Effects of Emerging issues in Strategic management A Case Study OF Safaricom PLC
Safaricom plc is one of the major telecoms companies in Kenya. In the span of its existence it
has been able to overcome challenges and also adapt to make it to the top. One of the key reasons
of it success is the utilization of strategic management. The company has implemented this in the
various areas of it structures and operations, hence getting a competitive advantage over other
telecoms companies.
Strategic management has been one of the core tools in business success. It has been astutely
applied in different areas of intuitions rendering it as a competitive advantage in any organization
that tends to use it optimally. The application of this important skill goes from the basic
departments such as human resource to the highest level of management and administration.
However, the emergency of this skill has brought about some emerging issues which were not
foreseen in the initial stages. This has led to institution having to come up with remedies to deal
with this issues as well as improve the application of strategic management.
Safaricom plc is one of the major telecoms companies in Kenya. In the span of its existence it
has been able to overcome challenges and also adapt to make it to the top. One of the key reasons
of it success is the utilization of strategic management. The company has implemented this in the
various areas of it structures and operations, hence getting a competitive advantage over other
telecom companies.
We cannot deny the fact that this emergency of strategic management has affected Safaricom Plc
in a number of ways as it tries to figure out the optimal way to utilize this resource. Safaricom in
its quest to optimize the resource have gone further to expound on use.
To start with Safaricom has made a number of mergers with other corporates to come up with
products. One of the example is mshwari a mobile loan product which Safaricom merged with
CBA bank. This has increase d revenues as this mergers increase the revenue base at the same
time minimizing capital usage as it is a joint venture
Strategic management also relies highly on the corporate structure. With the occurrence of
strategic management Safaricom Plc has been forced to thoroughly investigate their organization
structures efficiency and effectiveness and come up with the best of it. Safaricom company
structures is one of the best and may be used as a case in point of properly constituted corporate
structure.
Strategic management has also brought about the occurrence of modern strategic management
ideas. For instance outsourcing services has been adopted by most of the institutions as a
strategic way of reducing operating expenses. This has led organizations to reduce resources on
outsourced services utilizing them on other resource intensive areas. Safaricom, however, due to
its nature of maintaining high quality services has opted out of the outsourced services.
Outsourced service may lower cost of operations but may lower service delivery.
Effects of Emerging issues in Strategic management A Case Study OF Safaricom PLC
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Strategic management also stresses on style of management as one of the key derivate of success.
The style of leadership in an organization also determines success or failure, hence, Safaricom
Plc. now focuses on leadership style that tends to accommodate everyone, hence is more of a
team than an autonomy kind of leadership. This has led to an increase I staff morale leading to
increase in the staff output hence business success.
In addition the difficult and uncertain economic times have made organizations try to make their
operations as smooth and efficient as possible. Strategic management has become one of this
useful tools as this can help the organization adapt to different economic challenges. As a result
the wellbeing of the organization is guaranteed.
As I conclude automation has also been a trend in the strategic management emerging issues.
Automation increases production as well as helps in standardization of goods products and
services, this however brings in the conflict between human resource and mechanization.
Organization can only best deal with this conflict by gradually implementing automation as they
find better ways of utilizing their surplus human resource as a result of automation
As we have seen it is evident that the organizations wellbeing is greatly dependent on the
strategic management tool. Hence without this tool a business is doomed to fail.