The role of crisis communication in mitigating \mobitelea saga \ in Safaricom IPO.

Abstract

This project represents empirical facts on the relationship between crisis communication strategies, their effect on a successful Initial Public Offer (IPO) and discourses about perception attitude and knowledge levels of investors. Corporate communications have become significant assets of any hence worthy being researched on. Although the scope of this research is largely limited to communication strategies it also offers an interdisciplinary inquiry covering legal issues, fundamentals of investment, historical backgrounds of Safaricom other Telecommunications companies and political transformations in post election Kenya (2007-2008). During the study three groups of respondents were interviewed. These were the general publics that bought safaricom shares & safaricom employees (retail investors)T the institutional investors and key informant (GINADIN communications Manager.) The study confirmed that Safaricom used crisis communication strategies during the Mobitelea saga and these contributed to the over subscription during the lPO. The study also established that there is a complicated nexus between effects of crises communication strategies on institutional investors and retail investors. The evidence elicited by this study led to recommendations such as companies putting in place crisis communication strategies whenever there is negative publicity about the company. These strategies should first be directed to the internal publics who act as frontline communicators' then to the external publics. Given the findings and recommendations I believe my research will contribute to both management and communication scholarship and give room for further research in communication field.