Corporate Strategy As An Effective Tool For Organizational Survival

Corporate Strategy As An Effective Tool For Organizational Survival

Abstract

The study was intended to appraise corporate strategy as an effective tool for organizational survival for this purpose, the two major approaches towards conducting a study namely desk and field studies were adopted. Merging from these studies are the following; summary of finding recommendation and conclusion. Chapter two dealt with the review of relevant literature, ex-ray the effective use of corporate strategy in MTN Nigeria plc. The summary of finding revealed that policy objectives are not too broadly stated and that there is a firm commitment and adherence of stated objectives on corporate strategy. Also of note is the regular reviewing and evaluation of the achievements of corporate strategy toward as the achievement of group goals. Accepting company’s corporate strategy and implementing the same and developing a sense of commitment of both levels to the realization of the compliance objective stated in her policies while recommendations include; Gearing efforts towards implementation of a well articulated corporate strategy and policy decision should not be left on the hands of Layman but professionals in the field of management. Therefore suggestions for future research can be summarized as follows; there is the need to take advantage of experience and insight of company workers in need of identification, planning and implementation of corporate strategy. There should be a joint monitoring and evaluating team consisting of the policy makers and implementers.

Chapter One

Introduction

1.1 Background of the Study

The ultimate of very corporate entity is to remain in business perpetually. This will only be possible where the entity is able to generate enough returns on investment in the face of constant changes in the ways things are done and high level competition. Competition in the business environment is a battle for superiority and survival (Pumpin 1987, p.6). However, every business that must survive must have a competitive edge, which is a product of corporate strategy . corporate strategy consists of the whole array of competitive moves and business approaches that an organization employs in conducting its operations. In drafting a strategic herse, management is saying that “among all the paths and actions we could have chosen, we have decided to go in this direction and rely upon these particular ways of doing business” (Thompson etal 1998, pp 14-15) and signals organizational commitment to specific markets, competitive approaches and ways of operating.

Corporate strategies are divided because of two very compelling needs, one is the need to proactively shape and how a company’s business will be conducted while the second is that of molding the independent decision and actions initiated by departments, manages and employees across the company into a coordinated, company wide game plan. The absence of this means that manager will have no framework for weaving many different actions into a cohesive whole, no plan for uniting cross department operations into a team effort.

Essentially, the idea of corporate strategy has developed into a useful vehicle by which organizations evaluated and modify the critical elements of their operations. Nevertheless managers don’t deserve a gold star for designing a potentially brilliant strategy, but failing to put the organizational means in place to carry it out in high caliber fashion weal implementations and execution undermines the strategies potentials and pave way for shortfalls in customers’ satisfaction and corporate performance. However, good strategy formulation combined with good strategy execution does not guarantee that companies will avoid periods of sub performance. Sometime it take several years for management’s strategy make/strategy-implementing efforts to show good results. In which case, in spite of the fact that corporate strategy does not absolutely guarantee success at all times, nothing affects a companys’ ultimate success or failure more fundamentally than how well its management team charts the company’s long terms direction, develops effective strategies moves and business approaches and implements what needs to be done internally to produce good day-in day- out strategy execution. Indeed, good strategy and good strategy execution are the most trustworthy signs of good management (Thompson et al 1998 p. 18).

MTN communications Ltd was one of the 3 initial GSM companies licensed by the NCC to provide telecom services to the Nigerian public. It commenced operations in August 2001 and has ever since been the biggest telecoms companies and one of the largest in all of Nigeria. Even since coming on board the Nigerian Telecommunication market in 2011, MTN Nigeria has made appreciable impact on the lives of Nigerians particularly in the area of investments, careers, product and services.

1.2 Statement of the Problem

Business history shows that high performing enterprises often initiate and lead, not just react and defend. They launch strategic offensives to out-innovate and out-maneuver rivals and secure sustainable competitive advantage. They use their market edge to achieve superior financial performance; which translates into growth and ultimately survival

However, as good as the foregoing may seem, some organization invest so much resources on the design and implementation of corporate strategy and yet find it difficult if not impossible to survive. One then begins to wonder if corporate strategy actually makes for corporate survival.

1.3 Purpose of the Study

The purpose of this research work include among other things.

1. To find out the relevance of corporate strategy to organization
2. To determine the process of corporate strategy.
3. To find out the effect of corporate strategy on the performance of an organization.
4. To find out the reasons for failure of corporate strategy in organization.

1.4 Significance of the Study

Even though virtually every organization pays lip services to the importance of corporate strategy, not many organization make the best out of what it offers. This study is thus unique, in the at it will not only ex-ray the importance of corporate strategy, it will also highlight the pitfalls of its thereby revealing the reasons thus add to knowledge and also provide a basis for further research.

1.5 Research Questions

In order for solution to measure the effectiveness of corporate strategy as a tool for organization survival, the following questions may be relevant.

1. What is the relevance of corporate strategy organization?
2. What is the process of corporate strategy?
3. What is the effect of corporate strategy on the performance of an organization?
4. What are the reasons for failure of corporate strategy in organization?

1.6 Scope of the Study

This research work intends to focus on the corporate strategy as an effective tool for organizational survival in MTN Nigeria Owerri Imo state.

1.7 Definition of Terms

Goals:

Determination of what business an organization should engage in that defines it’s mission

Goal Setting:

Process of establishing what a person or an organization should achieve at some time in future.

Management:

A process of getting things done through people and by people.

Survival:

The state of continuing to live or exist often in spite of difficulty, problem or danger.

Corporate:

Involving or share by all the members of a group corporate responsibility.

Strategy:

Means of operationalisng schemes, methods which management hopes to develop or move the organization forward.

Control:

To check regulate, restrain, constrain, direct or to exercise authority or power.

Interaction:

Any form of personal communication or contact between two or more people in which the attitude or behaviour pattern relates.

Organization:

This could be a company or group of people.

Industry:

A group of companies that offer similar services.

Economy:

System of the management and use of resources

Objective:

This is the unifying principle around which human energy clusters in the organization.

Tool:

A thin that helps you to do your job or achieve something.

Skill:

The ability innate or acquired, which enables someone to perform a task proficiently.

Operation:

Intentional action to change the physical or chemical characteristic of something.

Chapter Five

Summary of Findings, Conclusions and Recommendations

5.1 Summary of Findings

1. Effective business strategy is an essential requirement for an outstanding company. Of all the contrast between the successful and unsuccessful business or between the corporate leaders and their followers, the single most important differentiating factors is strategy.
2. Whether an organization will succeed or fail ultimately hinges upon the administration of it’s corporate strategy. Corporate strategy stresses managing the organization’s relationship with its environment as a means to mission accomplishment. corporate strategy recognizes that most organization operate in increasingly volatile and often hostels environments.
3. Historically organizational strategic management revolved around basic action strategies and competitive marketing actions. Currently more and more organization recognize that the corporate strategy is much more complex, they therefore focus their efforts or virtually at key environmental factors (internal and external, not just on customers, suppliers and the competition.
4. The guidance given by organizational policy ranges from very board statement to same what more specific constraints that set out allowable or intended courses of action. Such guidance is necessary if the action. Such guidance in necessary if the action taken by organization members are consistent. With the organization’s mission policy provides a frame work with which organization members can function within which the corporate strategy can be formulated, implemented and reviewed.
5. In multiple firms, the overall organizational corporate strategy consists of plans for obtaining a strategic advantage over other conglomerates by achieving a strategic balance among all concerns. The techniques employed to achieve this balance are known as portfolio management. Functional expertise indicated the ability to develop and maintain centers of excellence in the disciplines needed to support operational and strategic initiative. Vision quest is the ability to envision what the future should be for an organization, that is the general direction the organization should follow to become what organizational leaders want it to be.
6. Corporate strategy provides for changes reflected in the development of improved or new ideas services, products and organizational processes. Other changes brought about by affective strategic planning and execution include new clusters, markets, niches, expansions, acquisitions, rationalization, mergers divestment, investments, initiatives, experiments, customers, supplier and changes in the composition or application of the human and non-human resources used in an organization. Given the result of research and nature of the corporate strategy formulation process, the organization’s primary concern with structure becomes one of matching strategy to structure and structures to size and environment .Size is invariably a direct result of growth. The importance of growth as a factor in structure determination is obvious, since most organizations. Especially business, grow and have growth strategies.
7. Eventually, the organizations must develop a means of control by specific objectives, with the division or functional area managers delegated authority to proceed within policy to accomplish those objectives, once structured the organization must implement its plans. successful implementation dependents on proper integrative planning and control techniques and on appropriate managerial functioning especially motivation and leadership. The relationships between organizational structure and implementation are of crucial important. What can be said with certainly with regard to organization implementation is that there is no one best way to organize or to implement, various factors moderates the effects of action taken. The primary factors effectively individual situation should be determined and a course of action taken based on this analysis. It is imperative to note here that for corporate strategy to have its weight, it must be measure or evaluate for result. Its effectiveness therefore proves or disprove it as effective tool for organization survival.

5.2 Recommendation

1. A successful chief executive must be constantly aware of what is happening in his environment and its significance which suggest that he must be able to acquire information continuously and relenthelessly and shift it for relevance. He must have some strategic focus. He is continuously searching for ways to reach out in new continuously searching for ways to reach out in new directions by creating and transforming visions to guide the organization’s goals and objective and policy framework. In the drive towards a strategic focus he build up a top management, team and follows up with constraint indept discussions to again the commitment and loyalty of term members on the commitment and loyalty of team members on the need to redefine of reposition the organization, stake holders interfaces mean discovering developing and maintaining common boundaries with those people and organization what have a vested interest in the organization’s services, product and process, customers, suppliers and founders are some of the stakeholder with whom close working relationships need to be maintained sector/market needs entail the assessment of the probabilities and entail the assessment of the probabilities and possibilities of the market places, including the potential for products, services and ideas for markets that do not exist. services, product and process development involve the project tams to focus cross-functional and cross-organization resources to conceptualize, design, development and initiate continuous improvement in existing services, products and organizational process as well as the development of new initiative in such services, product and processes. Feedback points to ongoing insight into how well the strategic plan elements are being developed and implemented in positioning the organization for its future purposes.
2. At a large-scale, multidivisional and multifunctional organization responsibility for strategic planning can be delegated to an organization’s major operating units. As a convenient but present time chief executive officers can meet with their top management team for all long planning sections, with a focus in both near-team and medium team look at the future to lay out their strategic direction, what note worthy new services, product and processes are needed and what the environment is doing. At similar organization or organization clusters, strategies planning related teams can be used to research and identify global trends that could have impact on their activities or business. the team can identify major trends that may bode well for organizational activities, initiatives from enduring human capability.
3. Again, an organization’s top management may embark on strategic renewal, with several threads of term management to include Matix organization, shorter services/product development time through the use of management technique and organizational building approaches a formal programme/project review system and the coordination of new product development of survival. These trends could be greater democratization around the globe viz-a-viz the embracing of the market economy, the spread of middle income upward-mobile consumer class, the reinforcement of a pervasive and powerful consumer culture, the rise in disposable income, the gain in education and training of staff, the spread of information technologies, the growth of global media, the empowerment of various advocacy and popularization of the civil society.

5.3 Conclusion

As discussed in the literature review and the analysis of data, the chief executive officer is not only the architect of organization purpose, the designer of the character of the organization, he is also the leader of men and pivot upon which everything within the organization is going to succeed person who has that sense of purpose and direction necessary for the growth and development of the corporate entity. Having been thus identify and selected to lead the organization he must be given the necessary where withal and time to formulate, develop and implement his strategies within the frame work of overall laid down corporate strategy. for policy to be meaningful, there must be some operational strategy that will translate it into course of action, strategies are means of operatinalzing a policy and for achieving some predetermined objective. The concept and theories of corporate strategy have their antecedents in military strategy which extends back to principles enunciated by Julius caser and Alexander the greater and further to sun TSU’s Classic treaties written about 360 BC.

This study rely o descriptive approach to research and much more on facts derivable from literature review and the operations of MTN Nigeria plc. MTN Nigeria Plc is principally engaged in the manufacture of a wide variety consumer goods mostly to the Nigeria branded fast-moving consumer goods mostly to the Nigeria’s market, but increasingly to exports as which the society within which the organization is operating expects it to serve. it is the linkage between the organization and its external environment. Corporate strategy are thus used to legimate specific programmes, typically, the execution of corporate planning is usually carried out, in party at least, by people that were not involved in the original formulation. Implementation, in facts, is fraught with uncertainties, pitfalls and cells for careful planning analysis, monitoring, evaluation and follow up. Evaluation is an important strategy activity that provides information on the state of programmes, further more they provide measures and analysis for determining performance and impacts. Evaluation information enable the determination of worth, accomplishment, problems and side effects. It provides feedback on programmes, enhances problems resolutions and enables steering activities in relation to target and desired results.

Some programmes do not have measure, criteria or any means of the measurement of performance. As a result corporate manager and the public have no way of determining performance.

However, once implementation is brought out into the open and it dynamics recognized, tangles can be cleaned up loading to the facilitation and delivery of implementation. Having terms involved in both the design and implementation of corporate objectives as well as organization strategic objectives.

5.4 Suggestion for Further Research

After the analysis and summary of finding the following are submitted as suggestion for further studies;

1. There is the need to take advantage of experience and insight of company workers in need of identification, planning and implementation of corporate strategy.
2. There should be a joint monitoring and implementers. this is to ensure that company cotroprate strategies are on course. The essence of involving the implementers is to reinforce their sense of belonging as co-owners.
3. Government should aid research works on corporate strategy formulation and the resultant implementation of such strategy. That is to say, there should be strong support (Financial, economic, social be and moral) for research and development works in corporate strategy formulation and implementation.

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