NAME Donald IBE

DEGREE MBA

SUPERVISOR Dr Paul Davis

TITLE A review of the growth management approach of MTN

Nigeria in relation to its external operating environment,

2001 – 2015.

DATE December 2017

STUDENT no. 1550629

Project submitted in partial fulfilment

of the requirements of the

Master of Business Administration

of the

University of Cumbria

i
 ABSTRACT

This dissertation examined the growth management approach of MTN Nigeria in

relation to its external operating environment. A formal external environmental
monitoring tool - the PESTLE framework – led this examination of MTN’s strategic
evolution. Given its central analytical importance, the claims and assumptions of
PESTLE advocates were assessed through a critical review of the historical
development, application, benefits and weaknesses of the PESTLE framework. This
account also compared the PESTLE framework with other tools of company analysis,
highlighting areas of possible combination with other tools. The research methodology
adopted to evaluate MTN’s strategic evolution and its environmental sensitivity was
exploratory and qualitative in nature, involving a combination of primary and secondary
data. Aspects of research philosophy were examined, bordering on epistemology and
ontology. Primary research data was from interviews from a sample of 10 individuals
who have had direct or indirect contact with MTN Nigeria, and who have garnered
adequate knowledge on the Nigerian telecommunications industry. This was combined
with a critical evaluation of secondary corporate data from MTN Nigeria to effect a
degree of data triangulation. The Dissertation concludes that MTN Nigeria is a well-
aligned company in terms of its vision and strategy relative to its external operating
environment. It is apparent that the observed success of the company is related to its
success in coping with the variable elements in its external operating environment. This
dissertation also pointed out areas of possible improvement and further alignment. The
researcher made recommendations for stakeholders which includes - a firm alignment
by MTN Nigeria and other business organizations with all legal, regulatory, socio-
cultural, and sustainability requirements in their operating environments. The researcher
proffered areas for further research relevant to the subject of this dissertation.

ii
 DEDICATION

This Dissertation is dedicated to my family, and to the blessed memories of late Paschal

Ibe and late Stella Ibe.

STATEMENT OF ACKNOWLEDGEMENT

This Dissertation is my most remarkable academic task ever confronted. My sincere

appreciation goes to my supervisor, Dr. Paul Davis, who meticulously supervised this

work, and proffered guidance from beginning to conclusion, while also expressing much

patience, in-depth knowledge, and commitment. I would also love to thank my wife,

Amaka, and my three children, Joshua, Shalom, and Blossom, for their support, and

patience during those long hours of my absence because of school work. My special

thanks go to my parents for laying the educational foundation, and emphasizing on the

priceless value of formal education. I would also like to thank all the business managers

who participated in the interview sessions, for their patience and time, despite their busy

schedules. And above all, I want to thank God for good health and stability throughout

the course work.

iii
 DECLARATION OF AUTHENTICITY

In presenting this dissertation, I declare that it is a final copy, and the material contained

in it is the result of my own work, other than where sources are clearly acknowledged

and referenced within the main body of the text.

And that:

the word count of this dissertation: 14, 015

SIGNED: Donald IBE

DATE: 22nd December 2017

iv
Table of Contents

ABSTRACT ................................................................................................................................................. ii
DEDICATION ............................................................................................................................................. iii
STATEMENT OF ACKNOWLEDGEMENT ........................................................................................... iii
DECLARATION OF AUTHENTICITY .................................................................................................... iv
Chapter 1 ..................................................................................................................................................... 1
Introduction and Objectives ...................................................................................................................... 1
Background ................................................................................................................................................. 1
1.1 Relevance of the Telecommunications Sector to the Nigerian Economy ................................... 2
1.2 Brief History of MTN Nigeria Communications Limited ................................................................. 3
1.3 Aims and Objectives of the Dissertation .......................................................................................... 3
1.4 Specific Interest of the Researcher in this Subject ......................................................................... 4
Dissertation Structure ................................................................................................................................ 6
Chapter 2 ..................................................................................................................................................... 7
LITERATURE REVIEW ............................................................................................................................. 7
2.1 Introduction ........................................................................................................................................... 7
2.2 The External Environment of a Business Organization ................................................................. 7
2.2.1 The Relationship Between an Organization and Its External Environment ............................ 9
2.2.2 Aligning Strategy with External Environment ............................................................................. 10
2.2.3 The Importance of understanding the General Environment .................................................. 11
2.3 The PESTLE Framework ................................................................................................................. 12
Historical Perspective: The Evolution of the PESTLE Framework ................................................... 12
2.3.1 POLITICAL ...................................................................................................................................... 19
2.3.2 ECONOMIC..................................................................................................................................... 20
2.3.3 SOCIO-CULTURAL ....................................................................................................................... 21
2.3.4 TECHNOLOGICAL ........................................................................................................................ 22
2.3.5 LEGAL.............................................................................................................................................. 23
2..3.6 ENVIRONMENTAL ....................................................................................................................... 24
Conclusion ................................................................................................................................................. 25
Chapter 3 ................................................................................................................................................... 26
Research Methodology ........................................................................................................................... 26
3.1 Introduction.................................................................................................................................... 26

v
3.2 Research Philosophy ................................................................................................................. 27
Ontology .................................................................................................................................................... 28
Epistemology............................................................................................................................................. 29
3.3 Research Design .......................................................................................................................... 30
3.4 Research Methods ....................................................................................................................... 31
Data analysis............................................................................................................................................. 34
3.5 Research Ethics ........................................................................................................................... 35
Conclusion ................................................................................................................................................. 35
Chapter 4 ................................................................................................................................................... 37
Research Results ..................................................................................................................................... 37
4.1 Introduction and Research Background......................................................................................... 37
4.2 Research Findings............................................................................................................................. 37
Discussion ................................................................................................................................................. 53
Chapter 5 ................................................................................................................................................... 55
Conclusions and Recommendations..................................................................................................... 55
5.1 Conclusions ........................................................................................................................................ 55
5.2 Recommendations for the stakeholders ........................................................................................ 59
5.3 Limitations and Recommendations for further research ........................................................ 62
Bibliography .............................................................................................................................................. 64
Appendix .................................................................................................................................................... 69

vi
 List of Figures

Figure 2.1 The Porters Five Forces represented diagrammatically……….……...15

List of Tables

Table 2.1 PESTLE framework – generic contents……….………………….….….21

Table 2.2 The commonly used PESTLE variants……………………………….….22

Table 2.3 Comparative review of Influential Internal and External Environmental

Scanning techniques………………………………………………...….…23

Key Abbreviations

AI: Artificial Intelligence

GSM: Global System for Mobile Telecommunications

IT: Information Technology

VAS: Value added Services

IoT: Internet of Things

LTE: Long-Term-Evolution

MTNN: MTN Nigeria

PESTLE: Political, Economic, Socio-Cultural, Technological, Legal, Environmental

PEST: Political, Economic, Socio-Cultural, Technological

PESTLIED: Political, economic, socio-cultural, technological, legal,

international, environmental (or ecological), demographic

STEEPLE: socio-cultural, technological, environmental (or ecological),

economic, political, legal, ethical

vii
 Chapter 1

Introduction and Objectives

Chapter One of this dissertation presents the background to this dissertation. It provides

a background to the development of the telecommunications sector in Nigeria over

recent years, outlining also the sector’s role in overall national socioeconomic

development. The firm chosen to form the heart of the Dissertation, MTN Nigeria

Communications Limited, is briefly introduced, followed by aims, research question and

specific research objectives. Finally, the nature of the Researcher’s interest in the issue

at hand is set out

Background

This dissertation will investigate the success of MTN Nigeria during the period 2001 to

2015 by looking at the management approach adopted in response to its dynamic

external operating environment, and the implication of MTN’s performance on the

telecommunications sector. All mobile telecommunication companies in Nigeria operate

in the same economic and political environment, acquiring their key technological

infrastructure from Ericsson, Nokia Networks, Huawei and ZTE. They are all exposed to

the same governmental policies, fiscal environment, and external variables. The

distinguishing element most likely remains the corporate response or attitude, as

shaped by organizational culture, management approach, and strategy. These have,

1
upon initial inspection, set MTN apart from competitors. This dissertation will review how

MTN Nigeria has aligned with, and responded to its external business environment to

emerge as the foremost telecommunications company in Nigeria. Given the historical

sensitivity of the firm to its external environment, a specific focus will be placed on the

utility or otherwise of the PESTLE concept, which is an environmental scanning

technique originating from the field of strategic management.

1.1 Relevance of the Telecommunications Sector to the Nigerian Economy

Asogwa (2013) writes that the world is now a global village with the emergence of

robust communication systems that are integral in the entire process of globalization.

He notes that information Technology (IT) and telecommunication technology play

essential roles. Gold (2008) states that mobile telecommunications has empowered

Nigerians and enhanced business transactions, thereby serving as an impetus to

productivity, poverty reduction, and improvement in standard of living. Onoja (2016)

notes that the Nigerian telecommunication industry was liberalized with the

reemergence of democracy in the year 1999. This also led to the granting of mobile

operating licenses to operators of Global System for Mobile Telecommunications (GSM)

networks by the regulator of the industry, the Nigerian Communications Commission

(NCC). Three operators, MTN, ECONET and M-TEL were initially granted licenses,

followed by a fourth operator, GLOBACOM. In March 2008, another operator

(ETISALAT) was added to the list. Onoja (2016) also notes that the industry has since

its liberalization enhanced foreign direct and portfolio investments into the Nigerian

2
economy, created thousands of jobs and improved the GDP remarkably. According to

the Nigerian Communications Commission (NCC) 2017 stakeholder report, the

telecommunications sector contributed an average of about 8.1% to Nigeria’s Gross

Domestic Product (GDP) for the period 2010 – 2015.

1.2 Brief History of MTN Nigeria Communications Limited

MTN Nigeria is a subsidiary of MTN Group Limited, which has operations in 24

countries spread across Africa and the Middle East, and is headquartered in South

Africa. MTN Nigeria started operations in August 2001. Over the subsequent 15 years

of operations in Nigeria, MTN Nigeria amassed over 60 million mobile subscribers. This

rapid growth may possibly be attributed to the firm’s management style and strategy.

This research will evaluate how MTN has interacted with its external environment,

thereby maintaining a leadership position in the telecommunications sector.

1.3 Aims and Objectives of the Dissertation

The aim of this research is to investigate how MTN Nigeria has achieved a consistently

high sensitivity and responsiveness towards its external operating environment, and

how this alignment has helped to position it as the foremost telecommunications

company in Nigeria over recent years.

The research question posed for this dissertation is;

3
“How did MTN Nigeria align with its external operating environment to create a

strong relative commercial performance during the period 2001 to 2015?’’

Answering the research question will require responding to three more narrowly focused

and bounded research objectives. These are:

(1) To investigate the management strategy of MTN Nigeria relative to the demands

imposed by its external operating environment.

(2) To identify the key environmentally sensitized attributes that have helped MTN

Nigeria outperform other operators.

(3) To evaluate how MTN Nigeria can sustain these identified growth and stability

amplifiers in the changing external environment of telecommunications business in

Nigeria.

1.4 Specific Interest of the Researcher in this Subject

Belaid (2002) notes that there is not much research work that concentrates on specific

telecommunications infrastructures and their role in the performance of an economy.

Rather, most research focuses on contributions of the telecommunications sector in the

reduction of transaction costs and thus encouraging more effective business

performance. However, for this dissertation, the researcher’s interest is in

understanding how MTN Nigeria has weathered and indeed, grown through the volatile

4
Nigerian business environment, and how it has maintained a prominent position in the

industry.

Aiding in this task, the researcher has over 12 years’ experience in the

telecommunications industry and has witnessed the rapid growth in the sector, hence a

desire to understand how the most prominent operator has interfaced with its operating

environment. His experience suggests to him that MTN Nigeria is an environmentally

focused firm and this quality has been invaluable in supporting its successful

performances. It is also important, though, for the researcher to ensure that this

background experience does not create a bias in the interpretation of results resulting

from precognition and preunderstanding. Saunders, Lewis, and Thornhill (2009) note

that there is an argument that insider researchers are native to the background and

research setting and, are prone to allegations of being too near and not attaining the

required objectivity and distance necessary for achieving a good research stance.

Coghlan and Brannick (2005) challenge this view, and believe insider research is valid

and useful as it provides a clear view of what the organization under research truly is

like, which a traditional approach to a research study may not be able to uncover.

Appropriate methodologies will be adopted to answer the question that will be raised in

this dissertation and control for sources of researcher bias wherever possible. These

steps are outlined in chapter three below, which is a description of the methodology.

5
Dissertation Structure

This dissertation started with this introductory argument, which is also the first chapter.

This will be followed by the Literature Review which is the second chapter. This consists

of a critical review of literatures on the issue. The third chapter will be the Research

Methodology where aspects to research philosophy and selection of research

instruments adopted will be outlined. In the fourth chapter, the Research Findings will

be discussed. The fifth and concluding chapter will show the researcher’s Conclusion,

and Recommendations. The research question will also be addressed.

6
 Chapter 2

LITERATURE REVIEW

2.1 Introduction

The purpose of this literature review is to present secondary research on the

environmental scanning framework of PESTLE and the alignment of strategy to realities

in the external operating environment of business. To this end, this dissertation presents

a review of existing literature on the strategic management concept of PESTLE,

showing its adaptability and utility as a tool to understand the changing operations of

MTN Nigeria. This literature review begins with the review of existing literature on the

environment of business, while the PESTLE framework as an environmental scanning

framework is also appraised. To locate relevant literature on this subject, the researcher

carried out searches on existing literature, using Google Scholar, and other data bases

such as Quest Discovery, amongst others. Library searches on hard copy materials

were also carried out. The key areas of the Researcher’s search were on PESTLE,

Strategic Management, and Company Analysis. Peer reviewed materials were the main

source of the review, these being accorded the highest priority. The individual elements

of the framework are reviewed, highlighting the evolution of the framework while

considering other approaches to the framework.

2.2 The External Environment of a Business Organization

Ketchen and Short (2011) view an environment as consisting of the external conditions

and forces (those that lie outside its organizational boundary) that can influence the

7
organization. They note that for a typical business organization, its environment would

contain their customers, their competitors, the social trends relating to generally

acceptable norms and habits, political and governmental systems, and other dynamic

influences. Every business organization is a constituent member of a wider operating

industry. An industry is a group of firms engaged in the production of the same principal

product (Johnson, Scholes and Whittington, 2008). The five-force analysis of Porter is a

standardized instrument with which to analyze an industry (Porter, 1980). Porter’s five

forces of competitive position analysis is premised on the belief that there are five forces

that determine the competitive intensity and attractiveness of a market, and at the same

time identifying where power lies in a business setting. The five forces include, Supplier

power, Buyer power, Competitive Rivalry, Threat of Substitution, and Threat of new

entry (Downey, 2007).

Figure 2.1 The Porters Five Forces is represented diagrammatically below.

Threats of substitution
Buyer switching cost
-Buyer propensity to
substitute
-Product differentiation

d
i
Buyer power e.g. Rivalry e.g. a Supplier power e.g. •
• Buyer information • • Number of competitors Supplier concentration •
Buyer volume • Buyer price • Size of competitors • g Importance of volume to
sensitivity • Buyer Industry growth rate • r supplier • Cost relative
switching costs • Bargaining Differentiation • Exit to selling price
leverage barriers a
m
Threats of substitutione.g.
• Buyer switching cost •
Buyer propensity
Threat to e.g. •
of new entry
substitutecosts
Switching • Product
• Economies
differentiation
of scale • Learning curve •
Capital requirements •
Source: Downey (2007) Patents

8
The Macro-environment of a business organization consists of everything outside the

organizational boundary, and is made up of conditions which could affect the

organization but whose impact appears to be latent, mediated or subtle. This would

include the PESTLE elements of political, economic, socio-cultural, technological, legal

and environmental factors (Cadle, Paul, & Turner, 2010). As an environmental scanning

technique, adoption of the PESTLE approach is essential for a telecommunication

company to build a long-lasting competitive advantage in the changing and dynamic

telecommunications industry. Johnson, Scholes and Whittington (2008) point out that

the PESTLE framework of environmental scanning provides a summary of many of the

questions to be asked about the major forces working in the macro-environment.

2.2.1 The Relationship Between an Organization and Its External Environment

Ketchen and Short (2011) note that every action taken by an organization has an

influence on its external operating environment, such as advertisement campaigns or

price adjustments. On the other hand, economic issues affecting the purchasing power

of an organization’s customers would affect their spending decisions and ultimately,

their more ingrained habits and by implication the sales revenue of the business

organization. Ketchen and Short (2011) observe that the external environment of a

business organization provides the resources that the business organization needs for

the creation of goods and services. The external environment of a business in turn

depends on the output and various contributions from other businesses, in a constantly

emerging business ecology.

9
2.2.2 Aligning Strategy with External Environment

Porter (1980) believes a business strategy should be developed with a focus on profit

maximization. Thus, the business strategies of a firm should be developed with an aim

of securing a competitive advantage in the industry in which it operates (Porter and

Millar, 1985). In other words, a successful strategy is a situated strategy. Johnson,

Scholes and Whittington (2008) define strategy as the matching of an organization’s

resources and activities to the opportunities in the operating environment. By this

argument, an organization must have a firm understanding of the environment it

operates in for it to fully align resources to external opportunities and challenges.

Kaplan and Norton (2008) believe an adopted strategy and its assumptions (among

which are assumptions relating to alignment and strategic ‘fit’) are sometimes

discovered to have been flawed, and would require to be adjusted to conform to the

current realities. The adjustment process may take the form, either of an incremental

action or as an outright overhaul of existing strategy. Expanding the scope of what is to

be included in the environment, Menet (2016) is of the view that beyond the immediate

external environment of a business, regional and globalization forces must be factored

as relevant external environments of a business; arguing that a strategic initiative that

excludes a consideration of regional and global forces would be deemed incomplete.

The constant factors in the environment must be weighed alongside the variables in the

operating environment before the matching between resources and the operating

environment is done – and the emphasis on variable and varying factors means that the

matching process will necessarily be ongoing.

10
2.2.3 The Importance of understanding the General Environment

Ketchen and Short (2011) write that the external environment of a business organization

provides the resources that the business organization needs for the creation of goods

and services. They are of the view that the environment is also a source of opportunities

and potential threats for a business organization. They however note that threats

emanating from the external environment of a business organization can serve as an

opportunity for another business organization. The environment also places constraints

on strategic leadership decisions and goals for the organization. An example of this is

the impact of a recession on an already defined business strategy set by executive

management, where that recession places marketized limits on growth, for instance, or

sets new ethical norms for decisions to lay staff off.

Johnson, Scholes and Whittington (2008) are also of the opinion that the external

operating environment of a business organization is what gives the business

organization its means of survival. They note that organizations in the private sector

stay alive because of satisfied customers - who are a part of their external environment.

They are also persuaded that threats to the existence of the business organization

substantially emanate from its immediate and remote external environment. They cite

examples as; hostile change in demand, volatility of regulatory requirements,

unexpected change in technologies, or the entry of a new and focused competitor. A

change in the external environment can equally be fatal to the existence of a business

organization. Whittington (2008) notes that many business managers believe external

environmental factors matter the most in drafting a business strategy. They diverge from

11
the resource-based view advocated by those who favor a more internal approach. That

argument prioritizes an organization’s strategic capabilities, available resources, and

cultures as the drivers of strategy.

2.3 The PESTLE Framework

Historical Perspective: The Evolution of the PESTLE Framework

Thakur (2010) notes that though there is not much information on the origin of the

PESTLE framework as an environmental scanning technique, the works of Aguilar in

the 1960s point to him as the originator of many earliest tools and frameworks for the

scanning of a business environment, having the first mention of the tool. Thakur notes

that the earlier variants like PEST analysis are attributed to the ingenuity and strategic

planning works of Aguilar. The evolution of the PESTLE framework according to Thakur

(2010) started with the ETPS (Economic, Technological, Political, and Social

Environment) framework attributable to Aguila. The ETPS were the four external

environments that must be scanned when embarking on a strategic management

decision process. Even in the current form, PEST still revolves around the ETPS

factors, while the term PEST later gained more acceptance. Thakur notes that Arnold

Brown, from the institute of Life Insurance, shortly after also recognized the same

environmental factors, though with a different labelling as STEP, with the notion that the

four environmental factors also implied a ‘Strategic Trend Evaluation Process’.

12
There are no clear records of the evolution of PEST from STEP or ETPS, as Thakur

(2010) notes. In its extended form, the PEST is known as PESTLE or PESTEL. The

discovery of the fact that legal matters often derailed strategic plans prompted the

business world to factor the scanning of the legal environment, leading to the PESTLE

or STEPLE framework. In modern strategic business decision making, the consideration

of ethical correctness of strategies has prompted the evolution or consideration of the

scanning of the ethical environment of a business leading to STEEPLE, meaning the

addition of an extra letter ‘E’ (for ethics) to the framework, while STEEPLE is also seen

as the all-encompassing form of PEST (Thakur, 2010).

What is PESTLE?

PESTLE is an acronym that stands for Political, Economic, Social, Technological,

Legal, and Environmental factors. In the PESTLE approach, each of these factors may

be treated as being distinct from the others, yet also mutually constitutive. Thus, Rao,

Rao, and Sivaramakrishna (2008) explained an environment as consisting of several

forces that interface with each other, thereby creating entirely a new set of forces,

hence making it both complex and emergent. The operating environment is then a

combination of the internal and external. This dissertation focuses on the external

elements of the business environment as they relate to MTN Nigeria.

As noted earlier, Johnson, Scholes and Whittington (2008) view strategy as the

matching of an organization’s capabilities and resources to its operating environment.

13
An organization would need to have a clear understanding of the environment it

operates in for it to make quality decisions; matching the environment to its internal

capabilities. Matching a changing environment is sometimes termed seeking alignment

and keeping alignment is anything but straightforward (Johnson, Scholes and

Whittington, 2008).

Table 2.1 PESTLE framework – generic contents

Politics Economy Social

- Role of governments - Macro-economic factors, example - - Dynamic cultures and demographics,

- Government stability
- Taxation policy
- Foreign trade regulations
- Social welfare policies
Technology
exchange rates. - Income distribution
- business cycles and differential - Social mobility, lifestyle changes,
economic growth rates around the
- Attitudes towards work and leisure
- Consumerism and levels of education
world.
- Interest rates, GNP patterns,
inflation, unemployment, money
supply and disposable income.
Legal Environment

- Innovations like the Internet,
or nanotechnologies.
- Volume of spending on
research and development.
- speed of technology
transfer and rates of
obsolescence
- Legislative constraints
or changes, such as health and
safety legislation or restrictions on
company mergers and acquisitions
- Industry Regulator
- Green issues, such as pollution
and waste
- Environmental protection laws,
waste disposal and energy
consumption.
- Sustainability culture and
compliance

Source: Cadle, Paul and Turner (2010)

There are other similar concepts to PESTLE that can be used to investigate the

environment that an organization operates in (Cadle, Paul & Turner, 2010).

These include Porter’s Five Forces and SWOT, amongst others. Other External

environment scanning technique include, the PEST, PESTLIED, and STEEPLE, also

represented in table 2.2 below.

14
Table 2.2 The commonly used PESTLE variants/ approaches to external environment

analysis are represented in table below:

PESTLE Variants Description

PEST Political, Economic, Socio-Cultural,
Technological
PESTLIED Political, economic, socio-cultural,
technological, legal,
international, environmental (or
ecological), demographic.

STEEPLE socio-cultural, technological,

environmental (or ecological),
economic, political, legal, ethical.

Source: Cadle, Paul, and Turner (2010)

The PESTLE framework provides a yardstick used for the review of the external

environment of a business organization. Comparatively, unlike the SWOT instrument,

the PESTLE approach focuses only on the external environment of a business

organization. For a business organization to implement its business strategies

successfully, the internal environment can be analyzed by using the SWOT analysis,

while the external environment analysis will serve as a complement. (Katerina, 2015).

15
 Table 2.3 Comparative review of Influential Internal and External Environmental

Scanning techniques:

Technique Main Use Merit Demerit

For scanning the external environment The external
PESTLE of a business organization It is easy to use environment of a
business changes
without notice.
It is difficult to
Porter’s Five Forces It is a reliable basis integrate the
For scanning the external environment & framework for complexities of
of a business business analysis modern markets with
and strategy the frequent inter-
development. relations & product
groups of businesses.
Current strength may
For scanning the external and Internal It is a precursor to change without notice
SWOT environment of a business to discover the strategic because of external
internal strengths, weaknesses, and planning process, changes beyond the
external opportunities and threats. situating an control of the
enterprise within its organization.
wider world.

BSC measures a company’s An effective This tool can be a

Balanced Score Card performance from 4 perspectives, strategic planning costly and time-
namely financial, customer, internal tool consuming. Planning
processes, and learning & growth. & implementation
process.
The model is There are not enough
A diagnostic model used to organize versatile and robust experiments to
The 7-S Framework a company effectively. as it considers all empirically support the
seven elements and model.
their interplay with
each other

Source: Cadle, Paul, and Turner (2010)

Cadle, Paul, and Turner (2010) are of the view that when applying PESTLE, the focus

will be on the identification of external elements and not on taking a decision about what

to do about them. This argument suggests that it is PESTLE’s role and contribution

within a wider process of cognition, deliberation, argument and action that is important.

It is after a brainstorming session on the PESTLE elements that strategies will be

aligned with the discoveries regarding its factors. Reeves and Deimler (2011) assert

16
that to adapt to the realities in a business environment, a business must be sensitive to

the changes in the external environment, analyze these changes and reposition its

business model to confront, confound or avoid those changes. The business

organization must deploy its strength and take advantage of its opportunities to

reposition itself in the market competitively. Cadle, Paul and Turner (2010) note that

there are many related approaches used to investigate the global business environment

in which an organization operates; of these, the PESTLE instrument offers one. As

noted, the PESTLE approach provides a framework for analyzing the external

environment of an organization. It should be noted that its six areas are potentially very

different dynamically and constitutionally from each other.

The PESTLE approach is used in a forum of social interaction and joint learning, where

different ideas and contributions are acquired. Representatives from different areas and

specialties make their heterogeneous contributions, building on their personal

experiences and backgrounds. This is further emphasized by Aguilar (1967), who notes

that personal sources of information are significantly more useful than impersonal

sources of information. In this view, the subjective, tacit and intuitive assume

significance over value-neutral ‘facts’. Cadle, Paul and Turner (2010) state that using

the PESTLE framework means looking for factors that fit two criteria: they are outside

the sphere of control of the organization, and they will have some level of impact upon

it.

17
Ketchen and Short (2011) explain PESTLE as an anagram, which means that it is a

word that is created by using parts of other words. They note that the PESTLE

framework is a tool that the management and executives of an organization can rely on

for analyzing the general environment, identifying how these factors can influence the

organization and the industries they are in. According to Cadle, Paul and Turner (2010),

all organizations have the need to confront the challenges that emanate from their

external environment. The prediction of the possibility of these challenges arising will

require the scanning of the business environment to determine such possibility. The

scanning will not be a one-off activity but an ongoing one. A consistency is required in

the environmental scanning because the external environment of a business is

dynamic, having changes occurring randomly. Johnson, Scholes and Whittington (2008)

are also of the view that the PESTLE framework can be used in the identification of the

impact of anticipated future trends in the political, economic, social, technological, legal,

and environmental (or sustainable development) elements of the external business

environment might impinge on the business.

The key merit of the PESTLE framework is that it is easy to use and quite simple, while

a key demerit of the PESTLE framework is the fact that the external environment of a

business organization is dynamic and changes, sometimes without recourse or notice.

The researcher will formulate a method to analyze the macro-environment of MTN

Nigeria, with the PESTLE framework being a part of it. This will further be discussed in

the fourth chapter. The review now considers each of the six factors that make up

PESTLE.

18
2.3.1 POLITICAL

Jarvenpaa and Tiller (1999), believe technology and management strategy decisions

are closely related to the political environment in which an organization operates. Issa,

Chang, and Issa (2010) assert that organizations must consider and align with the laws

and regulations that obtain in their operating environment. Ketchen and Short (2011)

view the political element, as centering on the role of the government in shaping and

regulating businesses. This segment covers issues such as taxation policies, trade

restrictions and tariffs, stability of governments and governmental policies. Policies

around immigration also can affect local businesses in the telecommunications industry

as most technologies are imported, and do require regular infusions of skills and

technical mobility across national boundaries. Also, Johnson, Scholes and Whittington

(2008) are of the view that the political element of the PESTLE would include an

assessment of government stability, and stability of governmental policies, tax policies,

foreign trade regulations and prohibitive tax systems, and social welfare policies.

Government stability or instability is an underlying factor that influences other macro-

environmental forces (Oyebisi, 2003). Volatile governmental policies influence the

implementation of strategies relative to the operating environment of a business

organization. Interrupting, frequent, and unexpected changes in policies around legal

frameworks, trade policies, privatization and commercialization policies, could markedly

affect a given growth strategy, not least for a telecommunication company.

19
2.3.2 ECONOMIC

Jarvenpaa and Tiller (1999), believe management strategy decisions are closely related

to the economic environment in which an organization operates. The economic element

centers on the conditions in the economy within which a business organization operates

(Ketchen and Short, 2011). The elements include inflationary trends, exchange rate

factors, gross domestic product, unemployment rates, and the general growth or

recession of an economy. Ketchen and Short (2011) are of the view that the economic

crisis of the late 2000s had a tremendous negative impact on several business

organizations, leading to unemployment which reduced the propensity to consume

certain luxury goods such as automobiles. Several bank failures during the period also

caused tightening of credit to businesses. The global credit crunch hit several Nigerian

businesses, including those in the telecommunications sector.

Both Johnson, Scholes and Whittington (2008) and Ketchen and Short (2011) note that

GNP trends, interest rates, exchange rates, employment rates, disposable income and

general economic conditions are important factors in formulating a strategy relative to

the operating business environment. Ketchen and Short (2011) also observe that some

businesses prospered during the economic crisis, citing retailers who reduced their

prices and gained many new customers and patronage.

20
2.3.3 SOCIO-CULTURAL

Wedel & Kamakura (2003), are of the view that a company must first determine a

customer’s need before offering a solution or service. In determining a customer’s need,

one must also factor in the socio-cultural realities. Marketing mix is explained by

Masterson and Pickton (2014), as having the right product in the right place, at the right

time, and at the right price. Hence the need to segment customers based on needs or

perception, which are influenced by culture, tradition and orientation. Gilmore (2003)

believes customers are involved in the production of services (co-production), because

services are processes, deeds or acts. As such, the perception of the customer, which

is influenced by socio cultural orientation is vital in the delivery of a service. Jarvenpaa

and Tiller (1999) believe management strategy decisions are closely related to the

social environment in which an organization operates. An effective strategy geared

towards giving back to the society in the form of a corporate social responsibility must

factor the cultures and social inclinations of the external environment. Porter and

Kramer (2006), writes that to practice a strategic corporate social responsibility process,

an organization must first and foremost identify the points of intersection between the

society and the business organization. Society encompasses cultures and traditions.

They also note that the Corporate Social Responsibility (CSR) line of focus should be

such that it also positively affects the performance or profitability of the company.

This implies that social needs should be addressed in ways that create shared value -

which is a meaningful benefit to the society that also adds to a company’s bottom line.

An effective CSR practice attracts goodwill from the potential customers, while the

21
avoidance of CSR can create resentment in the affected communities. A progressive

business model should be able to create value by meeting market demands and, at the

same time, mitigating social issues and problems or improving society in some way.

Ketchen and Short (2011) suggest social factors to include population size, age, ethnic

mix, or cultural trends. Johnson, Scholes and Whittington (2008) are of the same

opinion, but added social mobility, population demographics, lifestyle changes and

income distribution to the list of social factors.

2.3.4 TECHNOLOGICAL

Jarvenpaa and Tiller (1999), are of the view that technology and management strategy

decisions are closely related to the environment in which an organization operates. The

technological segment of the external environment in the PESTLE framework centers

on enhancements and improvements in the products and services provided through the

products of science (Ketchen and Short, 2011). They are of the view that some of the

relevant factors in the technological element include new product development,

increase in automation of processes, and advancement in service delivery process.

They believe a key feature of the modern era is the increasing pace of innovations in

technology. This increasing pace of innovations trend in technology creates a significant

opportunity for organizations that depend on emerging technologies. An example is the

writers of applications for mobile telecommunication devices who target a fast-growing

population of users. Apple and other tablet device manufacturers readily exemplify this.

22
Johnson, Scholes and Whittington (2008) believe government spending on research,

focus on technological effort, developmental initiatives, speed of technology transfer

and rates of obsolescence are potential external environmental variables capable of

affecting the strategy and performance of a business. The telecommunications business

is a heavy technology based business, and depends thoroughly on an evolving

technological infrastructure which changes within short periods of time. A

telecommunications company must be up to date with the modern technologies required

for the delivery of its service to enhance their customer experience, and maintain

relevance in the market. Collins (2005) asserts that technology is a major driver of the

modern economy, showing how Cisco, Intel, Siemens, amongst others have made

significant progress in the creation and harnessing of new and improved technologies,

while noting that the likes of Google and Yahoo would not have existed without the

invention of computers and the Internet.

2.3.5 LEGAL

Jarvenpaa and Tiller (1999), believe management strategy decisions are closely related

to the regulatory and social environment in which an organization operates. All business

organizations operate under a geographically defined legal framework. All countries

have generalized laws and regulations that govern them, though all cultures also have

laws that are unique to them. The legal segment revolves around how the courts and

law makers influence the activities of businesses (Ketchen and Short, 2011). Some

examples of relevant legal factors include health and safety laws, employment laws,

23
consumer protection laws such as the Nigerian telecommunications consumer

protection laws, discrimination laws and antitrust laws.

2..3.6 ENVIRONMENTAL

Martin and Schouten (2012), point out that some corporate managements have found

themselves in unfavorable conditions with governmental agencies in that they showed

indifference to environmental and social concerns. The environmental elements are the

physical conditions within which business organizations operate (Ketchen and Short,

2011). Natural disasters, levels of environmental pollution, and weather patterns are

included among this heading. The threat of radiation has forced communities to relocate

the siting of certain telecommunications radio transmission equipment. Businesses are

expected to adopt sustainability as a basic principle of business practice. They are

expected to protect the environment in which they operate. From an operations

perspective, "Sustainability" means the creation of a production process which can

support the conservation, the recycling, and renewal of resources in the environment.

Where a business does not subscribe to laid-down established environmental laws and

fair economic practices, it would open itself to a threat and risk of sanctions, while

subscribing to the same can become a social strength.

24
Conclusion

As highlighted in this literature review, the PESTLE framework (which is an

environmental scanning tool) has been reviewed from the perspective of various

contributors. The alignment of a business strategy with the realities of the external

operating environment of a business was also reviewed. This approach was selected by

the researcher because of the applicability and relevance to the dissertation’s focus,

which borders on the growth management approach of MTN Nigeria in relation to its

external environment. The next chapter turns to address issues of methodology.

25
 Chapter 3

Research Methodology

3.1 Introduction

The focus of this dissertation is to investigate the growth management approach of MTN

Nigeria in relation to its external operating environment, 2001 – 2015. This is to be done

by looking at the management responses to its dynamic external operating

environment. Appropriate and considered methodologies have been adopted to answer

the current question and control for sources of researcher bias wherever possible.

These steps are outlined in this chapter, which is a description of the methodology and

its selection rationale.

The Research Methodology is where aspects to research philosophy and selection of

research instruments adopted are outlined. This dissertation adopts a combination of

primary and secondary data. Interviews were conducted, questionnaires were prepared

as a back-up for interviews, while there was a review of existing publications and

document search for grey literature. Bell (1999) referred to this multi-method of carrying

out a research study as data triangulation, where different sources of data are

deliberately counter posed to secure a more rounded evidence base. This method was

adopted to ensure some level of accuracy in the research finding. MTN’s financial

reports, the telecommunications sector regulator (The NCC) reports, MTN annual

integrated reports, annual sustainability reports, and other MTN publications were

26
reviewed as sources of secondary data. The primary data gathering was by interviews.

The interview method was adopted because the research topic required interviewing

knowledgeable and experienced personnel in the Nigerian telecommunications sector.

The interview approach gave room for adaptability which could not be achieved by

using the Questionnaire method, as the questionnaire prepared was only a backup in

event a respondent is unavoidably absent from a scheduled interview. The logic behind

these choices is now examined in more detail.

3.2 Research Philosophy

According to Galliers (1991), research philosophy is the belief about the way the

collection of data about an event should be gathered, analyzed, and applied. Mason

(2014) notes that the idea that there are different views of the world around us, and the

processes that operate in it, amounts to what is known as research philosophy. In

undertaking a research of this nature, it is important that the researcher considers

different research paradigms and matters of epistemology and ontology. James and

Vinnicombe (2002) are of the view that there are inherent preferences that would likely

shape a researcher’s research design, while Blaikie (2000) describes these aspects as

constituents of a sequence of choices that the researcher should consider, showing the

alignment that connects these choices to the research problem.

27
Ontology

Ontology is ‘the science or study of being’ (Blaikie, 1993). He notes that this description

encompasses claims about what exists, what makes it up, what it looks like, and how

the units that make it up interact with each other. From this perspective, ontology

describes our view, either as assumptions or outright claims, on the makeup of reality.

Mason (2014) writes that the researcher Kuhn introduced the concept of ‘paradigm’. He

notes that the concept of paradigm is important because the paradigm people use to

view the world around them on a day-to-day basis, will influence the way research is

conducted. He notes that a paradigm is a pre-requisite of perception, observing that

what one sees depends on what one looks at, and one’s previous visual experience;

that is, the way one has been taught to think and look at things.

According to Mason (2014), in answering the question of ‘what is real?’ one would have

focused on the concept of ontology. He notes that, in relation to this question, there are

varying possible responses arising from each paradigm. The first paradigm takes a ‘yes’

stand to observable realities affected by a set of laws, while the second paradigm takes

a stand that everything is relative, without recognizing any universal truths. He notes

that this second paradigm recognizes every other thing as subjective truth. Mason

(2014) describes those who accept that there is a single objective truth as ‘positivists’.

He notes that positivists believe that there are universal truths that are waiting to be

discovered. He asserts that those who are of the view that there is no reality other than

what individuals conceptualize in their minds are known as ‘constructivists’ or

28
‘interpretivists’. These two paradigms, positivism and interpretivism dominate the field of

research into business and organization.

Epistemology

Epistemology is the theory or the science of the methods of knowledge (Blaikie, 1993).

According to Mason (2014), what people perceive of the world around them (as reality)

influences their knowledge of the world. He notes that each of the two paradigms both

have different perceptions of reality. This implies that what is thought of and considered

as real will also affect the way that knowledge is gained. Mason (2014) notes that where

one perceives the world as having some universal truths, it implies that these truths can

be discovered through carrying out an objective research where the researcher does

not interact with the object of the research. He notes that this neutral and objective

approach to research will be a suitable way to gain unbiased knowledge. He also notes

that, where the view of the environment is seen as having multiple realities, rather than

universal truths, then a researcher would have to interact with those realities being

studied in an attempt to reveal their attributes relative to the subject under study, in

order to gain knowledge. The way people perceive reality influences their opinion on

how knowledge should be gained, and the process to be followed in gaining that

knowledge as a researcher.

According to Mason (2014), if one accepts that human understanding of the reality

around them affects the way they gain knowledge of reality, then one must accept that

29
this will also affect how research about reality should be conducted, or what is now

termed methodology.

3.3 Research Design

Research design is a blueprint for carrying out a study with total control of the factors

that could cause interference with the validity of the findings (Burns and Grove, 2003).

This study focuses on the growth management approach of MTN Nigeria in relation to

its external operating environment. The researcher’s approach for this research is

qualitative, non-experimental, and exploratory-descriptive. Qualitative research is a

social enquiry that focuses on the way people perceive and interpret their experiences

and the world around them (Holloway and Wheeler, 2002). The reason for the adoption

of a qualitative research approach was to capture the (potentially contradictory and

certainly multiple) opinions of people who are knowledgeable in the external operating

environment of MTN Nigeria, and who are also familiar with its operations. This means

harnessing their opinions on how they perceive the growth management approach of

MTN in relation to its external environment. The researcher made a provision of

adequate notice to all respondents, covering a period of about two months to sensitize

them before the actual face-to-face verbal interviews, while the researcher accessed

existing publications that are related to MTN. According to White (2000), qualitative

research is expressed in words, its collection of data is non-standardized (often

situation-specific), while the analysis is via the identification of concepts and use of

descriptions. The researcher also focused the research on the perceptions and

30
experiences from the participants’ perspective. The researcher participated in the study

by immersing in it, which added to the peculiarity of the data collection and analysis.

Streubert & Carpenter (1999) note that the emic perspective is achieved where a

researcher becomes involved and immersed in a study. This was the situation in the

current study.

3.4 Research Methods

Research Approach

An exploratory research approach was adopted because there is no known available

research on the growth management approach of MTN Nigeria in relation to its external

operating environment. A descriptive research approach centers on the questions of

who, what, when where, and how of a subject (Cooper and Schindler, 1998). The mix of

primary and secondary data involves a combination of interviews, and a review of

existing publications and document search for grey literature. MTN’s financial reports,

the telecommunications sector regulator (The NCC) reports, MTN annual integrated

reports, annual sustainability reports, and other MTN publications were reviewed as

sources of secondary data.

Research Population and Sampling Criteria

Research Population is the overall number of units from which data can be selected,

and it includes the events, individuals and organizations (Parahoo, 1997).

31
The elements that qualify the inclusion criteria make up the research population in a

study, while the eligibility criteria are made up of the list of features or characteristics

required for membership in the targeted population (Burns and Grove, 1997). For this

research, the primary members of the population were those from institutions and firms

directly involved in the telecommunications value chain. They included

telecommunications’ providers, telecommunications equipment vendors, regulators and

industry operators. The criteria for inclusion includes;

- A staff member of MTN Nigeria with managerial experience of up to 5 years.

- An experienced telecommunications expert working with an MTN competitor,

having an experience of not less than 10 years in the Nigerian

telecommunications sector.

- An employee of the industry regulator (The NCC) with relevant experience of not

less than 10 years.

- An employee of a major telecommunications hardware supplier that distributes its

products across all competitors in the industry, with a fund of experience of more

than 10 years.

Ten interviewees were selected for the research sample from members of this ontology.

Those selected were made up of current staff of MTN Nigeria, each with a minimum

work experience of 10 years and on managerial levels, previous employees with a

minimum of ten years work experience, employees of competitors who have been in the

Nigerian telecommunications industry for over a period of ten years, and the employee

of the Nigerian telecommunications industry regulator with over ten years’ experience.

The years of experience was made a selection criterion in other to ensure that the

32
interviewees had substantial exposure to and direct knowledge of the dynamics of the

industry. Staff of larger telecommunications hardware providers were also included in

the sample. All these have had some form of contact with MTN Nigeria, directly or

indirectly. The interview was based on the perceived growth management approach of

MTN Nigeria in relation to its external operating environment. Various appointments

were fixed for the interviews, while the interviewees had full knowledge of the intent of

the interview and there was an assurance of confidentiality. Appendix A is a list of the

interviewees’ companies, roles, years of experience and their assigned interview dates.

The interviews were carried out in a conversational manner, though focused on the key

subject. The interview framework was aligned with a set of questions as listed below

(constituting the interview guide), while the subject area of PESTLE elements was

considered.

Interview Questions

(1) Which external environmental factors affect and influence MTN Nigeria the most?

(2) How did MTN Nigeria respond to these external environmental factors over the

period 2001-2015

(3) How did other operators or competitors respond to similar external factors within

the period 2001-2015?

(4) What are the most obvious reasons behind MTN Nigeria’s growth in the last 15

years?

(5) How can MTN Nigeria sustain this growth in the dynamic Nigerian market

environment?

33
 (6) What is your view of the future of the telecommunications industry in Nigeria, and

the role of MTN Nigeria in that changing industry?

The Questionnaire: Structure and Purpose

Another approach adopted by the researcher was the questionnaire approach, where

online questionnaires were emailed to the interviewees as an alternative option to a

face-to-face. The questionnaire consisted of 50 questions. 45 questions had answer

options, while there were 5 text based questions. Optional questions had very low, low,

medium, high, and very high preference options to questions. Other optional questions

were classified with five sub-options of ‘High negative effect, Low negative effect, no

effect, Low positive effect, High positive effect, while the answers options were ranked

in order of 1 to 5.

Data analysis

Initial notifications and sensitization to participate in interviews were sent out to

interviewees in early August through September via phone calls and emails. Actual

interviews were conducted from October through November 2017. All interviewees were

available for interviews, and none of them resorted to the questionnaire option. Average

interview time for each interviewee lasted for about an hour and fifteen minutes, while

the interview locations were mainly interviewees offices, cafeterias, and residence.

34
3.5 Research Ethics

The ethics of this research relates to the moral standards that the researcher

considered in all aspects of the research and research design stages. During the

interviews, confidential questions were avoided. Questions that would violate or

necessitate the release of sensitive information were also avoided. The researcher did

not divulge any prior gained sensitive information that could put MTN Nigeria at a

disadvantage viz-a-viz its competitors. The researcher followed the basic principles of

the Belmont report, which includes beneficence, respect for human dignity, and justice

(Polit et al 2001). The researcher was also sensitive to the emotions of the participants.

Questions that could affect their emotions negatively, and psychologically harm them

were avoided, while the researcher was also sensitive to their non-verbal reactions to

questions. They interviewees were assured that their participation or responses will not

in any way be used against them. The researcher applied full disclosure to the

participants, meaning the researcher explained fully the nature of the study and the right

of the participants to refuse participating. According to Polit et al (2001), self-

determination is dependent on full disclosure. The researcher therefore shared the aim,

objective and purpose of the study with those interviewed.

Conclusion

This chapter was focused on the research methodology. The main purpose of a

research design is ensuring that valid answers are received on the research question.

To achieve this, a qualitative, non-experimental, and exploratory-descriptive approach

35
was adopted. Interview approach via face to face interview and document search on

existing writeups on the subject matter were the main sources of information. All

interviewees were available for the interviews, as such the questionnaire developed was

not used in the observations. A descriptive approach was used in the analysis of the

information collected, while care was taken to ensure the data was trustworthy. An

ethical research approach was adopted to protect the participants. In the fourth Chapter,

the researcher will discuss the analysis of data and research findings.

36
 Chapter 4

Research Results

4.1 Introduction and Research Background

In this chapter, the researcher presents the results of research gathered from interview

data and secondary data from document searches. He then attempts to gather common

trends and themes applicable to the topic of the growth management approach of MTN

Nigeria and its relation to its external operating environment. As elaborated in the third

chapter, primary data was collected via interviews. Supplementary secondary data was

obtained from existing publications from MTN Nigeria’s archives and publications, all

duly referenced. All primary data results are presented in line with the research

objectives. The findings of the research are detailed below.

4.2 Research Findings

To answer the research question, the basic research sought information which would

meet the three research objectives.

Objective 1: To investigate the management strategy of MTN Nigeria relative to

the demands imposed by its external operating environment.

Three anonymized interviewees Mr. X, who is a staff member of MTN Nigeria with

managerial experience, Mr. Y, an experienced telecommunications expert working with

an MTN competitor, having an experience of over 10 years in the Nigerian

37
telecommunications industry, and Mr. Z, an employee of a major telecommunications

hardware supplier that distributes its products across all competitors in the industry, who

When they responded to interview questions 4 and 5, independently attributed the

success, growth and stability of MTN Nigeria to the overall strategy, adherence to

vision, and brand strength of the MTN Group headquartered in South Africa.

Adherence to Mission and Vision

According to Mr. X, ‘’an observed reason for the growth of MTN Nigeria is the

adherence to, and alignment of the overall business operations and decision making to

the mission and vision of the organization’’.

The Mission and Vision of MTN Nigeria

According to Mr. X, ‘’The overall reaction of MTN Nigeria to its external operating

environment is hinged on the value placed on its customers, the acceptance that

customer is king stands as the key influencer of most decisions made within the

company’’. The comments of Mr. Y affirmed this evaluation. Almost all interviewees are

of the view that products are developed with customer needs and satisfaction in mind,

prices are evaluated for profitability with the customer at the heart of the overall offer,

innovations are created around customer satisfaction and retention. According to the

MTN Group integrated report (2015), the mission of MTN is to Make its customers’ lives

a whole lot better, and the company has aligned its overall business objectives to

achieve that mission. The vision of MTN Nigeria is to lead the delivery of a bold, new

38
digital world to its customers, hence emphasizing the deep focus on the customer as

the reason for the existence of the entire business organization.

MTN Strategy

In responding to question 4 and 5, all interviewees believe there has been a rapid

change in the role of telecommunications in the period 2001 to 2015. A current manager

at MTN, Mrs. W, asserts that, not long ago, ‘’the traditional telecommunication mobile

voice services dominated the sector in Nigeria, but now they are just one of the

numerous services offered by the sector to its over 170 Million population’’. A former

employee of MTN, Mrs. O, and now in the employment of a competitor notes that ‘’The

demand for more digital solutions by customers compelled MTN Nigeria to refocus its

vision and mission statement while aligning its strategic objectives with the current trend

in customer demands. MTN realigned its strategy to ensure it maintained a leadership

position in the Nigerian telecommunications industry, while sustaining a business

approach and model which maximizes value for its stakeholders’’. According to the

2015 MTN Group integrated reports, in aligning its strategy with stakeholder

expectations, the creation and management of stakeholder value becomes a

fundamental strategic objective. An important part of this strategic objective is the

creation of a sustainable return for shareholders which ensures the incorporation of a

dividend growth policy and share buy-backs.

39
Good Corporate Citizenship

Three interviewees, two who are current staff of MTN Nigeria, (Mr. P, and Mrs. W) and

one an ex-staff (Mrs. O) but in the employment of a competitor, are of the view that

good corporate citizenship is a key element in MTN Nigeria’s strategy. Mr. P notes that

‘’MTN has managed its socio-economic impact and reputation, while adopting

sustainability practices and policies on their operating environment’’. As a sustainability

policy, MTN seeks to act responsibly when building its network infrastructure. MTN

Nigeria recognizes that technology without the right personnel amounts to nothing,

hence making MTN a rewarding place to work has been at the forefront of its human

resources strategy. One interviewee (Mrs. W) notes that the philosophy here for MTN is

to ensure that its people carry out their tasks and responsibilities with honesty and

integrity, with diligence, and with professionalism. The 2014 MTN Group integrated

reports notes that MTN Nigeria’s strategic goals center around, creating a distinct

customer experience, driving sustainable growth, and the transformation of its operating

model.

Objective 2: To identify the key environmentally sensitized attributes that have

helped MTN Nigeria outperform other operators.

The MTN Brand Strength

According to Mr. T, a senior staff of a major telecommunications hardware vendor,

‘’MTN Nigeria advocates technological advancements and change, with the aim of

enhancing its customers experience’’. The power of the MTN brand has been identified

as a key factor in the growth and success of MTN Nigeria. According to Mr. G, a current
40
manager in MTN Nigeria, ‘’MTN is focused on creating experiences that elevate its

employees’ capacity to act, developing their capabilities to innovate, learn and create’’.

He notes that MTN Nigeria invests 6% of its payroll in staff training, and this is far more

than the obtainable industry average of 3.2%. With this trend, its current employees

have voted MTN Nigeria as a ‘’top company to work for’’, and ‘’employer! of choice’’.

Ethics Governance and Management

MTN Nigeria aligns with the group ethics framework. According Mr. D, a staff of the

NCC, the industry regulator, MTN Nigeria commits itself to adherence to good business

practices and conduct, maintaining a strong reputation of openness, honesty, fairness

and integrity. It seems obvious for it to have adopted a zero-tolerance approach to

illegal and unethical business practices. Mrs. W, a current business manager in the

sales function at MTN interviewed confirms that ‘’business conducts and practices that

promote the protection of the interest of stakeholders are well respected. All employees

are made to pledge and sign a Code of Ethics, Social and Ethics statement, alongside

the Employee Conduct Pledge. These exercises are conducted annually, and represent

the standards of conducts for all employees, leaders, and the business’’. The MTN

Group Code of Ethics ensures that all business units operate within the confines of the

local laws in their operating environment, while subscribing to international laws and

best business practices (MTN Group Integrated Report, 2015). The principles that

govern the way MTN runs its business are set out in its Code of Ethics (The Code). The

41
code provides guideline on ethical practices relating to employees, customers, suppliers

and the government.

Approach to Ethical Business Practice

The Philosophy: According Mr. X, a current business manager at MTN, ‘’to protect the

image and integrity of the MTN brand, MTN Nigeria strives to carry out its business

affairs with integrity, honesty, diligence, and professionalism’’. MTN’s Group Integrated

annual report (2015) aligns with this view, noting that MTN believes as its philosophy

that the adoption of these practices inevitably leads to success. Mr. U, a manager in the

operations of a major competitor who also is a former employee of MTN notes that

‘’MTN seems to have entrenched ethics as a core fabric of its operations’’.

Compliance with regulatory Requirements: According to Mr. D, a staff member of the

NCC, ‘’MTN Nigeria strives to abide by the rules, regulations, and laws governing its

operating environment’’. MTN’s 2015 annual group sustainability report affirms that

MTN subscribes to international trade laws and regulations, sanctions and embargoes,

competition laws, intellectual property laws, human rights laws, anti-money laundering

laws, fraud, anti-bribery and corruption laws.

Conflict of Interest: All current MTN employees interviewed confirmed that the

possibility of having employee personal interest in conflict with the interest of MTN

Nigeria is minimized by deliberate actions aimed at sensitizing all employees. These

sessions are designed to enable them to identify and manage ethical conflicts as they

unfold. Annual conflict of interest agreements are signed by each employee to ensure

42
that each individual fully understands the implications of their day-to-day actions and

conduct.

Corporate Governance and Reporting: Mrs. O, a current employee of an MTN

competitor when interviewed is of the view that ‘’of all telecommunications companies in

Nigeria, MTN Nigeria strives the most to manage its business operations in line with

global acceptable standards and best practice, and seeks to maximize returns to its

shareholders’’. According to the MTN Integrated report, 2015, MTN achieves this by

putting in place a reliable and transparent corporate governance structure and process.

According to the 2015 integrated report, the global headquarters of the MTN group

plays a vital role here, in that the group is mandated to meet the requirements of the

King III report on corporate Governance. Financial and accounting records are

maintained accurately and comprehensively.

Customer relationship and Customer Service: All the interviewees, except the

current employee of an MTN competitor, Mr. U, are of the view that MTN Nigeria

focuses on the delivery of a high-quality, professional, and courteous customer service.

Mr. X, an employee of MTN notes that ‘’products and services are rolled out with the

aim of exceeding customer expectations, while meeting and complying with all requisite

and applicable safety standards’’. Mrs. W, a current manager at MTN with over 10

years’ experience in the industry is of the view that MTN understands that it operates in

a business where it is entrusted with the customer’s private information, and as such

strives to ensure the protection of such information from unauthorized use or access,

hence demonstrating a strong respect for its customer’s right to privacy.

43
Suppliers and Vendors: A manager at MTN, Mrs. W, notes that MTN does not

discriminate in vendor selection. A current employee of a hardware vendor interviewed,

Mr. Z, also affirms that in the selection of vendors and contractors, ‘’MTN adopts a

transparent approach and process which is based on objectivity and evidence’’.

Employee Relationship: According to the MTN Integrated reports, 2015, MTN Nigeria

strives to promote respect for basic human rights of all employees in the work place.

The work environment is made healthy, non-threatening and safe, while people are

treated with dignity and respect, irrespective of their position or status. Intimidations and

harassments are not tolerated at MTN Nigeria. Employees exercise their right to

freedom of association, while employee religious observance and practices are given

their proper place and accommodation. The 2015 Integrated report also notes that MTN

upholds competence and professionalism, with due respect for the cultures and

traditions of those in its external environment, while offensive, discriminatory, and

intimidating behaviors are strongly discouraged. All current employees interviewed

affirm this assertion on rights: however, their opinion differed regarding remuneration

and staff benefits. Mrs. O, who is a former MTN employee, but now with a competitor, is

of the view that MTN is better organized than most other operators in the industry, but

was also of the view that the remuneration structure at MTN would need some

improvement.

Government Relations: All current MTN employees interviewed are of the view that

MTN Nigeria maintains a transparent, honest, and ethical relationship with the Nigerian

44
government, officials of the government and other governmental agencies. However, a

current employee of the industry regulator, Mr. D, is of the view that this alignment by

MTN with regulatory requirements can be attributed to the firmness and knack for detail

in the supervisory role of the industry regulator. The regulator does not spare in

applying sanctions on any defaulting telecommunications service provider.

Communication: All current employees, ex-employees, and vendors are of the view

that MTN Nigeria communicates transparently, timely and accurately with its

stakeholders and the public. Its Products, management, or the operations of its

competitors are not spoken about in an unfavorable manner, in that MTN is ethical in its

external communications and advertisements. All current employees of competitors

interviewed are also of the same view.

Commitment towards the Environment, Communities and Society: The 2015 MTN

Group sustainability report affirms that MTN is a subscriber to the United Nations Global

Compact on human rights, and labor standards. All current employees interviewed

believe MTN strives to contribute to the socio-economic development of the Nigerian

economy.

Sustainability

MTN Nigeria aligns with the MTN Group’s sustainability vision. According to the MTN

Group 2015 Sustainability report, for MTN, sustainability is about the protection and

creation of economic value for the company and its stakeholders through the adoption

of responsible environmental and social business practices. Three focus areas include;

Sustainable economic value, eco-responsibility, and sustainable society.

45
Sustainable Economic Value: Mr. T, an employee of a foremost industry hardware

vendor interviewed is of the view that ‘’MTN recognizes that the digital revolution has

tremendously shaped and altered the way work is done, the way people live, interact,

learn, and develop’’, thus affirming the MTN Group 2015 integrated report. MTN also

recognizes that the Internet of Things (IoT) is fundamentally changing the way things

are done. All current MTN employees who were interviewed are of the same opinion

that between the period 2001- 2015, MTN Nigeria invested substantially in digital

inclusion projects, products and services, which in turn helped the company meet the

demand for affordable digital solutions in Nigeria. The digital inclusion projects covered

areas such as financial, health care, education, government and enterprise wide

categories. Mr. X notes that “To remain relevant and sustainable as a business venture,

the company understands the need for constant innovation, hence, MTN Nigeria hosts

and sponsors innovation challenges where the public and organizations are invited to

competitively develop mobile applications relevant to several sectors of the Nigerian

economy, inclusive of education, healthcare, and business”. Winning applications are

usually placed in an incubation stage or program where they receive support to ensure

the ideas can be transformed into practicable and real-life solutions to problems in

Nigeria. It is through these measures that the Company demonstrates its corporate

community involvement

Eco-Responsibility: According to the MTN Group 2015 sustainability report, MTN

Nigeria seeks to mitigate the environmental impact in Nigeria by its customers and its

operations. Nigeria is an environmentally vulnerable part of the world, and MTN Nigeria

has, since the commencement of its operations in 2001, maintained the economic and

46
societal legitimacy and leadership necessity in the reduction of its environmental impact.

Mr. G, a current MTN employee interviewed notes that ‘’MTN has added to its bouquet

of products, a solar powered device for lighting up homes in the rural areas, with

purchase and subscriptions to the solar device made from subscriber airtime’’.

According to the 2015 sustainability report, MTN Nigeria has made substantial

investments in green power sources, e-waste management and office greening

projects, and works continually towards the achievement of more with fewer resources,

resulting in progressively lower environmental impact.

Sustainable Society: As confirmed by the current MTN staff interviewed, Mr. G, and in

line with the 2015 sustainability report, MTN demonstrates responsibility for the rights,

health and safety of its employees and customers. As the largest mobile network

operator in Nigeria, MTN acts with the consciousness that it must actively contribute

towards a well governed, ethical, healthy and safe working environment for all

employees and customers.

Corporate Social Responsibility (CSR): According to the MTN Group Integrated

reports (2015), the MTN Foundation, which is an independent company, has the

responsibility to manage and implement all CSR initiatives of MTN Nigeria, and across

the MTN group. The foundation’s operations are financed by the contribution of 1%

Gross profit of MTN Nigeria. These CSR initiatives are now a formidable advertising and

image repositioning strategy for the company. The CSR initiatives stand as MTN’s way

47
of giving back to the wider society. The MTN foundation’s priority areas of development

and support include the areas of education, health and enterprise development.

Shared Value: According to Mr. X ‘’MTN Nigeria takes advantage of its wide coverage

and reach into the hinterlands through Corporate Social Responsibility activities to

penetrate several communities and build confidence and trust amongst the local

people’’. Furthermore, and as Interviewee G explained: ‘’Several communities that

benefited from MTN’s CSR initiatives have also provided security services for base

stations and other telecommunications assets’’. He notes that some of these remote

locations are volatile in nature, and would require local collaboration for adequate

security and protection of personnel and equipment. Mobile applications tailored to the

academic sphere have been built into MTN mobile devices, serving as a strategy for

acquiring customer loyalty for MTN’s scholarship beneficiaries.

Investors in People

According to the 2015 MTN Group Integrated reports, in 2013, MTN Nigeria became the

first Nigerian company to officially attain the ‘Investors in People Organization’ standard,

granted by the IIP in the UK. MTN Nigeria recognized that this accolade implied

acceptance of responsibilities which includes commitment to the adoption and

deployment of best practice in employee and human resources management.

Interviewees who are current and ex-staff of MTN expressed the same opinion.

48
MTN Vital Behaviors

According to an interviewee P, a current manager at MTN, MTN Nigeria in 2012 initiated

a conversation on the transformation of its Cultural Operating System (COS) by

adopting vital behaviors of ‘’Complete Candor, Complete Accountability, Active

Collaboration, and Get It Done’’. A strong focus has been made on living out the vital

behaviors by all employees.

Objective 3: To evaluate how MTN Nigeria can sustain these identified growth and

stability amplifiers in the changing external environment of telecommunications

business in Nigeria.

In answering questions, 1, 5 and 6, which all relate to the third objective of the research,

the interviewees made contributions through their views and comments, while document

search on existing publications were made. The current PESTLE framework status was

reviewed, highlighting interviewee opinions and perspectives.

Political

MTN Nigeria, just like all other telecommunication companies in Nigeria, is regulated by

the Nigerian Communications Commission (NCC), which is a subsidiary of the

government. MTN Nigeria is then expected to comply with all regulations set out by the

NCC. According to the MTN Group’s Integrated annual reports (2015:38), ‘’a successful

political process and peaceful handover of power to a newly elected president early in

2015 was good for MTN Nigeria as a business’’. In early 2014, inter-governmental

49
friction between Nigerian and South African governments over an unfulfilled arms

purchase put MTN Nigeria in a bad light; this is because MTN Nigeria is an operating

unit of the South African headquarters and its broader political disposition became

bound up in the dispute. According to Interviewee X, about the years 2014 and early

2015, xenophobic attacks on foreigners in South Africa which affected some Nigerians

also portrayed MTN Nigeria in a bad light, as there were calls by certain elements within

Nigeria to boycott all South African products and their companies operating within

Nigeria. Interviewee P, a current MTN employee interviewed notes that MTN Nigeria

was fined over $3 Billion Dollars in 2015 for regulatory breaches on unregistered

subscribers, which the government claimed posed a national security threat. Upon

announcing the fine imposed on MTN Nigeria by the regulator, the value of the shares

of MTN Group listed on the Johannesburg stock exchange fell significantly.

Economic

According to the MTN Group 2015 Integrated reports, the sale of crude oil contributes

over 80% of export revenue in Nigeria, while the price of oil is not determined by

Nigeria. Within the period late 2014-2015, there was a sudden fall in oil prices, coupled

with a volatile and rapidly rising exchange rate of the Naira to the US Dollar. According

to the MTN Group’s Integrated Annual Report (2015), a sharp fall in global oil prices led

to a slowdown in macroeconomic growth, as lower oil revenues dampened economic

activity in Nigeria, putting pressure on the currency. This episode affected the

purchasing power of the citizens, and reflected on their spending habits, as witnessed

by a sharp drop in revenue from airtime purchased by MTN subscribers. As a counter

50
strategy, MTN reduced prices of several product lines to maintain a competitive edge

and retain subscribers. A manager at MTN, interviewee X, notes that the key

technological infrastructures used at MTN are imported from overseas, and with the

volatile exchange rate in the Nigerian economy, structured equipment acquisition

systems have been put in place to cater for much needed equipment, while managed

network services have been outsourced to these hardware vendors.

Socio-Cultural

MTN Nigeria recognizes the diversity in the socio-cultural make up of its external

operating environment (MTN Group Integrated Report, 2015). Operating in a country

with over 200 diverse tribes and cultures, much attention must be paid to the unique

needs and perceptions of the various cultures by the adoption of a flexible marketing

mix for each segment. MTN Nigeria contributes to the socio-economic development of

the markets that it operates in. The MTN Brand has also been designed to reflect an

inclusiveness of all cultures and groups. The MTN brand has a strong voice that

portrays cultural inclusiveness, leadership, excellence and omnipresence. Corporate

communications at MTN Nigeria recognize the diversity in religion and culture across

the country. Products, services and promotions are designed to make people connect

with them culturally, religiously, and emotionally. Interviewee G notes that ‘specialized

religious or cultural messages and advertisements are rolled out to celebrate religious

or cultural holidays and seasons, hence connecting with subscribers emotionally’’.

51
Technological

According to the MTN Group Integrated report (2015), in December 2015, MTN Nigeria

acquired Visafone Communications Limited, taking advantage of a robust Spectrum

license earlier obtained by Visafone. Interviewee X interviewed notes that no other

acquisitions or mergers have taken place in the industry by the big four, other than that

made by MTN on Visafone, differentiating its strategy from that of others. This

acquisition, alongside the 4G/LTE with digital TV spectrum, has provided MTN Nigeria

access to enough spectrum for rolling out Long-Term-Evolution (LTE) solutions which

are more technologically robust. MTN has invested immensely in telecommunications

technology hardware, and is well positioned to provide and support fixed, ICT, Value

added Services (VAS), and mobile data, and mobile voice services, owning over

10,0000Km of Fiber Infrastructure Network across Nigeria. MTN Nigeria also built a

commercial Data Center infrastructure, hence expanding its bouquet of hosted services.

In 2013, MTN upgraded its Nigerian Data Center to a Tier-3 Certified status, being the

first in Nigeria, also this Data Center has 2 disaster recovery centers as a hedge for

internal data and third-party customer data. Interviewee G, who is an MTN employee,

affirms that substantial capital projects for the company are tied to network equipment

and accessories acquisition. Interviewee Z, an employee of a major MTN competitor

interviewed also affirms that other telecommunication companies are yet to invest as

much as MTN Nigeria has done in the expansion of their network. In that sense, the firm

is a technological leader

52
Legal

According to interviewee X, MTN Nigeria aligns with the rules and regulations prevalent

in the Nigerian legal system. MTN Nigeria has also had some frictions and regulatory

restrictions, especially the regulator’s 2013 ruling that declared MTN Nigeria a

‘dominant operator’, with monopolistic qualities. The Nigerian telecommunications

sector is tightly regulated, to the point that voice and data tariffs are stipulated by the

regulator, leaving the firms in the industry to compete primarily on “quality of service’’ as

against competing on sales promotions, bonuses and price concessions.

Environmental

According to the MTN group sustainability report (2015), MTN Nigeria aligns with the

MTN Group Sustainability vision. The Sustainability report notes that MTN Nigeria

contributes to the economic development of the communities that it operates in. Local

employee development and improvement of general economic conditions of local

communities has been a focus and key sustainability strategy at MTN Nigeria. MTN is

also, as noted, a subscriber to the ‘United Nations Global Compact on Human Rights’.

MTN also applies itself to the Global Reporting Guidelines on sustainability

Discussion

The researcher’s view upon initial inspection was that the distinguishing elements that

have set MTN Nigeria apart in their Nigerian operating environment were the corporate

response or attitude, as shaped by organizational culture, management approach, and

53
strategy. These have, upon initial inspection, set MTN apart from competitors. However,

a review of the PESTLE framework and research investigation shows a correlation

between the good performance of MTN Nigeria and the overall management strategy in

responding to the elements of its operating environment, while the research also

observed additional internal qualities like the company’s internal ethics management

framework, and human resource practices as key success factors. In the following

chapter, the researcher presents recommendations based on the research findings,

while outlaying conclusions based on the research findings.

54
 Chapter 5

Conclusions and Recommendations

In this chapter, the researcher starts by presenting some key conclusions on the

dissertation. These conclusions are matched against information from secondary

literature to identify areas of general acceptance, alongside key observable differences

and variations. These conclusions are followed by recommendations considered useful

either to some or all stakeholders in the Nigerian telecommunications industry and

beyond. The researcher closes the chapter with recommendations for further research.

5.1 Conclusions

This research was carried out from an insider perspective, giving credence to the view

noted earlier by Coghlan and Brannick (2005), who believe that insider research is valid

and useful. This is because it provides a clear view of what the organization under

research truly is like, which a traditional, more distanced approach to a research study

may not be able to uncover. To answer the research question posed for this

dissertation, the researcher explored research literature on the topic with a focus on the

PESTLE framework as an external environment monitoring tool in relation to MTN

Nigeria, and how it has interfaced with the dimensions and elements of its external

operating environment. The researcher conducted interviews in line with the research

objectives. From the literature review, the research interviews carried out, and the

55
document searches conducted, the researcher concludes that MTN Nigeria has

effectively repositioned itself while intermingling with the elements of its volatile external

operating environment. The researcher further notes that for MTN Nigeria, there is need

for further alignment of its strategies with the changing and dynamic external operating

environment to sustain and improve on its strong commercial performance. The

researcher notes that the current MTN strategy in relation to its external environment is

a major success factor for the organization. The researcher has also discovered that the

most negative impacting environmental elements on MTN Nigeria, as characterized

through the PESTLE framework are mainly from the political, regulatory, and economic

environments.

From the research literature in chapter 2, the analysis of interview feedback, and the

review of related publications, the researcher concludes that further attention should be

paid by MTN Nigeria and business organizations in general in harmonizing their internal

operations and overall strategies to the dynamic external environment of their business

operations. In line with the feedback from the interviewees, the researcher concludes

that MTN Nigeria and business organizations in general need to have a strong

sustainability vision, strategy, policy and culture, as non-adoption or ineffective practice

of such would expose them to scrutiny by the regulators and governments acting in their

operating environment. From the interview, it was observed that in 2014, MTN Nigeria

was fined over $3Billion for regulatory breaches that impacted on Nigerian national

security. This affirms the perspectives of Martin and Schouten (2012), who note that

some corporate managements have found themselves in unfavorable conditions with

56
governmental agencies in that they showed indifference to environmental and social

concerns of their operating environment. This is also reaffirmed by Ketchen and Short

(2011) who note that every action taken by an organization has an influence on its

external operating environment, while the activities in the external operating

environment have influences on the business organization. Reciprocal causality is

widely prevalent.

The interview feedback and document search reveals that a key success factor of MTN

Nigeria is its alignment to its vision and strategy, with a focus on putting the customer

first, hence being customer-centric. When customers receive value, they pay money in

return for the value received, thus sustaining the profitability of the service provider. This

highlights Porter’s (1980) insistence that a business strategy should be developed with

a focus on profit maximization. Profit will not be maximized without a satisfied customer

base, especially in the telecommunication services industry where the propensity to

churn or swap is very high. Investments in robust and huge telecommunications

infrastructure and technologies will not automatically generate revenue, but rather it is

the satisfied customers that ensure a continual flow of revenue. Hence, strategies built

around customer satisfaction are valuable.

The interview and related document searches reveal that the ethics management

framework of MTN Nigeria is a major success factor for the organization. This implies

that the adoption of a variation of the PESTLE framework known as STEEPLE - which

explicitly includes “Ethics” in the (rearranged) elements of PESTLE - would give a more

57
encompassing overview for better alignment with the variables in the external operating

environment. As Thakur (2010) notes, in modern strategic business decision making,

the consideration of ethical correctness of strategies has prompted the evolution or

consideration of the scanning of the ethical environment of a business leading to

STEEPLE, meaning the addition of an extra letter ‘E’ (for ethics) to the framework, while

STEEPLE is also seen as the all-encompassing form of PEST (Thakur, 2010).

The primary research also reveals that there are other elements of the external

operating environment of a business that are not fully covered by the PESTLE

framework. It is then acknowledged that this Dissertation could have been made more

versatile and environmentally responsive if other external environment monitoring tools

were combined with the PESTLE approach. One such framework is the Five Forces

Analysis of Porter. This is a standardized instrument with which to analyze an industry

(Porter, 1980), and is based on the notion that there are five forces that determine the

attractiveness and competitive intensity of a market, while identifying where power lies

in a business scenario. The five forces include, Supplier power, Buyer power,

Competitive Rivalry, Threat of Substitution, and Threat of new entry (Downey, 2007). A

combination of the PESTLE framework and the Five Forces framework could have been

more versatile and encompassing in this research, and could have factored more

impacting external environment elements of MTN Nigeria.

Also, applying the PESTLE framework with internal organizational monitoring tools such

as the balanced score card would add greater utility. This is so as there was some

internal feedback from the interviews that pointed to internal operations and practices as

key reasons for proper alignment with the external variables in the operating

58
environment. The interviews had some feedback related to not only the external

environment, but also the internal. The PESTLE approach obviously focuses only on the

external environment of a business organization. A broader and deeper overview could

have been seen if a comparative internal and external (situational) monitoring tool had

been adopted above. This affirms Katerina’s (2015) view that, for a firm to implement its

business strategies successfully, the internal environment can be analyzed by using the

SWOT analysis, while the external environment analysis will serve as a complement.

The observation from the interviews is that internal capabilities of MTN Nigeria are well

aligned with external opportunities in the operating environment. The SWOT framework

as a tool of company analysis if combined as a supplement to the PESTLE analysis

could enhance strategy, hence aligning internal capabilities with external environment

opportunities. This aligns with Johnson, Scholes & Whittington (2008), who view

strategy as the matching of an organization’s resources and activities to the

opportunities in the operating environment.

5.2 Recommendations for the stakeholders

In this section, the researcher draws on the findings noted above to offer

recommendations. These recommendations are feasible, desirable and actionable,

while short-term and long-term recommendations are posited accordingly. The

recommendations put below are framed, initially, according to the categories associated

with the PESTLE. As the account proceeds, recommendations are made on alternative

environmental scanning techniques that might have utility to the stakeholders. The

59
research suggests that environmental monitoring tools and their interoperability in

organizations, especially the telecommunications sector, need to be investigated

further.

From a political stand point, a stronger government relations unit will need to be put in

place by MTN Nigeria and all other telecommunications companies to effectively

manage all governmental relations. There is the need to deepen, monitor, and make

prompt decisions for negotiations with governmental bodies and regulators when the

need arises. Governmental policies that are inimical to the growth and stability of the

telecommunications industry will need a stronger telecommunications voice to

repudiate.

From a legal, socio-cultural, regulatory and sustainability standpoint, the need to align

with local and global rules and regulations guiding business operations cannot be over

emphasized. Organizations have found themselves in unfavorable conditions because

of failure to align with environmental and social laws in their operating environment

(Martin & Schouten, 2012). Though every organizational failure could at least to some

degree be attributed to management and leadership failure, the operating environment

plays a big role in the determination of success. The adoption of an all-encompassing

environmental scanning tool will be required for organizations to align adequately in the

light of their changing business environment. A variant to the PESTLE framework such

as STEEPLE, which explicitly considers an ethics framework and may be seen as the

60
all-encompassing form of PEST would make the vital ethical frameworks applicable in

the environmental scanning approach (Thakur, 2010).

From the technological standpoint, Information Technology has become both a success

factor and a strategic factor in contemporary firms (De Haes & Grembergen, 2009). In

their information management systems, organizations must secure adequate

information governance. This implies an overall strategy and approach for handling an

organization’s business information by implementing procedures, responsibilities,

controls, and measurements that recognize information useful assets.

Lastly, where a firm operates as a dominant or market leader, and to sustain the

leadership role of this dominant brand, this could be achieved by considering areas of

possible alignment from the findings of this research. A brand is the overall personality

of an organization and it serves as the link between an organization and its audience. It

is a firm’s voice, its design and its reputation integrated, intertwined or combined into

one impression (Davis, 2014). The current dominance of the MTN brand in the Nigerian

telecommunications sector should be sustained and enhanced through building a

stronger and closer customer satisfaction. This could be made more robust by

continuous external and internal environmental scanning, leveraging environmental

scanning tools, and a combination of two or more, of which the PESLE framework is

one. Other tools such as the SWOT analysis, the Balanced Score Card, the Porters

Five Forces, and the expanded version of PESTLE; which is STEEPLE, should be

adopted.

61
5.3 Limitations and Recommendations for further research

Saunders, Lewis, and Thornhill (2009) note that there is an argument that insider

researchers are native to the background and research setting. As such, they are prone

to allegations of being too close and not attaining the required objectivity and distance

necessary for achieving a critical research stance. This research has an insider footprint

embedded in it. The researcher was also very careful not to divulge sensitive

information private to the operations of MTN Nigeria, this management and hold-back of

sensitive information may have impaired the research results. Those results emanated

from a qualitative standpoint, while a limited sample of 10 participants made up the

sample.

Adopting a combination of internal and external environmental scanning tools is

recommended for expanding the current scope of research. The primary research tilted

towards issues bordering on the immediate external operating environment within

Nigeria and did not pay much attention to the possible impacts of global trends and

activities as potential external environment factors. However, from the secondary

research it was observed that beyond the immediate external environment of a

business, regional and globalization forces must be factored as relevant external

environments of a business because a strategic initiative that excludes a consideration

of regional and global forces would be deemed incomplete (Menet, 2016).

The researcher recommends further research in the study of growth management

perspectives of telecommunication companies in the developing world, in relation to

62
their internal and external operating environment, leveraging internal and external tools

of company analysis. This is recommended because a business organization is an open

system. As such, it is responsive to environmental changes, while it also influences the

outcome of its external environment (Lubbe & Puth, 1994).

63
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White, B (2000) Dissertation Skills for Business and Management Students. Cengage,
UK.

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 Appendix

Appendix A - Interview Guide

Interviewee Place of Role/Designation Years of Assigned Interview

Names Work Experience Date
Mr. X MTN Nigeria Manager 12 4th November, 2017
Mr. Y Globacom Manager 10 25th October, 2017
Mrs. O Etisalat Senior Manager 14 3rd November, 2017
Mr. D NCC Manager 12 27th October, 2017
Mr. Z Ericsson Manager 10 7th November, 2017
Mr. T Huawei Manager 11 4th November, 2017
Mrs. W MTN Nigeria Sales Manager 13 4th November, 2017
Mr. P MTN Nigeria Manager 14 23rd October, 2017
Mr. U Airtel Manager 14 25th October, 2017
Mr. G MTN Nigeria Manager 10 3rd November, 2017

Appendix A is a list of the interviewees’ companies, roles, years of experience and their

assigned interview dates. All the interviewees were contacted initially by phone calls,

followed by emails. Interviewees were drawn from both genders, aged between 34 - 55

years. They were composed of current and ex MTN employees, employees of

competitors, employees of the major industry hardware vendors, and an employee of

the industry regulator.

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Informed Consent

Dear Sir/Madam,

My name is Donald Ibe, a current student at the University of Cumbria, UK, carrying

out a research for my MBA degree on the ‘Growth Management approach of MTN

Nigeria in relation to its external operating environment’. You have been nominated

to participate in this research because of your experience, exposure, and deep

knowledge of the Nigerian telecommunications industry. A face to face interview

taking about one hour of your time will be required for the documented interview.

Proposed interview timeline and slot is between the 5th of October to the 30th

November 2017. Adequate care has been taken to avoid sensitive and confidential

questions, and you are free to decline on answering any question you consider

sensitive. Your answers however will be documented for this research, and will

never be used against you in any manner. Your identity will not be disclosed. You

also have the right to decline on participating, however, your participation will be very

much appreciated, and would contribute to the success of this research and its

overall valuable relevance.

Thank you.

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