Effective Policy Formulation And Strategic Planning, A Pivot For Business Survival (A Case Study Of PZ Cussons Industries Plc. Aba)
A dynamic environment is characterized by rapidly changing product lines, and increasing and changing set of competitors, rapid and continual technological innovation and rapid markets growth. To harness these diverse situations, managers need more than piecemeal, adhere decisions when dealing with these changes.
Sequel to the foregoing, the study examines the relevance of effective policy formulation and strategic planning to business survival in the midst of threat and opportunities. The work is divided into five chapters. The chapter one x-ray the introductory aspect of the study by highlighting the background research questions significance and limitations of the study while chapter two deals with the importance of strategic planning, essential of the effective policy formulation.
To achieve the stated objective, a sample of 203 respondents (managers and staff of the case study organization) were interviewed using questionnaires and oral random sample techniques. Data obtained were analyzed using simple percentage method and table. And as well the hypothesis was tested with the chi-square techniques. Pz cussons industries plc Aba was used as case study. It was found that the organization formulates effective policies and strategies as a means of survive in the business.
These therefore prove the effect of the concept to the business survival. The work also found that the organization still has room for improvement. Recommendation in full were also put forward emphasizing on critical evaluation of strategic factors before formulating policies for a way forward.
Table Of Contents
- Title page
- Approval page
- Table of content
- 1.1 Background of the study
- 1.2 Statement of problem
- 1.3 Purpose/objectives of the study
- 1.4 Statement of hypothesis
- 1.5 Research question
- 1.6 Statement of hypothesis
- 1.7 Significance of the study
- 1.8 Scope and limitation of the study
- 1.9 Definition of key terms
2.0 Literature Review
- 2.1 An overview of the concept of policy
- 2.2 Importance of policy formulation
- 2.3 Essentials of effective policy formulation
- 2.4 Strategic planning meaning
- 2.5 Process of strategic planning
- 2.6 Importance of strategic planning
- 2.7 Environmental factors affecting Business strategies
- 2.8 Strategic options open to business organization
- 2.9 Constraints of strategic planning
- 2.9.1. How to overcome the problem identified.
3.0 Research Methodology
- 3.1 Introduction
- 3.2 Research Design
- 3.3 Population of the study
- 3.4 Determination of sample size
- 3.5 Data collection method
- 3.6 Instrument
- 3.7 Method of data analysis techniques
4.0 Data Presentation and Analysis
- 4.1 Questionnaire analysis
- 4.2 Testing of hypothesis
5.0 Summary Of Findings, Conclusion and Recommendations
- 5.1 Summary of findings
- 5.2 Conclusion
- 5.3 Recommendation
- Appendix A and B
1.1 Background Of The Study
Policy is a broadly stated course of action that individuals are to follow in making decision. It is a general agreed principles, which directs management thinking towards a specific direction. The world in which we live is replete with uncertainties and as such the growing complexities of our political social and economic needs etc, affect not only the government but also individuals and business world. In this vein therefore, the manager needs to plan to control activities both at the unit level and in the corporate level. These managers and administrators perform five basic functions to get things going viz: planning, organizing staffing, directing and controlling. Planning is the first and perhaps the most important function of management. The essence of planning is to prepare for and predict future events. It involves the development of strategy and procedure required for effective realization of the entire plan. it entails determination of control, direction and methods of accomplishing the overall organizational objectives.
Kenneth R. Andrews has this to say “awareness of the environment is not a special project to be undertaken only when warning of change becomes deafening”. The environment of a business cutoff has much influence on the attainment of the objectives of the business and its survival. And as such the business must strategies so as to remain in the system. This involves effective policy formulation and strategic planning. Sequel to the foregoing, this research is geared towards analyzing the impact of effective policy formulation and strategic planning to the survival of the business with a view to making recommendations for improved performance and growth of business in the midst of identifiable constraints.
1.1.1 Background Of PZ Cussons Industries Plc Aba
The background of the PZ cussons industries Plc, Aba Paterson Zochonis (PZ) industries plc was incorporated on 4th December 1948, under the name of P.B Nicholas and company ltd. To take over the soap making activities of Mr. P.B Nicholas who has some years prior to that date established a factory for that purpose. Paterson Zochonis itself was incorporated in England in 1884, become a public company quoted on the London and Northern stock exchange in 1953. This activity is that of general merchant in West Africa and it has been established in this capacity in Nigeria since 1899, PZ’s interest now include industrial ventures in Nigeria, Ghana, Sierra Leone, and textile which selling in the united kingdom. In 1951 Mr. P.B. Nicholas sold out his interest in the company to PZ, two years later the company changed its name to Alagbon industries limited and in 1960 adopted the name Associated industrial ltd.
After incorporation in 1948, new factory buildings were erected and modern soap making equipment installed at Aba. The company’s range of products includes bar and table soap, performing all which are distributed throughout Nigeria with better stock held at strategic centers. The company (PZ) is well known through its Duck, premier and joy soap, Robb ointment, aninta super mint, jet hair cream, venues de Milo range of cosmetics, elephant detergent, etc. All these categories of products must be sold to enable the organization attain its objectives that has already been set. It is through effective policy formulation and strategic planning the objectives can be achieved hence its relevance to business survival.
1.2 Statement Of Problem
To find out the problems associated with the application of effective policy formulation and strategic planning has been the paramount of this study. Investigation from PZ industrial plc Aba reveals that the company applies effective policy formulation in their operations and that those who implement it lack knowledge, skill and expertise required. The researcher also understands that the actual operation of the concept has certain shortcomings associated with it. They include: failure to properly scrutinize the environmental factors, inability to implement what has already formulated, inadequate incentive packages and rigid policy. Thus it is an attempt to solve this problem that this project seeks to research into the application of the concept using (PZ) Aba as a point of reference.
1.3 Objectives / Purpose Of The Study
The objectives of the study among other thing will be:
- To show how policy guides management thinking towards a specific direction.
- To x-ray the relevance of strategic planning in identifying the company’s strength and weakness, opportunities and threats.
- To encourage managers in PZ to adhere to effective policy formulation and strategic to so as to achieve their objectives.
- To proffer solution to the problem identified.
- To analyze the problems encountered in the work place and proper measures to adopt in order to boost workers morale.
- To evaluate the impact of strategic planning in a dynamic environment.
1.5 Statement Of Hypothesis
The research hypothesis to be tested Ho and Hi are:
- Ho: There is no significant relationship between effective policy formulation and business survival.
Hi: There is significant relationship between effective policy formulation and business survival.
- Ho: Strategic planning does not ensure business survival in a dynamic environment.
Hi: Strategic planning ensures business survival in a dynamic environment.
1.4 Research Question
The following research questions will be answered in an attempt to prefer solutions to the problems stated above.
- Does policy guide management towards a certain direction?
- How does environment of business affect its policy and strategic planning?
- In what ways does policy formulation and strategic planning lead to business survival?
- What is the strategy of solving problems when arises?
- Is there any procedure for analyzing problems encountered in the work place or sector?
- What is the impact of strategic planning in a dynamic environment?
1.6 Significance Of The Study
Here, so many people will benefit from this research work in so many ways.
Leaders of the organization will find the study useful as it will expose them to the consequences of no taking organize of certain environment factors which affect strategy formulation.
This study is significant in view of the fact that it will give an insight to the major benefits on effective policy formulation and strategic planning have over the existing method being used.
To organizations workers and subordinates, this research work will assist them know how best to adhere to the organizational laid down rules, regulation, programs and procedures so as to achieve objectives and able to asses their superior etc. To future student researcher, this work will be useful especially in the literature review.
1.7 Scope Of The Study
Actually, the researcher wishes to analyze how effective policy formulation and strategic planning leads to business survival in virtually all organization, the impossibility of such has led to selection of PZ industries, Aba, as the case study. So the scope covers effective policy formulation and strategic planning solely at the PZ industries Plc. Aba
1.8 Limitation Of The Study
The researcher encounters a lot of problems in working this project. Dearth of relevant materials on the subject, published exports and planning are virtually non-existence. Financial and time constraints were emend coupled with the attitude of employees towards answering questions that will produced vital information. High cost of transportation fare to and front at the PZ industries Plc, Aba are among the problem that limited this study.
1.9 Definition Of Key Term
The process of establishing goals and a suitable course of action for achieving those goals
A comprehensive description of an organization master plan for achieving its objectives.
A generally agreed principle which directs management thinking towards a specific direction.
The totality of the forces within and outside the business operation and business in term influences them.
The target, which a firm desires to achieve.
An inherent capacity, which a firm mobilize to achieve strategic advantage.
An inherent constraints or limitation which place an organization in a disadvantage position.
Summary Of Findings, Conclusion And Recommendation
5.1 Summary of findings
As shown in the study of the proceeding chapters, it has been noted that effective policy formulation and strategic planning serve as a pivot to the survival of business especially in a dynamic environment.
Meanwhile, the following are the summary of findings based on the data analyzed.
- Data analyzed in respect of research questions one shows that policy formulation guides management decision making towards a certain direction. This is because majority of all the respondents said in making decision for survival. This finding indicates the positive effect, effective policy formulation will have on directing management thinking towards a specific direction.
- Data analyzed in respect to research question two indicates that business environment affect the business in its policy formulation and strategic planning, this is because majority of the respondents say that treat customers as kings reacts to their complaints promptly and also that when planning the company does recognize external factors like competition, government and technology. However, majority complains of disorderliness of work environment. Thus, the findings show that the company can not do without the factors in the environment both internal and external. From the above, it was established that even though PZ cussons industries Plc Aba, considered external factors when formulating policies and planning strategically, she has neglected the work environment which affect the employees performance directly. Such leads to low productivity of employees in the organization.
- The study suggest that effective policy formulations and strategic planning lead to business survival, this is indicated in the answer to research question three where majority of the respondents indicated that considering the dynamic environment of the company innovation, availability of skilled personal strong financial base and large market share are strategic options open to the business to survive in the business. Likewise manner, they gave affirmative response that these polices can lead to business survival and as such indicated positively that they guide in making decision for survival. By implication, very innovative, possession of large market share, available of skilled personnel and strong financial base coupled with guide in making decision for survival are the various ways through which effective policy formulation and strategic planning lead to business survival.
- Data analyzed in respect to research question four indicates that employee training makes the company significant in the environment and also the PZ industries has a development policy of employees through seminars, symposium, conferences and workings. The findings show the positive effect training and development of employees has on the company as part of its policy thrust and strategic planning option.
On the basis of findings and other facts reviewed by this research work, it can be concluded that the importance of policy formulation and strategic planning cannot be overemphasized especially when the environment of business changes at a high rate. Therefore, it was in this referred that this research was carried out to ascertain the place of effective policy formulation and its strategic planning. On our findings we discovered that policy is a man-made rules or a predetermined course of action that is established to guide performance of activities towards the accomplishment of a stated objectives, in this situation, every game must be played according to its rules and regulation for both authoricitiy and effectiveness, in the same way, personnel department, marketing department and other functional area of the organization, if they mist be efficient and effective in accomplishing the purpose for which the organization is meant, they must be based upon clearly defined policy which should be adhered too strictly. While strategic planning on the other hand is the process of deciding on the goals of the organization, on changes in these goals, on the resources used to attain these goals and on the policies that are to govern the acquisition use and disposition of those resources. If one wants to live a life (business organization inclusive) he or she must live a life of adaptation. That is, try to adapt to charges present by environment by adapting you are strategizing.
Therefore, it was concluded that more research work should be done in this area of study and the recommendation put forwards here be implemented to achieve more positive result.
Based on the findings of the research work, it is important that the researcher makes certain recommendations aimed at helping the organization know the importance of the concept. The few recommendations put forward are:
- The payment policy of the organization should be revisited. This can be achieved through prompt payment of employee’s wages and salaries.
- To ensure employees loyalty, the organization should create conducive environment by ensuring orderliness of materials thus reducing accident and injuries.
- Welfare packages of the employees should also be improved. Fringe benefits like gift, bonus, have a glimpse of the period before facing their works again.
- The customers should be seen as the real essence of the firm’s existence and as such be treated as kings. There should be re-orientation programme on the employees to inculcate the habit of seeing the customers as the main object of their organization hence their satisfaction should be held high in their priority.
- Training of the employees should be implemented since they (employees) believe affirmatively that training makes the company significant in the environment. Likewise manner, the company should institute conference, seminars and workshops policies and adhere to it since such lead to their employees development.
- The company policy needs adjustment so as carry everybody along. Majority of the employees it as hard and rigid. Such policies need to be accommodating in order to achieve corporate objectives.
- Policy and strategic planning must be implemented not just mere paper work.
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Frequently Asked Questions
What is a strategic plan?
A strategic plan is like a job description for a government or an organization. It sets out what you are supposed to be doing and how your performance will be evaluated. Strategic Planning & Policy Development, Woodward and Company (May 16, 2006) 3 Strategic planning helps in deciding how to allocate scarce resources.
What are the key considerations in strategic planning?
One of the key considerations of strategic planning is to understand internal (own organisation) Strengths and Weaknesses as well as external Threats and Opportunities. These are commonly known as the four factors of a S.W.O.T. analysis. Involvement from various stakeholders to provide their points of view about your organization is key.
What is strategic planning & policy development?
Strategic Planning & Policy Development, Woodward and Company (May 16, 2006) 3 Strategic planning helps in deciding how to allocate scarce resources. For example, one First Nation had no resources for cultural education and bringing youth and Elders together out on the land.
What are some examples of strategic planning?
Examples include planning how to pick up groceries, run errands, get the kids to soccer practice or how to create an opportunity to ask someone out on a date. Governments and organizations also carry out strategic planning.
What are the steps to develop a strategic plan?
Grand Rapids — Taking the next steps in developing a framework for a new comprehensive … provide their feedback on how to put it into action. Goals for the GRPS Strategic Plan’s six initiatives include achieving sustainable changes in practices …