CHAPTER FOUR

4.0 PRESENTATION, DISCUSSION AND INTERPRETATION OF FINDINGS

4.1 Presentation of the Findings
Fifty (50) questionnaires were distributed to respondents in the Commercial banks in Eldoret
Kenya and 45 questionnaires were positively responded to, giving a return rate of 90%,
indicating that the respondents were keen to participate in the study and positively solicited for
the information required by the researcher.

4.2 Discussion of the Findings

The general information in research represents the personal information of the respondents
included in the study. The general information in this case is a representation of the information
that can enable the researcher to understand the respondents much more and know how to
deduce certain conclusions as far as the respondents are concerned. At any one given time, for
research purposes, it is important to establish the background information of respondents so as to
know the kind of people included in the study sample.

4.2.1 Age of respondents

The age of respondents would enable the researcher to come up with conclusions as pertaining to
the general composition of the organization. Information on age of respondents is presented on
table 4.1;

Table 4.1: Age of respondents

Age of respondents Frequency Percentage

20-30 Years 14 31.1

31-40 Years 21 46.7

41-50 Years 8 17.8

Over 50 Years 2 4.4

Total 45 100

Source: Researcher (2020)

The study found out that of all the respondents included in the study, 14 (31.1%) were in the 20-
30 years age bracket., 21 (46.7%) were aged 31-40 years, 8 (17.8%) were in the 41-50 years age
bracket and 2 (4.4%) were aged over 50 years. Basing on the study findings, it was evident that
a majority of the respondents who perticipated in the study were youthful individuals who were
aged from 20 years to 40 years. Other than this, the study indicated that not only the youth
participated but also the elderly were involved indicating that there was representation of all the
ages in the study signifying a diversity in the information obtained in the latter stages of the
study.

4.2.2 Gender of Respondents

Basing on the kind of study, it was important for the researcher to find out the gender of the
respondents who participated in the study. The researcher also wanted to ascertain whether there
is gender balance or not. The findings are as presented on the table following;

Table 4.2: Gender of respondents

Gender of respondents Frequency Percentage

Male 26 57.8

Female 19 42.2

Total 45 100

Source: Researcher (2020)

Basing on the study findings, 26 (57.8%) of the respondents were male while 19 (42.2%) were
female. The findings therefore indicate that the males who participated in the study were more
than the females signifying a difference in the gender proportions at the ministry. Basing on
these findings, it is evident that males outnumber females as is signified by the high number of
males who were included in the study. Other than this, both males and females were represented
in the study signifying that the study cut across both genders indicating comprehensiveness of
the findings

4.2.3 Highest level of education of respondents

The level of education is very good at indicating the level of professionalism in an individual as
well as the ability of an individual to understand and interpret concepts and come up with ideas.
Since the level of education is a crucial variable that has to be put into account, this information
was sought for so as to give the researcher an insight into the level of education of the
respondents included in the study. These findings are relayed on the following table;

Table 4.3: Highest level of education

Highest level of education Frequency Percentage

Certificate 3 6.7

Diploma 17 37.8

Degree 25 55.5

Other - -

Total 45 100

Source: Researcher (2020)

The findings on the table above indicated that most of the respondents, 25 (55.5%) were degree
holders, 17 (37.8%) were diploma holders, 3 (6.7%) were certificate holders while none of the
respondents had other qualifications. Basing on the information above, it is evident that the
ministry has qualified and competent members of staff, indicated by the high level of
respondents who are diploma holders. Other than this, the findings indicate that the respondents
who participated in the study had the basic education and were therefore able to understand and
comprehend the questions presented to them as pertaining to the topic of study.

4.2.4 Length of service

The length of time an employee spends in an organization determines how familiar the employee
is with the operations of the said organization and this can impact positively on the level of
performance of the employee hence the study sought to find out the length of time the
respondents had worked. The findings pertaining to the length of service are as relayed on the
following table;
Table 4.4: Length of Service
Length of Service Frequency Percentage

Less than 2 years 17 37.8

2-5 years 23 51.1

5-10 years 4 8.9

More than 10 years 1 2.2

Total 45 100

Source: Researcher (2020)

The study found out that 17 (37.8%) of the respondents had worked in the ministry for less than
2 years, 23 (51.1%) had worked for 2-5 years, 4 (8.9%) had worked for 5-10 years, and 1 (2.2%)
had worked for more than 10 years. These findings indicate that most of the employees have
been in the organization for 2 to 5 years, a period long enough for an employee to fully get
familiar with the operations of an organization.

4.3 Interpretation of the Findings

In this section, the researcher intended to get information pertaining to the topic of study as per
the objectives addressed in the study. This information is presented as follows;

4.3.1 Effect of product diversification on financial performance of commercial banks

It was deemed important for the researcher to find out effect of product diversification on
financial performance of commercial banks. The findings are as relayed on table 4.5;
Table 4.5; Effect of product diversification on financial performance of commercial banks
Strongly Agree (S.A) Agree (A) Undecided (UD) Disagree (D) Strongly Disagree
(S.D)

S .A A UD D S. D Total

As the economy changes, 23 11 2 5 4 45

the spending patterns of the (51.1) (24.4) (4.4) (11.1) (8.9) (100%)
people change.
Diversification into a
number of industries or
product line can help create
a balance for the entity
during these ups and
downs
There will always be 17 12 1 6 9 45
unpleasant surprises within (37.8) (26.7) (2.2) (13.3) (20.0) (100%)
a single investment. Being
diversified can help in
balancing such surprises
Diversification helps to 9 13 5 11 7 45
maximize the use of (20.0) (28.9) (11.1) (24.4) (15.6) (100%)
potentially underutilized
resources
Certain industries may fall 25 16 1 2 1 45
down for a specific time (55.6) (35.6) (2.2) (4.4) (2.2) (100%)
frame owing to economic
factors
Source: Researcher (2020)

The table 4.5 above relays the respondents’ responses as pertaining to effect of product
diversification on financial performance of commercial banks. Basing on the study findings
relayed on the table, majority of the respondents strongly agreed and agreed that As the economy
changes, the spending patterns of the people change. Diversification into a number of industries
or product line can help create a balance for the entity during these ups and downs. 2 (4.4%)
were undecided while 9(20.0%) disagreed and strongly disagreed. Also, 29 (64.5%) strongly
agreed and agreed that There will always be unpleasant surprises within a single investment.
Being diversified can help in balancing such surprises. On the other hand, 1 (2.2%) represented
the undecided, while 15 (33.3%) disagreed and strongly disagreed with the statement.

The respondents also confided that Diversification helps to maximize the use of potentially
underutilized resources as was signified by 22 (48.9%) of the respondents who strongly agreed
and agreed with the statement. On the same note, 5 (11.1%) were undecided while 18 (40.0%)
disagreed and strongly disagreed. The study also ascertained that Certain industries may fall
down for a specific time frame owing to economic factors as was indicated by 41 (91.2%) who
strongly agreed and agreed. 1 (2.2%) represented the undecided, while 3 (6.6%) disagreed and
strongly disagreed with the statement.

4.3.3 Effect of geographic diversification on financial performance of commercial banks

The researcher sought to find out the effect of geographic diversification on financial
performance of commercial banks. The findings are as presented on table 4.7;

Table 4.7: Effect of geographic diversification on financial performance of commercial

banks
Strongly Agree (S.A) Agree (A) Undecided (UD) Disagree (D) Strongly Disagree
(S.D)

S .A A UD D S. D Total

It allows you to accomplish 14 15 1 9 6 45

a few different goals at the (31.1) (33.3) (2.2) (20.0) (13.3) (100%)
same time
Take advantage of strong 4 13 12 9 7 45
economies (8.9) (28.9) (26.7) (20.0) (15.6) (100%)
Your company can gain 11 26 2 3 3 45
financial advantages from (24.4) (57.8) (4.4) (6.7) (6.7) (100%)
diversifying its strategies.
For example, if it enters
into joint ventures or
acquires other companies it
can increase its profits,
cash flow and borrowing
power
A positive result of 19 10 1 8 7 45
diversifying your strategy (42.2) (22.2) (2.2) (17.8) (15.6) (100%)
can be an increase in
market share
Source: Researcher (2020)

The study sought out the effect of geographic diversification on financial performance of
commercial banks and from the findings, it allows you to accomplish a few different goals at the
same time. This statement had the backing of 29 (64.2%) of the respondents who strongly agreed
and agreed. 1 (2.2%) was undecided while 15 (33.3%) disagreed and strongly disagreed with the
statement. The respondents confided that Take advantage of strong economies. This was shown
by 17 (37.8%) of the respondents who strongly agreed and agreed with the statement. 12 (26.7%)
were undecided, while 16 (35.6%) disagreed and strongly disagreed with the statement. This
statement had a large proportion of respondents being undecided, disagreeing and strongly
disagreeing indicating that the respondents were not so sure about the truth behind this particular
statement.

It was further ascertained that company can gain financial advantages from diversifying its
strategies. For example, if it enters into joint ventures or acquires other companies it can increase
its profits, cash flow and borrowing power since 37 (82.2%) of the respondents strongly agreed
and agreed, 2 (4.4%) were undecided while 3 (6.7%) disagreed and an equal proportion strongly
disagreed with the statement. It was also ascertained that A positive result of diversifying your
strategy can be an increase in market share to which 29 (64.4%) of the respondents strongly
agreed and agreed, 1 (2.2%) represented the undecided while15 (33.4%) disagreed and strongly
disagreed.
 CHAPTER FIVE
5.0 SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
5.1 Summary of findings
This section mainly presents the summary of findings as per the objectives. Included in this part
is the background information as well as the specific information.
5.1.1 Background information
The study found out that of all the respondents included in the study, 14 (31.1%) were in the 20-
30 years age bracket., 21 (46.7%) were aged 31-40 years, 8 (17.8%) were in the 41-50 years age
bracket and 2 (4.4%) were aged over 50 years. Basing on the study findings, it was evident that
a majority of the respondents who perticipated in the study were youthful individuals who were
aged from 20 years to 40 years. Other than this, the study indicated that not only the youth
participated but also the elderly were involved indicating that there was representation of all the
ages in the study signifying a diversity in the information obtained in the latter stages of the
study.

Basing on the study findings, 26 (57.8%) of the respondents were male while 19 (42.2%) were
female. The findings therefore indicate that the males who participated in the study were more
than the females signifying a difference in the gender proportions at the ministry. Basing on
these findings, it is evident that males outnumber females as is signified by the high number of
males who were included in the study. Other than this, both males and females were represented
in the study signifying that the study cut across both genders indicating comprehensiveness of
the findings

The findings on the table above indicated that most of the respondents, 25 (55.5%) were degree
holders, 17 (37.8%) were diploma holders, 3 (6.7%) were certificate holders while none of the
respondents had other qualifications. Basing on the information above, it is evident that the
ministry has qualified and competent members of staff, indicated by the high level of
respondents who are diploma holders. Other than this, the findings indicate that the respondents
who participated in the study had the basic education and were therefore able to understand and
comprehend the questions presented to them as pertaining to the topic of study. The study found
out that 17 (37.8%) of the respondents had worked in the ministry for less than 2 years, 23
(51.1%) had worked for 2-5 years, 4 (8.9%) had worked for 5-10 years, and 1 (2.2%) had worked
for more than 10 years. These findings indicate that most of the employees have been in the
organization for 2 to 5 years, a period long enough for an employee to fully get familiar with the
operations of an organization.

5.1.2 Effect of product diversification on financial performance of commercial banks

Basing on 34 (75.5%) of the respondents strongly agreed and agreed that As the economy
changes, the spending patterns of the people change. Diversification into a number of industries
or product line can help create a balance for the entity during these ups and downs. 2 (4.4%)
were undecided while 9(20.0%) disagreed and strongly disagreed. Also, 29 (64.5%) strongly
agreed and agreed that There will always be unpleasant surprises within a single investment.
Being diversified can help in balancing such surprises. On the other hand, 1 (2.2%) represented
the undecided, while 15 (33.3%) disagreed and strongly disagreed with the statement.

The respondents also confided that Diversification helps to maximize the use of potentially
underutilized resources as was signified by 22 (48.9%) of the respondents who strongly agreed
and agreed with the statement. On the same note, 5 (11.1%) were undecided while 18 (40.0%)
disagreed and strongly disagreed. The study also ascertained that Certain industries may fall
down for a specific time frame owing to economic factors as was indicated by 41 (91.2%) who
strongly agreed and agreed. 1 (2.2%) represented the undecided, while 3 (6.6%) disagreed and
strongly disagreed with the statement.

5.1.3 Effect of geographic diversification on financial performance of commercial banks

It allows you to accomplish a few different goals at the same time. This statement had the
backing of 29 (64.2%) of the respondents who strongly agreed and agreed. 1 (2.2%) was
undecided while 15 (33.3%) disagreed and strongly disagreed with the statement. The
respondents confided that Take advantage of strong economies. This was shown by 17 (37.8%)
of the respondents who strongly agreed and agreed with the statement. 12 (26.7%) were
undecided, while 16 (35.6%) disagreed and strongly disagreed with the statement. This statement
had a large proportion of respondents being undecided, disagreeing and strongly disagreeing
indicating that the respondents were not so sure about the truth behind this particular statement.

It was further ascertained that Your company can gain financial advantages from diversifying its
strategies. For example, if it enters into joint ventures or acquires other companies it can increase
its profits, cash flow and borrowing power since 37 (82.2%) of the respondents strongly agreed
and agreed, 2 (4.4%) were undecided while 3 (6.7%) disagreed and an equal proportion strongly
disagreed with the statement. It was also ascertained that A positive result of diversifying your
strategy can be an increase in market share to which 29 (64.4%) of the respondents strongly
agreed and agreed, 1 (2.2%) represented the undecided while15 (33.4%) disagreed and strongly
disagreed.

5.2 Conclusions
As the economy changes, the spending patterns of the people change. Diversification into a
number of industries or product line can help create a balance for the entity during these ups and
downs; There will always be unpleasant surprises within a single investment. Being diversified
can help in balancing such surprises; Diversification helps to maximize the use of potentially
underutilized resources; Certain industries may fall down for a specific time frame owing to
economic factors. When the organization doesn’t value its customers, it doesn’t provide quality
services; lack of customer focus makes it hard for the employees to relate well with the
customers; lack of customer focus makes it hard for the organization to dedicate funds to service
provision; lack of customer focus makes it very difficult for the organization to meet its financial
objectives

It allows you to accomplish a few different goals at the same time; Take advantage of strong
economies; Your company can gain financial advantages from diversifying its strategies. For
example, if it enters into joint ventures or acquires other companies it can increase its profits,
cash flow and borrowing power.

5.3 Recommendations
Based on the study finding and conclusion, the study recommended that; there is need for the
government of Kenya to improve on its service delivery by eliminating the various factors that
affect organizational performance.
 APPENDICES

Appendix I: Questionnaire

I am a student at Kenya Institute of Management. I am conducting research on; Effects of

Physical distribution on organizational performance, A Case Study of Commercial banks
in Eldoret Kenya. Kindly complete the questionnaire to assist me collect data. Your information
alongside others helped me in my research and was used strictly for academic purposes and was
treated as confidential. Do not write your name on the questionnaire.

Instructions

a) Kindly tick (√) where appropriate OR writes your response in the spaces provided.

Section A: Personal Information

1. What is your Gender?

Male Female

2. What is your Age?

18-20 years { } 21-30 years

31-50 years } 41-50 years

Above 51 years

3. What is your Level of Education?

Diploma Bachelors Degree

Masters Degree }
Others…………………………………………………………………………………………..

4. What is your working experience?

1-5 years { } 6-10 years }

11-15 years { }

Above 16 years { }

Section B: General Information

Key: Strongly Agree (S.A) Agree (A) Undecided (UD) Disagree (D) Strongly
Disagree (S.D)

vi. To what extent do you agree with the following effect of product diversification on
financial performance of commercial banks at Commercial banks in Eldoret Kenya?

S .A A UD D S. D
As the economy changes, the spending patterns of the people
change. Diversification into a number of industries or product line
can help create a balance for the entity during these ups and downs
There will always be unpleasant surprises within a single
investment. Being diversified can help in balancing such surprises
Diversification helps to maximize the use of potentially
underutilized resources
Certain industries may fall down for a specific time frame owing
to economic factors
Inventory control maintain necessary records for protecting against
thefts, wastes leakages of inventories and to decide timely
replenishment of stocks
Inventory control minimize risk of loss due to obsolescence,
deterioration
What are the effects of physical distribution on lead time at Commercial banks in Eldoret
Kenya?

S .A A UD D S. D
Enables customers want goods or service as fast as possible
with minimal effort
Has a direct relationship with the amount of inventory that
exists at different points in the overall supply chain

Lead time leads to flexibility

Lead time prevents lost orders
Lead time increases cash flow
ix. To what extent do you agree with the following effect of geographic diversification on
financial performance of commercial banks at Commercial banks in Eldoret Kenya?

S .A A U D S. D
D
It allows you to accomplish a few different goals at the same time
Take advantage of strong economies
Your company can gain financial advantages from diversifying its
strategies. For example, if it enters into joint ventures or acquires other
companies it can increase its profits, cash flow and borrowing power
A positive result of diversifying your strategy can be an increase in
market share
Profitability of a firm might not, sometimes, provide the correct decision
while being used to compare mutually exclusive projects under
consideration