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Business 499

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Strategic Management and Strategic Competitiveness Assignment 1

Executive summary The Kenya Broadcasting Cooperation is a state cooperation in Kenya which was established by the act of parliament in 1961 and named as Voice of Kenya and later Kenya Broadcasting Corporation (KBC) in 1964 by another act of parliament .One of the core objectives of the corporation was to offer radio and television communication services to the nation and was the main media house that the government used to convey official information to the nation. This included informing the public of the government developmental strategies so that the entire nation could back up the government to achieve its goals (Godard, 123-167).

For a long time, the cooperation enjoyed state protection against competition until recent when the government finally lifted the barriers in the communication industry. Today, the main challenge facing the Kenya Broadcasting Cooperation is serious competition from other upcoming media houses such as Citizen Radio and Television, provided by the Royal Media Services and owned by a private investor called S.K Masharia. Since the corporation is owned and financed by the central government, it has been at a stable position in the competitive market due to the low quality services offered since it was not motivated by making profit. Today, the corporation has lost many customers to other media house and still faces a bevy of challenges such as workers strikes and managerial problems and political influence among others. Many of the corporation’s commentators have of late relocated her competitors due to better pay and other better terms of service (Okundi, 57-90).

The most effective way that the corporation’s efficiency can be stepped up is by privatization but the public should have more shares than the private investors so as to deal with this highly competitive environment (Kenya Post and Telecommunications Corporation 67-104). However, like any other business entity, the firm has been modernized currently and expanded to offer a wide range of media services such as news, games, special coverage of parliament proceeding s among other services. There is need to partner with other communication firms so as to unify its management and services with the international standards.

This will help to beat up other firms in the industry due to the government protection and funding the firm enjoys. The corporation can also ensure that it is serving the diversified Kenyan community which is composed of 42 ethnic groups satisfactorily by even reaching to those who may not be able to understand the English and Swahili languages used by the corporation. The workers welfare should be prioritized so as to ensure that they do not move to other media houses after gaining working experience in KBC. Many journalists work here only to get experience before transferring to the private sector (Okundi, 57-90).

Statement of the problem

As outlined above, the major problem facing KBC is strict competition from other media houses such as Citizen Radio and Television, Kenya Television Network (KTN) and the Nation Media group .These are reputable private firms with highly skilled and experienced staff and are strictly based on professionalism. As a result of this, there has been massive transfer of competitive labor force to these private firms within the country as well as to international media houses such as the British Broadcasting Corporation (BBC) and Voice of America (VOA) which offer services in both Swahili and English in Kenya through local stations. Alongside these, there are other broadcasting stations such as Inooro fm, Capital fm, Kameme fm, Youth fm, Metro East fm, Ramogi fm, Metro fm, Hope fm and Kiss 100. Some of them have vernacular coverage which helps them to reach listeners who may be isolated due to language factor (Atieno, 45-96).

Cause of the problem These problems are attributed to issues such as holding onto traditional outdated technology, unprofessional and unethical business practices like tribalism and underpayment. Some workers were quoted complaining of sexual harassment by some of the leaders of the corporation as well as poor terms of service and working conditions. This caused a strike early 2012 which forced the intervention of the Ministry of Information as well as the Central Organization of Trade Union (COTU), which is the umbrella body that fights for the rights of workers. Another cause of the poor performance by KBC has been the lack of contact with the listeners. The corporation ignored some of the corporate obligations such as financing social activities like education and sports. This brought a serious gap between the corporation and the listeners. The cause of this was the monopoly powers acquired due to government protection against competition until when the market was liberalized (Godard, 123-167). According to the principle of business responsibility, the entity should aim at making the immediate community feel part of the organization through re-distribution of part of their income by funding social activities.
Decision criteria and alternative solutions This problem can be ironed out through observation of professionalism and integrity when it comes to recruitment. The laws governing the corporation should be reviewed and aligned with the present business environment. Further more, the corporation should move out and market itself at the grass roots through sponsoring social activities as well as road shows. This will enables the listeners to air out their views about the service offered by the firm (Okundi, 57-90). The terms and conditions of service as well as respect for human dignity must be upheld as much as possible.

Recommended solution, implementation and justification The most appropriate remedy to the KBC problem is legalization. The parliament must remove the legal sanctions put on the firm and leave it to run independently like any other autonomous business. Too much government involvement has led to disturbance of the corporation politically and this is the main reason behind this inefficiency (Atieno, 45-96).

The firm should be limited as far as government funding is concerned but should remain answerable to the central government. Customer based marketing strategies should be used and the firm should maintain close proximity to the customers. The concept of performance contort should be used so as to ensure that appointed leaders are up to the challenge. Unless the corporation hits a certain specified standard, then their work is not secured alongside other legal implications (Kenya Post and Telecommunications Corporation 67-104).

Competitive profile matrix for Kenya Broadcasting Corporation, Citizen and Nation Media Group
|critical success | |KBC |Citizen |Nation Media Group | |
|factors | | | | | |
| |weight |rating |weighted score |rating |weighted score |Rating |weighted score |
|Advertisement |0.30 |4 |0.12 |3 |0.90 |4 |0.12 |
|Competition |0.10 |4 |0.40 |4 |0.40 |3 |0.30 |
|finance |0.10 |2 |0.20 |3 |0.30 |4 |0.80 |
|Customer loyalty |0.15 |2 |0.30 |3 |0.45 |2 |o.24 |
|Market command |0.10 |4 |0.40 |2 |0.20 |2 |0.50 |
|Expansion |0.10 |3 |0.30 |4 |0.80 |3 |0.60 |
|management |0.15 |1 |0.15 |3 |0.45 |3 |0.75 |
| |0.20 |3 |0.60 |4 |0.25 |1 |0.25 |
|Total |1.00 | |2.47 | |3.75 | |3.56 |

External Factor Evaluation Matrix for KBC
|Key External factors |Weight |Ratings |Weighted score |
|Opportunities | | | |
|Deregulation |0.20 |4.00 |0.80 |
|Integration |0.10 |3.00 |0.30 |
|Globalization |0.10 |2.00 |0.20 |
|Penetration |0.10 |2.00 |0.20 |
|Threats | | | |
|Induction of new players |0.10 |2.00 |0.20 |
|Strict competition |0.10 |4.00 |0.40 |
|Government policies |0.20 |3.00 |0.60 |
|Substitutes |0.10 |4.00 |0.40 |
|Total |1.00 | |2.70 |

Reference

Atieno, M (2010). Challenges Facing the Management of telecommunication industry in Kenya in relation to service delivery: Nairobi, Kenyatta University pp 45-96.

Godard, O (1994). Africa and Science: The Availability of Computer Communications, Telecommunications and Development in Africa, Amsterdam: IOS Press, pp 123-167

Kenya Post and Telecommunications Corporation (1990). Annual Reports and Accounts. Nairobi, Kenya. Pp67-104

Okundi, P (1975). Afrosat: Proposals for an African Domestic Satellite Communications System. Paper presented at the International Conference on Satellite Communications Systems Technology. London, Oxford University Press pp 57-90.

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