Question: The strategic action competency described in the case study below refers to the relationship between an organisation's strategy and its structure. Read the case study

The strategic action competency described in the

The strategic action competency described in the

The strategic action competency described in the case study below refers to the relationship between an organisation's strategy and its structure. Read the case study below and answer the questions that follow: Structure Follows Strategy - Safaricom Ltd When a Kenyan mobile telecommunications operator, Safaricom, asked 13 senior executives to apply afresh for the firm's top jobs, CEO Bob Collymore said, "The purpose of this redesign is not to downsize or retrench staff, but to have a structure in place that will support the delivery of our business strategy in a rapidly changing and increasingly competitive business environment." Mr Collymore cut down the number of C-level positions (or managers whose titles begin with the word 'Chief') who directly report to the CEO, from 13 people to just nine (9). He also did away with the title 'Chief' for senior managers, turning them into directors. Mr Collymore took over the leadership mantle in the second half of 2010, as Safaricom's rivals stepped up the war for market share, with deep tariff cuts and as the regulatory landscape shifted rapidly, putting the firm's profits under threat. Safaricom's market share dropped from 80.7% in June 2010 to 75.9% in October 2010. Airtel, which was and is still is Safaricom's main rival, grew its market share to 13.5% (from 9.1%) during the same period. Therefore, Mr Collymore had to come up with a major strategy that would maintain Safaricom as the dominant firm in the industry. He aimed for a lean executive team with fewer reporting layers to support the company's growth in an increasingly competitive market. The strategy was to turn Safaricom from an innovative company to a customer-led organisation, which would be able to offer the best customer service in a bid to maintain its market share. Under Safaricom's new management structure, procurement, finance and investor relations were merged into one position, as well as IT and technical officer's roles. Marketing, commercial and customer care were merged into a single department, while the legal and communication functions now reported to one director. Mr Collymore also created new divisions, such as enterprise business, consumer business and financial services, which will run as profit centres - a pointer to the fact that Safaricom is looking beyond the competitive voice market for growth. Under this structure, the popular money transfer service, M-Pesa, falls under the financial services department. At Safaricom, it is quite evident that structure follows strategy. Source: Adapted from: Kavale, S. 2012. The Connection between Strategy and Structure. International Journal of Business and Commerce. 1. 60-70. [Online] Available from: https://www.researchgate.net/publication/313444758 the connection between strategy and structure (Accessed: 29/04/2021) Discuss the relationship between organisation strategy and organisation structure. Your answer should include at least five (5) examples or evidence from the Safaricom case study, and be based on what Safaricom did to achieve its objectives

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