Strategic Management Practices in Africa

Abstract

The essence of formulating an effective strategy should be dependent on a company’s understanding of its operating environment. The implementation of a unique and effective strategy in an indigenous and competitive business environment will result in a competitive advantage. Drawing on the models that reduce uncertainty in business organisations, this chapter examines the dynamics of indigenous strategic management practices in Africa using Dangote Cement in Nigeria and Equity Bank in Kenya as case studies. The conceptual framework of this chapter presents the synthesis of strategic management practices in Africa; a global perspective and emphasis on Africa and as a result of which emerging organisations adopt these management practices and findings from both organisations. We discuss the tenacity of Dangote Cement entrepreneurial understanding of the Nigerian political, social and economic environment and its effective government relationship. This chapter examines the challenges and trends of strategic management practices in Africa and the key success factors in doing business in Africa, despite the depth of challenges in a business environment that is volatile, uncertain, complex and ambiguous. We discuss Equity Bank’s stakeholder management practices, strategic leadership and its inclusive business model, developed to enhance financial inclusion and access to available and attractive financial services for those at the bottom of the pyramid. Significantly, we argue that to succeed in Africa, businesses must understand the dynamics of strategic leadership, the cultural context of the operating environment, stakeholder management and include the social dimension of business in their business strategy.

Citation

Ogbechie, C. (2018), "Strategic Management Practices in Africa", Indigenous Management Practices in Africa (Advanced Series in Management, Vol. 20), Emerald Publishing Limited, Leeds, pp. 167-184. https://doi.org/10.1108/S1877-636120180000020009