Strategic Management Practices and Financial Sustainability of Telecom Companies in Uganda; a Case of Airtel (U) Ltd Head Office Kampala

Abstract

The study investigated the effect of strategic management practices on financial sustainability at Airtel (U) Ltd. The specific objectives of study included; (i) To assess the effect of strategic planning on financial sustainability at Airtel (U) Ltd (ii) To investigate the effect of strategic budgeting on financial sustainability at Airtel (U) Ltd (iii) To find the effect of strategic decision making on financial sustainability at Airtel (U) Ltd. A cross-sectional research design was applied with a sample size of 137 respondents and both simple random and purposive sampling were applied. Data was collected using questionnaire and interview guide respectively. Quantitative data was analyzed using descriptive statistics and regression analysis while qualitative data was analyzed using content and thematic analysis. Quantitative study findings revealed a significant effect of strategic planning on financial sustainability at Airtel (U) Ltd (b = .211: p = .000). Furthermore, there was a significant effect of strategic budgeting on financial sustainability at Airtel (U) Ltd (b = .188: p = .000). Lastly there was a significant effect of strategic decision making on financial sustainability at Airtel (U) Ltd (b = .562: p = .000). Qualitative findings revealed that strategic management has played a critical role in increasing financial sustainability at Airtel (U) Ltd. It was logical to conclude that the better strategic management, the higher the financial sustainability at Airtel (U) Ltd. The study recommends that management of Airtel (U) Ltd to create a supportive environment which promotes effective strategic planning. Management should provide the necessary resources to facilitate strategic budgeting. Lastly management should carry out effective strategic decision making so as to increase on financial sustainability in terms of profitability, liquidity and solvency.