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The Project File Details
1.1 BACKGROUND OF THE STUDY
1.2 STATEMENT OF THE PROBLEM
1.3 OBJECTIVE OF THE STUDY
1.4 RESEARCH QUESTIONS
1.5 SIGNIFICANCE OF THE STUDY
1.6 HYPOTHESIS OF THE STUDY
1.7 SCOPE AND LIMITATION OF THE STUDY
1.8 HISTORICAL BACKGROUND
1.9 DEFINATION OF TERMS USED
2.1 WHAT IS STRATEGY
2.2 THE EVOLUTION OF STRATEGIC MANAGEMENT
2.3 FACTOR FOR DEVELOPING EFFECTIVENESS STARTEGIES
2.4 CORPORATE SELF APPRAISAL
2.5 ASSESSING THE FUTURE ENVIROLMENT
2.6 A PLANNING AIDED ORGANIZATIONAL STRUTURAL DESIGN
2.7 STRATEGIC PLANNING PROCESS
2.8 APPRAISING THE ENVIROLMENT
2.9 THE BEBEFIT OF STRATEGIC MANAGEMENT
2.10 IMPLEMENTATION OF STRATEGY
2.11 GENERIC BUSINESS STRATEGIES
2.12 GENERIC BUSINESS AND COMPETITIVE
2.14 LOW COST LEADERSHIP
2.15 DIFFERENTIATE STRATEGY
2.16 FOCUS AND SPECIALIZATION STRATEGY
3.0 RESEARCH METHODOLOGY
3.1 TYPES AND METHODS OF DATA COLLECTION
3.2 THE STUDY POPULATION
3.3 RESEARCH DESIGN
3.4 DETERMINATION OF SAMPLE SIZE
3.5 METHOD OF PROCESSING DATA
3.6 RESEARCH INSTRUMENT SPECIFICATION
4.0 DATA ANALYSIS AND PRESENTATION OF RESULT
4.2 ANALYSIS OF RESPONSE
4.3 PRESENTATION OF DATA
4.4 HYPOTHESIS TESTING
5.0 SUMMARY, CONCLUSION AND RECOMMENDATION
1.1 BACKGROUND OF THE STUDY
Strategic management involves the formulation of long term goals and objective for the company.
The selection of which strategic to achieve these goals and objectives in the light of the external environment, the implementation of such, the uncertain feature and events which will continually occur in the firm operatives.
The purpose of strategic management within a framework of which discussion is made will have a long term impact on the organization performance.
Decision making is a complex choice when it comes to the area of corporate goals, the means to achieve them and other alternative that outline the strategic direction of the company. Top-level managers are mostly the ones involved when it comes to the strategic aspect of the companies’ administration. They define and deal with issue such as determining the rate of which the company is growing in size and profit.
In addition, the top managers determine what amount is to be retained in the company’s reserves for future internal expansion and later investments. They also decide whether to expand vertically or laterally or even change the geographical location of the business.
Although, profit maximization is the primary motive of ant production manager while the secondary objectives are the enhancement of corporate survival, the involvement of human assets, gaining of market share, and the maximization of owner’s wealth. It should be realised that decision as regards all these, have a major effect only on individuals, firm or the industry in which the firm operates, but also on the economy as a whole. That is why should strategic management has to be put in place.
Around 1999, empirical researchers began to examine the performance and consequences of formal strategic planning (Thune and House, 1999; Ansoff et al., 2000; Herold, 2001) and over 40 planning-performance studies have appeared since that time. However, in recent years this line of research has slowed to a trickle and with good reason: Previous studies lacked theoretical grounding, produced a bewildering array of contradictory findings, drew heavy criticism for inadequate methodologies and had little or no discernable net impact on strategic management research or practice (Shrader et al.1984; Pearce et al., 1987a, b).
Nonetheless, it seems evident that the planning-performance relationship bears significantly on strategic management research and practice and that scholars should not abandon this line of enquiry altogether. This study re-evaluates the planning-performance research; the critical assessment of strategic planning and its impact on organizational performance which has effect on its survival.
Strategic planning can be defined as the process of using systematic criteria and rigorous investigation to formulate, implement and control strategy and formally document organizational expectations (Higgins and Vincze, 1993; Mintzberg, 1994; Pearce and Robinson, 1994). Strategic Planning is a process by which we can envision the future and develop the necessary procedures and operations to influence and achieve that future. As in many other fields, strategic planning professionals often cloak their work in pseudo scientific jargon designed to glorify their work and create client dependence. In reality, strategic planning processes are neither scientific nor complex. With modest, front-end assistance and the occasional services of an outside facilitator, organizations can develop and manage an on-going and effective planning program. Strategic planning consists of a set of underlying processes that are intended to create or manipulate a situation to create a more favourable outcome for a company. This is quite different from tradition tactical planning that is more defensive based and depends on the move of competition to drive the company’s move. In business, strategic planning provides overall direction for specific units such as financial focuses, projects, human resources and marketing. Strategic planning may be conducive to productivity improvement when there is consensus about mission and when most work procedures depend on technical or technological considerations.
This study goes beyond the observation of some research that questioned the existence of direct casual relationships between the use of strategic planning and improved performance. This study draws from some of the many publications on the use of strategic planning in the private sector and from the growing number of those that deal with its uses and potential for the public sector. One of the major purposes of strategic planning is to promote the process of adaptive thinking or thinking about how to attain and maintain firm environment alignment (Ansoff, 1991).
Firms, however, appear to gain more because they can derive considerable benefits not only from adaptive thinking, but also from integration and control. Small firms can derive considerable benefits from adaptive thinking but probably gain less than large firms from the integration and control aspects of strategic planning.
Evered (2000), suggested that the different uses of the term strategic planning vary from broad ones (which include the purposes of defining purpose, objectives and goals) to very narrow ones (namely, those that deal with the means for achieving given objectives). Given Evered’s differentiation between broader and narrower definitions of strategy, Bozeman’s definition is a narrow one; one that assumes an ultimate mission of the organization. Bozeman’s definition assumes that the strategic planning/management process is triggered by changes in policies and priorities (Bozeman, 2003).
1.2 STATEMENT OF RESEARCH PROBLEM
Past and recent research studies have made it clear that there is an increased internal and external uncertainty due to emerging opportunities and threats, lack of the awareness of needs and of the facilities related issues and environment and lack of direction.
Many organizations spend most of their time realizing and reacting to unexpected changes and problems instead of anticipating and preparing for them. This is called crisis management. Organizations caught off guard may spend a great deal of time and energy playing catch up. They use up their energy coping with immediate problems with little energy left to anticipate and prepare for the next challenges. This vicious cycle locks many organizations into a reactive posture.
This research study is to assess the impact of strategic planning on organizational performance, which at the long run enhances organizational survival.
1.3 OBJECTIVES OF THE STUDY
The general objective of this research is to investigate the impact of strategic performance on organizational performance and survival.
iii. To identify the challenges faced by the organization who practice strategic management.
1.4 RESEARCH QUESTIONS
The major research question was ‘what is the effect of strategic planning on organizational performance and survival?
iii. What are the challenges faced by the firms which practise strategic management?
1.5 RESEARCH HYPOTHESIS
In addition to using the finding of this research work to provide answer to the question which will be analysed using simple percentage, the study will also employ acceptability of the hypothesis. Hypothesis to be stated and tested against each other includes
H0: Adequate strategic management and implementation in an organisation increase the return on the organisation investment.
H1: Adequate strategic management and implementation in an organisation does not increase the return on the organisation investment.
H0: strategic management and implementation process is a determinant of planning efficiency of an organisation.
H1: strategic management and implementation process is a determinant of planning efficiency of an organisation.
H1: The internal and external environmental factors surrounding this company significantly affect its strategic management.
H2: There is a positive relationship between strategic management and the corporate performance of the company.
H0: Null Hypothesis
H1: Alternative Hypothesis
1.6 SCOPE OF THE STUDY
The study is to investigate the impact of strategic planning on organizational performance and a survey technique was used with the administration of questionnaires to respondents comprising of presidents and directors of the participating companies.
1.7 SIGNIFICANCE OF THE STUDY
The findings of the study are expected to be of help to several groups of people:
1.8 LIMITATIONS OF THE STUDY
The senior managers were very economical with the relevant information fearing leakage of vital information to competitors.
Since the researcher targeted presidents and directors of the companies, there was a kind of bias on information provided as they tried to respond positively on all the research questions.
This research does not claim perfection as it is faced with other limitations inherent in the survey design adopted.
1.9 DEFINITION OF TERMS
BUSINESS: This involves the process of buying and selling of goods services that is done to make profit.
EVALUATION: The Act of considering something to decide how useful or valuable it is.
BUSINESS PERFORMANCE: Is a set of management and analytic processes that enables the management of organizations performance to achieve one or more pre-selected goals.
BUSINESS OPERATIONS: Is a philosophy of leadership, team work and problem solving resulting in continuous improvement throughout the organization by focusing on the needs of the customer.
INDUSTRY: This is where the production of goods is carried out.
Strategy: This outlines the fundamental steps that management plans to undertake in order to reach an objectives or set of objectives.
Planning: This is the art of choosing a course of action and deciding in advance what is to be done in what sequence, when and how.
Strategy formulation: This is the task of analyzing the organizational external and internal environment and then selecting the appropriate strategy.
Strategy implementation: It is the task of designing appropriate organisational structures and control system, given the organisation’s choice of strategy.
Corporate strategies: These address what business an organisation will be in and how resources will be allocated among those business.
Business strategy: This focuses on how to compute in a given business.
Functional strategy: It focuses on the short run, “how to” issues of implementing strategies.
Strategic managers: These are individuals who bear responsibility for the overall performance of the organization or for one of its major self-contained divisions.
Strategic audit: This is concerned with analyzing and assessing what has been achieved in the past and what the organisation is capable of achieving in the future.
Strategic gap: This is the difference in the level of performance called for in the firm’s state objectives and the level of performance that seems likely to resulting from the continuation of current operations.
Scenarios: This is a form of educated guess made by planners.
Objectives: A statement of what is to be achieved.
Goal: This is synonymous with objectives, a statement of what is to be achieve.
Mission: This defines the basic purpose or purposes of the organization, usually includes a description of the organizations basic produce and or services and a definition of its market and or source of revenue.
Aggregate productivity: This is the total level of productivity achieved by all the firms in a particular industry.
Company productivity: This is the level of productivity achieved by an individual company.
Individual productivity: This is the level of productivity attained by a single individual.
Total factor productivity: This is an overall indication of how well an organization uses all of its resources to create all of its products and services.
1.10 HISTORICAL BACKGROUND OF THE CASE STUDY
Nestle foods Nigeria Plc was. Was formally known as Food specialties Nigeria Limited. It was established in 1961 in Nigeria at km32 Lagos-Badagry express road,Agbara Estate, Ogun State. In 1971, a factory was established at Ilupeju for processing and wrapping of Maggi-cubes. In 1978, the company which was formally food specialties Ltd. Became a public company. In 1985, an agricultural subsidiary called Agro development Nigeria Ltd. Incorporated farming was established followed by five new products introduced into the Nigeria market, such as Cereal, Maize, Nutrient, Golden morn, Nesco, Maggi super and was offered for sale in 1986. The company’s brands of products includes weaving foods-Nutrend, Cereal, Maize, and Choco-milo. Beverages drinks-Milo, Nido and Nesco.
Breakfast cereal- golden morn, kitchen seasoning range which includes magi-cubes, magi super and spices, magi chicken, magi maxi and magi crayfish.
Nestle Nigeria Plc. Has been able to carve a niche for itself and its product against other competitors with the use of Marketing Communication strategy aimed at building consumer’s commitment to band and changing consumers” behavioral patterns.
The marketing department has been effective by placing advertisement in media, sponsoring events on products, sales promotion activities, publicity and public relations campaign. These promotional programmes have helped the organization measures its standard and access its product performance.
According to Broniarczyk and joseph (1994), the economy is affected by various factors responsible for resource allocation which influence the flow of goods and services as well as money. These factors affect the way they think and what they believe. Though, with the use of market system consumers have freedom of choice and this influence what is produced, how much of each product is needed and at what price. However, to calm excessive high profit from goods and services, competition is allowed. A firm can complete with rivals in various ways using marketing strategies like market penetration strategy, discount sales, product modification, new product development, other promotional activities etc.
To prevent unfair trade practices, government has regulated business operations of businesses by introducing various legal constraints such against consumer exploitation.
According to Schneider (1998), consumers play three distinct roles in the economy;
In summary, consumers play an important role in the economy because of the effect they have on the society’s gross national income and multiplier effect.