Capital University of Economics and Business
?Strategic Management? Final Work
Course: Strategic Management
By: Hani Abdulkadir Mohamed ??
Student no: 72016910017
Date: 12 August 2018
Table of Contents
1. Please introduce 5 key knowledge point in the course of strategic management 3
1.1 three level of strategy 3
1.2 A F I 3
1.3 corporate governance 3
1.4 Business level 3
1.5 Four elements of strategy 4
2.1 Question two 4
2.2 Ethiopian Airlines Background 4
2.3 Corporation level 4
2.4STRATEGIC PLAN OF ETHIOPIAN AIRLINE 4
TOPIC?CORPORATE SOCIAL RESPONSIBILITY AS A COMPETITIVE STRATEGY AND ITS PERFORMANCE OF MOBILE SERVICE Safaricom Kenya 5
3.1.1 METHODOLOGY 5
3.1.2 IMPLICATION TO RESEARCH AND PRACTICE 5
3.1.3Main idea 6
3.1.4 Comment 6
3.2.1 RESEARCH QUESTION 6
3.2.2 METHODOLOGY 7
3.2.3 Main idea 7
3.3.1 RESEARCH QUESTION 8
3.3.2 METHODOLOGY 8
THE MAIN IDEA 8
3.4.1 RESEARCH QUESTION 9
3.1.2 Methodology 9
3.5.1 RESEARCH REQUESTION 10
3.5.2 METHODOLOGY 10
3.5.3 MAIN IDEA 10
3.5.4 COMMENTS 11
1. Please introduce 5 key knowledge point in the course of strategic management
1.1 three level of strategy
1) corporate strategy 2)SBuS strategy 3) functions strategy
1.2 A F I
1.3 corporate governance
1) Concentration /vertical
2) integration /horizontal
1.4 Business level
1) Cost leadership
2) differentiation products
1.5 Four elements of strategy
1) Market and products
2) growth factor
3) competitive advantage
4) synergy: the total outcome is more than the sum of parts
2.1 Question two
2.2 Ethiopian Airlines Background
Later its launch in 1945, the Ethiopian Airline has met a lot of challenges. In spite of that encounters it has covered, the Airline has survived for more than six decades with significant achievement and it has become one of the famous air transportation firms in the airline’s industry. Ethiopian Airline now works in the very competitive environment. Profit margins are very slight and competition is based on provided that cost operative and worth services and products. In order to accomplish the high level of competitiveness, the different branches of the airline should be aware of the fact that cost lessening, saving and preventing inefficiencies and frauds in various areas of procedures support further strengthening and success of the airline.
2.3 Corporation level
Ethiopian Airlines is facing in a market close to perfect competition. In an effort to enhance successful and profitable, the company set up one of the youngest and multiple modern fleets on the continent. That held the greatest in the African airline market with Boeing Dreamliners in the fleet. Despite having costlier prices correlated to European and Asian competitors, Ethiopian still remained. gainful thanks to its ancillary services. The company has its own aviation academy where pilots, technicians, crews, and management professionals are being trained. Therefore the safety and service quality level of the company is higher compared to their African competitors.
2.4STRATEGIC PLAN OF ETHIOPIAN AIRLINE
Preparation is a forward-looking manner in which they decide what to do, whereby to do it, when and whom to do it (Mohammed 1995). In outlining, administrators define the goals of the organization or workgroup and promote the overall strategies to achieve them (Ferguson et .al 1986). In line with this, planning has numerous advantages where it facilitates acknowledged growth, provide the framework for the organization, aids in delegating authority, help counselor work etc (Kinard 1988). Moreover, it helps to avoid errors, prevent wastage and avoid delays and also aids to have an attempt at converting both productive and dynamic (Ferguson et .al 1993).
TOPIC?CORPORATE SOCIAL RESPONSIBILITY AS A COMPETITIVE STRATEGY AND ITS PERFORMANCE OF MOBILE SERVICE Safaricom Kenya
3.1 paper one ( TSalome.S.N. 2015 E EFFECT OF LEGAL CORPORATE SOCIAL RESPONSIBILITY ON CONSUMER IDENTIFICATION AMONG SAFARICOM LIMITED COMPANY CLIENTS IN KAJIADO COUNTY, KENYA International Academic Journal of Human Resource and Business Administration | Volume 1, Issue 5, pp. 1-12 )
The study was based on the hypothesis that Legal CSR has no significant effect on consumer identification. The study used the explanatory survey design that minimizes biases and gave an opportunity sampling. Manoj and Varun (1998) agree that explanatory survey can be done to explain.
3.1.2 IMPLICATION TO RESEARCH AND PRACTICE
Governments in developing countries that can in their jurisdictions. The legal CSR had the least main summary. Research on legal CSR is very Africa; therefore; governments do not have enough information on the implementation of the same. The organizations in the legal presence and the firms themselves. This means that the African governments should set aside funds to carry out more studies on legal CSR in their countries. From the study, it is evident if any legally set, a need for the effective legal CSR systems in.
The interpretation of Safaricom Limited CSR writing studies explained that the Mission ; Vision statements of did an absolute and underrated origin of CSR information. It contributed a concise review of the company’s systems and what they value the most.
The conclusions of the research will give a present to strategic management and marketing positions. The proper CSR programs should arbitrarily change consumer classification. Legal
CSR is perceived to be one of the constituents that provide for consumer association. Escalas (2013) illustrates that up-to-date research is becoming a more granular means of dividing similarities between identity and consumer behavior. The right framework that is apparent and recognized by the consumer is necessary. The administration policy on this should ensure that there are no grey areas in the rule, that may bring a disconnect between the business and the buyers.
There is adequate data to suggest that CSR in Safaricom and added specifically, their CSR confession is significantly influenced on Kenya’s social, cultural, financial and legislative provisions (Matten and Moon, 2008). Safaricom’s strong consideration for community improvement confers concern for public problems such as wellness care and education except Harambee life in their participation in arts and culture. However, some of Safaricom’s CSR practices are incompatible with what was found in the history. For instance, even government regulations or demand from NGOs who control corporate responsibilities, Safaricom has been very prosperous in implementing CSR in its corporate program
3.1.2 Paper two Owino .ph.O 2014( CORPORATE SOCIAL RESPONSIBILITY AS A COMPETITIVE STRATEGY AND ITS EFFECT ON PERFORMANCE OF MOBILE TELEPHONE SERVICE INDUSTRY: A CASE OF SAFARICOM KENYA)
3.2.1 RESEARCH QUESTION
Corporate social responsibility has gained prominence among many companies today. Companies have engaged themselves in various forms of corporate social responsibilities including financial donations, scholarships, community development, environmental conservation and cleanup and material donations. This is a far cry from the doctrine of Friedman (1970), which states that the one and only responsibility of a firm is to engage in activities that will increase its profits within the confines of the law. Corporate social responsibility is now an integral part of what a company is about. However, no matter how it is specifically defined, corporate social responsibility cannot be a separate or sometimes equal element in the collection of strategies that point a company toward its ultimate goals.
The revision adopted the descriptive survey research design. Bryman and Bell (2007) observe that a describe persons, organizations, settings, or phenomena. of the influencing it the descriptive for this study. the population of this study was the management of Safaricom Limited.
3.2.3 Main idea
has established that Safaricom corporate social responsibility to a Safaricom foundation program. incorporates various responsibilities ranging from financing, environmental and community development activities. has established that Safaricom’s brand has been largely responsibilities as Safaricom foundation. enhanced reputation hence customer attraction and retention, increased product usage and increased market share. to provide great strengths for the company in its through the Safaricom Foundation program. The study collaborates with to increase its CSR activities for an and profits. enhance empowerment initiatives among poor people; the education sector, for example, donation of set-books; social initiatives such as sponsoring marathons and walks and awareness initiatives.
Paper three (Timothy andProf. Kimani . 2016. Analysis of the effects of economic corporate social responsibility on the financial performance of Safaricom Ltd Eldoret branch.
3.3.1 RESEARCH QUESTION
Ideally in Kenya most organization profits have been increasing despite involvement in corporate social responsibility ( economic survey 2012),the reason being, is most corporation have been engaging in to heed to the dynamic environment and with success strategize themselves, non involvement of CSR has been faced with challenges attributable to stiff competition, uncertainties and various organizational constraints. This, as a result, makes CSR part and parcel of common practices by the organization, this is supported by Joseph (2010) that Safaricom has touched the lives of many through the engagement of CSR. Therefore its contrary to the majority of manager because they argue that any expenditure is a cost which accounts for the reduction of profits. Operating cost is the critical input for most companies which most managers seek to maintain (Rosenbaum and Pearl, 2009). This is clear that economic CSR is a cost with little knowledge known on its effects on the firm financial performance. This study, therefore, endeavors to analyze the relationship between the economic CSR and financial performances.
The study conducted initial data analysis using simple descriptive statistical measures such as, mean, standard deviation and variance to give a glimpse of the general trend. However, multiple regression analysis was employed to test the hypotheses.
Y = ? + ? 1X1 + ? 2X2+ ? 3X3+ ?
THE MAIN IDEA
The researcher, therefore, recommends the following: the company should ensure effective sustainability programs, they should also ensure there are effective social programs and ensuring there is the adoption of corporate governance. As more reliable data becomes available on CSR, it may also be useful to determine whether or not the relationships examined in this study hold over time. Further, the concept of social responsibility of corporations has engendered considerable interest in many organizations in recent years.
4. paper four Millicent .M.K . May 2013 The Challenges Facing the Safaricom Foundation In Aligning Corporate Social Responsibility To Corporate Strategy.
3.4.1 RESEARCH QUESTION
The policy analysts have devoted a great deal of attention to the implications of CSR policies and initiatives as well as their relation to corporate strategy (McWilliams et al, 2006; Porter and Kramer, 2006). Strategic Management in Safaricom Ltd is a function whose primary role is to ensure that the company remains focused on the long-term profitability, consistently deliver results in a constantly changing environment and to optimize the resources available to obtain the highest value in the long term. Safaricom has the corporate strategy and a separate corporate social responsibility (CSR) strategy.
The present study takes cognizance of Kenyan public concern over the adverse impact of businesses on society. They insufficiently address challenges affecting CSR- Strategy-Framework. This study attempts to fill this gap in the literature by proposing a CSR- Strategy-Framework.
? To what extent are employees involved in the employment of Corporate Social
Responsibility strategies at the Safaricom Foundation?
? What are the determinants of the choice of Corporate Social Responsibility
strategies by at Safaricom Foundation?
Simple random sampling technique was used to select 70 personnel from the population which represents 20.9% of the whole population. According to Norman & Fraenkel
(2001), a sample size of 20% is adequate for a study and hence justifying the size of this study. To collect the data from Safaricom
Foundation Personnel who have utilized CSR and strategy initiatives in Safaricom
Foundation, a questionnaire was used while interview guide will be used to collect in-depth
data. The researcher also conducted interviews with the head of department,
Safaricom foundation, the team manager of the foundation and three managers from the
strategic management functions, since their interactions constitute the application of
CSR as a strategic tool. Thus the data was of both quantitative and qualitative in nature.
Paper five CONSUMER IDENTIFICATION AS A RESULT OF ECONOMIC ANDb PHILANTHROPIC CORPORATE SOCIAL RESPONSIBILITY IN SAFARICOM LIMITED COMPANY OF KAJIADO COUNTY, KENYA) British Journal of Marketing Studies Vol.2, No.5, pp.35-44, September 2014
3.5.1 RESEARCH REQUESTION
Corporate Social Responsibility (CSR) is a paradigm shift from the original belief that organizations’ main goal is the use of resources to produce profits (Friedman, 1992). It is called the shareholder strategy as advocated by the economist Milton Friedman (Galbreath, 2006). This term has many definitions with no one consensus. The European Commission (2001) for example defined CSR as a concept where companies decide willingly to contribute to a better people and cleaner environment; it is issues like environmental protection, human resource management, health and safety at work, relations with the local community, suppliers and consumers. While Owolabi and Olu-Owolabi, (2009) define CSR as a concept that is constantly changing with the needs of society.
This research was grounded in social exchange theory and on the determination of reciprocity. Cropanzano and Mitchel, (2005), argue that social exchange theory (SET) is well applied in workplace behavior. The belief of SET is that relationships grow in trust, loyalty and mutual commitment. Accordingly, most research in management focuses on reciprocity. Three definitions of reciprocity are as follows, one, reciprocity as a transactional pattern of interdependent exchange whose outcome depends basically on one’s effort, or dependence, where outcomes are solely dependent on other’s effort, or even interdependence where the outcomes entirely depend on the outcome based on a combination of parties’ attempt. Total dependence and total independence do not add to an exchange.
3.5.3 MAIN IDEA
Philanthropic CSR applies to amounts of contributions to the community by organizations to stay ethically responsible. Pearsons product-moment exchange was used to establish the strength and direction of the linear relationship. There was a concrete and significant correlation between philanthropic CSR and customer association at ? =0.001.
This support prior studies that have extended philanthropic CSR to consumer identification and found that philanthropic was strong and positively significant on consumer identification (Lii, 2011). This means that the more organizations contribute to the community the more the consumers identify with them. On regression R2 change was 0.113, this is an indication that philanthropic corporate social responsibility predictor variable accounts for 11.3% consumer identification.
The firmnesses of the study showed that business CSR and helpful CSR had a positive significant relationship with consumer identification. Organizations in developing realms need to obtain that there is a paradigm shift in marketing as consumers choose to identify with an organization as exposed to organizations collecting their consumers.