Response Strategies of Safaricom Limited to Macro Environmental Changes
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Date
2011-11Author
Nduta, Ndirangu
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
Organizations operate within an external environment. Firms can only prosper if they are
well aligned within the external environment. There are major external and
uncontrollable factors that influence an organization's decision making, and affect its
performance and strategies (Johnson and Scholes, 2002). The alignment between strategy
and environment lies at the centre of strategic management. Despite the many difficulty
challenges to the business, including economic and political instability, competition has
really enhanced especially from the telecommunication industry.
This study is about how Safaricom is employing strategies to respond to macro
environment changes. The research was conducted through a case study. Case study has
been chosen as it enables the researcher to have an in-depth understanding of the study. A
case study design is most appropriate where a detailed analysis of a single unit of study is
desired as it provides focused and detailed insight to phenomenon that may otherwise be
unclear (Mugenda and Mugenda, 2003).
The study found out that .competition, technology, poverty among the community and
globalization prompted Safaricom into adopting strategic responses. Safaricom had the
capability of reducing the office expenses to maximize on profits. It was able to introduce
a range of products. Safaricom faced challenges m responding to its changing
environment. Introduction of technology proved to be expensive thus lowering the
profits. The study found out that strategic responses affected the performance of the firm.
Safaricom was able to increase their profits due to the high sales obtained...........................................................................
Publisher
University of Nairobi