Affecting Implementation of Performance Appraisal System in Government Departments in Kenya
    (KeMU, 2009-04) Mbae, Franklin Njue
    ABSTRACT Its is a known fact that the Kenyan economy was growing at rate of less than 1 % before December 2002, due to declining efficiency, effectiveness and productivity in delivery of service by the public sector. It's for this reason, the NARC government introduced several strategies to revive the economy among them poverty eradication strategy 2002 to 2003, economic recovery strategy (ERS) which contributed to the economic growth of almost 7% in 2007. This growth rate has been attributed to the government commitment to create a culture of performance oriented attitude among the public sector through performance contracting strategy leading to improved efficiency and effectiveness. The performance contracting is evaluated through performance appraisal system and it is against this background that this research report on the findings of evaluation of the strategic management concerns affecting the implementation of performance appraisal system at district level by the civil servants. The report is on research conducted in Tigania District targeting the twenty five heads of departments and three employees from each of the twenty five ministries in the district. The study used descriptive research design; in particular survey research was used where a total of eighty nine respondents participated. The researcher used probability sampling method where random sampling was used to get the three employees who participate from each ministry. In addition, purposive method was used to sample the twenty five heads of the department because of their strategic role they play in evaluation of employees under them and therefore determining the success of performance appraisal system. The research used questionnaires to collect data from the sampled population; the data was then summarized into frequency tables, and finally analyzed using descriptive analysis, regression and non-parametric correlations. The research found out that the structure, culture personal skills reward system and proper change management variables positively influences performance appraisal system implementation This research recommends that the government should come up with policies that will emphasize continuous training of its workers and a scheme of service that encourage creativity, career growth and a reward system that is satisfactory to performing employees.
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    An Analysis of The Social-Economic Characteristics of Micro-Finance Clients. A Case Study of Bimas Clients in Embu Districts
    (KeMU, 2009-01) Waithaka, Maina Simon
    The purpose of this study was to come up with a profile of the salient socio-economic characteristic of people who seek MFis' services. Specifically, the study was to shed light on their poverty status, the type of economic activities they engage in and their demographic characteristics. The research focused on clients of BIMAS operating within the five divisions of Embu district. A target population of one thousand, one hundred and fifty six (1156) formed the sampling frame from which a sample of sixty (60) who had been in the programme for not more than six months was taken. A questionnaire, personal interviews, and observation were utilized to collect primary data from the respondents. Secondary data was gathered from the BIMAS office and other researches. The data was analyzed using the statistics package of social sciences (SPSS) The research findings gave a general profile of the clients reached by MFis. The MFI clients are mainly male in the 26-40 age brackets that live in households of between 4 and 6 members which are predominantly male headed. A high proportion of the clients are married and do not suffer from any physical disability. Slightly over half of the clients have attained secondary school education and most have attended other training
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    Role of Micro-Finance In Economic Empowerment of Women. A Study of Micro-Finance Institutions in North Imenti District
    (KeMU, 2009-05) Muhura, W. Jane
    The study intended to examine the role of microfinance in economic empowerment of women. The major aim of microfinance institutions is to provide financial services to the poor and marginalized members of the community like women. Women produce 80% of food consumed in Sub-Saharan Africa, 50-60% of all staples in Asia, and generate 30% of all food consumed in Latin America [Saito 1994].There's a growing recognition internationally that gender equality is good for economic growth and essential for poverty reduction [Ellis 2004]. Women in Kenya are poorer than men, with 54% of rural and 63% of urban women and girls living below the poverty line [Government of Kenya 1997]. Women in Kenya are also "time-poor" because of their dual roles in the household economy and the labour market. On average, women work longer hours [12.9 hours] compared with those of men (8.2 hours], yet they earn less because more of these hours are not remunerated [Saito, Mekonnen, and Spurling 1994] However, women remam disadvantaged, especially in the poorest countries. Their opportunities for educational, social, and economic advancement are usually markedly inferior to those of men. They often face barriers in gaining access to good education and health care for both economic and cultural reasons like early forced marriages. Micro:finance came into being with an aim of providing high quality financial services to the Kenyan public particularly the poor and to maintain high moral and financial standards in the Microfinance sector. According to Microfinance Directory [2007], Association of micro finance Institutions [ AMFI] was registered in 1999, and is currently composed of a total clientele of over 2 million clients and an outstanding loan portfolio of Ksh. 20 billion. Sisdo, Bimas, K-Rep, and Kenya Women Finance Trust [K.W.F.T] are among the 33 MFis and have branches in North Imenti District where the study was carried. I choose them because they are registered as required by law.
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    Factors Influencing the Use of Commercial Paper as a Debt Instrument in Kenya
    (KeMU, 2008-01) Kinya, Salome Gituma
    In many corporations, borrowing short-term money from banks is often a laborious and annoying task. The desire to avoid banks as much as possible has led to the widespread popularity of commercial paper. Usage of commercial paper among developed countries has recently been on the increase. Commercial paper issuance growth in Kenya has been unsteady since inception in 1994. This money market instrument that is considered a low cost source of financing is not growing as expected. This study therefore investigates the factors influencing the issuance of commercial paper as an instrument of debt financing in Kenya. It is through determining the various contributors to the C.P issuance that proper policies can be formulated to increase its usage. The study covered all the eight companies that had outstanding commercial papers as at the second quarter of 2006. (CMA's records as at June 2006 and annual report 2004/5). The study established that majority of companies that had outstanding commercial papers utilized the funds on working capital. This is taken to be within expectation considering that the instrument is short term financing. Most of companies in this study were for introduction of commercial paper into the secondary market for ease of transacting. Majority, Seventy five percent, of the sampled companies felt that the current CMA rules are accommodating. Among the factors that have been strongly cited by the study for the increase in commercial paper issuance are: the unexpected increase in demand of products and services that create a need for enhanced working capital, the attractive borrowing interest rates of commercial paper that are far below the commercial banks lending rates, the indirect effect of positive credit rated companies issuing CP on their stock prices, the favorable regulatory procedures and the issuers ownership status. It is important that CMA forms a forum to occasionally discuss issues pertaining to CP issuance with both the current and potential issuers so as to develop this sector of the money market.
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    Segmentation Practices of Furniture Manufacturing Businesses in Maua Municipality and its Environs
    (KeMU, 2008-06) Rintari, Nancy Gacheri
    The aim of this study was to assess the segmentation practices of furniture manufacturing business. A survey of sixty two registered furniture manufacturers was carried out in Meru north district. The general objective of this study was to find out how furniture manufacturers determine the customers for their products, their marketing practices and t they consider important. During this study, primary data was collected from Maua Municipality and its environments using structured, semi structured questionnaires and direct observation was used. Secondary data from Maua Municipal Council records were also used. The study looked at the nature of segmentation practices, variables commonly used in segmenting the market, effects of current practices on furniture manufacturing businesses and sort options on how market segmentation could be improved. Data analysis was done using Microsoft excel computer packages. Information was presentation through bar charts, percentages, tables and pie charts. This research reveal that more than half of the respondents segment their market and produced specific items for specific customers, which helps them make more profits and allocate their resources. Those who did not segment thought it was not important. The variables used were income, social class and institutions. Majority of the respondents said it was important to give the customers what they wanted. The study concluded that furniture manufacturers are aware of segmentation and marketing practices. Their main source of furniture raw materials were wholesalers and retailers who obtain timber from Nyambene Forest and its environment, which has caused destruction of the forest. The study recommends that the government through financial institutions should give the furniture manufacturers financial support since these businesses contribute greatly to Kenyan economy, reduced poverty and offer employment. Government needs to put emphasis on their training and offer financial support because furniture manufacturing creates jobs and supports the economy.
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    An Investigation of Branding Strategies Used by Tea Packers in Kenya.A Case Study of the Registered Tea Packers in the Industry.
    (KeMU, 2008-06) Njue, Lee Kimathi
    There has been a global slump in prices of tea from 3.3 $ per kilo in the 1970's to the current average of 1.6$ per kilo. This represents a drop of 47% due to global over production, declining tea consumption and other tea substitutes. The question facing tea producers and marketers is whether their foray into branding of their products will assist in changing this in order to grow earnings. The objective of this study was to investigate and determine the extent to which branding strategies are pursued by the registered tea packers in Kenya and to identify the factors hindering the practice of product branding. The results of the study will benefit tea packers, academicians, consumers of tea products, and all stakeholders of the industry. This study used a descriptive research design. The Target population was the registered tea packers in Kenya. It was comprised of the brand managers of the registered tea packing companies. Since it was a census survey study no sampling was done. The data was analyzed by use of frequencies, mean scores and standard deviation to determine the levels of product branding. The data was analyzed using frequencies, percentages, mean scores and standard deviation while output of the data analysis was presented in tables. The study revealed that that the level of product brand development and management is still very low because it is practiced at a substantial level by only 14% of the packers who are the market leaders. The other 86% have not developed sufficient capacities to carry out significant brand development and management. The response rate was 60% of those targeted, this compromised the quantity and quality of data collected hence reduced research accuracy. The study recommends that tea packers in the industry should develop further and expand their capacities for brand development and management and in effect their brand marketing strategies. This should be with a view to developing long term internationally recognized brands that can possess global brand presence in terms of presence, value and equity. The study also recommends a study be done to determine the competitive advantages arising out of product branding to tea packers in both the local and international markets.