EVALUATING TURNAROUND STRATEGIES AND ORGANIZATIONAL PERFORMANCE IN A SMALL BUSINESS–A STUDY OF EKO SUPPORT SERVICE LIMITED.

Abstract

Numerous associations today experience authoritative decay sooner or later in their life cycles as a result of both outside and inside factors. Much of the time, associations face decline when they neglect to perceive and adjust to outer and interior tensions that compromise the association's presence. The reaction to such circumstances is quite often a significant amount of work to "turn the organization around". This study seeks to examine the effects of turnaround strategies on organizational performance of Eko Support Service Limited. The researcher used a structured questionnaire to collect data. The population of the study was 400 and a sample of 200 respondents was obtained via the Taro Yamane formula. The data collected were analyzed using descriptive statistics such as simple percentages and the relationship between the variables of the model was tested using linear regression analysis. The study found that there is a positive and significant effect of diversification strategy on market share (R2 = 0.127, at p<0.05) and the F-Value yielded 9.335. The result of hypothesis 2 also indicates a positive significant effect of retrenchment strategy on profitability (R2 = 0.388, at p<0.05) and F-Value yielded 60.793 and lastly, top management re-organization strategy has a significant effect on organizational efficiency (R2 = 0.116, at p<0.05) and F-Value yielded 13.034. The study, therefore, concludes top-level management have significant roles to play indecision-making and conceptual skill regarding turnaround strategies and their applicability. The study recommends that top management re-organization in terms of structure, people, leadership, and organizational culture should be given priority in times of distress as this has proven to be a measure to improve organization efficiency.