Author: Dr Margaret Kobia
Type of enterprise: micro enterprise
Case abstract
In June 2003, Dr. Benson Riungu, a Bachelor of Pharmacy graduate of University of Nairobi, who was also the owner and the Chief Executive Officer of Nairobi Medical Stores Limited, was seriously considering what he should do regarding his retail pharmacy business. He was the sole owner and operator of two retail pharmacies, employing about ten people. However, for almost three years, his business was going from bad to worse, partly due to under performing economy and also, due to amendments on Laws of Kenya, which allowed more players into the market. This resulted in an increase in the level of competition in a diminishing market, and therefore Dr. Riungu found it very difficulty to breakeven. He was considering his options in this situation
Author: Dr Margaret Kobia
Type of enterprise: small enterprise
Case abstract
In June 2005, Mrs Joy Muthuuri, a retired senior educationist and the Chief Executive Officer of Joyfred Company Limited was considering what she should do to make her businesses more manageable as a result of diversification. She operated the family business with eight full time employees. While still employed, she started the business with a girls’ hostel in 1998. When she realized that the hostel business was not profitable due to competition, she opened up a restaurant with outside catering services in April 2003. To increase her market share, in April 2005, she started a fast food kiosk located about three kilometers away from her restaurant. Although the three businesses were doing reasonably well financially, she faced the challenge of managing her diversified business interests, as well as stiff competition and wondered what she should do.
Author: Dr Ruth Kiraka
Type of enterprise: micro enterprise
Case abstract
Started in February 2002, and located in Nairobi’s Industrial Area, Safiri Salama Car Hire Company had been a growing car hire business. It was registered as a limited liability company and owned by two shareholders, Hudson Macharia and Stephen Njoroge. In July 2005 the shareholders of Safiri Salama Car Hire were considering the possibility of purchasing their own vehicles rather than subcontracting vehicles for clients. They considered owning their vehicles to be a more financially viable business option. Other dilemmas facing Macharia and Njoroge were whether they should consider market segmentation by product, where they would own a range of different types of vehicles to include 4WD and vans. They were also considering how they could improve their competitiveness in the light of strong competition from other more established car hire companies.
Author: Dr Ruth Kiraka
Type of enterprise: small enterprise
Case abstract
In August 2005, Charles Muraguri and Henry Mwaniki, the owner managers of Biz Commodities, located in Nairobi’s Lavington area, were preparing to ship the first container of coffee to the United States. Although they had been in business since August 2003, this was the first time Muraguri and Mwaniki were trading in coffee internationally. In the previous two years, Biz Commodities had been involved in importing various items like computers and leathers seats for the Kenyan market. However, after reviewing the viability of the business, they had decided to trade in the coffee and tea industry. Aside from the cartels involved in international coffee and tea trade, and the volatile prices on the London and New York Futures Markets, the main question for Muraguri and Mwaniki was whether this was a viable and profitable business venture.
Author: Dr Freddie Acosta
Type of enterprise: micro enterprise
Case abstract
In December 1997, Dr. Macharia and his four colleagues had just graduated as pharmacists from the University of Nairobi. They were deeply contemplating the idea of opening their own pharmacy store. They had accumulated Kshs 400,000 (US$ 5,334) in the bank through individual contributions of Kshs 80,000 each. After completing their compulsory internship for one year in March 1997, they had been employed by five different pharmacies for the past eight months. Within this very short period of time, they had learned to operate a pharmacy as pharmacists. They had seen too, how their employers run the business.
Author: Dr Freddie Acosta
Type of enterprise: micro enterprise
Case abstract
In October 2000, Maina Waweru, the CEO of Law Africa, and Chief of Operations Katarina Juma, were on the horns of a dilemma. Despite their success in locating, photocopying and digitising most of the court cases in secret, Law Africa faced significant challenges. The business was not generating any revenue because the on-line product was not ready. It was suffering from a major setback because of an intensified disagreement with their website developer. At this point, they had to make a very critical decision in their professional careers. Maina had just finished his three months unpaid-leave at Great Advocates. He had to give an answer to Thomas Cook, who was a senior partner of the law firm, whether to come back with the prospect of growing in the firm, or to quit with no chance of coming back and go full time with Law Africa which was not making any money. Katarina, who on the other hand, had quit her job at Prime Advocates when Maina took his three-months leave, was also contemplating her options.
Author: David Wang’ombe
Type of enterprise: small enterprise
Case abstract
On 2nd January 2004 Mr. Shaaban Juma the proprietor of Shaaban Juma and Associates, Certified Public Accountants and Mr. Sammy Muthee, the Managing Director of Style Soft Ltd, a computer software supply firm, were considering the possibility of setting up an alliance between the two firms. After giving it some thought, they were asking themselves a few questions. Among them if there were enough reasons to form an alliance. If so, how should the contents of the agreement be defined? That is, what would they do together, and what would each partner continue to do on its own, independently. What would be the rights and duties of each partner? And finally, assuming some sort of an alliance was formed, what kind of criteria could they use, some time into the future, in order to evaluate whether such an alliance had been a success or a failure?
Author: Mr David Wang’ombe
Type of enterprise: micro enterprise
Case abstract
Mr Shaaban Juma was working as financial controller with a small aircraft firm in Nairobi. In December 2001 a year after finishing his Master of Business Administration (MBA) degree he found his potential was not fully realised in the firm. He was considering quitting employment to start his own accounting firm.
Author: Mrs Beatrice Dimba
Type of enterprise: micro enterprise
Case abstract
On 15 March 2005, Maryanne Ratiro, owner of Quality Girls’ Hostel was reviewing the overall situation in the Quality Girls’ Hostel. The business has been growing steadily for three years, and the demand for good hostels was high. She wondered what action plans, if any she should design and implement, with regard to marketing, expansion and ownership of the buildings, which she was currently leasing. Quality Girls’ Hostel business was situated in Nairobi West.
Author: Mrs. Beatrice Dimba
Type of enterprise: micro enterprise
Case abstract
In June 2005 John Mathenge, a partner at Hazina Services Masters – a furniture making business, faced the following problems: his dilapidated shed was a barrier to his getting good customers; the road leading to his business was in a very poor shape and people avoided using it; the type of labour available in the neighbourhood was not qualified enough to enable him to function; he did not have enough space outside to display his furniture; and the place where his business was located was not secure. He could not afford to move to a better location and wondered what to do.
Author: Mrs Hellen Otieno
Type of enterprise: micro enterprise
Case abstract
On 1st June 2005, Mr. Eric Ndambuki, owner and Principal of St. Cleophas Girls’ Secondary School was at his desk. He realized that the ten-year lease agreement for the school building signed in the year 2001 was already halfway through. Yet he had not succeeded in making any savings to buy land and to build his own school to relocate the St. Cleophas as he had initially planned. He had hoped that he would save enough money in the first four years of operation to buy a piece of land adjacent to the school. He would then save for another four years. In the ninth year he had planned to start the construction so that in the tenth year, he would relocate St. Cleophas to a fully owned building. However, looking at the school’s current financial situation, he knew that had not happened. Even worse it would not happen unless he implemented some drastic changes in the financial aspects of his management. He wondered what action plans and financial management he could take.
Author: Mrs Hellen Otieno
Type of enterprise: small enterprise
Case abstract
On 11th May 2005, the Muhu family, the owners of Nyongara Slaughter House had invited a senior consultant to help them resolve some of the conflicts that they had been facing at the slaughter house and to make suggestions towards the preparation of a family protocol. After several visits to the company and talking to the individual members of the family and some employees, the consultant came to the conclusion that some of the issues raised were purely business issues while others touched on the relationship between the members of the family with regards to the business. The board of directors was due to meet in two weeks time and the consultant would be expected to give his deliberations to them. He looked at the issues on his desk and wondered what he was going to tell them and how he was rationally going to support his recommendations.
