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

References: Ali, A. M. (2008). Strategic Issue Management by Commercial Banks in Kenya. Unpublished MBA project, University of Nairobi. Aosa, E. (1992). Contextual Influence on Strategic Planning: Porter’s Industry Analysis Model in the Kenyan Setting. Moi University Journal, 1(1), 4-5. Ansoff, H. I. (1965). Corporate strategy: An analytic approach to business policy for growth and expansion’, McGraw-Hill , New York. Ansoff, H. I. (1980). Strategic Issues Management. Strategic Management Journal1, (1) 131–148. Ansoff, H. I., & McDonnell, J.E. (1990). Implanting Strategic Management. 2nd Edition, Prentice Hall . Dutton, J.E., Ashford S., O’Neill R., & Lawrence K., (2001) Dutton, J.E., Ashford, S., Lawrence, K., & Miner-Rubino, K. (2002). Red Light, Green Light: Making Sense of the Organisational Context for Issue Selling. Organisational Science, 13 (4), 355-369. Dutton, J.E., & Duncan, R. (1987). The Creation of Momentum for Change through the Process of Strategic Issue Diagnosis. Strategic Management Journal, 8, 279-298. Dutton, J.E., Fahey, L., & Narayanan, K. (1983). Towards Understanding Strategic Issue Diagnosis. Strategic Management Journal, Vol 4, 307-323. Dutton, J.E, & Ottensmeyer, E. (1987). Strategic Issues Management Systems: Forms, functions and context. Academy of Management Review.12 (2). 355-365. Camillus, J., & Deepak K. (1991). Managing Strategic Issues in a turbulent Environment. Long Range Planning, 24 (2), 64-74. Chege, C. (2001). The Extent of Usage of the Marketing Mix Variables in the Shipping Industry in Kenya. Unpublished MBA project, University of Nairobi Disi, M Elter, F., &Oecon D. (2004). Strategizing in Complex Contexts. Unpublished Manuscript, Norwegian School of Management, Oslo Fiol, M., & Lyles M. (1985). Organisational learning. Academy of Management Review. 10, 803 – 813. Frankel, G.E. (1987). The World Shipping Industry. Groom Helm publishers Ltd, Provident House. Greening, D.W., & Gray B. (1994). Testing a model of organizational response to social and political issues. Academy of Management Journal. 37 (3), 467 – 498. Hannan, M. T., & Freeman J. (1984). Structural inertia and organizational change. American Sociological Review, 49, 149-164. Heath, R. L. (1997). ‘Strategic Issue Management: Organisations and Public Policy Challenges’. Sage Publications Ltd. Heath, R. L. (2002). Issue Management, Its Past, Present and Future. Journal of Public Affairs: An International Journal. 10, (2). Heugens, P. (2003). ‘Strategic Issues Management and Organisational Outcomes’. Utrecht School of Economics, Utrecht University. IMC. (2012). Origins of issue management. (On-line). www.issuemanagement.org. Johnson, G., Scholes, K., & Whitiington, R. (2005). Exploring Corporate Strategy. Prentice-Hall, 7th Ed. Kenyan Shipping Act KSC. (2012). Kenya Shippers Council. (On-line) www.kenyashippers.org. King, W. R. (1982). Using strategic issue analysis. Long Range Planning. 15(4), 45 – 49. Lenz, R.T., & Engledow J.L. (1986). Environmental Analysis Units and Strategic Decision-Making Field Study of Selected ‘Leading-edge’ corporations. Strategic Management Journal 7: 69-89. Liebl, F. (2003). Issue Management becoming an Integrated Concept. (On-line). www.issuesmanagementgesellschaft.de/. Lawrence, P., & Lorsch J. (1967). ‘Organisation and Environment. Managing differentiation and integration.’ Boston Harvard University Press. Mintzberg, H., & Quinn J. B. (1991). ‘The Strategy process. Concept, Contexts and Cases’. Prentice Hall 2nd Ed. Mkamunduli, S.A. (2005). SIM in the Insurance companies in Kenya. Unpublished MBA project, University of Nairobi. Mugambi, M. (2003). The Strategic Management Practices of Shipping Companies in Kenya. Unpublished MBA project, University of Nairobi. Mungai, M.J. (2008). Application of SIM by Independent Oil Companies in Kenya. Unpublished MBA project, University of Nairobi. Muya, F. K. (2006). Real time SIM practices by classified hotels in Kenya. Unpublished MBA project, University of Nairobi. Mwakanongo, G. (2007). A Survey of Competitive Strategies Employed by Shipping Companies in Kenya. Unpublished MBA project, University of Nairobi. Nyandoto, D. (2009). Real-Time SIM Practices by large scale tea producers in Kenya. Unpublished MBA project, University of Nairobi. Oomens, M.J.H., & Bosch F.A.J. (1999). Strategic Issue Management in major European- Based Companies. Long Range Planning. 32 (1), 49-57. Pearce, J.A., & Robinson R.B. (2005). Strategic Management: Formulation, Implementation and Control. (10th Ed.) McGraw-Hill. Peder, M., & Farrag A. (2010). Sustainability Trends in the Container Industry. BSR Report. (On-line) www.bsr.org. Prahalad, C.K., and Hamel G. (1990). Competing for the Future. Boston M.A, Harvard, Business School Press United Nations Conference on Trade and Development Schlesinger, M. (2010). Strategic Issue Management – an ability of Organizational Future Orientation. (On-line). www.futureorientation.net. Thompson, A., & Strickland J. (1998). Crafting and Implementing Strategy. New York,McGraw – Hill. Wanja, N.C. (2011). SIM Practices adopted by private security firms in Kenya. Unpublished MBA project, University of Nairobi. Wartic, S., & Mahon J. (1994). Towards a Substantive Definition of the corporate issue construct. A review and synthesis of the literature, Business Society. 33 (3), 293-311.