1 CHAPTER ONE INTRODUCTION The definition of the term Supply Chain Management is all the required specific actions for the creation of raw materials in to completely finished products in the consumers’ hands. SCM encompasses the entire activities affiliated with both the upstream or more so downstream arena flow and the transformational factor of raw materials to ready products for use. The established relations in the supply chain management system are the fundamental factor that stimulates the competitive SCM advantage (Werner, 2000 pg. 56-67). It more so improves the link existing between all the stake holders of an enterprise so that stability of goods can be maintained from the producers to the final consumers. The central part of the supply chain management is the Operation. In this case, operation may stand for a manufacturing company or rather a retailer or even an institution in the public sector. At this point of the supply chain, particular organizations take up the business responsibility of carrying out specific duties. The operation occurs in tiers thus allowing passage from one firm to another for instance from the firm to the consumer (Li, Ragu-Nathan & Rao, 2006 pg. 86-89). In the downstream arena, the manufacturer sells the products they have to their possibly available customers and then the chain continues as the dealers then avail the products purchased from the manufacturers to the final consumers. The first tier customers are therefore the dealers while the second tier customers are the final consumers. The downstream or the physical management is whereby an interface is created between the initial tier customers besides the operation (Mentzer, et al, 2001 Pg. 52-56). The coordination of all the above processes in detail in the upstream and the downstream is what is 2 termed as the supply chain management. The final consumer is the determinant of the supply chain management reason being that each stakeholder in the chain relies on them. This model of management has hit the punch line in a variety of organizations as it contributes most on the efficiency and proficiency of the organizational value. It is more so profits center of an organization but not a cost center as many may assume it to be. There has been an increased focus on the supply chain in recent years whereby organizations have enhanced their concentration on it because of the key role it plays in any business enterprise (Lambert & Cooper, 2000 Pg. 67-76). It is quite clear that the supply chain management is a package of activities inclusive of coordination and planning of both the external and internal activities which generally are dependent on each other in order to be functional. More so, retail store outlets are an enterprise whereby products and services are both directly sold to the final consumers in relatively smaller quantities. There is a variety of retail store outlets inclusive of smaller ones and others carrying smaller sales while other are large and make sales which add up to millions. The differences existing between diverse retail outlets are in terms of merchandise breadth, operational methods besides ownership models, the types of retail outlets entail specialty store which are naturally vast and always accommodate special goods and more so services. Their main focus is on a very special line of duty. Another type of retail outlet is the departmental stores. They generally deal with a variety of goods and services under one roof. A supermarket is also in the same line of duty since it enhances self-services for satisfaction of customers wants totally (Reinartz, et al, 2011. Pg. 67-71). The diversification of supermarkets is justified by all goods and services that are actually required by human beings. They service 3 maybe in terms of Music store, bookshops among others. A superstore entails around 35000 square feet of the space meant for transactions thus meeting all the consumers’ needs. A hypermarket in terms of size may encompass 80000 to maybe 220000 square feet as pace for selling the obliged goods. Research Problem Citing an example of every market, the component of customer service is very fundamental. It is quite clear that majority of supermarkets are currently running customer care program but on the same note facing the problem of the above mentioned is that the very product is its incorporation to local outlets. The customer perceptions are always as a result of a poor model of customer care services. Nakumatt for instance has a belief that the quality standard of service each customer receives is equal regardless of the outlet they shop in. it is very significant and relevant to be keen on the maintenance of nationwide consistence so that the market receives quality services to avoid poor performance. Location also has a very outstanding role as a retail market outlet strategy because of enhancing the sales of a company. Nakumatt therefore faces a lot of competition bearing in mind Nakumatt Downtown and more so Hyper because of the fact that Uchumi Supermarket in Kimathi street besides Ngong as they are mostly known to have relatively low prices as compared to Nakumatt thus Uchumi dominates as the preference of majority of customers. One of the branches is affected whereby Nakumatt Junction and also Nakumatt Karen are near to each other thus lowering the annual turnover of either of them as they serve less people. The impact of the same is seen in a situation whereby the actual managers are de-motivated after realizing that all their efforts are in vein. 4 Despite the fact that Nakumatt has been doing prettie well in their services, the challenge that is very present is the competition from other rivals like Ukwala, Uchumi and also Tusker mattresses alongside others. Low sales have been experienced in diverse moments because the customers do not afford to rhyme with their prices which are considered relatively high. The following factors maybe the actual cause of this inconvenience: poor pricing techniques, unstrategic location of the outlets, inconsistency in offering customer care services alongside ineffectiveness in communication amongst major stakeholders of the company like the employees, top management staff an also the customers. This is the reason why the study was designed to find out the SCM troubles being experienced at Nakumatt Retail Stores in Kenya. The Research Boundaries (Limitations) 1) Financial constraints were on the forefront as limiting factors in all aspects of conducting the research such as in form of travelling expenses 2) There were at some point difficulties in the attainment of appointments in meeting the managerial and sub-ordinate staff because of the existence of their busy work schedule 3) The confidential nature of the respondents demanded the sixth sense in order to attain the obliged information for the betterment of the studies validity as they thought that the researcher was a competitor trying to find a way of attaining a zero competition with regard to the offer of services and effect of supply chain management on organizational performance. Research Methods In this section, the procedures that were used to ensure the success of the research study are comprehensively evaluated. It entails five sub-sections which are Research design, the target population, the sample frame and more so the sample design, the methods of data collection 5 alongside data analysis techniques. The commencement section which is entailed of the research design is a package of the design study which was employed in the carrying out of the specified research problem. It gives the relevant content that is fundamental in the study. The second level is designed to tackle the target population and is an explanation of the respondents of the raised questions in the study. The participants in this context were the management stuff, employees alongside the customers for the Nakumatt retail outlets. They filled the questionnaires in the satisfaction of their role in the entire study. The third section totally dealt with the sample design and the sample frame. It was a criterion for obtaining the representative sample from the entire population to be participants of the study. The procedures that were used or incorporated to attain the sample is explained or discussed in this section. The fourth category deals with the steps involved in data collection and at this is the point whereby the questionnaires were developed and then distributed to the respondents on time. The data analysis section is responsible for the conveyance of the information to the reader and then tabulated. Research Design A descriptive research design was incorporated in the study in order to attain an in-depth analysis of the problem in question. The merit present in such an approach is that there is reliability on some sources of evidence. To this extent therefore, the complications facing the supply chain management in the specific retail stores were the independent variables namely pricing, location, customer care and also competition. Target Population The management alongside the employees was the target population of Nakumatt retail store outlets. The customers were also put into consideration. Vivid interviews were carried out 6 being the people who are directly involved in the activities of supply chain to know what is exactly required. The following is a table showing the total population in the study conducted Number Rate Managerial staff 40 20% The Customers 60 30% The Employees 100 50% Total Respondents 200 100% Explanation The table has it that the total encompasses of the customers, employees and the managerial stuff in the Nakumatt Retail stores. The customers were sixty in number, employees encompassing of a hundred individuals and the managerial staff being forty. Sample Frame alongside Sample Design Both stratified and random sampling techniques were applied in sampling analysis. The favorability of the approaches was as a result of the reduction of the data collection and analysis costs by the stratification of the entire population into managerial groups. The sampling techniques above also play a vital role in providing estimates in a separate manner of different population parameters. It was only via these models that the Nakumatt retail store population was attained at diverse calibers. The table below illustrates the sample design used in the research Section Population Rate Sample Size Customers 60 30% 18 7 Employees 100 50% 30 Management 40 20% 12 Sum 200 100% 60 Explanation From the table above, the sampling design that was used is illustrated to attain information from all the stakeholders who were the respondents beginning with the managerial staff, employees and more so the customers of Nakumatt Retail stores. There was a random pick of the target population without any isolation having twelve individuals from the managerial staff, thirty representing the employees and eighteen being a sample for the customers. Methods of Data Collection The researcher used questionnaires to attain the information desired from different departments of Nakumatt Retail Stores. They were then delivered on time to the relevant participants to provide credible feedback which helped the entire process. Questionnaire The questionnaire entailed a number of printed questions in a well-defined order. The respondents were asked to answer some of them which they were sure of and the others left for more lucidity to be sought. Both the open and closed ended questions were used in the study in collection of solicit data. The delivery was done by hand to the target participants at the Nakumatt retail stores. 8 Observation It is a scientific model of data collection in the case where it is well formulated via a systematic plan and more so subject to validity and reliability test as a structural observation method was used. This is because of prior unit determination of style and more so conditions. Procedure of Data Collection There was editing, recording, tabulating alongside analysis of data. The data collected was then tabulated and then recorded in percentage form. The focus of the analysis was majorly on the respondent opinions with regard to the SCM in the Nakumatt retail stores 9 CHAPTER TWO THEORY The review study is on the basis of those challenges of Supply Chain Management to the problems of Nakumatt Retail stores in the entire Kenya. The Literature review provides the attainment of specific documentation and forming a better analysis of the information in line with the topic under study. The researcher is therefore provided with relevant procedures and more so variables which back up appropriate strategies for proper investigation of the subject matter. The review will more so entail current study areas inclusive of materials like journals, magazines and also the internet alongside newspapers. Empirical Studies From definition, the supply chain encompasses all organizations that are involved via the upstream and more so the downstream networks in diverse activities and processes which may add value to the chain to the customers’ advantage. The rules of the chain and principles emphasize on providing the goods and services required by the customer on time and at the right place. The customers care less about how the goods and services should be provided but all they want is the reception of quality products from the suppliers (Thomas & Griffin, 1996 pg. 63-67). Procurement is very fundamental in terms of attainment of quality service delivery to the internal customers. Savings are achieved in procurement via performing price reductions or be enhanced in the price value of the items that are actually bought thus having a reduction in the supply base of the purchased orders or payable accounts. An extra definition of a supply chain is those specific actions that are obliged in constructing a product through the transformation of raw materials to the finished products consumed by the final customers. 10 The upstream and the downstream activities affiliated with the supply chain possess an extraction statement to the final user of the products through the transformation of raw materials to finished goods. The integration of these particular activities with the profound objective of attainment of a relevant competitive advantage via the improvement of the supply chain relationships is what is referred to as Supply Chain Management (Thomas & Griffin, 1996 pg. 54-67). It is therefore regarded to as the interconnected linkage of organizations which are interdependent in nature and have a mutual relationship in the management of the flow of goods from the producers to the final consumers. The supply chain is totally concerned with the chain of activities involved in ensuring the timely and quality delivery of desired goods to the customers on a very agreed principle. The continuum encompasses checking those buyers and sellers willing and able to transact and recognition is therefore given to the derived benefits from the attempt of taking strategically an integrated supply chain perspective or view rather than the individual view focus (Thomas & Griffin, 1996 pg. 46-51). The managerial focus attention is the incorporation of the entire stakeholders of the chain in question inclusive of the individual company or organization and the constitute organization of the chain. Theoretical Framework Review Pricing This is with regard to the amount payable by the customer for the goods supplied to them. The price should actually match the perceived value and attached offers (Thomas & Griffin, 1996 pg. 78-80). This is a very key item in any business in operation because the competitors may take its advantage to vandalize other businesses by slightly adjusting theirs to fit the consumers’ needs. The quality of the goods may be awesome, but due to price overcharges, the 11 goods may be resisted by the market. The adjustment of the prices is due to the limitation of the folk not being in a better position to afford the prices attached to the goods by the sellers themselves. The price of the available competitors is also a major factor to consider in the supply chain because the same product may be offered by the competitors at a slightly lower price and thus the market may prefer purchasing the items at a low price in order to save for another day (Thomas & Griffin, 1996). This may lead to the firm promoting its sales because the market will advise their colleagues to purchase at the place they feel is lower. The competitive forces and the complex environmental arrays which are incredible are the fundamental subjects for the price decisions to be made. A pricing structure is seen to be changing on a daily basis during the life cycle of the products. Product prices are adjusted to outline the cost reflection of the buyer variations in demand and more so situations. The companies seem to consider the duration and moments of changing prices as the competitive environment begins to have to diversify. Stronger relationships are established between the pricing strategies and their related aims, products produced in terms of the model, production and distribution models responsible industry managers and the industry sector. The discount structures are also affiliated with a business and their systems of pricing. There should be consideration of competitor pricing regardless of company elasticity according to recent studies. There should be no diversity if in any case the prices of the competitors and your prices match because of the fact that there will be no impact on the demand in such an event (Min et-al, 2005 pg. 55-57). Costs mark the basis of competitors marking their 12 product prices. The taking advantage economies of scale by firms are normally done by not shifting the pricing patterns overtime but impose competitive prices on goods. The price factor is a factor which determines whether an investor should enter or leave the market with regard to the output received over a specific period of time. In avoiding competition, there are alternative things which can be done to bring a difference. The activities are inclusive of advertising and also product differentiation (Min et-al, 2005 pg. 86-87). They try to reduce the issue of direct competition which may, in turn, lead to price wars. A pricing program should be actually constructed one their pricing objective is realized alongside the demand elasticity. The pricing programs in question are classified into three models. Penetration pricing is one of the models, in this particular strategy, there is the utilization of low prices as the key basis for demand stimulation. In incorporation of these very programs, the penetration degree of products of any given firm is increased thus increasing the market share in return. Competitors and demand elasticity are factors favoring it. A set up of products which have a higher rate of being complementary is done since there is the existence of cost disadvantage. There is also the existence of competitors and more so economies of scale. Parity pricing is another model and approach. It clearly means highly competitive as the prices are downplayed in their role for the responsibility of market implementation as a strategy. The inelastic nature of the market demand is a market demand favoring factor in cases whereby the company is seen to be elastic as there is no cost advantage above the available competitors. In line with that, the economies of scale do not avail any gains to the business (Min et-al, 2005 pg. 53-57). The fundamental aim is the attraction of new customers under the influence of quality and then go ahead to retain the existing customers or a large number of them. 13 There is also premium pricing which is strategically setting up the prices slightly above the levels which are competitive. The higher quality differentiation approach is the determinant factor for the success of a firm. Demand elasticity also favors this approach when there is no excess capacity when the barriers to entry are not in existence when the economies of scale are minor, and the pricing target is customer attraction on the basis of quality. Competition There is no possibility of firms operating without competition. If possible, then there are only a few organizations which operate in such environments. The customers’ money is scrambled for by diverse companies in a variety of ways. From a very practical perspective, the definition of competition in a business is those particular organizations that market similar or more so substitute goods and services in a similar locality or geographical location. Competition dominates majority of situations and markets (Bechtel & Jayaram, 1997 pg. 111-118). It is realized that even charities tend to compete with their opponents for financial commitment and also attention. The emphasis of marketing is the meeting of the needs of customers and satisfaction attainment. The uniqueness in the marketing criteria is the profound determiner of any success of a firm to avoid product replication with each other. The competitive advantage has an impact on the marketing managements’ arena and their actual behavior. Marketing managers may not have total control over such factors but they may avoid them by design if not by default so that the inevitable ones are planned for earlier. Customer and competitor analysis should be done as a comprehension criterion of a competitive advantage break through (Bechtel & Jayaram, 1997 pg. 75-79). The strengths and also the weaknesses of both of the stakeholders mentioned above should be put into consideration. This 14 creates a difference in between the competitors because they may not be tight enough to employ the same strategy. This is an implication that there is need to comprehend the competitors’ features and characteristics. The capacity utilization and more so the model of technology used determines the players in the relative cost structure of the most instrumental players. In the cases of competitors having a higher state of maintaining the market, there are five forces which are competitive to the threat to the rivalry of the competitors. The forces impact to price wars, battles regarding advertising and introducing new products, the actual threat of new entrants in the market, the growth of the markets bargaining power alongside the growing bargaining power of the suppliers. In a competition therefore many firms rely on pricing as the fundamental factor that determines the level of the competitors (Thomas & Griffin, 1996 pg. 56-58). In the realization of those conditions that really may apply, the firms try so much to respond to them or provide a counter solution to them using very new strategies in a business arena. An extra capacity of any firm may be sold or shrank and begin to concentrate on the small market gap (Oliver & Webber, 1982 pg. 45-52). Consequently, if the growth of the industry is the dominating issue, major emphasis is then imposed to the primary demand or else correct the balance of power through the size increment over the competitors’ n the market alongside merging with others to diversify the risks. Explanations have taken over regarding a key competitor being a firm which is a firm that goes after a similar target market. It may resemble another or be a substitute that meets the needs of the customers. The executives of the existing key competitors should be comprehended to the latter so that alongside their qualifications as a fundamental item so that professionals in the same line of duty are consequently employed to curb them (Cooper & Ellram, 1993 pg. 66- 15 69). The qualifications encompass the expertise, their performance records and more so previous companies that they have gained experience from. This practical analysis is meant to give a suggestion of the future strategies that the competitors may incorporate in their businesses. The source of such information may encompass the use of the business publications of the target industry which are useful to the large firms that exist. Other useful sources that should be used entail the customers and suppliers besides other organizational market channels. It is a characteristic of world-class companies to study their competitors and their customers as well so that they know how to be outstanding in delivering the best to their customers to outshine the competitors. The comprehensive study of the competitors requires a very substantial time so that keen analysis is done for the betterment of sales maximization. Strategies which are cost-effective should therefore be incorporated by the management in order to acquire the additional information obliged (Oliver & Webber, 1982 pg. 33-46). Competition intelligence must be conducted at all costs in the prevailing market whose environment is rapidly changing. The challenge only arises in situations whereby assembling of the penetrating aim of the competitors’ interests becomes a complicated scenario. Customer Service Customer service entails the programs and all set of activities which are undertaken by the retailer meant to make a most convenient shopping experience and also in turn reward the customers. The customers’ value is increased by such activities in the effectiveness of the supply chain. Retailing seems to be a service business and all retailing components increase the merchandising demand value of the customers. Once customers have been attended too nicely, then they are motivated to frequently transact with such organizations. 16 Interpersonal Dimension This element is encompassed of attitudes and verbal skills alongside the workers’ behaviours. Appearance is very key because it is like the first impression that the customer experiences. The service personnel should be smart in language and the tone that they use in delivering the services to the customers. These external characteristics convey the message even before the personnel speaks out anything to the customer. Being attentive is also significant because it is a way in which a customer feels recognized in a more than special way. Tact-this is a component that is creatively done to outshine all the circumstances at different moments to fit all situations without any error (Cooper & Ellram, 1993 pg. 60-67). Guidance being a level of cognitive capability and more so the resources required enhancing service delivery and decision making efficiency should also be incorporated to increase the organizational sales. Personal Perspective This is the category or perspective which actually deals with the systems of service delivery and the procedural mechanisms of meeting the customer needs. The areas under this section encompass time, flow, flexibility, anticipation and more so communication (Stephens, 1989). Commencing with time, it is in the sense of the duration of time taken in order to complete the service delivery process (Houlihan, 1985 pg. 85-86). Flexibility avails the ease of offering total satisfaction to the needs of the customers. Anticipation in this sense is the act of being one step ahead of the customers by enhancing the provision of services without their updates. Communication is important because of the fact that services are improved alongside supervision through the use of an effective communication technique. Flow should be controlled 17 to regulate how they should receive the services without clashing with others. Each manager is entitled to dictating the appropriate service for their store. This is inclusive of sales personnel services and the stores’ affiliated services conveniently. Communication alongside Advertisement Communication is defined as ideological interchange, facts more so emotions by more than one individual through the use of words, letters or maybe symbols if they apply in a circumstance. Communication is very fundamental in the organizational theory because of organizational extensiveness (Christopher, et al, 1992 pg. 66-67). Both organizational and administrative foundations should be built on the basis of communication. Is through communication that all systems of any organization are linked together thus the most designed role of the management is the ensuring of proper communication flow. Formal communication is meant to achieve certain specific organizational objectives as informal communication applies mostly to the colleagues working together. The following reasons justify the importance of an efficient communication system in an organization: Communication is responsible for the achievement of organizational objectives and more so acting as a backup in plan formulation. It also acts as a successful change introduction mechanism. The management is stabilized through a very profound communication strategy. It is a vital component in the maintenance of the retail external relations. The smooth running of an organization meets the employees’ psychological objectives and needs to boost organizational performance. Location It is a reference of the competitiveness of a firm. Competition influences the quality of goods because all the suppliers in the same line of duty are encouraged to produce the best for 18 sale maximization at relatively lower prices (Houlihan, 1985 pg. 19-23). The retail managers get an inspiration out of competition to do a better job. Similar stores which may be in place to serve very few customers makes the retail stores to undergo some form of suffering. This element sometimes increases the issues of customer traffic. Retailers should not actually fears competitors but only focus on their objectives and mission statement that will act as a blueprint in determining their merchandise right market. The strategy of location can be done by retailer mapping in accordance to the available traffic amount and the number of consumers in a location. The location is a very key item that is put into consideration by most retailers because they need a free market for the disposal of their products. The location attains the organizational strategic advantage over the competitors thus acting as a monopoly in the market. Critical Review From the commencement of the literature, diverse authors and more so researchers have argued that an organization cannot attain its peak in SCM if they do not perfect in disciplines like pricing, enhancing communication, perfecting customer care services and strategically examining the location of a firm or retail store. It is quite true that if organization chooses to concentrate on the above mentioned factors in the supply chain management, then meeting the objectives set won’t be hectic. In conclusion therefore, it is a must for these outlined factors to be taken care of at all costs so that the improvement of the retail stores is observed in the supply chain management to maximize sales. Summary and the Research Niches After the literature review, there has been establishment of the problems and complications encountered in the SCM in the retail store outlets by coming up with diverse 19 solutions to curb the problems that face the Nakumatt retail stores. Taking the following issues into account will be of greater importance to all stake holders of Nakumatt as a company. In determining their location of a new outlet, it is important for them to be totally guided by their mission statement for them to attain the relevant market to their merchandise. The pricing strategies that they should employ should definitely satisfy and fit the sacrifice made by the clients because it is elucidated to be a way in which the public perspectives the sold merchandise. The company should be in a better position to provide auxiliary services to their customers so that they feel the services are more than efficient. 20 CHAPTER THREE RESEARCH ENVIRONMENT Kenya’s Brief Chronology- Precolonial History The Cushitic people from the northern region of Africa came and settled in Kenya as the East African region. Coming to the first century AD, the Coastal region of Kenya was dominated by the Arabs and established their colonies inclusive of then Persian ones there. The Bantus and the Nilotic people moved in the region in the first millennium AD and settled Inland. The Europeans The development of Swahili language and culture was as a result of the involvement of the Bantu and the Arabs. The arrival of the Portuguese in the y6ear of 1498, the dominance of the Arabs was clipped at the Coast as the Mombasa Port became a significant resupply stop for the ships that were bound in the east. The Portuguese therefore paved way to the Islamic control under the leadership of Oman in the 1600 until other Europeans got to influence them. Following their arrival, it was realized that they emerged from the United Kingdom. Colonial Chronology The colonial history of Kenya rooted from the Berlin Conference in the year 1885 whereby the east African region was partitioned into the influenced European territories. The government of the British established the East African Protectorate in 1895 and thereafter opened the fertile land to the white settlers before the declaration of being a British colony in 1920. The settlers were allowed a voice in the government while the Africans and more so Asians were banned from their political ambitions until the year 1944. It was until this period whereby the Indians were brought in Kenya to construct the Kenya-Uganda railway line and 21 thereafter settled there. There people were therefore invited to join them and began to settle and get used to the Kenyan lifestyle. Resistance to Colonialism-The MAUMAU In the year 1942, the Kikuyu, Meru and Kamba tribes swore to fight for freedom from the British rule in a secret manner and then the Maumau movement commenced with an oath as Kenya embarked on her freedom to National Sovereignty. Following 1953, Jomo Kenyatta was sentenced seven years in prison as Dedan Kimathi got arrested rearding his role in the Maumau uprising. He was one of those leadfers who fought for independence in Kenya. He was thereafter hanged by the colonialists. Kenya was then put under a state of emergency in October 1952 to December 1959 rearding the maumau rebellion. Many Kenyans were incarcerated in the camps dominating Kenya at that moment. The participation of the Africans in politics increased then the three races inclusive of Europeans, Asians and Africans got admitted to the Kenyan Legislative council for being representation. The Independence of Kenya The commencing direct election for the Africans to the Legislative Council was done and the selected improved the agitation of the people on the release of Jomo Kenyatta from detention. In the year 1962, Kenyatta was them released and become the first prime ministerof Kenya when Kenya gained her independence in the 12th of December, 1963. In 1964, Kenya became a republic with Kenyatta as the First President. Kenya joined the British common wealth in the same year. 22 Kenyatta’s One party state In the year 1966, a significant opposition party, The KENYA Peoples Union was formed under Jaramogi Oginga who was the first Vice President and more so a Luo elder. The leaders in question was then arrested in the year 1969 and Kenya became a de facto single party state Regarding Kenyatta’s death in 1978, the vice president Daniel Moi succeeded him by being the second president of Kenya. The Moi Regime In 1982, Kenya was officially declared as a single party state by the National Assembly as the constitution became amended accordingly. The parliamentary elections were held in 1983 under a single party for the commencing time in history and the reinforcement of the 1988 for a onepart system was done. In 1991, the parliament annulled the single party system and a multi-party state system began in 1992. The restoration of the Multiparty democracy gave room for elections to be done with several parties. Due to the opposition divisions, Moi was elected under his KANU party as the party retain the majority in parliament. In 1997, the political rights were enhanced due to parliamentary reform and it led to political party explosions. Moi was re-elected in 1997 due to the opposition divisions as KANU won won 113 out of 222 parliamentary seats. Due to defection, the party had to depend on other minor parties in order to forge a working majority. President Kibaki In 2002, The National Rainbow Coalition was founded emerging from the Unity of opposition parties with a similar function breaking away from KANU. Mwai Kibaki as the NARC candidate became the third president of Kenya in 2002. He received 62% of the total votes as the coalition gathered 130 out of 222 parliamentary seats, which was 59% of the seats. 23 During his first time in office, the democratic space was opened up as more democratic ambitions emerged. The Grand Coalition In the tenth general election in the 2007, there was a dispute in the results produced by the Electoral Commission of Kenya and degenerated into a seven week long of violence in some parts of the country. There was loss of lives in thousands and majority of the people became displaced from their initial homes. The former secretary General of the United Nations, Mr. Koffi Annan and Jakaya Kikwete as the leader of the African Union came to reconcile the country. The conflicts were between H.E Mwai Kibaki and Raila Odinga. It led to the signing of the National accord and the reconciliation commitments thus restoring peace. Thereafter elections were held in 2013 as President Uhuru Kenyatta took over. Having five years of leadership experience he was also announced as the winner of the elections held on 8th of August 2017 which were thereafter nullified and repeated on 26th of November 2017. He is therefore the incumbent president of Kenya as a free Nation. The Chronology of Kenya’s retail trade The arrival of supermarket chains in Kenya illustrates the potential of the retail sector of the country though the majority of the retail stores are in Nairobi thus reducing the retail rentals in medium towns. Nairobi is one of the largest retail centers in the Sub Saharan region regarding shopping center floor spaces. It has more than 390000 square meters of a gross leasable area readily available and a further 470000 square meters in the development pipeline. The retail trade space dramatic rise has enhanced attracting foreign investors in the region. Regarding the Mid-day Carrefour, the world retailer which is the second largest opened 24 the first retail outlet in the country in question as the first in the Sub Saharan Africa. The chain of the French through the Dubai Based Majid Alfuttaim retail occupies 5000 square meters as the anchor tenant in Karen, Nairobi. It has also plans to open another outlet in Two Rivers Mall. Foreign Retail The rising level of income to be disposed has contributed to the appeal of Kenya to the oversees retailers. The transition has been enforced by the middle class in Kenya representing 45 percent of the 47m population person. Regarding the African Development Band, formal retail focuses on the higher income market segment. The global retailers are drawn specifically into the sector’s upper end. The Supply Demand Imbalance The sector may have to navigate while Nairobi has several new projects in the pipeline. They are meant to attract new retailers as concerns arise on the market having to struggle to accommodate the floor space. The additional retail space may lead to an oversupply regarding the views of some analysts. The sector has witnessed rapid growth from the 15 to 20 percent sales a few years ago to 30 percent nowadays. Brighter Prospects Consequently, there has been a push in expanding retail activities outside Nairobi to the outskirt towns. The increased investment outside the capital of Kenya with regard to devolution, the retail property enhancement may pick up with the population growth being experienced inclusive of Kiambu, Kiserian, Kitemgela among others. Following the IMF forecasting, The GDP will rise from the 5.6% of last year to 6% this year. Retailers will be targeting stronger returns and an increased consumer confidence. 25 Nakumatt Holdings Company Nakumatt Holdings Company was established in the year (1987) and it is the country's superseding retailer having a total of 17 initial branches in the entire Kenya. The company holds a wide range of valuable products in each and every branch thus meeting the suitable needs of the economy of Kenya in an affordable way. The chain has designed stores possessing wide aisles and attractive display units meant for convenient shopping experience, the shopping environment is well lit with an ample parking space and more so convenient hours for opening (Wanjiku, 2008). The chain has a dynamic team in the top management that is committed to attaining the best output for passing accumulated benefits to consumers via offering a wide range of products. Examples of this are smart card loyalty program, the Nakumatt voucher, among others. The company in question has a truly Kenyan outlook and has managed to employ more than 4000 Kenyans as employees who facilitate their operations. It's corporate governance and more so social investment is justified across the company and entails the directors, the management level and staff on the front of social investment, their budget has enabled them to change peoples’ lives on the environmental issues and work in the principle that their customers receive affordable products and those that meet world’s quality standards. Their mission is the creations of a chain of world class level products. They were the inventors of electronic tax registrar and have paid Cash 800million every year. The profile of Nakumatt is composed of the board of directors, Finance department, Human resource Management department and the technical department. 26 They were considered the best in regarding the quality of standard that they have set in the attainment of the best they can offer East African Community. The verdict is on the basis of the world acceptable standards. They are more so divided into the company is further divided into five departments namely finance, sales and marketing, technical, human resource and also company secretary. The company is known to have actually three types of employees. The senior management is on the top most rank, middle management alongside low management. The following is the organizational structure of Nakumatt. 27 CHAPTER FOUR EMPIRIA This chapter encompasses of the collected data during the moment of conducting the study. The analysis and interpretation is also done from the distributed questionnaires to the target population. The objectives and the research questions were factors that provided a blueprint with the help of the independent variables. There was distribution of sixty questionnaires. Thirty of them were distributed to the department which deals with purchases while twenty of them while ten of them were also taken to the stores. The total questionnaires resulted to only sixty being received as fully completed. The table below illustrates the response rate of the questionnaires during the study. Department sample Response (Actual) Ratio Sales Twenty Ten 20.10 Purchasing Thirty Twenty Five 30.25 Stores Ten Five 10.5 Total Sixty Forty 60:40 Interpretation From the total sixty respondents who represented the sample size, forty of the total were the only ones which were received while twenty five of them emerged from the purchasing department employees, five were from the stores department who are known to have provided abundant information. The department dealing with sales got back 10 questionnaires. 28 Quantitative Analysis Gender Table showing rate of respondent feedback Gender Specific Responses Rate Female 15 37.5% Male 25 62.5% Total 40 100% Majority of the respondents were realized to males while the females did not participate in large numbers. The percentage of the male respondents was actually 62.5 as the females were represented by 37.5. One can draw a rough estimate that Nakumatt is encompassed with majority of the employees being males more than females. The following is a graphical representation of the respondent feedback 120 100 80 60 40 20 0 Males Females 29 The following is a table illustrating the age brackets of the respondents Respondent age bracket Number Rate % BR 0/18 Two 5 BR 19/30 Twenty Three 57.5 BR 31/40 Eleven 27.5 40 & Above Four 10 SUM Forty 100 The following is a graphical representation of the respondent age brackets 25 20 15 40 + 31-40 19-30 10 0-18 5 0 Category 1 Interpretation The majority of the respondents were between the age brackets of 19-30 years thus illustrates that Nakumatt has many employees at this category. The young generation from the 30 statistics above is employed maybe because they are strong and can perform tasks faster as compared to the other generations. Education Level The following is a tabular representation of the level of education of the respondents at the Nakumatt store retail outlets. Level of Education Number Rate % Masters 6 15 Degree 20 50 Diploma 12 30 O level 2 5 Sum 40 100 The following is a graphical representation of the level of education of the respondents at the Nakumatt store retail outlets. 20 18 16 14 12 10 8 6 4 2 0 O level Diploma Degree Masters Degree Diploma Education Levels O level Masters 31 Interpretation Drawing facts from the analysis, the degree holders are the ones dominating the the Nakumatt Retail stores. In percentage form, they occupy 50.3%, the diploma holders encompass 15% while 5% was a rate of the O levels in terms of academic qualification. Service Years The following is a tabular representation of the years of service of the respondents at the Nakumatt store retail outlets. Service Years Number Rate % 0/5 YRS Twelve 30 6/10 YRS Six 15 11/15 YRS Ten 25 16 + Twelve 30 SUM Forty 100 The following is a graphical representation of the years of service of the respondents at the Nakumatt store retail outlets. The following is a Graphical representation of the years of service of the respondents at the Nakumatt store retail outlets. 32 12 10 8 16 + YRS 6 11-15 YRS 6-10 YRS 4 0-5 YRS 0-5 YRS 6-10 YRS 2 11-15 YRS 0 16 + YRS Experience Interpretation Following the outcome of the analysis, thirty percent of the participants have five years and below of experience in service, the range between 6-10 years is entailed in a 15% rate, 25 percent of the total respondents are seen to have at least 11-15 years in service at Nakumatt Retail store outlets while 30% were seen to have served for more than fifteen years. Pricing Tabular Representation of the respondents’ data on pricing Group Initial Responses Rate in % Very Good Eight 20 Good Fourteen 35 Moderate Nine 22.5 Low Nine 22.5 Sum forty 100 33 Graphical Representation of the respondents’ data on pricing 25 20 15 MODERATE GOOD VERY GOOD 10 5 0 Location Interpretation Majority of the respondents in Nakumatt view piecing as a very great challenge and limitation in the supply chain. According to thirty five percent of the total respondents, it is quite clear that pricing is a great challenge. More so, twenty percent of the respondents argued that it is a very fundamental problem affecting Nakumatt Retail stores. Another 45 percent of the total number of participants was for pricing being a moderately low factor to affect the supply chain management of Nakumatt. Nakumatt would only experience a very extreme positive impact if it would apply the argument of the 55% of those who felt that pricing is a challenge and try to adjust in order to fit in the very competitive business environment. Competition The following is a tabular representation regarding respondents’ data on competition in Nakumatt Retail outlets 34 Group Initial Responses Rate in % Neo-entrants Threats Eight 20 Substitute threats Six 15 Competitive Rivalry Twenty six 65 Sum forty 100 The following is a Graphical representation regarding respondents’ data on competition in Nakumatt Retail outlets 30 25 20 Competitive Rivalry 15 Substitutes 10 Neo-entrants 5 0 Competition Neo-entrants Substitutes Competitive Rivalry Interpretation According to the results obtained from the study, it is quite evident that competition within the retail stores is the most fundamental and challenging issue. There is a confirmation from the study that the entry into the retail business is easy but competitive rivalry emerges as substitutes begin to penetrate the market and affect the chain of Nakumatt.it is therefore upon the 35 company under study to incorporate new strategies in order to outstanding and outshine the opponents. Location The following is a tabular representation of the location as a factor in the supply chain management as per the arguments of the respondents at the Nakumatt store retail outlets. Group Initial Responses Rate in % Most effective Twenty four 60 Fairly effective Ten 25 Ineffective Six 15 Sum forty 100 The following is a Graphical representation of Location as a factor in the supply chain management as per the arguments of the respondents at the Nakumatt store retail outlets 25 20 15 Ineffective 10 Fairly effective Most effective 5 Most effective Fairly effective 0 Location Ineffective 36 The findings of the study have it that sixty percent of the respondents have a feeling of their location being so much effective and they argue that location is a very profound factot towards the attainment of the organizational goals and objectives in the Nakumatt retail stores. Citing an example, twenty-five percent argued that location is relatively effective on a fair basis as opposed to fifteen percent who were fore the argument that location does not have any impact at all costs. Advertisement The following is a tabular representation of Advertisement as a factor in the supply chain management as per the arguments of the respondents at the Nakumatt store retail outlets Group Initial Responses Rate in % Most effective Twenty 50 Fairly effective Ten 25 Ineffective five 12.5 Hapless five 12.5 Sum forty 100 The following is a Graphical representation of Advertisement as a factor in the supply chain management as per the arguments of the respondents at the Nakumatt store retail outlets 37 20 18 16 14 Hapless 12 Ineffective 10 8 Fairly effective 6 Most effective 4 Most effective Fairly effective Ineffective 2 0 Hapless Advertisement Drawing facts from the outcome of the study, there is this feeling of 75 percent of the total number of respondents that the models of advertisement used by Nakumatt are awesome but the opposite applied to the remnant 25 percent who were proponents of Nakumatt utilizing relatively poor advertisement approaches in promoting their products. Customer Service The following is a Tabular representation of customer service as a factor in the supply chain management as per the arguments of the respondents at the Nakumatt store retail outlets Group Initial Responses Rate in % Low Twenty 50 Medium fifteen 37.5 High five 12.5 Sum forty 100 38 The following is a Graphical representation of customer service as a factor in the supply chain management as per the arguments of the respondents at the Nakumatt store retail outlets 20 15 high 10 medium 5 low low medium 0 customer service high There was dominance of the thought that the service applied to customers has a very tight influence on the customer turn out. The above is an argument of fifty percent of the total respondent population. From the 37.5 percent of the respondents, it was found out that their argument was on the basis that customer care services have a moderate impact on the supply chain of Nakumatt Company. The remnant 12.35 percent was for the idea that customer service only has a small influence on the success of Nakumatt’s customer turn out. Qualitative Analysis The insights of qualitative analysis elucidate that there was a recommendation of respondents that Nakumatt should actually adopt strategies of price control to be very outstanding from the competitors in the line of duty. There was also a suggestion from the 39 participants of the study that their prices should be on the basis of product quality and more so service quality. Fair pricing is also a recommendation of the participants but in cases whereby the quality speaks for it, the customers should not be swayed by prices but also be on the lookout for the product value. The perfect competitors should only be allowed in to the market under some form of structural standards to limit those who do not meet the trading threshold. The Kenya Bureau of Standards should actually take up the responsibility and perform their price control and taxation role to the fullest and impose very demanding policies for businesses to operate If only approved. There should be a strategic location of a retail outlet for customers and also the employees for the Supply Chain management enhancement. With regard to customer service delivery, the respondents argued that they were quite fair. The slow service delivery was the only thing that they felt was the profound cause of many problems. Training was seen to be instrumental in assisting the sector of service delivery because of the fact that the respondents were mixed up with some colleagues who were not well educated thus did not have the cognitive capability to deal with customers well as desired. A clear statement of the policies in line with service delivery was one of their indications from the findings and a pure reinforcement tool was said to be utilised to attain the best. Discussion of the summary Drawing facts from the responses which were gathered, Supply Chain Management effects on the troubles being experienced at Nakumatt Retails are caused by not giving immediate attention to the whereabouts of the employees regarding their line of duty. It is a must for these very measures o be dealt with without apology so that the issue of for instance, proper 40 channels of communication to be enhanced for the management o be reached out with ease for improved organizational performance. As per the unanimous agreement of the participants, the issue of customer service is crucial in the retail store business. Following their opinion, a poor customer service strategy is the actual source of a bad image regarding the retail outlet. It is therefore advisable for a good customer service o be maintained or enhanced for cultivating a positive organizational image. The study found out that the greatest complication facing the retail store outlets is competition as a factor. The high competition in the industry is the evidence for this conclusion. It is actually seen that each retail store is ever fighting for outplay each and every other store which is in the competition cycle. A proper pricing model should be developed to enhance that the competition is reduced in a tactical way. Outcomes and Recommendations Summary The study in question had an objective of knowing the challenges that are cause of the troubles faced by Nakumatt from the supply chain management. The target was attained as the challenges were really identified to the latter. Substandard products were also identified to be dominating the market because of the reason of selling them at an affordable price while the standardized ones by the Bureau of standards are sold at a higher price. Pricing is a very great challenge and limitation in the supply chain, it is quite clear that pricing is a great challenge. It is argued that it is a very fundamental problem affecting Nakumatt Retail stores. The only experience is that a very extreme positive impact can occur if an organization prepares so well to apply an awesome pricing approach. 41 It is quite evident that competition within the retail stores is the most fundamental and challenging issue. There is a confirmation from the study that the entry into the retail business is easy but competitive rivalry emerges as substitutes begin to penetrate the market and affect the chain of Nakumatt. It is therefore upon the company under study to incorporate new strategies in order to outstanding and outshine the opponents. Location is a very profound factor towards the attainment of the organizational goals and objectives of any retail store. Location is very fundamental for the success of any retail store outlet as from the findings of the study conducted at Nakumatt. Drawing facts from the outcome of the study, if a poor location strategy is used then it is a failure oriented business. There is a dominant fact of the thought that the service applied to customers has a very tight influence on the customer turn out. The above is an argument of fifty percent of the total respondent population from the study. The insights of qualitative analysis elucidate that there was a recommendation of respondents that Nakumatt should actually adopt strategies of price control to be very outstanding from the competitors in the line of duty confirming the fact that service quality to customers is profound. Fair pricing is also a recommendation of the participants but in cases whereby the quality speaks for it, the customers should not be swayed by prices but also be on the lookout for the product value. The perfect competitors should only be allowed in to the market under some form of structural standards to limit those who do not meet the trading threshold. The Kenya Bureau of Standards should actually take up the responsibility and perform their price control and taxation role to the fullest and impose very demanding policies for businesses to operate If only approved. 42 There should be a strategic location of a retail outlet for customers and also the employees for the Supply Chain management enhancement. With regard to customer service delivery, the respondents argued that they were quite fair. The slow service delivery was the only thing that they felt was the profound cause of many problems. Training is instrumental in assisting the sector of service delivery because of the fact that the respondents were mixed up with some colleagues who were not well educated thus did not have the cognitive capability to deal with customers well as desired. A clear statement of the policies in line with service delivery was one of their indications from the findings and a pure reinforcement tool was said to be utilised to attain the best. Supply Chain Management effects on the troubles being experienced at Nakumatt Retails are caused by not giving immediate attention to the whereabouts of the employees regarding their line of duty. It is a must for these very measures o be dealt with without apology so that the issue of for instance, proper channels of communication to be enhanced for the management o be reached out with ease for improved organizational performance. Drawing facts from the unanimous agreement of the participants, the issue of customer service is crucial in the retail store business. A poor customer service strategy is the actual source of a bad image regarding the retail outlet. It is therefore advisable for a good customer service o be maintained or enhanced for cultivating a positive organizational image. The greatest complication facing the retail store outlets is competition as a factor. The highest competition in the industry is the evidence for this conclusion. It is actually seen that each retail store is ever fighting for outplay each and every other store which is in the competition cycle. A proper pricing model should be developed to enhance that the competition is reduced in a tactical way. 43 Recommendations Competition is mostly concerned with the force of other retail outlets to go out of the arena so that there is survival for the fittest. There is a recommendation that Nakumatt should be responsible for the factors that are the objectives of the study to achieve the highest peak results. They should incorporate the Kenya Bureau of Standards in order to regulate the competition that is in their line of duty because the KBS ensures that quality standards are met and thus many enterprises may fail because of the cost. There is enhancement of fair competition with that similar products quality. There is a recommendation that a proper pricing model regardless of company elasticity according to the study should be used. Costs mark the basis of competitors marking their product prices thus the study also recommends that Nakumatt should be keen in observation of competitor prices. The price factor determines whether an investor should enter or leave the market with regard to the output received. In avoiding competition, there is a recommendation of alternative things to be done to bring a difference. The activities entail advertising and also product differentiation as a strategy. A Pricing program should be actually constructed one their pricing objective is realized alongside the demand elasticity. The pricing programs in question are classified into three models. A very proper location is very key in any business operation because of the fact that it should be done in advance before the premise set up. It is a recommendation that Nakumatt should ensure so that an element of convenience is put into consideration for the betterment of the customer and employee welfare and enhancement of a healthy competitions. Advertisement is also very fundamental in a general business view because it provides a lucid standpoint and more so platform that brings the essence of the customer versus product 44 know-how. The recommendation of incorporating advanced advertisement mechanisms is on the basis of creating an elaborate awareness of existing products in a firm that the customers should be informed about. There are increased numbers of customers in the cases where a proper advertisement approach has been incorporated so that they become the buyers of the availed products in any given firm. The study goes a step ahead to recommend that an awesome customer service is extremely significant in encouraging them to come again and again to transact and be major stakeholders of the firm. All the inventors and innovators of any given business should be very keen in putting into consideration this factor because it acts as an encouragement to the customers in the boosting of sales as the study emphasizes. Areas for further Research The retail industry can be said to be diversified and hence there being an existence for room for further research to be conducted on areas such as the effect of the retail firm tp the economy or the motivational impacts of the retail outlets employees. Since pricing till on the same note plays a very useful role in the arena of retail businesses would be very incumbent on the supply chain management. Further research should also be conducted with relevance to the incorporation of all country wide retail outlets meant to offer a vast perspective with regard to the advancement of technology. 45 CONCLUSION The profound aim of the study was the attainment of the pricing extent on the local retail outlets operations. Pricing was actually the most significant factor as the employed pricing model of has a pure influence on the attraction of customers. The competitive advantage of any business is quite influenced by a proper pricing strategy while alternative pricing techniques is not incumbent to result to low prices. They therefore need to have a relative value to each other. The competitors would take advantage of pricing as a criterion to vandalize other businesses by slightly adjusting theirs to fit the consumers’ needs. The quality of the goods may be awesome but due to price overcharges, the goods may be resisted by the market. The adjustment of the prices is due a better position to afford the prices attached to the goods by the sellers themselves. This may lead to the firm promoting its sales because the market will advise their colleagues to purchase at the place they feel is lower. The competitive forces and the complex environmental arrays which are incredible are the fundamental subjects for the price decisions to be made. Companies seem to consider the duration and moments of changing prices as the competitive environment begins to have diversifying. The discount structures are also affiliated in a business and their systems of pricing thus pricing was seen to have an influence on the operation of any business. Another aim was to determine the effect of competition on the SCM practices. The support and backup of the supply chain management was directly from competition. Diverse participants argued that competition from the rivals was very tight and thus just like any other business, Nakumatt faced it rough. The attainment of the competitive advantage of a business over others would be as a result of the achievement of the major objectives of proper location, pricing and more so good customer relations. 46 The determination of the extent of the effect of retail operations was among the fundamental objectives. The extensive and comprehensive research conducted has it that the location of any given business is the stand point of its success for the betterment of the customer and employee convenience meant o outshine the competitors like no one business. Establishment of the influence of advertisement in the supply chain regarding the problems of Nakumatt was another key role. Advertisement brings into existence public know how of the nature of goods and services available in a business. He details of the products are further elucidated to enhance the knowledge of the product before purchase. A proper ool and strategy of advertisement boosts to the peak the sales and alongside that increases the number of customers of a certain enterprise. The impact of the services of customer care on the SCM was besides another objective. The customers may be permanent in a business and more so attract their families and friends if there is a positive customer care model applied. This may apply in any retail outlet of Nakumatt or any other company that operates in the same line of duty. Nakumatt for instance was seconded to possess an awesome customer care service to the customers. In line with that, communication is also a vital item in the operation of a business. Communication has a responsibility of the achievement of organizational objectives and acting as a backup for plan formulation. Successful change is attained as an introduction mechanism. 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