The concept of turnaround strategy seeks to bring back profitability in a declining business. In Zimbabwe, ever since the government adopted multi-currency system industries have failed to realise any meaningful positive performance. The manufacturing sector was the most affected. It is against this background that the researchers sought to explore the extent of successful implementation of turnaround strategies in the manufacturing sector in Harare over the period 2009 to 2015 on back drop of impediments and challenges faced. The study employed triangulation approach design as it was found to be the most suitable. A stratified random sampling was used to select companies for the purposes of the study across the 14 sub-sectors of the manufacturing sector in Zimbabwe. A minimum of 2 respondents per company was selected. Data was collected using questionnaires which were administered physically and electronically. In-depth interviews were also conducted for chief executive officers and managing directors. The findings of the study were that companies in the manufacturing sector implemented turnaround strategies that focussed on cutting down costs. However, retrenchments seemed not to yield any positive results. Toxic organisational cultures, misaligned organisational structures, working capital constraints, old and dilapidated machinery, liquidity crisis, and choking government policies have been identified as major internal and external challenges affecting implementation of turnaround strategies. The study recommends that top management in the manufacturing industry should conduct concrete situational analysis in order to obtain in-depth understanding of the underlying problems facing their organisations. Competent management should also be put in place. The manufacturing companies are also recommended to engage services of turnaround specialists, establish strategic alliances, engage all stakeholders and also strive to seek cost competitiveness. The study further recommends that the government should take an active role in ensuring that an enabling environment has exist to allow firms in the manufacturing sector to recover from the economic decline.
| Published in | American Journal of Management Science and Engineering (Volume 1, Issue 1) |
| DOI | 10.11648/j.ajmse.20160101.14 |
| Page(s) | 26-35 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2024. Published by Science Publishing Group |
Credit Risk Management, Dollarization, Loan Performance, Commercial Banks
| [1] | Adams, Dale W, and Douglas H. Graham. (2012). A Critique of Credit systems and Policies in Financial. Journal of Financial Economics 8 (3):347-66. |
| [2] | Basel. (2009). Principles for the Management of Credit Risk. Basel Committee on Banking Supervision, Basel. |
| [3] | Chijoriga, M. M. (2007). Application of Credit Scoring and Financial Distress Prediction Models to Commercial Banks Lending: The Case of Tanzania. PhD Dissertation, Wirts Chaftsnnversitat Wien (WU), Vienna. |
| [4] | Eric Bogeson (2004); Source of Finance for African business. Britain. |
| [5] | Freddie T (2007); The Role of credit management in Performance Uganda commercial Pilla farmers scheme Paper 24 for ACCA, London. |
| [6] | Hou, (2007), Rotating Savings and Credit Associations (Pasanuku) in Nations. Savings and Development 8(3). |
| [7] | Jansson. T. (2002), Performance Indicators for COMMERCIAL BANK’s: Technical Guide. Micro Rate and Inter-America Development Bank, Washington, DC. |
| [8] | Kimuyu, P. (2008). Industrial Policies for the Twenty First Century: Productivity, Competitiveness and Export Participation by Manufacturing Enterprises in Kenya, paper presented at IPAR National Conference, Nairobi. |
| [9] | Mc Naughton (2006); Building strong and responding to change, Britain. |
| [10] | Modurch T. D (2009), Microenterprise and credit management in Financial: World Development 20, 1463-1470. |
| [11] | Ogilo. F (2011). Impact of credit Risk Management on Financial Performance of Commercial Banks in Kenya. Phd Thesis. |
| [12] | Pandey (2008); Financial management and Policy, Paper 32 for ACCA, London. |
| [13] | Prentice Hall IM Pandey (2008); Financial management 7th Edition. |
| [14] | Van Horn J. S (2009); Financial Management and Policy 8th Edition, New Jersey. |
APA Style
Bongani Ngwenya, Brenda Ndhlela. (2016). The Effectiveness of Credit Risk Management System on Individual Financial Loan Performance After Dollarization: A Study of Commercial Banks in Zimbabwe, Period 2012 to 2015. American Journal of Management Science and Engineering, 1(1), 26-35. https://doi.org/10.11648/j.ajmse.20160101.14
ACS Style
Bongani Ngwenya; Brenda Ndhlela. The Effectiveness of Credit Risk Management System on Individual Financial Loan Performance After Dollarization: A Study of Commercial Banks in Zimbabwe, Period 2012 to 2015. Am. J. Manag. Sci. Eng. 2016, 1(1), 26-35. doi: 10.11648/j.ajmse.20160101.14
AMA Style
Bongani Ngwenya, Brenda Ndhlela. The Effectiveness of Credit Risk Management System on Individual Financial Loan Performance After Dollarization: A Study of Commercial Banks in Zimbabwe, Period 2012 to 2015. Am J Manag Sci Eng. 2016;1(1):26-35. doi: 10.11648/j.ajmse.20160101.14
Share This Article
Twitter
Linked In
Facebook
Copy
Download@article{10.11648/j.ajmse.20160101.14,
author = {Bongani Ngwenya and Brenda Ndhlela},
title = {The Effectiveness of Credit Risk Management System on Individual Financial Loan Performance After Dollarization: A Study of Commercial Banks in Zimbabwe, Period 2012 to 2015},
journal = {American Journal of Management Science and Engineering},
volume = {1},
number = {1},
pages = {26-35},
doi = {10.11648/j.ajmse.20160101.14},
url = {https://doi.org/10.11648/j.ajmse.20160101.14},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajmse.20160101.14},
abstract = {The concept of turnaround strategy seeks to bring back profitability in a declining business. In Zimbabwe, ever since the government adopted multi-currency system industries have failed to realise any meaningful positive performance. The manufacturing sector was the most affected. It is against this background that the researchers sought to explore the extent of successful implementation of turnaround strategies in the manufacturing sector in Harare over the period 2009 to 2015 on back drop of impediments and challenges faced. The study employed triangulation approach design as it was found to be the most suitable. A stratified random sampling was used to select companies for the purposes of the study across the 14 sub-sectors of the manufacturing sector in Zimbabwe. A minimum of 2 respondents per company was selected. Data was collected using questionnaires which were administered physically and electronically. In-depth interviews were also conducted for chief executive officers and managing directors. The findings of the study were that companies in the manufacturing sector implemented turnaround strategies that focussed on cutting down costs. However, retrenchments seemed not to yield any positive results. Toxic organisational cultures, misaligned organisational structures, working capital constraints, old and dilapidated machinery, liquidity crisis, and choking government policies have been identified as major internal and external challenges affecting implementation of turnaround strategies. The study recommends that top management in the manufacturing industry should conduct concrete situational analysis in order to obtain in-depth understanding of the underlying problems facing their organisations. Competent management should also be put in place. The manufacturing companies are also recommended to engage services of turnaround specialists, establish strategic alliances, engage all stakeholders and also strive to seek cost competitiveness. The study further recommends that the government should take an active role in ensuring that an enabling environment has exist to allow firms in the manufacturing sector to recover from the economic decline.},
year = {2016}
}
TY - JOUR T1 - The Effectiveness of Credit Risk Management System on Individual Financial Loan Performance After Dollarization: A Study of Commercial Banks in Zimbabwe, Period 2012 to 2015 AU - Bongani Ngwenya AU - Brenda Ndhlela Y1 - 2016/09/29 PY - 2016 N1 - https://doi.org/10.11648/j.ajmse.20160101.14 DO - 10.11648/j.ajmse.20160101.14 T2 - American Journal of Management Science and Engineering JF - American Journal of Management Science and Engineering JO - American Journal of Management Science and Engineering SP - 26 EP - 35 PB - Science Publishing Group SN - 2575-1379 UR - https://doi.org/10.11648/j.ajmse.20160101.14 AB - The concept of turnaround strategy seeks to bring back profitability in a declining business. In Zimbabwe, ever since the government adopted multi-currency system industries have failed to realise any meaningful positive performance. The manufacturing sector was the most affected. It is against this background that the researchers sought to explore the extent of successful implementation of turnaround strategies in the manufacturing sector in Harare over the period 2009 to 2015 on back drop of impediments and challenges faced. The study employed triangulation approach design as it was found to be the most suitable. A stratified random sampling was used to select companies for the purposes of the study across the 14 sub-sectors of the manufacturing sector in Zimbabwe. A minimum of 2 respondents per company was selected. Data was collected using questionnaires which were administered physically and electronically. In-depth interviews were also conducted for chief executive officers and managing directors. The findings of the study were that companies in the manufacturing sector implemented turnaround strategies that focussed on cutting down costs. However, retrenchments seemed not to yield any positive results. Toxic organisational cultures, misaligned organisational structures, working capital constraints, old and dilapidated machinery, liquidity crisis, and choking government policies have been identified as major internal and external challenges affecting implementation of turnaround strategies. The study recommends that top management in the manufacturing industry should conduct concrete situational analysis in order to obtain in-depth understanding of the underlying problems facing their organisations. Competent management should also be put in place. The manufacturing companies are also recommended to engage services of turnaround specialists, establish strategic alliances, engage all stakeholders and also strive to seek cost competitiveness. The study further recommends that the government should take an active role in ensuring that an enabling environment has exist to allow firms in the manufacturing sector to recover from the economic decline. VL - 1 IS - 1 ER -
Information
Email: