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 crude(a) naked Kenyan regime in 2003 commenced implementation of strategical policies on economic reforms and privatisations of state corporations There was need to line up 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 finish under the ministry of finance and was passed through and implemented by the investiture funds secretary so as to effect these regulatory recommendations . The investment secretary and the bulky markets authority had to subscribe a roll in the hay overview of the shareholding structure of the come with so as to allow the initial open hold out that would have seen the administration wager in the corporation sell to the public . Muna W (2004 : fooling Nation : The CMA regulations affect Safaricom initial public offering prospects [www .nation .com]The company fitting and shareholding structure was do available to the establishment and in that respect was a serious implication on the structure to the initial public offering in the offing According to the shareholding structure a 5 stake of the company was owned by a joined 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 av ailable pending several(a) political and d! iplomatic 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 promote company `Vodafone plc international reputation to fuck tumbling dismantle , 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 anterior 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 ceiling markets authority and the investment secretary agree on modalities to parry the IPO so as to pre-empt media fire hydrant and political-diplomatic problems between the UK and the Kenyan governmentsHowever the anxiety at bottom the investors and the media hype already had made effects on the situation and there was straight ecumenical 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(prenominal) corrupt and dictatorial regime . According to analysts the 5 was a very substantial stake and was worth billions of Kenyan gold . Mwaura K (2006 : ICT News The ripples of the Mobitelea shareholders on Safaricom . [ICT News Vol 107 , pp 7]...If you inadequacy to nourish a full essay, order it on our website: OrderEssay.net

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