The Effect of Strategic Cost Management on Organization Performance: A Case of Selected Insurance Firms in Kenya

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dc.contributor.authorMuiruri, Stephen Ndung’u
dc.date.accessioned2024-10-24T11:34:15Z
dc.date.available2024-10-24T11:34:15Z
dc.date.issued2014-05
dc.descriptionMASTER OF BUSINESS ADMINISTRATION in Strategic Management and Finance
dc.description.abstractThe purpose of this study was to determine the impact of strategic cost management on the performance of the insurance companies in the Kenyan insurance industry. The objective of the study was to find out the effect of target costing on the profitability of the insurance companies, to ascertain the effect of activity-based costing on identification of irrelevant cost, and to assess the impact of benchmarking on the profitability in the insurance companies. The research adopted a descriptive research design. The sampling technique adopted was non-probabilistic purposive sampling and the sample selected was 63 employees from the target population of 433 employees from the three selected insurance companies. Data was presented by the use of bar charts, tables and percentages, and multivariate multiple regression analysis was used to determine the relationship between the study variables. The data collection instruments adopted in the study was questionnaires and interviews, the data analyzed by STATA and MS Excel computer application.The findings of the study indicated that the insurance companies used strategic cost management tools to enhance performance; target costing was used in product and service pricing, activity based costing was used in identification of non value adding cost and reduction of cost, and cost benchmarking was used in customer satisfaction and market share evaluation. In addition as per the findings, cost benchmarking was also used in cost reduction, new product development, as a performance measure and generally performance improvement. The study recommended that customers needs should be considered and research conducted to understand their needs, strategies that reduce cost must be developed, tools should be used effectively to enhance performance and more research should be conducted to enhance control and in strategic management.
dc.description.sponsorshipDaystar University, School of Business and Economics
dc.identifier.citationMuiruri, S. N. (2014). The Effect of Strategic Cost Management on Organization Performance: A Case of Selected Insurance Firms in Kenya. Daystar University, School of Business and Economics
dc.identifier.urihttps://repository.daystar.ac.ke/handle/123456789/5555
dc.language.isoen
dc.publisherDaystar University, School of Business and Economics
dc.subjectstrategic cost management
dc.subjectinsurance companies
dc.subjectKenyan insurance industry.
dc.titleThe Effect of Strategic Cost Management on Organization Performance: A Case of Selected Insurance Firms in Kenya
dc.typeThesis

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