Relationship between strategic planning and financial performance of telecommunication firms. A cross-sectional case study of Airtel -Uganda.
DOI:
https://doi.org/10.51168/insights.v2i10.46Keywords:
Strategic planning, Financial performance, Airtel- Uganda, Telecommunication firmsAbstract
Background
Strategic planning is a fundamental component influencing the financial performance of telecommunication firms. The purpose of this study is to examine the relationship between strategic planning and financial performance.
Methodology
A descriptive, correlational, and cross-sectional study in which Data were collected using structured questionnaires for departmental staff, semi-structured interviews with senior executives, and a documentary review of financial reports and operational records.
Results
Results indicate that 58.6% were male, while 41.4% were female. The results revealed a strong positive correlation between strategic planning and financial performance (r = 0.783, p < 0.01). Respondents strongly agree that supply chain strategic planning is aligned with overall corporate objectives (Mean = 4.60, SD = 0.58). The statements regarding management participation (Mean = 4.50, SD = 0.65) and conducting regular environmental scans (Mean = 4.50, SD = 0.65) received slightly lower scores. The items “Strategic planning helps in identifying and mitigating supply chain risks” (Mean = 4.58, SD = 0.59) and “Strategic planning enhances competitive advantage” (Mean = 4.58, SD = 0.59) received high scores.
The statements related to communication of goals (Mean = 4.55, SD = 0.60), interdepartmental collaboration (Mean = 4.57, SD = 0.60), and effective implementation (Mean = 4.55, SD = 0.60) show that respondents perceive strategic planning as a cohesive and coordinated effort. Long-term decision making based on data and forecasting (Mean = 4.54, SD = 0.62) and the use of digital tools (Mean = 4.54, SD = 0.62) indicate that firms are moderately leveraging technology and analytics to inform strategic decisions.
Conclusion
Strengthening planning processes through robust market analysis, demand forecasting, and capacity management can significantly improve profitability and operational efficiency.
Recommendations
Airtel Uganda should institutionalize a structured strategic planning framework that includes scenario planning, market intelligence, and risk assessment to anticipate industry changes.
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