Influence of Grand Strategies on Performance of Mobile Service Providers in Kenya

Abstract

This study established the influence of grand strategies on performance on mobile service providers in Kenya. The specific objectives of the study were to establish the influence of divestment strategy and retrenchment strategy on performance of mobile service providers in Kenya. The study was anchored on two theories namely the theory of Strategic Orientation and Static Trade-Off theory. A descriptive research design was adopted by the study. The focus was on the mobile service providers in Kenya which are four namely; Bharti Airtel, Safaricom Limited, Telkom Kenya Limited and Finserve Africa Limited. The target respondents comprised of a total of 84 respondents including 38 board members and 46 directors. A questionnaire was used to collect primary data which was analyzed using Statistical Package for Social Sciences version 22. Descriptive and inferential findings were adopted by the study. The findings indicated that divestment strategy and retrenchment strategy had a positive and significant influence on performance of mobile service providers in Kenya. The study recommends mobile service providers to adopt more of divestment strategy such as restructuring of non-performing assets and quick collection of receivables and retrenchment strategy such as cost containment through standard costing and sourcing and reduction of firm expenditure on research and development.

Key Words: Grand Strategies, Divestment Strategy, Retrenchment Strategy, Performance of Mobile Service Providers.