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Strategies adopted by Mumias Company Ltd to gain competitive advantage

Author: Barasa, Evans Jakait

Awarding University: University of Nairobi, Kenya

Level : MBA

Year: 2012

Holding Libraries: University of Nairobi Jomo Kenyatta Memorial Library ;

Subject Terms: Mumias Sugar Company ; AFC Leopards Football Club ; Competitive advantage ;

Abstract:

The focus of the study was to establish the strategies that Mumias Sugar Company Ltd has adopted to gain competitive advantage. The research design was based on case study which involved detailed investigation of the company. Both primary and secondary data were gathered. The former was from interviews with senior management of the company while the latter was from the company's strategic plans and annual financial reports. The findings of the study have largely indicated that the company has endeavored to gain competitive advantage vide adoption of differentiation and diversification strategies. Differentiation strategy was manifest through initiatives put forward by the company like, branding of its sugar products in diverse sizes of a quarter, half, one, two and five kilogram packets which cater for all classes of consumers in the market place. Lately the company has availed fortified sugar to the market; the sugar is fortified with Vitamin A to cater for changing consumer needs. The company's strategic function is being steered by a strong corporate and marketing department headed by a director. Regular advertising in the local media assists in reinforcing the company's products in the market. The company's corporate social responsibility function is strategic. The company is the major sponsor of AFC Leopards football club, a major football club in the country with a fanatic club base nationally. The players don jerseys with Mumias Sugar clearly written on them whenever they play football league games thus fully advertising the company and entrenching its products in the consumers' minds. The company has invested a lot in the construction and running of schools which post very impressive results in national examinations. Names such as Booker academy with their regular good performance in examinations are strongly associated with Mumias sugar hence the good performance translates to a perception of excellence in the company and its products. A perception that has greatly assisted the company differentiate itself from the competition. Diversification initiatives include, electricity generation whereby a 38 Mega Watts (MW) cogeneration plant commissioned in 2009 presently produces 34 MW out of which 26MW is transmitted to the national grid. The company sells molasses which is a syrup, by-product from the processing of sugarcane into sugar to Industrial users, Individual users and traders. It has finalized installing an ethanol production plant that they forecast is capable of converting their molasses output into 65,000 litres a day of ethanol. Water bottling and sale project was completed in May 2012 and bottled water brand named Sprinkles is presently available in the market. The findings of the study have provided useful insights on how an organization can utilize differentiation and diversification strategies to better its position in the market. The recommendations of this research are that similar studies be conducted industry wide in order to come up with an industry position on strategies employed by various millers to overcome the numerous challenges they are encountering. Comparative studies may also be undertaken with related agricultural industries such as Dairy and Horticulture in order to compare the position with the strategies applied in these industries to achieve competitive advantage.

Challenges of implementing diversification strategy at the Mumias Sugar Company, Kenya

Author: Anyango, Mary Elector

Awarding University: University of Nairobi, Kenya

Level : MBA

Year: 2012

Holding Libraries: University of Nairobi Jomo Kenyatta Memorial Library ;

Subject Terms: Mumias Sugar Company ; Management ; Diversification ; Strategic planning ;

Abstract:

The major determinant of an organization's success today in this changing turbulent environment depends on the successful implementation of its strategy. Strategy implementation addresses the issue of how to put formulated strategy into effect within the constraints of time, an organization's financial and human resources and its capabilities. This requires the organizations to deal with resources required, systems and organizational structures and changes. All organizations are environment dependent, they depend on the environment for their inputs and outputs. Every firm should therefore have a competitive strategy which relates it to its environment and enables it to maintain a fit between itself and the environment. The way a strategy is implemented is governed by setting up an ideal framework, rules, guidelines and procedures to be adopted in meeting its goals and objectives. The greatest contribution is in the design and administration of structure and systems that facilitate the implementation of strategic plans. This research was thus aimed at investigating the challenges of implementing diversification strategy at the Mumias Sugar Company in Kenya. The study adopted a case study research design as it sought to gain an in-depth understanding of the specific understanding of the specific challenges in implementing the diversification strategy. A total of ten respondents were interviewed using an unstructured interview guide. The respondents were the senior management staffs in the company who are responsible for strategy formulation and implementation. Data collected was first checked for consistency, coded and then analyzed to arrive at the various conclusions. The study concluded that the major challenges in implementing diversification strategy at the Mumias Sugar Company were; diverse culture, formulated policy to support diversification programs not in agreement with implementing strategic decisions made in diversification programs, conflict of the organizational role, leaders being resistant to change, poor coordination between management, other employees and stakeholders. The study also recommended; having competent, proactive, positive and procedural people involved in policy making, use of evidence-based reward system based on a similar system, need to grow their market to other countries as in the case of sugar which is supplied in East Africa and European countries, need to focus on customers and suppliers before stakeholders within the supply chain and need to introduce packages of bigger sizes of sugar for example Skg an IOkg in the market.

Perceived factors influencing employee promotion in Mumias Sugar Company Limited

Author: Ong'amo, Lornah Stellah Omanyo

Awarding University: University of Nairobi, Kenya

Level : MBA

Year: 2012

Holding Libraries: University of Nairobi Jomo Kenyatta Memorial Library ;

Subject Terms: Employee promotions ; Mumias Sugar Company ; Sugar industry ;

Abstract:

Employee promotions are a sensitive, emotionally loaded subject and the use of nonrational decisions regarding promotions can cause wide negative outcomes to organizations. This study, for the first time, aims to establish perceived factors influencing employee promotion in Mumias Sugar Company Limit~d. The researcher adopted survey research design and the sample population consisted of 240 employees of Mumias Sugar Company Limited. Primary data was collected using a semi-structured questionnaire and quantitative data was generated in this study. The research findings indicated significant differences in most of the factors relating to promotion. Work experience and academic qualification were ranked highest and employees agreed that they are factors influencing promotion in Mumias Sugar Company Limited. These were followed closely by performance, length of service, merit, success in projects and multi-disciplinary professional knowledge. Luck, age, gender, personal similarities between supervisor's and employees, political tools, marital status and ethnicity or tribalism were considered to have medium influence on promotions. Employees neither agreed nor disagreed that they were factors influencing employee promotion in Mumias Sugar Company Limited. Employees disagreed that the variables of who you know and not what you know and constant pressure by worker on the supervisor were factors influencing employee promotion in Mumias Sugar Company Limited. Analysis was conducted to investigate the effect of the participant's demographic variables on the promotion factors. The implications of the findings in terms of human resource management are discussed in the paper.

Influence of performance appraisal on employee performance : a case of Mumias Sugar Company Limited

Author: Kingoina, William Maina

Awarding University: University of Nairobi, Kenya

Level : MA

Year: 2011

Holding Libraries: University of Nairobi Jomo Kenyatta Memorial Library ;

Subject Terms: Mumias Sugar Company/Performance appraisal ;

Abstract:

A performance appraisal, employee appraisal, performance review, or (career) development discussion is a method by which the job performance of an employee is evaluated (generally in terms of quality, quantity, cost, and time) typically by the corresponding manager or supervisor. A performance appraisal is a part of guiding and managing career development. It is the process of obtaining, analyzing, and recording information about the relative worth of an employee to the organization. Performance appraisal is an analysis of an employee's recent successes and failures, personal strengths and weaknesses, and suitability for promotion or further training. It is also the judgment of an employee's performance in ajob based on considerations other than productivity alone.There is an increase in the use of performance appraisal in Kenya both in public and private companies yet there is no corresponding information on increase of organization performance. Performance appraisal processes are one of the central pillars of the performance management which is directly related to the organizational performance and have a direct impact on it. Employee performance ultimately affects the organizational performance and objectives. The main objective of the study was to assess the influence of performance appraisal on employees' performance a case of Mumias Sugar Company. A survey research design was used to collect information on the opinions and attitudes of the respondents on the subject.' The main tools of data collection were questionnaires and interview guides which were administered to employees of Mumias Sugar Company located in Mumias district, Kakamega County in Kenya. A sample size of 70 management staff from the eight department of the company was involved in this study. Questionnaires were sent to the respondents and a follow up done by the researcher for collection and interview. The data was analyzed using descriptive statistics mainly frequencies and presented in tables. The study found out that performance appraisal had influence on the employees work output where half of the respondents agreed to this. It also found out that performance appraisal did not necessarily lead to improved quality of work by the employees. Less than half of the respondents agreed to this. The study recommends that Mumias carry out further training on performance appraisal targeting both the appraiser and the appraisee to reap maximum benefit from this exercise.

The potential of life cycle management for sustainable production of sugar at Mumias Sugar Company, Kenya

Author: Marabu, Abraham Wekesa

Awarding University: Kenyatta University, Kenya

Level : MES

Year: 2011

Holding Libraries: Kenyatta University Moi Library ;

Subject Terms: Mumias Sugar Company ; Sugar ; Life cycles ; Management ;

Abstract:

As the international community continues to embrace sustainability thinking in decisionmaking, the sugarcane industry too has to adopt and operate within principles of sustainable entrepreneurship. A key input in this evolving paradigm is application of Life Cycle Management approach, whose focus is to determine sustainability concerns at all stages of a product's life cycle so as to attune business to economic viability, social responsibility and environmental soundness. This study assessed the potential of Life Cycle Management in the sugar industry focusing on Mumias Sugar Company. The study was aimed at evaluating the management of impacts at sugar production, transport, processing and waste management. Data were collected using focused group discussions, observation, key informant interviews and laboratory analysis methods. The scope of the study was restricted to environmental concerns. Data from Key informant interviews and focussed group discussions were transcribed and analysed based on thematic areas. Results showed that, at the farm level, continuous cropping, lack of adherence to contracts by the company and sugarcane fires were identified as key factors affecting productivity. At the transport phase, poor state of feeder roads and poor sugarcane stacking were responsible for significant sugarcane spillage losses thus directly lowering the farmer's income. At the sugar processing phase, high waste generation evidenced by high values of Chemical Oxygen Demand (l430mg/I), Biological Oxygen Demand (605mg/I), and Total Suspended Solids (347.5 mg/l) in the treated wastewater from the factory compared to critical standard values (BOD maximum=30mg/l, COD maximum=50mg/l, Total Suspended solids maximum =30mg/I). High levels of the above parameters deprive aquatic plants and animals oxygen required for respiration. Also noted was high water consumption levels (8640M3) with recycling putting pressure on the water source (River Nzoia). High pollution levels of Nitrous oxide ,carbon monoxide(1,748,494 tonnes per year) and carbon dioxide (2,747,527 tonnes/year) At the waste management phase, there was limited utilization of molasses whereby it was only being used as an animal feed and industrial use to produce denatured spirits. Opportunities for industrial symbiosis exist for transforming molasses into bio-ethanol production which is used to blend petrol for use as motor vehicle fuel with minimum tail emissions. Use of polythene bags for packaging retail sugar adds to the plastic menace thus undermining best practices. Filter mud was used as a soil conditioner without planned monitoring for heavy metals (Cadmium (lOppm) and Zinc (8ppm)) although their levels were below critical levels but could in the long run bioaccumulate thus affecting productivity. There was lack of declaration of impacts of inputs used sugar production process providing a challenge on control of emissions at source. Mumias Sugar Company needs to adopt sustainable procurement where all suppliers of inputs are required to declare the environmental impacts of their products thus eliminating inputs with high environmental emissions. There is need for monitoring of contractors on land preparation, harvesting and transport so as to comply to set guidelines. Mumias Sugar Company should also honour contracts signed with farmers to avoid losses due to late harvesting. There is need for improvement of roads through the public private sector partnership. Sugarcane loaders need to be sensitized to avoid over staking of cane that leads to spillage. There is need for adoption of green procurement that will require declarations of all- environmental impacts of all the inputs in the sugar production process.

Factors affecting performance of Mumias Sugar Company in Kenya

Author: Were, Jeremiah Karry

Awarding University: Kenyatta University, Kenya

Level : MBA

Year: 2010

Holding Libraries: Kenyatta University Moi LIbrary ;

Subject Terms: Performance evaluation/Mumias Sugar Company/Employees ;

Abstract:

The sugar sub-sector is a source of livelihood to over five million people in Kenya. The cost of production in Kenya is high when compared to that of other regional and world producers. The milling firms in Kenya are riddled with a heavy debt burden. Most of them have, one time or another, been placed under receivership. In fact, left on its own without offering any protection. the industry will simply collapse. While Mumias Sugar Company (MSC) has been the most successful of the seven sugar factories in Kenya, its survival remains uncertain due to increased completion for both market and raw materials. In its endeavor to improve efficiency, the company installed a high capacity processer (diffuser), but this was met by another problem of shortage of the raw cane as a good number of farmers contracted to the company uprooted their crops as they went for other substitutes which they believed offered better returns. This situation called for a scrutiny to determine factors affecting the performance of the company . This study employed descriptive research design. The target population was 600 respondents: 458 employees of the company, 64 MOA officers, and 78 Area Leaders (farmers' representatives in Sub- locations). The researcher used stratified random sampling technique. A sample of 10% of the target population was picked from each category, thus 46 employees of MSC, 8 farmers' representatives, and 7 MOA officials. Both primary and secondary data collection techniques were used. The secondary data was obtained from the company's newsletters and Annual Performance reports, as well as Kenya Sugar Board and International Sugar Organization reports. Primary data was collected by use of questionnaires. Data collected was checked for completeness and analyzed using descriptive statistics. Results for quantitative data are presented in tables and figures while qualitative data is presented in prose. The study found that MSC was not utilizing its mill capacity fully due to inadequate supply of raw cane. Competition especially from imported sugar is posing a serious threat as the company is unable to compete effectively due to the high cost of inputs. To increase revenue base and, therefore. lower cost of production, it will be prudent for the firm to diversify its products.

The role of international organization for standardization certification 9001 : 2000 in competitive production in Kenya's sugar industry : a case of Mumias Sugar Company Limited

Author: Aluvi, Patrick Amisi

Awarding University: Moi University, Kenya

Level : MPhil

Year: 2009

Holding Libraries: Moi University Margaret Thatcher Library ;

Subject Terms: Sugar industry ; Mumias Sugar Company ; International Standards Organization ; Standards ;

Abstract:

The ever quickening pace of technological evolution is now more than ever affecting the way new standards are proposed, developed and implemented in Kenya's sugar industry. The International Standards Organization (ISO) is among the organization that ensures that there is standardization of goods and services worldwide so that the goods and services are accepted worldwide by the different consumers. Due to the high demand and changes in consumer tastes, many organizations and industries globally and locally have devised various ways of coping with the ever increasing demands of their customers by ensuring that they standardize their products and services using ISO certification as a means of standardization. However the actual role of IS0900 1:2000 has not been fully established especially here in Kenya despite the fact that it is used as a measure of the quality of production hence this study sought to find out its actual role in the company. This study therefore sought to examine the role of IS0 900 1:2000 certification in competitive production in Kenya's sugar industry using Mumias Sugar Company as a case study. The study addressed the following objectives: to examine the principle of 1S0900I :2000 and assess how MSC has implemented the requirements, to evaluate the effect of IS0900 1:2000 on production, to assess the challenges the company faced in implementing IS0900 1:2000 requirements and to suggest the appropriate ways of enhancing effective production through IS09001 :2000 certification. This study was guided by the Kaizen Philosophy of continuous improvement. The study used a case study design and the target population was all the employees o( the company however a sample of 186 respondents was selected for the purposes of this study. Stratified random sampling technique and purposive sampling were used to proportionally select respondents from the seven company departments. These respondents formed the sample of the study population. Data was collected through questionnaires, interviews and documentary review. The data was analyzed using descriptive and inferential statistics by use of statistical package for social sciences (SPSS) and presented in tables, figures, percentages and discussions. A chi square test was used to determine if the acquisition of ISO 9001:2000 certification and production are significantly associated or not. It is expected that the findings and recommendations of the study will be relevant to other organizations especially those that are not yet ISO 9001 :2000 certified.

Public relations and communication as strategies for competitive human relations in effective industrial process : a case of Mumias Sugar Company Kenya

Author: Chiveu, David Chindia

Awarding University: Moi University, Kenya

Level : MPhil

Year: 2008

Holding Libraries: Moi University Margaret Thatcher Library ;

Subject Terms: Public relations ; Communication ; Industrial relations ; Mumias Sugar Company ;

Abstract:

This study was conducted to establish the role or public relations officers as well as communication strategies in top performing companies taking the case of Mumias Sugar Company. The specific objectives studied were to; find out the communication channels used in Mumias Sugar Company between the management and the workers, examine the communication channels used between the company and its extrinsic public, establish the role of public relations in Mumias Sugar Company and recommend probable ways through which the role of public relations could be improved. Transactional communication model propounded by Weinburg and Wilmot (1973), which provided a system of communication between individuals while emphasizing on feedback formed the bedrock of the theoretical model guiding this study. The study was conducted by a case study-design, data being collected between February and June 2006, using questionnaires, interview responses and observations. A multistage random sampling method that clustered the employees by department, which formed the basic unit of the study sub-sample, was used to collect data from a total of 120 respondents within six company departments using simple random sampling method. Data were analyzed using chi-square goodness of fit and percentage frequency distributions techniques. The study established that employees in Mumias Sugar Company used four main channels of communications; letters, noticeboards, employee handbooks and suggestion boxes, the most frequently used method being noticeboards while management of the company preferred letters, memos, noticeboards, annual reports, grievance procedures and taskforces to effectively communicate with the employees. Further results indicated that, public relations officers had significant and effective roles to play within the company and their main duties were to enhance continuous dialogue as well as undertake research on the most effective customer relations' duties. Consequently success registered by public relations and effective communication strategies were manifested in fostered positive understanding and building good public image. The study thus concludes that there is public relations and communication channels in Mumias Sugar Company that encourage employees to have proper working environments. It recommends that proper channels of communication that can be easily understood by both management and employees be used in addition to employing the service of effective public relations officers with a designated officer that can be accessed by a majority of the stakeholders. Since there were fewer PRO in Murnias to cover the entire employees appropriately, more research should however be conducted to determine the appropriate number of public relations officers within an organization that can provide service to the employees in line with financial capability of the company.

Competitive strategies applied by Mumias Sugar Company.

Author: Jowi, Ezekiel C

Awarding University: University of Nairobi, Kenya

Level : MBA

Year: 2006

Holding Libraries: University of Nairobi Lower Kabete Library ;

Subject Terms: Sugar industry/Mumias Sugar Company/ ;

Abstract:

ABSTRACT NOT AVAILABLE

Impact of privatization on firm performance : a case of selected privatised firms in Kenya

Author: Okumu, Argan Wekesa

Awarding University: Kenyatta University, Kenya

Level : MSc

Year: 2005

Holding Libraries: Kenyatta University Moi Library ;

Subject Terms: Privatization ; Structural adjustment ; Mumias Sugar Company ; Kenya Commercial Bank ; Kenya Airways ;

Abstract:

In the late 1970s and early 1980s, the Kenyan economy experienced a series of shocks. Some of them affected all developing countries, but others were specific to Kenya. The International Monetary Fund (IMF) and other donors responded with substantial commitment of structural adjustment lending. Kenya was the first sub-Saharan African country to receive structural adjustment funding from the World Bank and later the first to receive an enhanced structural adjustment facility (ESAF) loan from the IMF. Privatisation was one of the key requirements of those forms of lending. For many years since independence in Kenya, parastatals have generally proved to be 'parasites' on the treasury. Though the state entities do generate some revenues, the revenues seldom cover a reasonable proportion of their costs. They end up being a burden to be borne by the government instead of contributing something to the exchequer. Privatisation as a component of public sector reform policy has attracted mixed across the various stakeholders. Whereas it has long been yearned for by some, it has proved to be a threat to others. This fundamentally manifests the respective perceptions of the impact of privatisation. The research responded by carrying out an assessment of the impact of privatisation on performance, thereby putting to light the expected outcome of a typical privatisation. The approach used was case study based on Mumias Sugar Company, Kenya Commercial Bank and Kenya Airways. The study applied t-tests and Wilcoxon Signed Ranks tests on hypothesized performance indicators. Analysis of privatisation was further examined by discussing lessons drawn from international experiences