An Impact Assessment of Retrenchment Strategy on Firm Performance. Evidence from Private Limited Companies in Zimbabwe. A Case of National Foods Holdings Limited (NFHL)

Author
Chibaya, Milton
Title
An Impact Assessment of Retrenchment Strategy on Firm Performance. Evidence from Private Limited Companies in Zimbabwe. A Case of National Foods Holdings Limited (NFHL)
Abstract
The research was premised on discovering the effects of retrenchment on firm performance in Zimbabwe with the utilization of National Foods Holdings Limited (NFHL) as a case study. Agency theory, Resource Base View Theory, Competitive dynamics theory and Strategic factor
market theory and downsizing model fastened the research serving as its theoretical framework. Probing study techniques were adopted by the researcher in detection of the matters included in the relationship between retrenchment and firm performance. Hence this study targets to explore
the relationship between retrenchment strategy and firm performance for NFHL in Zimbabwe over the period of 1990 to 2020. Using financial reports, the data was retrieved for the purpose of the study. The research outcomes recognized that the firm size and the ratio of operating income in
line with quality planning are vital fundamentals in enduring firm performance through retrenchments. The findings established that NFHL commenced retrenchment impulsively and its performance did not exactly improve as projected. The study concluded that selling unproductive
assets enables retrenching firms to fully focus on assets they can utilize most efficiently, also there
is need for the management to comprehend the inferences of retrenchment, properly plan, whereas taking into deliberations workers needs for the advancement of firm performance through
retrenchment. There is requisite for a different study to be conducted at a different entity so as to decide if retrenchment is really effective in improving firm performance.
Date
2021
Publisher
BUSE
Keywords
Retrenchment Strategy
Supervisor
N/A
Item sets
Department of Economics
Media
Milton Chibaya.pdf

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