Analysis of Turnaround Strategies on Organization Performance: Case of Uchumi Supermarket, Kenya

Okwisa Muhanga Daina, Manana Santos Robert, Esther N. Gicheru


Turnaround strategy is the process by which a business with inadequate performance is analyzed and changed to achieve desired results. It is an important tool to arrest and reverse the sources of competitive and financial weakness of an organisation as quickly as possible. A company could be transformed into a learning organization while adopting turnaround strategy so that they could increase the operation efficiency of the company and develop a competitive advantage. Turnaround strategy in any business organization results in effective service delivery, skilled, responsible and accountable workers, good Co-operative Governance and an improved business. The objective of strategic focus is to redefine the business and develop the restructuring plan’s strategic moves for a successful turnaround.  This can possibly call for product refocusing and implementing a divestiture, operational realignment, or outsourcing of non-core activities.  Although the solution tends to be simple in concept, the restructuring and turnaround plan is more complex in its execution.The researcher sought to assess the turnaround strategies on economic growth at Uchumi Supermarket, The purpose of study was to assess the outcome of turnaround strategies of Uchumi Supermarket. The objectives of the study was to examine the role of stakeholder in repositioning and support, top management reorganisation, training and sensitization and cost reduction strategy as well as  policies on turnaround strategies applied  at Uchumi Supermarket. The study adopted a case approach in order to get an in-depth of the outcome in implementation of turnaround strategies. The target population was three hundred and eleven staff members of Uchumi Supermarket comprising of top level and middle level managers. Sample random was used to get actual individuals. Primary data were collected using questionnaires and interview schedule while Secondary data was obtained from a review of published materials on the subject of turnaround and from organization reports documenting Uchumi turnaround. The qualitative data collected was analyzed using narrative analysis while quantitative data was analyzed by the use of Statistical Package for Social Science Software (SPSS) version (22).

Key terms: Turnaround Strategies, Organization Performance, Uchumi Supermarket.

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