Strategic Issue Management
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study
The pace of social and economic change is accelerating and increasing the risk of doing business presenting environmental changes that shape opportunities and challenges facing organisations. In turn, they need to adjust to these changes to remain competitive both locally and globally. The environment can be relatively stable or turbulent and affects many organisations. Environmental changes affecting organisations include competition, globalisation, political and legal factors, changes in consumer tastes, ecological factors and insecurity. The shipping industry has not been spared from the dynamism of the environment. Frankel (1987) notes that the shipping industry is in the midst of major structural and operational change. In the next five to seven years, market, stakeholder, customer, and regulatory pressures related to sustainability will drive significant changes in the way international shipping lines operate and do business. Considering that the industry transports more than one-third of the value of global trade, provides more than 4.2 million jobs, and represents a heavy social and environmental footprint, these are developments that will have a far-reaching impact on the industry. (Peder & Farrag, 2010)
For firms to succeed, they can deploy strategic issue management (SIM) as a measure to assist in fulfilling and protecting their corporate objectives. According to Ansoff and McDonnell (1990), it is through SIM that a firm will be able to relate itself to the environment to ensure its success and also secure itself from surprises brought about by the changing environment.
Kenya is a transit route for goods being imported to or exported from other landlocked East African countries, such as Uganda, Rwanda, and Burundi, through what is known as the Northern Corridor. This reinstates the importance of the Mombasa Port, as a key logistical node in the health of our
1.1 Background of the Study
The pace of social and economic change is accelerating and increasing the risk of doing business presenting environmental changes that shape opportunities and challenges facing organisations. In turn, they need to adjust to these changes to remain competitive both locally and globally. The environment can be relatively stable or turbulent and affects many organisations. Environmental changes affecting organisations include competition, globalisation, political and legal factors, changes in consumer tastes, ecological factors and insecurity. The shipping industry has not been spared from the dynamism of the environment. Frankel (1987) notes that the shipping industry is in the midst of major structural and operational change. In the next five to seven years, market, stakeholder, customer, and regulatory pressures related to sustainability will drive significant changes in the way international shipping lines operate and do business. Considering that the industry transports more than one-third of the value of global trade, provides more than 4.2 million jobs, and represents a heavy social and environmental footprint, these are developments that will have a far-reaching impact on the industry. (Peder & Farrag, 2010)
For firms to succeed, they can deploy strategic issue management (SIM) as a measure to assist in fulfilling and protecting their corporate objectives. According to Ansoff and McDonnell (1990), it is through SIM that a firm will be able to relate itself to the environment to ensure its success and also secure itself from surprises brought about by the changing environment.
Kenya is a transit route for goods being imported to or exported from other landlocked East African countries, such as Uganda, Rwanda, and Burundi, through what is known as the Northern Corridor. This reinstates the importance of the Mombasa Port, as a key logistical node in the health of our
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