Turnaround strategies and performance of Kenya airways
Keywords:
cost reduction strategy, financial restructuring strategy, revenue generation strategy, turnaround strategy, turnaroundAbstract
Many organizations across the globe today are facing declining performance at some point in
their cycles due to internal and external factors or changes in the business environment. Most
often, the organizations enter the state of decline due to pressures emanating from these factors
which threaten their existence. These organizations compete for survival in the volatile and
hostile market environment (the red ocean) and in order to emerge successful during the times of
distress, most of them adopt turnaround strategies to enable them return back to their normal
profitability as well as improve their performance. As an alternative response to the crisis,
turnaround strategies are applied to enhance an organization’s chances of survival and achieve
sustainable performance and recovery. This paper is an initiative into a study that sought to
determine the effect of turnaround strategies on performance of Kenya Airways. Specifically, the
study sought to establish the effects of revenue generating strategy, cost reduction strategy, asset
reduction strategy and financial restructuring on performance of Kenya Airways. The study
adopted a descriptive research design where data was analysed using descriptive statistics.
Findings revealed that the four strategies affected the performance of Kenya Airways positively
and contributed a lot to its turnaround.
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