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

Abstract

Corporate operational strategy have been driving performance of most corporate organisations around the world but however, despite the intensive use of competitive strategy to gain competitive advantage, some corporate companies both have continued to exhibit poor performance in form of profitability and return on investment(Chen, 2013),especially in developing countries where Rwanda is part. The research to assess the effect of corporate operational strategy on financial performance of MTN Rwanda was design based on qualitative and quantitative approach (Creswell, 2012). The target population was 74 and Primary data was obtained by use of a closed ended questionnaire while secondary information was obtained through review of reports and financial statements. The data obtained was processed by use computer based SPSS software program and analyzed by use a multivariate regression analysis to determine the relationship between the dependent and the independent variables. The findings show that MTN Rwanda use Corporate Operational strategy to maintain profit of MTN-Rwanda. Components of Corporate Operational strategy which include Product differentiation strategy, cost leadership strategy, Product innovation strategy and Promotion & advertisement strategy. The results indicate that Corporate Operational strategy has a relationship with financial performance of MTN-Rwanda. This means that there is positive relationship between Corporate Operational strategy, (83.2%), and financial performance of MTN-Rwanda. The figure of ratio shows that ROE & ROA are positively related to the operation strategy of MTN-Rwanda. MTN-Rwanda should elaborate tools for monitoring and evaluations of the effectiveness of the different corporate strategies.