Turnaround strategies and performance of Kenya airways

Abstract

Many organizations across the globe today are facing declining performance at some point intheir cycles due to internal and external factors or changes in the business environment. Mostoften, the organizations enter the state of decline due to pressures emanating from these factorswhich threaten their existence. These organizations compete for survival in the volatile andhostile market environment (the red ocean) and in order to emerge successful during the times ofdistress, most of them adopt turnaround strategies to enable them return back to their normalprofitability 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 achievesustainable performance and recovery. This paper is an initiative into a study that sought todetermine the effect of turnaround strategies on performance of Kenya Airways. Specifically, thestudy sought to establish the effects of revenue generating strategy, cost reduction strategy, assetreduction strategy and financial restructuring on performance of Kenya Airways. The studyadopted a descriptive research design where data was analysed using descriptive statistics.Findings revealed that the four strategies affected the performance of Kenya Airways positivelyand contributed a lot to its turnaround.