IMPACT OF COST REDUCTION STRATEGIES ON PERFORMANCE OF TEA FACTORIES IN EMBU COUNTY, KENYA
Journal Title: European Journal of Business and Social Sciences - Year 2014, Vol 3, Issue 9
Abstract
Kenya’s overall economic and social development is highly dependent on the growth and development of the agriculture sector. Tea as a leading cash crop has made significant contribution to the economy. Tea exports increased by nearly 30 percent in 2010 reaching 441 tonnes valued at USD 1.3 billion. However the tea industry is faced with myriad challenges that threaten its survival if immediate intervention measures are not put in place. The tea industry is challenged by high cost of labour, farm inputs, energy/fuel, numerous taxes and levies. This study aimed at determining the impact of the cost reduction strategies initiated by various tea factories in Embu County. A total of 18 managers, 40 employees and 225 tea growers were sampled from the targeted population. Data from the respondents was collected through structured questionnaires. Data collected was analyzed descriptively using frequencies and percentages. The study found that the factories employed cost reduction measures. Some of measures were acknowledged to be applicable at 100%. These were strategies like staffing, technology and energy sources. The results further indicated that considering equal period of time before and after 2006 (when cost reduction strategies were introduced), the results obtained statistically showed that the amount of tea processed was not correlated with cost reduction strategies. This is because the quantity of tea decreased from 191,258,695 kilograms to 189,880,652 kilograms. The rate of annual returns for the farmers increased from a mean of 67.47% to 72.6% which implied that cost reduction measures had a correlation with the annual returns.
Authors and Affiliations
Nelson Njiru Namu| Faculty of Business Studies, Chuka University, P.O Box 109 –60400, CHUKA, KENYA Correspondence Email: namunjiru@yahoo.com, George K. Kaimba| Faculty of Business Studies Chuka University, P.O Box 109 –60400, CHUKA, KENYA, D. K. Muriithi| Faculty of Business Studies Chuka University, P.O Box 109 –60400, CHUKA, KENYA, Isaac M. Nkari| Faculty of Business Studies Chuka University, P.O Box 109 –60400, CHUKA, KENYA
Keywords
Related Articles
- EP ID EP10519
- DOI -
- Views 290
- Downloads 13
NEW-GENRE LEADERSHIP STYLES FOR INTERNATIONAL JOINT VENTURES (IJVS) SUSTAINABILITY: A LITERATURE REVIEW
This paper aims to provide insights into the existing literature on the contemporary leadership styles commonly applied by International joint ventures (IJVs) leaders. A total of 51 articles published between 1992 and...
FACTORS AFFECTING THE EMPLOYEE’S PERFORMANCE: A CASE STUDY OF BANKING SECTOR IN PAKISTAN
There are many variables that affect the performance of employees at work place. These variables include working hours, trainings, communication barriers, stress and financial rewards. Financial rewards and trainings...
INâ€SERVICE TRAININGS CONTINUED TO BE OPTIONS FOR SUSTAINING ACADEMICS PROFESSIONAL COMPETENCIES: EVIDENCES IN ADAMA AND HARAMAYA UNIVERSITIES
The article targeted to investigate whether the present mode of professional development, INSET continued to be an effective means for shaping instructors’ way of thinking as well as a way augmenting professional...
GUIDELINES FOR DEVELOPMENT AND INHERITANCE OF COMMUNITY BRASS BAND TO PROMOTE THE CULTURE AND ECONOMY OF COMMUNITIES IN THAILAND AND PHILIPPINES
Community brass bands are music ensembles created for social services for the general public and regal services. Community brass bands have been passed on from generation to generation with the main purpose of providi...
WHO DRIVES EDUCATIONAL CHANGE: SCHOOL OR SOCIETY?
The purpose of this paper is to discuss and yield further insight into the consequential conflicting relationship between the societal and educational change as well as the required leadership to lead this necessary e...