Bibligrophy

MOI UNIVERSITY COAST CAMPUS

NAME: SAMMY VICTORIA WAVINYA

ADM NO: SBE /LSM/MSA/004/16

UNIT: THEORY OF MANAGEMENT

UNIT CODE: MBA 800

INDIVIDUAL ASSIGNMENT

QUESTION

When Uchumi got into decline in the year 2000 the former could not save it from its woes despite employing various strategies: however with appointment of new managers and Dr Julius Ngetich as the new chief executive there is a new lease of the Uchumi. Assume you are Dr Julius Ngetich which strategies will you use to fast track its turnaround into profit.

STRATEGIES TO REVIVE UCHUMI TO FAST TRACK ITS TURNAROUND TO PROFIT

1. Expense Control

Uchumi’s ability to manage expenditures plays a key role in whether the business succeeds or fails. Strategic planning involves thoroughly reviewing the company’s operations to find ways of saving money. Finding lower-cost vendors or suppliers is one strategy for Uchumi’s turn around. Providing employees with better training also saves costs; when they become more productive, more is accomplished with the same labor expenditures. Uchumi should prioritize on marketing expenditures, so money should be spent where they result in the greatest sales increase.

2. Long-Range

Business owners have a tendency to focus too much on short-term problems and challenges. Even with these pressing issues, Uchumi must set aside time long-range strategy development. Growth and improvement occur only if the company continually evolves. Goals on improving profitability can require executing an extensive series of steps, and the process must begin now so goals several years away are attainable.

3. Risk Management

Uchumi should device ways to cope with the ever-changing business environment, which puts achievement of the company’s goals at risk. New competitive threats emerge. Unexpected swings in the economy can cause declining revenues or increased costs. Managing risks involves contingency planning, having strategies in place to deal with challenges that arise. Dr Julius...