An Evaluation of Survival Strategies Implemented by Bureaux De Change in Zimbabwe. A Case of Cash Twenty-Four (Private) Limited

Abstract

Bureaux de change operates in a volatile, uncertain, complex, dynamic and ambiguous industry that is characterized by high market volatility. There is need for players in the industry to put in place survival strategies to enhance competitiveness and sustainability. This study sought to evaluate the survival strategies being implemented by bureaux de change in Zimbabwe in the midst of a dynamic environment. The study is motivated by Government’s efforts to stimulate foreign currency receipts and liquidity in the economy, through initiatives of creating formal, transparent and effective channels for foreign currency trading by members of the public. The study was undertaken on Cash Twenty Four (Private) Limited branches in Harare Metropolitan Province of Zimbabwe. There is growing literature on survival strategies. Survey of emerging literature was undertaken on the main functions of bureaus de change and general impacts of survival strategies. Literature on the aspects of customer service and repeated purchases, diversification and revenue increase, cost cutting and return on capital and strategic alliances and market share was reviewed. The study is underpinned on the Dynamics Capabilities Theory. The study had a population of 75. The population includes managers and employees of Cash 24. All the 75 respondents were included, as a census approach to determining the population was done. A mixed research approach was utilized in the research to acquire an in depth understanding. An explanatory research approach was adopted in the study. Primary and secondary data was used in the study. Primary data was collected through the conducting of 7 personal interviews with management and distribution of 68 closed ended questionnaires to the employees of Cash 24. There was a satisfactory representation and balance of gender, work experience and qualifications in the study. The SPSS Version 23.0 software was used in the analysis of data in the study. Findings of the study shows a moderate significant positive relationship exists between customer service and customer repeat purchase. Whilst a strong significant positive relationship exists between diversification and revenue generation. A moderate significant positive relationship exists between cost cutting and return on capital. A strong significant positive relationship exists between strategic alliance and market share. Further to that, descriptive statistics show that over 50% of the respondents concurred that customer service influences repeated purchases, diversification affects revenue generation, cost cutting affects return on capital and strategic alliances influence market share. The study concludes that customer service strategy causes customer repeated purchases. Diversification improves revenue generation. Cost cutting strategy enhances return on capital employed and strategic alliances improve market share. From the findings of this research the study recommends that, bureaux de change should explore possibilities that result in the adoption of cost effective operational practices that consequently improve their operational capabilities. Innovation should be embraced by bureaux de change which optimizes strategic beneficial costs. Government and Central Bank support through the adoption and implementation of sound regulatory policies is critical for the success of the bureaux de change sector. To increase competitiveness, bureaux de change should look at effective ways to capture new untapped lucrative market segments.