Strategy Implementation Factors and Financial Performance at Centum Investment Company PLC, Kenya
DOI:
https://doi.org/10.53819/81018102t5003Abstract
Organizations may experience both positive and bad outcomes as a result of strategy execution. Centum Investment Company reported reduced financial gains throughout the implementation of its Centum 3.0 plan, falling short of the 15% target. According to the company's March 2019 end-of-year report, profit fell to Kshs. 2.79 billion from Kshs. 8.3 billion, due to lower income from investment operations, higher administrative costs, lower property valuation gains, political uncertainty, reduced access to credit, uncompleted transactions and a difficult business environment. As a result, it was critical to learn what had caused the past losses and what processes had been put in place to correct the situation. Thus, the study sought to investigate the effect of strategy implementation factors on financial performance at Centum Investment Company Plc, Kenya. The specific objective of the study was to find out the extent to which organization resources affect financial performance in Centum Investment Company Plc, Kenya. The Resource Based View Theory was used to guide the study. The descriptive survey design was used in the study with a target population of 178 Centum Investment Company Plc employees. The sample size consisted of 50% of employees. A standardized questionnaire was used to collect primary data, while secondary data was obtained from published sources. The Statistical Package for the Social Sciences (SPSS) version 25 was used to analyze the data. The study discovered that the organization had appropriate and trained human resources to implement strategies effectively. According to the findings, strategic implementation factors had a positive relationship with financial performance. The study also found that organizational resources were the first and most significant independent variable. The study recommended that in order to ensure that there are no skill shortages, it is essential that the firm continue with staff recruiting and training. Further, it was recommended that the organization need to obtain the requisite technologies to aid in the implementation of the strategy. It is suggested that the company ensures that they have purchased the most up-to-date technology available, as this will improve their financial performance.
Keywords: Strategy Implementation Factors, Organization Resources, Financial Performance
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