| dc.description.abstract | This study focused on Strategic Issue Management (SIM) practices by Savings and
Credit Cooperative Societies in Mombasa County in Kenya. Strategic Issue
Management specialises in detecting surprise developments in the business
environment through constant monitoring and surveillance; and execution of timely
responses (Ansoff and McDonnell, 1990). The study was deemed necessary because
the environments are full of surprises and instabilities the world over. Such
instabilities include: political instability, traditional products, competition and capital
base to mention but a few.
Ansoff and McDonnell (1990) define strategic issues as forthcoming developments,
either inside or outside of the organization that are likely to have an important impact
on the ability of the enterprise to meet its objectives. They are developments or trends
that emerge from an organization’s internal or external environment, perceived to
have the potential to affect an organization’s performance (Ansoff, 1984; King, 1982).
The issues require to be viewed from the context of strength, weaknesses, opportunity
and threats of an enterprise (Ansoff and McDonnell, 1990:369). In fact, issue
management has become established as a distinct business discipline, with proven
capacity to add strategic value to organizations (Pearce & Robinsonl, 2005). Broadly
speaking, issue management attempts to minimise surprises which accompany social
and political change by serving as an early warning system for potential and
environmental threats and attempts to promote more systematic and effective
responses to particular issues by serving as a co-ordinating and integrating force
within the corporation (David, 2005).
Cooperatives in Kenya’s turbulent business environment have faced critical moments.
Despite of their fundamental socio-economic role in Kenya, most cooperatives are
faced with a number of challenges, such as: traditional products, leadership and
governance issues, capitalisation, taxation, Information and Communications
Technology, regulation and supervision, developing competitive business models,
demand for loans, non-remittance of fees by members, forgery, HIV/AIDS and
outreach issues. These among others have forced cooperatives managers to pause,
ponder and devise ways to strengthen their enterprises. Thus the central challenge for
cooperatives is to find constructive ways to build and retain competitive advantages in
the market place. This is only possible if they incorporate good governance practices
in their institutions (Sacco Societies Act, 2008).
It is evident that Strategic Issue Management is very significant to a cooperative’s
future. This is in line with what Perrot (2008) found out when he posits that tracking,
monitoring and managing priority issues is necessary for a firm’s survival during
turbulence. Today may not be the same as yesterday and tomorrow may be very
different from today. It is therefore today more relevant than ever, to understand the
dynamics of how to respond to strategic issues, due to the increasingly fast-paced
changes in the globalized world (Kajanto, Keijola, Kunnas, Laamanen & Maula,
2006). | en |
