Crisis Communication ( Case Study)

English 101Word count : 2500Case study on crisis managementCase : Vodafone plc subsidiary , Safaricom shareholders crisis 2005Overview of the Vodafone plc s Safaricom shareholders crisisThe stark naked Kenyan regime in 2003 commenced implementation of strategic policies on economic reforms and privatisations of state corporations There was need to realign somatic management and to overt the basic units of party shareholding expressions so as to permit privatisation Munene K (2004 : The Standard : The mega scandal in the Kibaki disposal activity privatisation plans . [June 20 , pg8] . This regulatory policy was effected under the ministry of finance and was passed through and implemented by the investment secretary so as to effect these regulatory recommendations . The investment secretary and the great markets authority had to have a complete overview of the shareholding structure of the company so as to allow the initial public hold out that would have seen the administration stake in the corporation sell to the public . Muna W (2004 : Daily Nation : The CMA regulations affect Safaricom initial public offering prospects [www .nation .com]The company fitting and shareholding structure was made available to the government and there was a serious implication on the structure to the IPO in the offing According to the shareholding structure a 5 stake of the company was owned by a United Kingdom registered consortium Mobitelea contrary to public teaching that the government of Kenya and the United Kingdom Vodafone plc owned the company . The registration and complete details of this mysterious share holder was traced to island of Guernsey in the UK . The laws out there did not have edible to have the names of the shareholders made available pending several(a) political and diplomatic implications the unmasking would have on twain Britain and Kenya .

The company in the middle of the controversy certainly would connect the damage of the parent company `Vodafone plc international reputation to fuck tumbling down , force a stock depreciations and a corporate crisis at the end Joe A (2005 : The East African : The mystery owners of Safaricom [Dec 11-17 , pg3]The preceding events forced the company and the stake holders , the government of Kenya , Vodafone plc and Mobitelea to agree on postponing the IPO so as to forestall a crisis . The capital markets authority and the investment secretary agree on modalities to shelve the IPO so as to pre-empt media fire hydrant and political-diplomatic problems between the UK and the Kenyan governmentsHowever the anxiety within the investors and the media hype already had made effects on the situation and there was straight general public uproar on the graft level within the state and the identity of the third shareholder . The end was of great measure and the magnitude forced Safaricom to commence using public relations to clear it image The Mobitelea consortium was attached with the former corrupt and dictatorial regime . According to analysts the 5 was a very substantial stake and was worth billions of Kenyan money . Mwaura K (2006 : ICT News The ripples of the Mobitelea shareholders on Safaricom . [ICT News Vol 107 , pp 7]...If you inadequacy to get a full essay, order it on our website: Orderessay

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