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Applying Team Behavior Theory to Problem Analysis

Mohamed Koroma

Bus 735 Essential Team Interactions

Logos University

March 16, 2023

Applying Team Behavior Theory to Problem Analysis

Summary of the Organization

Founded in 1978 as a family-run supermarket, Nakumatt rose to become the largest

retailer in Kenya and the East African region. By 2014, the store had outlets in Kenya, Uganda,

Tanzania, and Burundi (Nandonde, 2020). The store also had intentions of expanding into

Nigeria and South Sudan. By 2017, Nakumatt had operations in 65 sites and made over $620

million in annual sales (Nandonde, 2020). The organization had over 6,500 employees. The store

had built a name for itself along three lines: high-quality products, convenient locations, and

competitive pricing.

Some of the factors that can be attributed to Nakumatt’s rise include aggressive

marketing and advertising combined with a focus on providing a superior customer experience.

The store had several strategies for ensuring brand visibility and positioning. These included

attention-grabbing adverts on TV and radio and sponsoring events. In terms of customer

experience, Nakumatt was known for being sparkling clean, spacious, and well-stocked

(Nandonde, 2020). Nakumatt had a section for fresh vegetables, butchery, and even repackaged

products to ensure affordability for all. The store also excelled in home deliveries and online

shopping. Even further, Nakumatt offered 24-hour services, a new thing in the country and the

region.

Despite the remarkable performance amid stiff competition from local and international

stores such as Tuskys and Carrefour, Nakumatt started facing financial difficulties and pressure

from unpaid suppliers. In 2016, the CEO acknowledged the difficulties (Nandonde, 2020).

Unfortunately, in October 2017, the leadership declared bankruptcy (Nandonde, 2020). This
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resulted in the closing of stores across the country and the region. Suppliers flocked to the courts

in attempts to force the retailer to pay their debts.

Summary of the Organizational Problems

Nakumatt faced several organizational problems that contributed to its decline. One of

the key issues was employee theft, which was a significant challenge for the company. The

company's management struggled to implement effective measures to prevent theft, which

resulted in significant losses for the company. The lack of proper inventory management and

accountability made it easy for theft to bloom. (Nandonde, 2020).

Another organizational problem that Nakumatt faced was a culture of blaming employees

for organizational failures. Initially, the CEO accepted responsibility and blame from customers,

suppliers, and even governments based on taxation. However, as time progressed, the leadership

turned the tables against employees. The leadership failed to see the consequences of opening

outlets in other countries before learning the markets first. For example, Nakumatt entered

Tanzania when Shoprite, a South African retailer was exiting (Nandonde, 2020).

Moreover, Nakumatt did not take the time to learn the laws and regulations governing the

movement of goods within the East African block. All these issues created challenges. The

failure to take full responsibility and assign blame to employees created a toxic work

environment within Nakumatt. Coupled with delays in the payment of salaries and staff

shortages, the toxic environment led to dwindling employee satisfaction. (Nandonde, 2020).

The inside wrangles within Nakumatt eventually hurt customer satisfaction. Customers

started experiencing poor service. With time, empty shelves and long check-out lines became the

norm. All these factors interacted toward a decline in customer loyalty. Taxation was another

huge organizational problem for Nakumatt. For instance, the Uganda Tax Authority (URA)
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closed the stores for the failure of paying taxes (Nandonde, 2020). The tax problem was not

exclusive to Uganda. It affected the store in Kenya and Tanzania as well.

Justification of Data Gathering Plan

The data gathering plan focuses on using primary data sources. One of the benefits of this

approach is that it allows the researcher to tailor data collection including the methods and

instruments to the specific research questions the study seeks to answer (Ganesha & Aithal,

2022). Every research is an inquiry. Also, no two organizations are the same, even if operating in

the same market. Organizational culture and leadership have been known to distinguish

organizations from their rivals (Medcof & Wang, 2017). For these reasons, it suffices to use data

collection methods that adapt to the specific needs of the organization and the objectives of the

study.

Another benefit of the proposed data collection plan is that it affords the researcher

greater control over the data collected. The proposed plan will be using surveys, focus groups,

and interviews to collect the data. This means that the researcher has control over the specific

data to collect as well as develop and implement standardized procedures (Ganesha & Aithal,

2022). All these will contribute positively to attaining relevant, reliable, and valid data. The

relevance, reliability, and validity of data determine the credibility of findings (Moser &

Korstjens, 2018). There is no point in conducting a study whose findings are deemed biased and

subjective.

In addition, the proposed plan will allow the collection of rich data. Besides facilitating

the collection of relevant and specific data, using primary sources provides access to details that

secondary sources cannot afford (Moser & Korstjens, 2018). Through interviews, surveys, and
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focus groups, research participants can provide contextual information. Context shapes reality.

Thus, when the context is missed or misinterpreted, the reality is flawed. On top of providing

context, the use of primary sources a multiplicity of perspectives. Drawing information from

different sources guarantees a comprehensive painting of the issue under investigation.

Assessment of Information Gleaned from the Plan

From the data collected, the writer learned that there were leadership issues that caused

organizational problems. For example, the data revealed that Nakumatt’s top leadership assumed

an autocratic style. The CEO had to have his way. The leadership did not value the views of

managers and employees. Most of the decisions lacked the backing of solid data. The findings

partially support the initial assessment. For example, the findings revealed that delays in the

payment of salaries and lack of prompt communication from the leadership led to demotivated

and demoralized employees (Medcof & Wang, 2017)..

Also, the findings revealed that some employees turned to theft to keep going. In

addition, the findings revealed that the leadership failed to appreciate the role of culture in

making effective leadership decisions at the organizational level. The CEO, Atul Shah, allowed

his experience of working in a retail store in the United States to cloud his judgment. the national

culture affects the success of organizational leadership decisions (Medcof & Wang, 2017).

Nakumatt’s leadership failed to appreciate this reality.

Summary of the Assessment of the Framing Process

The quality of the data, the sampling method, and the methods used to analyze the data

inform why the writer sees the symptoms and problems the way he does. The reliability and

quality of data can shape a researcher’s view of the findings. Using reliable and validated
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instruments on multiple sources adds to the objectivity needed when a researcher is analyzing

data and looking at findings. The methods used in the selection of participants can also influence

how one interacts with data and views the findings. The current study employs a random

sampling technique to ensure external validity. The use of a randomly selected sample added to

the objectivity needed in conducting and interpreting the findings. The author does not have any

biases or relationships that may influence the research and analysis of the scenarios addressed in

the paper. Moreover, the author did neither work at Nakumatt neither know anybody who did in

person or also do not have any personal relationship with any supplier to the retailer.

The Organization’s Team Issues

In the case of Nakumatt, leadership problems were the areas that needed addressing.

Leadership plays an essential role in crafting an organizational vision as well as establishing a

positive organizational culture. Nakumatt lacked a shared vision. The employees did not have an

idea of what the leadership aimed at achieving. Also, the leadership failed to create a positive

organizational culture of responsibility, accountability, and transparency. The absence of such a

culture led to blame games. Eventually, Nakumatt did not sue any manager. In other words,

nobody assumed responsibility for whatever mess. In addition, the leadership failed to appreciate

the unique role of national culture and team diversity in the success of the formulation and

implementation of strategic leadership decisions.

As a model, the assessment would result in Nakumatt’s success in the retail sector as the

dependent variable. The independent variables would include leadership style, shared vision,

organizational culture, national culture, and team diversity. Nakumatt needed a transformational
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leader capable of crafting a vision, acting as a role model, and creating an enabling

organizational culture.

Conclusion

Nakumatt also didn't spend the effort to understand the rules and policies governing the

flow of products within the East African block. These problems presented difficulties.

Employees were blamed and some responsibility was not accepted, which led to a hostile work

atmosphere at Nakumatt. Every study is an investigation. However, even among businesses that

serve the same market, no two are alike. Corporate culture and leadership have been proven to

distinguish organizations from their competition. For these reasons, using data gathering

techniques that are tailored to the unique requirements of the business and the study's goals is

sufficient. The research also showed that some employees turned to thievery as a means of

survival. Also, the studies showed that the leadership was ineffective to understand how culture

affects organizational level leadership decisions that are effective. Random sampling is used in

the current study to ensure external validity. The evaluation would make Nakumatt's success in

the retail industry the dependent variable. Leadership style, a common vision, company culture,

national culture, and team diversity would all be considered independent variables.
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References

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method and method choice among various research data collection methods and method

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Technology, and Social Sciences (IJMTS), 7(2), 455-489.

https://doi.org/10.5281/zenodo.7277944.

Medcof, J. W., & Wang, C. H. (2017). Does national culture influence exploratory and

exploitative innovation?. International Journal of Technology Management, 73(4), 235-

253. https://doi.org/10.1504/IJTM.2017.083080

Moser, A., & Korstjens, I. (2018). Series: Practical guidance to qualitative research. Part 3:

Sampling, data collection and analysis. European Journal of General Practice, 24(1), 9-

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Nandonde, F. A. (2020). In the desire of conquering east african supermarket business: What

went wrong in Nakumatt supermarket. Emerging Economies Cases Journal, 2(2), 126–

133. https://doi.org/10.1177/2516604221999224