The Lunatic Winch Business Strategy: A Case Study of Til a Til Limited

The Lunatic Winch Business Strategy: A Case Study of Til a Til Limited

Benard Nyataya¹, Dr John N Kamau²

¹PhD student, Africa Nazarene University School of Business

²Lecturer, Africa Nazarene University School of Business

DOI: https://dx.doi.org/10.47772/IJRISS.2024.8120339

Received: 09 December 2024; Revised: 20 December 2024; Accepted: 23 December 2024; Published: 23 January 2025

ABSTRACT

Til a til Limited, established in the early 2000S quickly became a dominant player in Kenya’s floriculture industry, particularly in Naivasha. The company’s expansion was marked by significant job creation and economic growth, positioning it as the world’s largest producer of cut roses by 2008. However, its success was short-lived due to various internal and external challenges. Financial mismanagement, including tax evasion and debt accumulation, led to the company’s receivership in 2014. The document outlines several strategic objectives for Til a Til Limited’s potential revival; Diversify crop varieties, reduce debt, launch online sales platforms and community bloom program. The study captured the implementation and resources that involved operational transformation, financial restructuring, technological advancement, and community engagement. Key strategies include streamlining operations, adopting lean management practices, and utilizing new technologies to enhance efficiency. The monitoring and evaluation framework includes data collection, performance analysis, feedback loops, strategic adjustments, and continuous improvement. This ensures that the strategy remains aligned with the company’s overall objectives and adapts to changing market conditions. In summary, the case study of Til a Til Limited serves as a cautionary tale about the pitfalls of rapid expansion, financial mismanagement, and the importance of sustainable and ethical business practices. The Lunatic Winch Business Strategy framework aims to revitalize the company by addressing its historical weaknesses, capitalizing on new opportunities and ensuring long-term sustainability and profitability.

BACKGROUND AND THE CURRENT STATE

INTRODUCTION

Despite the evolving business landscape, till a Til Limited’s core objective, has mainly been driven by Lunatic Winch’s Strategy, remains constant, meeting shareholders’ needs and satisfying consumers. The transformative initiatives are focused on streamlining operations, fostering growth, and ensuring profitability. This mainly aligns with the need to define a clear vision and value proposition, as emphasized in business strategy development. To enhance business performance, Lunatic Winch will adopt a multi-layered strategic framework such as identifying and developing a competitive advantage through understanding customers’ needs and building capabilities that are held to replicate. It mainly constitutes the creation of demand for products and services, increasing sales, utilization of new technologies, and generating margins. Furthermore, the implementation of functional strategies across various departments such as marketing, operations, and finance which tend to align with the overall organizational objectives is essential (Grant, 2024). Generally, the focus is aimed at enhancing performance through bolstering sales through understanding customers’ needs and deploying capabilities that meet those needs urgently; safeguarding margins through implementation of cost-saving measures aimed at optimizing operational efficiency to maintain profitability; and finally, streamlining operations and adoption of lean management practices to minimize unnecessary expenditures. By integrating these elements, Lunatic Winch can develop a comprehensive business strategy that enhances the performance of Til a Til Limited, ensuring sustainable growth and profitability.

1.1 Profile of Til a Til Limited

Til a Til Limited’s expansion into Kenya in the early 2000s positioned it as one of the leading producers of cut roses, having an impact on the Naivasha economy and Kenya’s global market position in floriculture (Bose & Mehra, 2012). The firm’s presence in Naivasha resulted in significant job creation and economic growth, demonstrating Africa’s greater agriculture potential. Despite its initial success, Til a Til Limited encountered challenges inherent in global trade and market dynamics, emphasizing the delicate balance between rapid corporate expansion and long-term viability. The story of Til a Til Limited in Kenya symbolizes the complexity of foreign agricultural investments, highlighting the relationship between local economic success and the vulnerabilities of global market volatility.

However, til a Til Ltd.’s rise was not without challenges. In 2013, the Kenyan government accused the company of engaging in illicit market practices and tax evasion, sparking a public legal struggle that tarnished its reputation and scared off customers and creditors. CfC Stanbic Bank placed Til a Til into receivership in February 2014 due to debts surpassing KSh 400 million (about EUR 3.5 million or USD 5 million) (Business Daily, 2014). This effort was part of a larger plan to recover payments and resolve the company’s significant financial issues. During this period, the worldwide rose market faced severe issues, including oversupply and falling pricing, which further stressed Til a Til’s operations and profitability.

Til a Til Limited could have better managed its financial strategy by adopting robust financial governance practices and proactive risk management systems. Effective internal financial controls, including transparent accounting practices and regular audits, would have mitigated the risk of financial mismanagement and tax compliance issues that tarnished its reputation. Diversifying its revenue streams early, such as integrating agro-tourism or leveraging digital sales platforms, could have insulated the company from market volatility and over-reliance on rose exports. At the same time, prudent debt management through regular assessments of borrowing limits, renegotiation of unfavorable credit terms, and exploring equity financing rather than excessive reliance on debt would have helped maintain liquidity and financial stability. Proactively engaging with creditors and government regulators to address financial and legal risks could have avoided the legal entanglements and public backlash that worsened the company’s collapse.

Til a Til’s collapse signified the end of what had previously been a thriving business. This event serves as a lesson in the agricultural and floricultural industries the value of financial prudence, ethical business practices, and the need for enterprises to adapt to changing market conditions. The Phoenix Group of Dubai invested in Til a Til Ltd., a famous rose exporter based in Kenya, in 2018 (Sunkara, 2018). This investment was a mix of debt and equity, and it was intended to help Til a Til manage its financial issues, including paying debt obligations. This financial influx came at a critical time for Til a Til, which was nearing the end of a four-year receivership in Kenya. The Phoenix Group’s strategic investment was in line with its overall goals of expanding its influence in the agricultural sector, with a specific focus on floriculture in Kenya. While the specific amount of the investment was not made public, its primary aim was to facilitate Til a Til in settling its outstanding debts in compliance with the directives from the High Court of Kenya, within a designated short period.

The insolvency proceedings against Til a Til in 2019 was a challenge for the company’s business (Tejaswi, 2019). As of 2020, Til a Til’s leaders, were jailed by Kenya’s High Court, adding to the company’s legal and financial woes (IBI World Limited, 2023). The fall of Til a Til had a major impact on Naivasha’s economy and workers. The farm’s shutdown resulted in the loss of thousands of jobs and had an impact on the region’s economic, revealing the risks connected with agricultural investment and market instability. The decline also reflected broader developments in the floral industry, such as changing market dynamics and the emphasis of sustainable business practices. Til a Til is no longer in Kenya, leaving behind a legacy of what once was a thriving empire in the flower industry, but now serves as a cautionary tale of the possible pitfalls associated with rapid expansion, financial mismanagement, and the significance of sustainable and ethical business practices in global agriculture.

By 2008, Til a Til had established itself as the world’s largest producer of cut roses, sending 1.5 million stems per day from 40 different types to countries such as Japan, Australia, South-East Asia, West Asia, Europe, and North America (Bose & Mehra, 2012). Within Kenya, til a Til performed admirably, exporting one million rose stems per day (Mwangi, 2018). This company was more than simply a business; it was a major economic engine for Naivasha, generating jobs for 3,000 people. The demise of Til a Til LTD had far-reaching ramifications (Mwangi, 2018). The decline marked a major drop in Kenya’s cut rose exports, reducing national revenue. Aside from the macroeconomic effects, the livelihoods of 3,000 workers were disturbed, with a cascade effect on the local economy due to the termination of tax contributions from these employees. Given Til a Til’s significant economic and social influence in Kenya, developing a strategy plan to reinvigorate the industry is critical not just for regenerating the local community in Naivasha, but also for strengthening Kenya’s position in the worldwide floriculture market.

Global market volatility contributed to Til a Til’s decline by exposing the company to fluctuating demand, price instability, and intense competition. The oversupply in the global rose market, combined with declining prices, eroded profit margins and heightened financial pressures. As a major exporter, til a Til’s heavy reliance on international markets made it vulnerable to global economic shocks and changing consumer preferences, leaving little to no room for maneuvering when market conditions worsened. Additionally, the inability to adapt to these external factors exacerbated the firm’s financial and operational struggles, compounding the challenges posed by its internal mismanagement and legal troubles.

To mitigate these risks, tile a Til could have diversified its product portfolio to reduce dependency on cut roses, such as introducing complementary high-demand floricultural products like lavender or other aromatic plants. Engaging in market research and entering less-saturated or emerging markets would have allowed the company to expand its customer base. Moreover, adopting forward contracts or hedging strategies could have safeguarded against price volatility, ensuring more predictable revenue streams. By investing in sustainable practices and certification programs, til a Til could have capitalized on the rising global demand for ethically produced flowers, differentiating itself in a competitive market. These strategies, coupled with a focus on operational efficiency and technological integration, might have provided greater resilience against market fluctuations and sustained its position in the floriculture sector.

1.2 Vision and Mission

Til a Til’s vision is to become the world’s foremost agro-based corporation and to develop sustainable commercial cultivation by investing in land and leveraging technology.

The mission of Til a Til Limited is to provide the best of agri-products, crops and services to its clients worldwide and to produce healthy, nutritiously rich and aesthetically attractive food for its consumers.

1.3 Objectives and Goals

Til a Til Limited is committed to providing excellence in product support and customer service, focusing on reliability, productivity, and efficiency.  To enhance high production of high-quality flowers while emphasizing corporate social responsibility, environmental care and steady growth in production. These can only be achieved by following objectives;

1. To diversify its product range by two new crop varieties.
2. To reduce existing debt by 5-10% on a graduating over a period of up to 5 years and thereafter re -evaluate.
3. To launch an online sales platform, aiming to increase direct sales by 15%.
4. To develop and launch a “Community Bloom” program to improve worker welfare and engaging with local communities.

2.0 INTERNAL AND EXTERNAL FACTORS FACING TIL A TIL LIMITED

To understand the internal and external factors associated with Til a Til Limited are as follows;

2.1 Internal Factor (SWOT Analysis)

2.1.1 Market Leadership

Til a Til’s status as one of the world’s largest producers of cut roses reflects its dominant market position. The position signified the company’s ability to leverage its size, create a strong brand, and generate a significant market presence. The company leads the global cut flower industry with an 8% market share, generating 555 million roses each year through three strategically positioned production hubs in Kenya, Ethiopia, and India (Information Research, 2010).

2.1.2 Strategic Location

The choice of Naivasha, Kenya, as a base of operations was significant. The area has moderate temperatures and enough of sunlight, making it perfect for flower production, resulting in excellent bloom development and quality. Naivasha is 1880 meters above sea level, which provides a good climate for floriculture. Furthermore, the proximity to Lake Naivasha means that high water demands in flower production, both in irrigation and maintenance of farm gear, are met (Data science blog, 2014).

2.1.3 Global Reach

Til a Til’s vast global consumer base provided a significant advantage. The company took advantage of global demand by exporting roses to a variety of nations, primarily in Europe. During the period around September 2007, til a Til LTD exported about 650 million rose stems each year from Kenya, notably Naivasha (Bose & Mehra, 2012).

2.1.4 Financial Mismanagement

Despite operational gains, til a Til encountered significant financial challenges. Til a Til in Kenya experienced financial troubles and debt accumulation owing to a variety of circumstances. The company’s financial woes were caused by cash flow concerns, underpaid wages, tax fraud, and poor management. Til a Til’s issues included failing to satisfy its financial responsibilities, such as unpaid salaries for nearly 3,000 employees (Mwangi, 2018), which resulted in the company being placed in receivership in February 2014. In addition, the Kenyan government found the corporation guilty of tax evasion, leading to a settlement agreement to pay a reduced amount of $4 million in taxes.

2.1.5 Legal Issues

Til a Til faced a number of legal challenges, including tax evasion, receivership, and insolvency proceedings. The corporation was found guilty of tax evasion in Kenya, with claims of participating in illicit market operations and lowering selling prices to avoid paying income tax. This sparked legal challenges and court cases, and the company’s leaders, were condemned by Kenya’s High Court in July 2020 (IBI World Limited, 2023).  Furthermore, til a Til was placed in receivership in February 2014 owing to liquidity issues and unpaid wages, resulting in the company being auctioned off to settle its debts.

2.1.6 Overreliance on Debt

Til a Til borrowed money from many banks, including Stanbic Bank and ICICI Bank. Stanbic Bank was one of the lenders who gave a loan to Til a Til LTD, resulting in the auction of its assets over a Sh1.8 billion debt following judicial processes (Kiplagat, 2021). ICICI Bank offered a foreign currency term loan of Sh3.6 billion to Til a Til, along with a working capital demand loan of $11 million, contributing to the company’s financial troubles and debt accumulation (Otieno, 2022).

2.1.7 Market Expansion

Til a Til in Kenya could have expanded its product line beyond flowers to increase its market share in Kenya. Given Kenya’s rich agricultural setting and the possibility for a variety of crops, til a Til might have considered investing in horticulture items including tea, coffee, and horticultural vegetables. Tea and coffee are prominent revenue crops in Kenya, with tea being the world’s third-largest producer and coffee traditionally being a substantial export for the country. Furthermore, horticultural produce, including fruits and vegetables like mangoes, avocados, and pineapples, are in great demand both locally and globally, offering attractive potential for investment and market growth.

2.1.8 Technological Advancements

Til a Til LTD should have embraced technology. In particular, the organization should have invested in Enterprise Resource Planning (ERP) technologies to streamline its business processes, increase efficiency, and acquire important insights into how it operates. Enterprise Resource Planning (ERP) is a software system that combines major corporate operations and procedures like finance, human resources, supply chain management, and customer relationship management on a single platform. The implementation of ERP might have provided the company with a more effective and integrated system for managing payroll and human resources, thereby eliminating the difficulty of having 3000 unpaid employees. Additionally, the firm could have adopted precision agriculture technologies, such as IoT-enabled sensors and drones, to optimize water usage, monitor crop health, and improve yields, reducing operational costs while maintaining high-quality production. Digital marketing tools and e-commerce platforms would have allowed Til a Til to engage directly with global customers, bypassing intermediaries to secure better margins and expand market reach. Also, embracing blockchain technology for supply chain transparency could have strengthened trust with international buyers by providing verifiable records of ethical sourcing and sustainability, positioning Til a Til as a leader in responsible floriculture.

2.1.9 Sustainable Practices

Til a Til LTD may have implemented sustainable techniques, such as using green energy. This would have been accomplished by placing solar panels on its flower farms and infrastructure, allowing Til a Til to generate clean and renewable electricity from Kenya’s abundant sunlight. Solar power systems may have supplied a consistent source of electricity for irrigation, lighting, and other functions.

2.1.10 Market Volatility; Before its demise, til a Til LTD in Kenya had substantial market instability. Following the financial collapse in 2008, established Kenyan exporters’ profitability suffered, resulting in a drop in consumer demand for African flowers in key export markets such as Europe. The global financial crisis caused a dramatic decline in Kenya’s floriculture export earnings of up to 15% in 2010. This abrupt drop in purchasing power and demand emphasized the sector’s sensitivity to external economic shocks, affecting the stability and profitability of enterprises such as Til a Til LTD.

2.1.11 Competition

In Kenya’s competitive floriculture sector, Shalimar Flowers Kenya Limited and Oserian Development Company Limited were important competitors of Til a Til LTD. Shalimar Flowers capitalized on a big opportunity by acquiring the assets of the bankrupt Til a Til (Floral Daily, 2022), delivering a lifeline to over 3,000 employees and highlighting its competitive edge and strategic growth in the sector. Meanwhile, Oserian Development Company demonstrated adaptability by broadening its business activities in 2018, indicating a proactive response to changing market conditions in Naivasha. Both enterprises demonstrate the crucial need of resilience, strategic foresight, and adaptation in managing the hurdles and capturing opportunities within Kenya’s floriculture industry, emphasizing the sector’s competitive and dynamic nature.

2.1.12 Regulatory Risks

Til a Til’s illegal practice of under-declaring the value of items delivered to its Dubai warehouse, known as transfer mispricing, violated the Income Tax Act, and the Kenyan government found the company guilty of tax fraud. This violation of tax laws and regulations under the Income Tax Act triggered legal action against Til a Til LTD, underscoring the necessity of adhering to tax legislation to avoid fraudulent acts and maintain compliance with tax regulations in Kenya.

2.2 External Factors (Pestel Analysis of Til a Til Limited)

The PESTEL framework delves into the Political, Economic, Social, Technological, Environmental, and Legal factors that influence an organization’s operational landscape. This analysis provides an insight of the broader framework in which Til a Til functioned, as well as the external influences that played an important role in its business trajectory.

Political

2.2.1 Political Stability

During Til a Til’s peak years, the company profited from Kenya’s generally stable business climate. However, the business was not immune to the effects of occasional political unrest, such as the 2007-2008 post-election violence. The unrest had a huge influence on the flower industry (Ksoll, Macchiavello, & Morjaria, 2009), including Til a Til LTD, causing disruptions in operations and exports during that time. The violence had a negative impact on the flower industry, resulting in changes in export patterns and difficulty in maintaining production and sales levels.

2.2.2 Tax Policies

Til a Til LTD’s alleged tax fraud highlights an important facet of company operations, particularly in industries such as floriculture, where enterprises operate on razor-thin margins and are vulnerable to a variety of global market hazards. Til a Til breached the Income Tax Act, which requires all companies to accurately record their income to the Kenya Revenue Authority (KRA) and pay the US$20 million in taxes owed. Til a Til LTD violated this statute by participating in transfer mispricing, which thus damaged the fairness and integrity of the tax system.

2.2.3 Economic Growth

Til a Til LTD benefited from Kenya’s economic growth, which increased market size and investment prospects. Prior to its collapse, Kenya’s economy grew steadily from the early 2000s to the late 2010s. Kenya’s GDP increased by 2.93 percent in 2003. This growth lasted until 2008, when the country’s GDP fell to 0.23 owing to post-election unrest. Kenya, on the other hand, recovered and achieved a GDP growth rate of 5.11 percent in 2019 (Macrotrends, n.d.). With Kenya’s economic prosperity, til a Til LTD was able to function in a stable country.

2.2.4 Exchange Rate Volatility

Since Til a Til dealt in foreign exports, exchange rates had an impact on its day-to-day operations. This meant that when Kenya’s currency was strong compared to other currencies, exports became more expensive for overseas buyers, potentially limiting demand for things such as flowers. In contrast, a weaker currency made exports more competitive in overseas markets, which boosted demand.

2.2.5 Loan Dependency

Til a Til’s reliance on loans exposed them to variations in interest rates and banking rules. Til a Til was in debt to Stanbic Bank and ICICI Bank. This suggests that the majority of its income had to be divided in order to service the loans, lowering the immediately accessible funds for its day-to-day operations.

2.2.6 Social Employment: Til a Til LTD was a major employment in Naivasha, contributing significantly to the local economy. The company’s operations had employed 3000 employees. This means that the company was offering a source of income to 3000 employees. The collapse of the company meant that the families of these employees lost their livelihood, impacting their quality of life.

2.2.7 Technological

Agricultural Technology: Til a Til LTD could have leveraged agricultural technology such as the smart irrigation systems. Investing in smart irrigation systems that regulate water usage based on real-time data and crop needs could have helped Til a Til maximize water usage, cut expenses, and boost crop yields.

Supply Chain Management: Technologies for tracking and regulating the supply chain are critical in the floriculture industry, where product freshness is essential. Til a Til’s ability to track and optimize supply chain activities in real time might be considerably improved by deploying a Supply Chain Management (SCM) system. This system would improve forecasting, inventory management, and transportation planning, all of which are essential components for ensuring that flowers reach the market fresh. Using such an advanced SCM system, Til a Til may significantly increase its timely supply of fresh flowers, while positively affecting customer happiness and increasing operational efficiency.

2.2.8 Environmental

Sustainability Concerns: The increased emphasis on sustainable agricultural techniques has an impact on firms such as Til a Til LTD, notably in terms of resource consumption and environmental conservation. Adopting sustainable practices such as green energy would have addressed the sustainability concerns of Til a Til LTD in Kenya. This would have been implemented by the adoption of green energy by installing solar panels.

Climate Change: Changing weather conditions endanger agricultural production. For Til a Til, adapting to these changes was critical to maintaining output levels and quality, emphasizing the importance of resilience and adaptability in the face of environmental issues. This is because, the climate change being experienced around the world has changed the weather patterns hence affecting crop production.

2.2.9 Legal

Labor Laws: Compliance with labor standards is essential in an industry that depends on many employees. Til a Til had employed 3000 employees; however, it was taken to court for not paying its employees. This is a legal issue that reduced the credibility of the company as an employer.

3.0 STRATEGY FORMULATION-LUNATIC WINCH BUSINESS STRATEGY

The “Lunatic Winch Strategy” is an integrated plan devised to reinvigorate Til a Til LTD, aligning closely with the company’s forward-looking objectives. This comprehensive strategy is crafted to enhance operational sustainability, financial stability, technological advancement, and community engagement, all while aligning with specific, measurable goals.

3.1 Lunatic Component

Derived from the highest expert level in online gaming, the “Lunatic” aspect involves intense challenges, deception, strategy, and quick thinking. Til a Til LTD must employ similar tactics to regain market foothold. This includes launching new crop varieties and online sales platforms, anticipating market trends, and diversifying product ranges. The approach demands a multi-pronged strategy involving financial restructuring, operational transformation, and technological advancements to stay ahead.

3.2 Winch Component

The “Winch” metaphorically represents a self-recovery mechanism, leveraging existing capital, human resources, technology, and networks to initiate a fresh start. It aims to optimize returns on investments by upgrading facilities, investing in employee training, and adopting new technologies. Flexibility, trust, and risk acceptance are crucial, engaging with local communities through the “Community Bloom” program to rebuild trust and reputation. Diversifying revenue streams, such as agro-tourism and consultancy services, will reduce financial burden and create new income avenues. The Lunatic component emphasizes quick, adaptive measures to regain market footing. For instance, launching new crop varieties such as lavender and rosemary diversifies revenue streams, providing an immediate buffer against market volatility. Implementing an online sales platform and leveraging digital marketing channels addresses immediate cash flow issues by increasing direct sales and reducing dependency on intermediaries. Financial restructuring tackles the company’s pressing financial liabilities, restoring solvency and operational viability within the short term. The winch component ensures long-term growth by focusing on optimizing resources and rebuilding the company’s reputation. Technological advancements increase operational efficiency and position Til a Til to compete in a tech-driven global market. The diversification into agro-tourism and consultancy reduces reliance on the cut-flower market, thereby safeguarding the business against future market shocks.

3.3 Implementation

The strategy focuses on product diversification by introducing two new crop varieties, reducing dependency on traditional products, mitigating risks associated with market saturation and volatility in the cut-flower sector. By tapping into emerging global demand for these crops, til a Til can access new revenue streams and expand its market presence, ensuring long-term stability and adaptability to changing consumer preferences. Debt reduction targets a 5-10% decrease over five years through equity financing and revenue diversification. Launching an online sales platform aims to increase direct sales by 15%. The “Community Bloom” program will improve worker welfare and community engagement, fostering a stable and motivated workforce.

3.4 Operational Transformation and Sustainability

Til a Til’s strategic goal of diversifying its product line by introducing new crop varieties demonstrates its commitment to operational sustainability. This strategy reduces dependency on the rose market, lowering risks and stabilizing income. Introducing various crops improves soil health, reduces reliance on chemicals, and opens new revenue channels, broadening the company’s market reach while maintaining resilience. New crop varieties, including Morenga, Pixie seedlings, Washington navel orange seedlings, Lemon seedlings, grafted macadamia seedlings, grafted mango seedlings, Apple seedlings, Pomegranate seedlings, Cherry guava, til a Til F1 pawpaw seedlings, purple passion seedlings, and Grapes, are central to this approach, enhancing operational sustainability and market expansion. The diversification goes beyond adding new crops; it aims to transform Til a til’s farming techniques, aligning with goals of growth, environmental sustainability, and resilience. This strategic decision minimizes reliance on the rose market and capitalizes on the growing demand for essential oils and wellness goods. For instance, Morenga’s adaptation to Naivasha’s conditions offers a new revenue stream and improves operational environmental sustainability. The initiative enhances soil health, biodiversity, and aligns with global trends toward natural products. Adding rosemary to Til a Til’s portfolio targets the rising demand for culinary and medicinal herbs, synergizing with consumer preferences for organic products. This complements existing infrastructure, leveraging Naivasha’s favorable conditions. The plan diversifies Til a Til’s product variety and also strengthens its commitment to sustainable agriculture and market responsiveness.

3.5 Strategic Plan

The Lunatic Winch strategy for Til a Til Limited is designed to address the company’s past challenges while capitalizing on its strengths to secure a sustainable and diversified future. This strategy focuses on market diversification, operational sustainability, financial stability, technological advancement, and community engagement.

Table 1: Strategic Plan

3.6 Financial Restructuring and Diversification

To achieve the goal of lowering Til a Til’s existing debt by 5-10% over 5 years on a graduating model, the strategy proposes a multifaceted approach centered on financial restructuring and revenue diversification. This plan is meticulously designed to ensure a gradual reduction in debt, hence improving financial stability and sustainability.

3.7 Technological Advancement and Efficiency

Til a Til’s technical advancement strategy includes launching an online sales platform to boost direct sales by 15%, streamline operations, and enhance customer connections. Additionally, the strategy recommends overhauling business processes, including HR, financial management, stock control, warehousing, fleet management, green power adoption, and mechanized greenhouse technology. This transformation will be implemented through a competitive public-private partnership, involving national and global innovation and research institutions. Additionally, digital tools like online sales platforms enable broader market reach and customer connection, ensuring adaptability in an evolving marketplace. This partnership will provide Til a Til LTD with subsidized access to cutting-edge technologies while offering institutions a platform to launch their innovations with a reputable industry player.

3.8 Community Engagement and Employee Welfare

Til a Til LTD’s commitment to social responsibility is reflected in the creation of the “Community Bloom” initiative, which aims to enhance community and worker engagement, ensuring a stable and motivated workforce. The initiative recognizes the interdependence of economic growth, social welfare, and environmental sustainability. It focuses on five key strategies to maximize stakeholder value and rebuild trust. Promoting a healthy and inclusive workplace culture is central to the program, which includes wellness programs, mental health support, subsidized healthcare, and fitness facilities. Employee resource groups will foster belonging and diverse voices, while leadership development will cultivate empathy, communication, and ethical decision-making. Family-friendly policies like flexible work arrangements and parental leave will support work-life balance. The program will set measurable targets for well-being, community development, and sustainability, using a rigorous monitoring framework to track progress and promote transparency. Data-driven insights will guide continuous improvement.

4.0 RESOURCE ALLOCATION

The Lunatic Winch will cost a total of Ksh. 3,344,486,250. This is a five-year strategy that intends to rebirth Til a Til LTD back to its past glory. This strategy will require a range of resources from human personnel, to facilities, materials, technologies and other resources as presented in the below:

Table 3: Resources

5.0 IMPLEMENTATION PLANNING

The implementation of this strategy will include different steps with reference to the objectives set. The implementation phase will be in accordance to set timelines, milestones and key performance indicators. The implementation phase will be as follows:

5.1 Objective 1: Diversify Crop Varieties

The lunatic winch Strategy provides a unique approach to incorporate “Morenga” and rosemary into the crop mix, with the goal of improving operational sustainability and market diversification. This strategy is organized into a number of steps to provide a methodical and efficient implementation procedure.

Step 1: Market and Environmental Research

Diversifying with new crops like Moringa, Pixie seedlings, and macadamia offers benefits such as market diversification, reduced dependency on traditional products, and alignment with growing consumer trends for sustainable and health-oriented goods. However, risks include uncertain market demand, high initial investment, and potential environmental incompatibilities. To mitigate these, the company should ensure robust market and environmental research, pilot testing, and stakeholder engagement to validate crop viability, optimize practices, and align with market needs while adopting eco-friendly cultivation methods.

Before introducing new crops, til a Til will conduct significant market research to better understand “Morenga” and rosemary demand, pricing, and competition and general market feasibility. Simultaneously, environmental studies will determine the compatibility of Naivasha’s soil and climate for these crops, ensuring their sustainability and potential for long-term cultivation. Requisite regulatory authorities will be consulted and permits sort from the relevant bodies like the National Environmental Management Authority (NEMA), Kenya Plant Inspectorate (KEPI). This step aligns with Til a til’s goal of improving operational sustainability by ensuring that new crops are viable in the local environment and have a strong market demand, reducing the risk of crop failure and financial loss.

5.1.2 Step 2: Pilot Projects

Til a Til LTD will start pilot projects for Morenga and rosemary cultivation. The company will ensure the environmental sustainability of these new crops by incorporating organic farming methods, optimizing water use through automated irrigation, and adopting agro ecological methods to sustain soil health. The pilot projects will integrate continuous monitoring to assess environmental impact and adapt practices accordingly, ensuring resource efficiency. These smaller-scale experiments will allow the company to gain practical insights into the agronomy of these crops in Naivasha’s climate, optimize growing procedures, and assess prospective yield and quality. The pilot projects will be launched in the form of farmer field schools that would be open to the general public for learning purpose at a fee while also acting as a seed multiplication center. This dual approach will generate additional revenue and promote sustainable farming practices within the community. By starting with pilot projects, til a Til minimizes risk and ensures that any potential issues are identified and addressed early. This aligns with the goal of operational sustainability and market diversification by establishing a solid foundation before scaling up.

Step 4: Stakeholder Engagement

Stakeholder engagement will be pivotal in this diversification process. Til a Til LTD will employ collaborative strategies to engage stakeholders in the diversification process, including partnerships with local agricultural research institutions and extension services to access expert insights on cultivating Moringa and rosemary. By working closely with smallholder farmers, the company will leverage local knowledge while fostering community involvement. Additionally, til a Til will seek direct feedback from key market players such as food processors, exporters, and domestic buyers to ensure that crop varieties meet market demands. These collaborations will enhance market feasibility by aligning production with consumer preferences and foster community involvement through capacity building and shared economic benefits.

Step 5: Infrastructure and Training

Depending on the success of the pilot projects, til a Til LTD will invest in the infrastructural changes required to handle the new crops on a bigger scale. This includes installing automated irrigation systems, procuring specialized equipment and systems through a lease process, and continuous staff development programs and agricultural techniques. The lease program allows the company to avoid liabilities that come with depreciating assets. The strategy also recommends a complete freeze on new building initiatives and re-evaluating usage on existing structures. Investing in infrastructure and training aligns with operational sustainability by ensuring that the company has the necessary resources and skilled personnel to support new crop cultivation. Leasing equipment also supports financial stability by minimizing capital expenditure.

Step 6: Full-Scale Cultivation

With successful pilot projects and the necessary infrastructure in place, Til a Til plans to expand Morenga and rosemary cultivation. This expansion will be intelligently staged to mitigate risks and ensure that production matches market demand and operational capabilities. The process will also look into possibilities for value addition through local packaging as per international standards. Staged expansion aligns with the goal of market diversification by allowing the company to scale operations sustainably and respond to market demand effectively. Value addition enhances product appeal and potential profitability.

Step 7: Marketing and Sales Channel Development

Til a Til LTD will develop marketing strategies and sales channels for its new products at the same time as it expands cultivation. This includes designing branding and advertising materials, seeking distribution agreements, and even developing direct-to-consumer sales channels, especially for Morenga goods given its application in the consumer health and essential oils markets. The strategy recommends Business to Business (B2B) model where by Til a Til LTD would be open to doing business with other competitors that have a ready market but unable to meet their production quotas. Competitors will now be managed as unexploited market complete with a marketing strategy. Effective marketing and sales channel development are crucial for achieving market diversification by ensuring that new products reach the right customers and markets. Collaborating with competitors can open new revenue streams and reduce market entry barriers.

Step 8: Continuous Monitoring and Optimization

Til a Til will continue to analyze the performance of its Morenga and rosemary operations, assessing yield, quality, and financial data. Feedback loops will be built to allow continuous optimization of cultivation processes, marketing strategies, and sales approaches, ensuring the company’s agility and responsiveness to market trends and operational issues. Continuous monitoring and optimization align with operational sustainability by ensuring that the company can adapt to changes and improve processes over time, enhancing overall efficiency and profitability.

Step 9: Sustainability and Community Engagement

In keeping with its dedication to sustainability, til a Til LTD will incorporate eco-friendly measures into lavender and rosemary growth, such as organic agricultural methods and water conservation techniques. The company will also interact with the local community, looking for chances for collaboration and support, reaffirming its commitment to social responsibility and local development. Sustainability and community engagement are central to operational sustainability and long-term success. By adopting eco-friendly practices and fostering strong community relationships, til a Til LTD ensures a stable and supportive environment for its operations.

5.2 Objective 2: Reduce Existing Debt by 5-10% by End of 2027

To reduce Til a Til LTD’s existing debt by 5-10% by the end of 2027, a detailed, time-bound implementation plan focusing on financial restructuring through equity financing and revenue diversification via agro-tourism has been developed.

Step 1: Investor Identification and Engagement (Q2-Q3 2024): Til a Til LTD will begin the process of identifying prospective investors interested in sustainable agriculture practices. Engaging these investors through meetings and presentations will be critical in demonstrating Til a Til LTD’s potential and connecting their investment with the company’s vision and aspirations.

Step 2: Business Case Development and Presentation (Q4 2024)

A complete business case will be created, emphasizing Til a Til LTD’s strategic orientation and financial stability. This case will be presented to potential investors with the goal of securing commitments by the end of the fourth quarter of 2024.

Step 3: Negotiation and Finalization of Equity Financing (Q1 – Q2 2025)

Negotiations with potential investors will be place to finalize the equity funding conditions. Til a Til LTD plans to achieve the necessary equity investment by the second quarter of 2025, in line with its debt reduction and growth strategy.

Step 4: Development of Agro-Tourism Infrastructure (Q3-Q4 2025)

Til a Til LTD will provide the necessary infrastructure to support agro- tourism, such as tourist facilities and program areas. This phase is essential for beginning the agro-tourism endeavor and is expected to be completed by the fourth quarter of 2025.

Step 5: Launch of Pilot Agro-Tourism Programs (Q1 2026)

With the infrastructure in place, trial agro-tourism programs will be launched to fine-tune and optimize the guest experience, assuring operational efficiency and financial sustainability.

Step 6: Marketing and Sales Strategy for Agro-Tourism (Q1 2026)

An aggressive marketing initiative will be undertaken to promote the agro-tourism venture, targeting both local and international tourists through various channels. The effectiveness of these marketing initiatives will be regularly assessed for optimization.

Step 7: Expansion and Continuous Optimization (Q2 2026 – Q4 2027)

Based on the success of the pilot programs and marketing input, the agro- tourism enterprise will be expanded. Continuous monitoring and optimization will be carried out, focusing on financial performance, visitor satisfaction, and market developments to ensure the venture’s contribution to Til a Til LTD ‘s debt reduction goal by the end of 2027.

The agro-tourism strategy might face challenges such as infrastructure delays, market penetration difficulties, operational inefficiencies, regulatory compliance issues, community resistance and financial stability concerns. To counter these risks, the company should enforce clear timelines, partner with reliable contractors, conduct targeted marketing campaigns, train staff, and establish efficient procedures. Proactive engagement with regulatory bodies and communities will ensure compliance and faster goodwill, while leveraging the Community Bloom initiative can align agro-tourism efforts with local needs. A phased rollout supported by revenue from consultancy services and existing operations will ensure steady cash flow and sustainable growth.

5.3 Objective 3: Launch an Online Sales Platform to Increase Direct Sales by 15%

The launch of Til a Til LTD ‘s online sales platform is a strategic step aimed at increasing market visibility and sales efficiency. This short-term strategy, which aims to grow direct sales by 15%, will be implemented in a series of carefully planned steps, each with a particular schedule to ensure timely and effective implementation.

Step 1: Market Analysis and Platform Design (Month 1-2)

Til a Til LTD will begin with a thorough market investigation to determine user preferences and important features for the online platform. Concurrently, the platform’s initial design phase will commence, with an emphasis on user experience, product display, and ease of transaction. By the conclusion of the second month, the design blueprint should be prepared for development.

Step 2: Platform Development and Testing (Month 3-4)

The next stage after completing the design is to construct the web platform. This phase comprises front-end and back-end development, payment gateway integration, and security measures to ensure a secure and seamless user experience. Following development, thorough testing will be carried out to guarantee functionality, responsiveness, and security. By the end of the fourth month, the platform should be ready for its soft launch.

Step 3: Soft Launch and Feedback Collection (Month 5)

Til a Til LTD will conduct a soft launch of the platform with a small group of customers. This phase enables the organization to collect real-time customer feedback, detect faults, and better understand user engagement. Feedback will be critical in refining the platform before a full-scale rollout.

Step 4: Marketing and Full-Scale Launch (Month 6 – Ongoing)

Upon incorporating feedback from the soft launch, til a Til LTD will prepare for a full-scale launch. This step comprises a thorough marketing strategy to promote the online platform, which will use digital marketing, social media, and email marketing to attract a large audience. By the end of the sixth month, the application will be publicly open to the public. The marketing process will be deliberate, with a designate budget allocation and conducted on an ongoing basis beyond realization of targets.

Step 5: Continuous Monitoring and Optimization (Month 7-12)

Following the application’s debut, continuous monitoring is required to track its performance, client engagement, and sales data. Til a Til LTD will use data analytics to better analyze user behavior, make required changes, and optimize the platform’s performance. The goal is to generate a 15% increase in direct sales by the end of the 12 months.

5.4 Objective 4: Develop and Launch the “Community Bloom” Program

Til a Til LTD ‘s “Community Bloom” program is a strategic project designed to strengthen the company’s commitment to social responsibility by improving employee welfare and interacting with local communities. This 12-month implementation plan details Til a Til LTD’s strategy for carrying out this program.

Step 1: Needs Assessment and Program Design (Months 1-2)

The first two months will be spent performing a detailed needs assessment with workers and local community members to identify areas for intervention. This will guide the design of the “Community Bloom” initiative, ensuring that it efficiently serves the specific needs linked to fair wages, healthcare, educational opportunities, and sustainable farming techniques.

Step 2: Program Development and Partnership Formation (Months 3-4)

With the insights gained from the needs assessment, til a Til LTD will develop tailored program components. During this phase, the company will also seek partnerships with local NGOs, healthcare providers, and educational institutions to leverage their expertise and resources, enhancing the program’s reach and impact. To realize the commitments, Memorandum of Understanding will be signed by the various entities.

Step 3: Pilot Implementation and Feedback (Months 5-6)

Til a Til LTD will develop specific program components based on the results of the needs assessment. During this phase, the company will also seek partnerships with local healthcare providers, and educational institutions to harness their knowledge and resources, therefore expanding the program’s scope and impact.

Step 4: Full-Scale Program Launch (Months 7-8)

Til a Til LTD will implement pilot initiatives in specific areas or departments to evaluate the program’s efficacy. This controlled rollout enables the organization to collect feedback, make required changes, and guarantee that the program’s components are well received and effective.

Step 5: Ongoing Monitoring and Evaluation (Months 9-12)

With the program in full swing, ongoing monitoring and assessment is important. Til a Til LTD will construct key performance indicators (KPIs) for worker welfare, community participation, and sustainable practices to assess the program’s effectiveness. Regular assessments will assist identify opportunities for improvement, ensuring that the program remains effective and consistent with its goals.

Step 6: Reporting and Continuous Improvement (Month 12 and beyond)

At the end of the first year, til a Til LTD will create a detailed report outlining the program’s outcomes, lessons learned, and opportunities for improvement. This report will serve as a foundation for continual improvement, ensuring that the “Community Bloom” program remains dynamic and responsive to the increasing needs of workers and the community. The success of the program will be monitored through periodic assessments of KPIs like employee satisfaction, healthcare access, education participation rates, and skill development enrollment. Metrics for local community engagement will include number of supported projects, community feedback scores, and participation in volunteer initiatives. Regular reporting and feedback loops will ensure the program remains adaptable and aligned with its goals to improve employee welfare and foster meaningful community development.

Table 2: Implementation of the Til a Til LTD Lunatic Winch Strategy

6.0 MONITORING AND EVALUATION

Monitoring and Evaluations (M&E) is essentia; for determining the strategy’s efficacy and achievin company gaols. As a matter of fact, Yang, Fu, and Zhang, (2021) clearly highlighted that it mainly constitute integration into certain steps that need to followed for continous assessment of progress taking into account the Key Performance Indicators (KPIs).

6.1 Purpose of the Monitoring and Evaluation

Monitoring and Evaluation will seek to evaluate the strategic goals and objectives that need to be achieve. In most cases, it constitutes to the need for measuring key performance indicators (KPIs) to assess progress and success in achieving these objectives. This process will ensure that all activities and initiatives will be aligned to the organizational strategic goals.

6.2 Identification of Stakeholders

The stakeholders tend to play a significant role in the management of any kind of operations in the organizations. As a matter of fact, stakeholders’ involvement will play a significant role in decision making processes which will generally constitute to increased quality of project monitoring and evaluation reports and higher impacts.

6.3 Generation of Evaluation Questions

It will be significance in the identification of the key areas that need to be evaluated. It can be achieved through regular collection and analysis of data, which can clearly outline what aspects of the business strategy are working and what areas need improvements. This process helps in formulating specific and relevant evaluation questions.

6.4 Monitoring and Evaluation Methodology

Specific data on operational success, financial measures, and community engagement will be methodically collected, including yield indicators from new crops, financial data on debt reduction, online sales engagement, and feedback from “Community Bloom” participants. An Open Data Kit will generate real-time analysis with different access levels to prevent data manipulation.

6.5 Collection of Data

Data collection tool should be robust and reliable. This will include the need for validation of the survey tools, accuracy in tracking systems and need for a well-trained interviewer.

6.6 Analyzing the Data

Til a Til LTD’s management team will use the collected data for frequent performance analyses, comparing results to KPIs. This includes analyzing new crop production, financial restructuring, digital platform engagement, and community efforts. A team of internal and external auditors will form a crisis response team, reporting to the board of trustees and having veto power over operational decisions.

6.7 Reporting of Findings

Regular reports will document monitoring and evaluation results, providing transparency and insights to stakeholders. Reports will cover progress, triumphs, obstacles, and strategy changes, and will be made public for scrutiny.

6.8 Continuous Improvement

The ultimate goal is to establish a culture of continuous improvement at Til a Til LTD, using data-driven decisions to enhance financial health, operational efficiency, market position, and community relations, ensuring the long-term success of the Til a Til LTD’s Lunatic Winch Strategy.

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