Strategy implementation is the process whereby a management translates a company’s policies and strategies into action over the development of programs and procedures. This report aims at addressing strategy implementation, evaluation, and control of Safaricom Limited Company.
Safaricom is the leading telecommunication operator in Kenya due to its new managerial implementations and strategy formulation. It was founded in 1997 as a subsidiary of Telkom Kenya, and in the year 2000, Vodafone Company (which is the world’s largest telecommunication organization) acquired a 40 percent management stake in the company (Kesenwa, Oima & Oginda, 2013). The company offers a range of telecommunication services such as international calling, prepared services, postpaid services, mobile internet services, customer care access, entertainment, messaging services, email, and M-PESA services that allow their customers to transfer and receive money via their mobile phones. Further, the organization provides commercial connectivity services such as a 3G modem, managed Wi-Fi, fixed data connectivity services that involve managed internet connectivity, and mail for exchange. With all these activities and responsibilities to uphold, the company is expected to have strategies put in place to ensure that all functional areas are operational.
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International strategy
When companies adopt international growth strategy, this means that the business starts to operate globally. Safaricom ventured into this after launching their M-PESA services which are available in other countries aside from Kenya (Muema, 2013). Nearly 75% of the Kenyan population uses this mobile banking service which has made life easier for most people both local and international. This strategy was adopted due to the gradual competition from other mobile service providers in the country. The company expanding to UK and other destinations was effective considering the fact that M-PESA services were already available in the UK market as at then. This resulted to Safaricom CEO Bob Collymore being named International Business Leader of the year in 2016 proves how the company has marketed itself globally and also the African continent as a viable destination for investment.
Strategic Implementation
This is a process that might include a change of the entire culture or management of a company. It involves changes in day to day decisions in resource allocation (Kesenwa, Oima & Oginda, 2013). The manner in which this process is executed is what determines its success. For instance, for a large corporation such as Safaricom, the strategic implementation involved a change in their marketing structure where a unique market was established, and diversification of services was adopted in respect of the same, given the company quite a nice competitive advantage. These changes are implemented by making decisions regarding existing policies or by the introduction of totally new ones. Drawing from Muema (2013), the company believes that its success is contingent on how it outlines value plan. This involves being concerned with its target market, its pricing and payment methods, its customer care component, and with its personnel, who determine the quality of these services. The company’s strategic pillars are being the best network in Kenya and satisfying their clients by offering quality services and products.
Influence of Governance and ethics
Regarding governance and ethics, the company ensures that transparency and accountability guide them in every decision they make. They have clear lines of responsibilities for all employees of the organization. The behavior of members is overseen by an overt governance charter that outlines laws of the company. Also, board members undergo individual performance assessment reviews every year. The company has zero tolerance for unlawful dealings since these not only result in losses but also poor company image, loss of investments, and potential imprisonment. By doing so, the company has created a culture where the employees are ethical in business even when nobody is watching them.
The company social value
The company has incorporated social values in their business plan which has seen it making tremendous profits. For example, environmental sustainability is a value that Safaricom has and is evident in all of their advertisements. These social values have seen them expand their base of clientele since the customers feel the company is also socially responsible. The organization is committed to transforming lives of its subscribers through the creation of various foundations that are involved in community development and empowerment. In this regard for example, the company maintains both the M-PESA foundation and the M-PESA foundation Academy, thus offering scholarships to needy students. The company recently received Brand of the Year Award due to its corporate social responsibilities which have changed many lives in the Kenyan community. They make positive contributions through technical and financial support hence the company’s social value.
Innovation and Diversification
Innovation and diversification are key determinants of organizational performance. Through strategic implementation, the company adopted diversifications strategy to build a corporate advantage over its competitors. In respect of the ever-changing technological environment, Safaricom has come up with innovative ideas in serving their customers. Innovative approaches such as M-Shwari, M-PESA, 3G technologies, and data bundle services are among many innovative ideas that have given Safaricom competitive advantage (Ngaruiya, 2013). Also, the company is trying to keep up with customer sophistication, and innovation and diversification allow them to transform products and services to meet all their clients. There is the YOLO (Youthful, Original, Local and outstanding) initiative which targets the youths and this strategic objective have seen the company grow a high customer base in this segmented market. Today, nearly every teenager has a smartphone and Safaricom data bundle services are affordable to these young adults. Last year, it was estimated that there were nearly 1.3 million subscribers from this market segment, hence their idea to appeal to the youths is fulfilling.
Legal limitations
One of the legal limitations of this company is that it is restricted to disclose personal information of their customers. By doing so, the government protects the consumers from exploitation and violation of their right to privacy. Also, when it comes to their M-PESA services, the corporation cannot fully guarantee a client safety of their money when they transfer it to the wrong person. This is one of the major inconveniences that these mobile money services have. The company has limited power to reverse the transaction in cases where the receiver has already withdrawn the money.
Strategic metrics
For a company to develop the right business metrics, there is need to understand what’s happening in the market. Especially when implementing a new strategy such as diversifications, these metrics purpose towards assessing the performance of the strategy in progress. For instance, if the strategic objective of the company is to increase their sales, coming up with a sales volume metrics will help measure the progress. Metrics can either be qualitative or quantitative, and Safaricom uses strategic metrics to measure their progress towards attaining their goal.
Key financial ratio
References
Kesenwa, A., Oima, D. O., & Oginda, M. (2013). Effects of Strategic Decision Making on Firms Performance: A Case Study of Safaricom Limited, Nairobi, Kenya. International Journal of Business and Social Science , 4 (13).
Muema, P. N. (2013). Strategic change management practices and challenges at Safaricom Limited, Kenya. Unpublished MBA Research Project, School of Business: University of Nairobi .
Ngaruiya, G. N. (2013). Application of value innovation as the basis for blue ocean strategy at Safaricom Limited. Unpublished MBA Research Project, University of Nairobi .
