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UNIT 1: INTRODUCTION/ EXTERNAL ENVIRONMENT. Strategic Episodes. Kenya Airways Equity Bank Mumias Sugar Company. Fast Foods - Steers - Nandos Radio stations - Kameme - Kiss FM, Classic FM, - Kenya Broadcasting Corporation. Tertiary Education (Competition)
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UNIT 1: INTRODUCTION/ EXTERNAL ENVIRONMENT
Strategic Episodes • Kenya Airways • Equity Bank • Mumias Sugar Company
Fast Foods - Steers - Nandos • Radio stations - Kameme - Kiss FM, Classic FM, - Kenya Broadcasting Corporation
Tertiary Education (Competition) - UON vs Private Universities - UON vs Public Universities
Public Transport - Akamba Public Road Services - Coast Bus - Jogoo Kimakia - Benways - Shaggy - Mbukinya Enterprise
The External Environment • Environmental changes shape opportunities and challenges facing organizations in Kenya. • Need to adjust to these changes to remain successful in future. • Nature of environmental changes:- Global, regional, national (local).
ORGANIZATION – ENVIRONMENT INTERFACE • Customers • Government • Competitors • Technology, etc. INPUT THROUGHPUT OUTPUT ENVIRONMENT
The External Environment • What is the direction of change? • What is the speed of change? • What is the response capability of my company • What is my company doing about these changes?
Reforms in Kenya • Interventionist Economic System • Free Market, Competitive System - Liberalization - Deregulation - Price decontrol - Privatization
Reactions of Kenyan Companies to Changing Conditions • Lay offs and sackings • Cutting costs • Reorganizing the marketing department • Adjusting target markets • Diversification • Developing new products and services
Marketing gimmicks • Exports • Small is ‘beautiful’ • Price cuts • Corruption • Migration