The Role of Emotional Intelligence (E I) in Management

Emotional intelligence refers to the ability to understand and manage own emotions as well as those of others.  The work environment is characterised by complex relationships that impact organisational performance. Positive relationships that are based on mutual understanding lead to cooperation that supports the realisation of organisational goals. On the other hand, constrained relationships that stem from the absence of emotional intelligence in leaders and followers…

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The Importance of Societal Marketing

  Societal marketing is a marketing concept that gives priority to safeguarding society’s interests. Other marketing concepts focus on promoting profitability, and satisfying customer needs that puts the human welfare at stake. Societal marketing, therefore, seeks to address the shortcomings of other marketing concepts. The concept is based on three pillars which are company, consumers, and society. Company (Profitability) A business is created to increase the…

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What is market research?

  Market research is the systematic process of gathering information about market needs and preferences. The long-term success of a company depends on the ability to align products and services with the prevailing market needs.  Successful marketers monitor potential and actual customers to identify the dynamics in needs and preferences. All marketers desire to grow the market share which necessitates implementation of strategies that seek to…

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Social Media Threats to Businesses

Social media threat  remains a hot topic in today’s business environment. Social media is a valuable communication tool that is used to not only improve corporate communication but also to cut communication costs. Businesses create social media profiles to collaborate with different classes of stakeholders. The social media provides a means for reaching a large number of stakeholders at a minimal cost and within the shortest…

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Using Social Media Strategy for Competitive Advantage

A social media strategy refers to the exploitation of social media resources to support a business process. The social media has gained immense popularity in the past two decades. It has become an essential aspect of people’s lives, and entrepreneurs are using it to gain a competitive advantage. There are around 3 billion active social media users in the world and 4.2 billion internet users. Kenya…

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Characteristics of a Good Business Opportunity

An opportunity is an opening in the environment that when exploited can create economic value. Exploiting an opportunity involves risk and resources commitment that makes it necessary to make informed decisions when committing to an opportunity. Low capital requirement A good business opportunity should be cheap to finance.  Access to capital is a major impediment to entrepreneurship implying that entrepreneurs should focus on ideas that are…

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BCG Matrix for Small and Medium Enterprises

SMEs face the challenge of implementing an effective growth strategy. BCG matrix is a strategic planning tool developed by the American firm, Boston Consulting Group to aid businesses in implementing a growth strategy.  The matrix provides a sound basis for evaluating products and strategic business units(SBU) thus helping a firm to ascertain the current and future value of each unit. As a result, a business can…

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The Product Life Cycle Concept

The product life cycle concept follows the stages of a product from its inception to its decline. This cycle guide strategy formulation as each stage calls for a different action.  The concept provides valuable insight to companies that introduce a new product as it supports the comprehension of profit, cost, and revenue trends in a competitive environment. The Product life cycle plots revenue and profits in…

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Outsourcing Payroll Processing: Kenyan SMEs

Payroll processing refers to the process of computing employee pays. Its inputs are the total worked hours, deductions, and pay rate among other elements. The end products of the process are net pay figures, statutory deductions and their submission to the relevant authorities, and summarised reports. SMEs in Kenya face the challenge of processing payroll due to their inability to hire professional accountants on a fulltime…

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Can the Housing Element of the Big Four Agenda Lead Kenya into a Financial Crisis?

In September 2018, the central bank governor Patrick Njoroge was quoted saying that poor corporate governance in the banking sector can lead Kenya into a financial crisis.  His sentiments are not far from the truth since significant banks have come down due to poor corporate governance.  Chase Bank and Imperial Bank are perfect examples of how poor management can trouble Kenya’s financial sector. Although bad corporate…

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Roles, Responsibilities, and Duties of an Accountant: An insight for Kenyan SMEs

Kenya’s business environment is dominated by small and medium enterprises (SMEs) that account for over 90% of businesses in Kenya and create around 80% of the total employment.  Businesses under this category especially the small and micro enterprises do not engage professional accountants due to their constrained resources and the lack of knowledge. As a result, their businesses get in trouble due to the failure to…

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What Determines the Value of a Currency? Kenya Shilling Exchange Rate

Just like other commodities, currencies are traded in a market known as the foreign exchange market.   Globalisation of trade has necessitated the establishment of a platform through which currencies can be traded to facilitate international transactions. The exchange rate is either determined by the market forces or fixed by the government. The rate determined by the supply and demand forces is known as a freely floating…

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KRA Tax Incentives for Investors

Kenya Revenue Authority (KRA is always under pressure to collect revenue to reduce the budget deficit.  An increase in revenue empowers the government to implement projects in line with its mandate of improving people’s lives. Despite this pressure, KRA gives tax incentives to investors to encourage investment activities.  The amount of revenue collected by the tax authority is directly related to the growth of investment making…

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What is a feasibility study?

A feasibility study is an analysis that seeks to identify the viability of a project. It protects businesses from investing in projects that are not viable thus averting losses. Organisations face many opportunities that necessitate investigation aimed at identifying whether they are worth exploiting. Examples of projects that require feasibility study include a new product, plant establishment, and a new branch among others. Besides identifying whether…

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Writing a Good Donor Funding Proposal

Donor funding proposals are used for soliciting funds from donors. Non-profit organisations play an important role in the society as they address problems not being sufficiently solved by government agencies and businesses. Projects implemented by these organisations are funded by donors who need to be persuaded.  The ability to bring donors on board depends on the quality of a funding proposal. It is therefore imperative to…

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Registering a Company in Kenya

Entrepreneurs experience difficulties when deciding on the right form of business.  A limited company is the most preferred business form when it comes to profit-oriented organizations. Registering a company creates some benefits that are absent in other forms.  Besides a company, other forms of business organisation include sole proprietorship, partnership, corporations, and cooperatives.  Company registration requirements in Kenya include a national identification card or passport, coloured…

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Writing a Winning Business Proposal

A business proposal is a persuasive document prepared to convince a client to buy a product. The success of a business is pegged on the ability to convince clients to buy its products. Preparing a business proposal is, therefore, a defining moment as it has a direct impact on profitability.  Sufficient research is imperative before writing a proposal to ensure the acquisition of in-depth information about…

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Why Your Business Needs to Register With KRA For VAT and Comply With Regulations

VAT is a tax on consumer expenditure that was introduced in 1990. Effective tax management is a key business success factor. It involves implementing strategies aimed at ensuring the tax does not adversely affect the pricing strategies and also ensuring compliant to avoid unnecessary fines.   Engaging a tax consultant on matters VAT management enables a business to exploit the opportunities presented by the tax and at…

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