Strategies To Counter Price Controls and Their Effect on Organizational Performance: A Case Study of Total (Kenya) Limited

Abstract

Price controls are governmental restrictions on the prices that can be charged for goods and services in a market. The intent behind implementing such controls can stem from the desire to maintain affordability of goods so as to prevent price overcharging during shortages and to slow inflation. This study examined strategies to counter price controls and their effect on organizational performance with particular interest in Total Kenya. Relevant Information was captured through comprehensive compilation of literature on theories of price control and further proposed a conceptual framework based on the review of literature. It employed a descriptive research design whose purpose was the description of state of affairs as they were. The target population in this study consisted of management staffs at Total Kenya who were better placed to answer performance issues related to pricing at Total Kenya. A sample size of 80 respondents was obtained through purposive sampling. Primary data was then collected through a structured questionnaire with closed-ended questions and thereafter analysis of data done through the SPSS software which summarized findings in terms of mean, standard deviation and frequencies. Data was presented by use of charts, percentages and frequency tables. Inferential statistics was used in drawing relationships. The findings of the study were that there is need to adopt other strategies other that pricing, which would enable firms to have a competitive edge in the face of price controls. The study recommends that the management must know what price controls are, and what other strategies are available to counter price control, and be familiar with the expert opinion on the use of price controls. Governments must also induce regulatory policies that favor economic growth. This should be also be done carefully in order to conserve ethical practice in trade.