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Successful Implementation of Turnaround Strategies in the Manufacturing Sector in Harare, Zimbabwe- Impediments and Challenges Faced
Bongani Ngwenya,
V. Sibanda,
C. Zana
Issue:
Volume 1, Issue 1, November 2016
Pages:
1-10
Received:
29 August 2016
Accepted:
20 October 2016
Published:
8 November 2016
DOI:
10.11648/j.ijafrm.20160101.11
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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 2014 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 were focussed on cutting down costs, with retrenchments yielding no 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.
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...
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Portfolio Allocation: An Empirical Analysis of Ten American Stocks for the Period 2010-2015
Issue:
Volume 1, Issue 1, November 2016
Pages:
11-18
Received:
31 August 2016
Accepted:
20 October 2016
Published:
8 November 2016
DOI:
10.11648/j.ijafrm.20160101.12
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Abstract: We invest in order to obtain excess returns on the investment. The excess return is calculated with respect to the risk free rate and implies taking on risk. It is necessary to quantify both return and risk on the portfolio level. Asset returns are correlated, and for this reason the correlation matrix is estimated to quantify precisely the correlation among the returns on portfolio assets. These coefficients will then enable us to describe the combined returns on the portfolio’s assets, and the risk of the portfolio. The basis of all quantitative portfolio management and theory today are given by the well-known Modern Portfolio Theory. We analyze in this paper ten American stocks from completely different industry sectors, part of the Standard & Poor’s 500 index. The period is from December 2010 to December 2015, monthly observations. Since the end of 1999, the S&P’s 500 stock index has lost an average of 3.3% a year on an inflation adjusted basis, compared with a 1.8% average annual gain during the 1930s when deflation afflicted the economy. In nearly 200 years of recorded stock-market history, no calendar decade has seen such a bad performance as the 2000s. The computer programs used in this work are MATLAB and Microsoft Excel. For optimization problems we mainly use the Excel Solver.
Abstract: We invest in order to obtain excess returns on the investment. The excess return is calculated with respect to the risk free rate and implies taking on risk. It is necessary to quantify both return and risk on the portfolio level. Asset returns are correlated, and for this reason the correlation matrix is estimated to quantify precisely the correla...
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Financial Risks Contributing to Delay of Oil and Gas Projects in Egypt
Ahmed Yousry Beltagy Ahmed Akal
Issue:
Volume 1, Issue 1, November 2016
Pages:
19-24
Received:
12 September 2016
Accepted:
1 November 2016
Published:
23 November 2016
DOI:
10.11648/j.ijafrm.20160101.13
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Abstract: Delay is a universal phenomenon in construction industry; and oil and gas construction projects in Egypt are not an exception. Oil and gas projects have a long construction cycle, huge investments, and multitudinous risks which negatively affect these projects’ objectives. One of the main risks which have been identified to hinder the projects development is the financial risks. This paper addresses the issue of financial risks contributing to the delay of oil and gas projects in Egypt. Outlining a detailed literature review, 18 financial risks have been identified and grouped into 4 main categories—namely: late payment, financial market instability, fiscal mismanagement, and imperfect policies and project studies. The identified risks are tabulated in a questionnaire form which was sent to engineers specialized in construction of oil and gas projects in Egypt asking their contribution to specify the severity of impact and frequency of occurrence of the 18 identified risks. The results reveal that the top ranked risks according to the severity of impact and likelihood of occurrence are project materials monopoly by suppliers and delay in subcontractors/suppliers progress payment by the main contractor respectively. While, delay in subcontractors/suppliers progress payment by the main contractor, lack of costs following-up during the project execution by the construction parties, owner delay in freeing the main contractor financial payments, project materials monopoly by suppliers, and contractor handling too many projects at the same time are the most important financial risks contributing to the delay of oil and gas projects in Egypt.
Abstract: Delay is a universal phenomenon in construction industry; and oil and gas construction projects in Egypt are not an exception. Oil and gas projects have a long construction cycle, huge investments, and multitudinous risks which negatively affect these projects’ objectives. One of the main risks which have been identified to hinder the projects deve...
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Market Reaction and Insider Trading Around the Announcements of Equity Issues: Evidence from Nigeria
Issue:
Volume 1, Issue 1, November 2016
Pages:
25-32
Received:
3 August 2016
Accepted:
3 November 2016
Published:
5 December 2016
DOI:
10.11648/j.ijafrm.20160101.14
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Abstract: The need to understand the stock market response to announcements of new issues of corporate securities and the importance of curtailing the fraudulent operation of corporate insiders is paramount. In spite of that, little research attention was given to such reactions in Nigeria. Consequent upon that, this study sought to empirically examine insider trading around seasoned equity offering announcements by companies in Nigeria. Employing the event study methodology abnormal returns were computed as the residuals of the market model. Utilising a total of 62 announcements by 47 companies listed on the Nigerian stock exchange from 1st January, 2006 to 31st December, 2013. Consistent with prior studies the study documented negative significant cumulative abnormal returns prior to the announcement date and a positive significant cumulative abnormal return on the announcement date. The significant cumulative abnormal returns recorded in the period prior to the announcement date could be driven by insider dealings and the presence of an abnormal return suggests the semi-strong form inefficiency of the Nigerian market.
Abstract: The need to understand the stock market response to announcements of new issues of corporate securities and the importance of curtailing the fraudulent operation of corporate insiders is paramount. In spite of that, little research attention was given to such reactions in Nigeria. Consequent upon that, this study sought to empirically examine insid...
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Impact of Security Expenditure on Foreign Direct Investment in Nigeria
Adeyeye Patrick Olufemi,
Ayodele Sunday Owojori,
Akinuli Bankole Olu
Issue:
Volume 1, Issue 1, November 2016
Pages:
33-38
Received:
20 August 2016
Accepted:
2 November 2016
Published:
9 December 2016
DOI:
10.11648/j.ijafrm.20160101.15
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Abstract: This study investigates the relationship between Expenditure on Security and Foreign Direct Investment in Nigeria using secondary data spanned through 1985 to 2012. Preliminary unit root tests were conducted using the Philip-Perron approach. Co-integration and Error Correction Mechanism (ECM) was employed to examine the nexus between Expenditure on Security and Foreign Direct Investment. The study found that internal security expenditure and Inflation maintained negative long run relationship with index of Foreign Direct Investment while defense expenditure exhibited long run positive relationship with the dependent variable. Consequently, it is recommended that an investment friendly environment capable of attracting Foreign Direct Investment should be of priority to the federal government. Likewise, serious and tight border strategic management is direly needed now as Nigeria borders have been porous and weak to the extent that ammunitions and other weapons freely fly across our borders unchecked. If these are allowed, a higher inflow of direct investment into Nigeria is imminent.
Abstract: This study investigates the relationship between Expenditure on Security and Foreign Direct Investment in Nigeria using secondary data spanned through 1985 to 2012. Preliminary unit root tests were conducted using the Philip-Perron approach. Co-integration and Error Correction Mechanism (ECM) was employed to examine the nexus between Expenditure on...
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Financial Predictors Influencing the Ranking of Indian Pharmaceutical Companies 2016
Harishankar Sahu,
Naresh Mali,
Vrinda Mathur
Issue:
Volume 1, Issue 1, November 2016
Pages:
39-45
Received:
10 September 2016
Accepted:
19 November 2016
Published:
20 December 2016
DOI:
10.11648/j.ijafrm.20160101.16
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Abstract: The Indian Pharma industry is on a robust growth path and is likely to be in the top 10 global markets in value term by 2020. Indian pharmaceutical sector accounts for about 2.4 percent of the global pharmaceutical industry in value terms and 10 percent in volume terms and it is expecting to expand at a Compound Annual Growth Rate of 15.92 per cent to US$ 55 billion by 2020. By 2016-17, India is expecting to be the third-largest global generic Active Pharmaceutical Ingredient merchant market. This study seeks to describe the status of Indian pharmaceutical companies, their position, ranking, financial status and forecasting of future opportunities based on the financial predictors i.e. Net sales, total share capital net profit, total assets, total income. The ranking of the top 10 companies’ changes drastically when they ranked based on total share capital and net profit. The financial stability of the companies can be described as they contribute more in market capitalization but are lagging behind in the ranking based on net profits and total share capital.
Abstract: The Indian Pharma industry is on a robust growth path and is likely to be in the top 10 global markets in value term by 2020. Indian pharmaceutical sector accounts for about 2.4 percent of the global pharmaceutical industry in value terms and 10 percent in volume terms and it is expecting to expand at a Compound Annual Growth Rate of 15.92 per cent...
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Access to Credits and Indebtedness: Islamic Perspective
Idris Yahaya Adamu,
Ahmad Khilmy bin Abdul Rahim,
Abu Bakar Hamed
Issue:
Volume 1, Issue 1, November 2016
Pages:
46-52
Received:
6 December 2016
Accepted:
28 December 2016
Published:
20 January 2017
DOI:
10.11648/j.ijafrm.20160101.17
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Abstract: The purpose of this paper is to describe, from Islamic perspective, Muslims’ concern on loans and indebtedness. The paper intends to enlighten working class Muslims on the consequences of taking unnecessary loans. Due to increasing access to financial services, banks and other financial institutions are increasingly offering loans to their customers. Thus, increasing unnecessary borrowings at the expense of their future well-being. The paper concentrate on Islamic perspective of over borrowing and indebtedness. Muslims are expected to live a moderate life, free of embezzlement and misery. Therefore, are called upon to avoid unnecessary expenditure and improve savings. The study contributes to literature of borrowings, by considering loans as last alternative and by necessity.
Abstract: The purpose of this paper is to describe, from Islamic perspective, Muslims’ concern on loans and indebtedness. The paper intends to enlighten working class Muslims on the consequences of taking unnecessary loans. Due to increasing access to financial services, banks and other financial institutions are increasingly offering loans to their customer...
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