The Effect of Corporate Operational Strategy on Financial Performance of Telecommunication Company in Rwanda

Abstract

Around the word corporate organization performance have identified corporate operational strategies as their key driver in all area of financials indicator success. Statistics published by Harvard Business Review (2015) revealed that around 85% to 90% of corporate companies are unable to implement their strategies but on other hand an increase of revenue between 80% and 120% are noticed in period of three year for those who succeed in implementing them. Among them 10% realized two thirds of their corporate strategic plans, also 36% realized between 51%-68% and 55% achieving less than 49% (Harvard Business Review, 2015).Report published by Rwanda Development Board revealed that foreign investments worth $463.0 Millionwere invested in the year 2018, with 17.9% in ICT sector (RDB, 2019). Having corporate structure working in new environment with operational decisions to conduct their business, the Rwanda telecom industry is held by multinational corporate companies only,MTN Rwanda, TIGO, AIRTEL, KTR and RWANDATEL, respectively subsidiary of NTN Group, Millicom, Bharti AIRTEL, Korea Telecom and Liquid Telecom (RURA, 2018). MTN Rwanda one of the 22 subsidiaries of MTN groups; South African Corporate company follow the samerule as everywhere in the world; by making operational decisions to embrace corporate strategy. MTN group corporate strategy is to; Create and managing stakeholder value, create a distinct customer experience, drive sustainable growth and transforming operating model.Poor performance, of some multinational corporate company in developing countries and Rwanda among them continue to be exhibited in terms of low return on investigate and return on equity, Even though the benefits and awareness of the use of competitive strategy to attain fully competitive advantage is known all over the world(Janice et al, 2014). A continuous rapid competition grows and inflexible pressure in telecom industry, are a big challenge for corporate