The Impact Of Strategic Planning On The Growth Of Business Organization (A Case Study Of Nigerian Bottling Company Plc Ngwo Nineth Mile Enugu)

Project and Seminar Material for Business Administration and Management (BAM)

Abstract

Failures of the corporate business organizations in Nigeria are trends, that are now becoming a recurring decimal in our national life. Eminent business scholars and practitioners have blamed this ugly development on non-application of strategic planning by these corporate business entities in their management styles.

This work has therefore attempted an up-to date analysis of the effects of strategic planning on the growth of business organizations by carrying out an in-depth study of the various departments in the Nigerian Bottling Company and their contributions to strategic planning, as a means of achieving organizational goal.

The study involved the use of the necessary research techniques such as questionnaires, oral interviews, personal observations, and relevant literatures to get to the root of the subject matter. The work revealed that there is a fundamental need for all co-operate management units to develop in manner that will be devoid of ambiguity, setting out perceivable targets with clearly defined wider objectives.

Table Of Content

Preliminary Page(s)

Title page
Approval page
Dedication
Acknowledgement
Abstract
Table of contents

Chapter One

1.0 Introduction

1.1 Background of the study
1.2 Statement of the problem
1.3 Purpose/objectives of the study
1.4 Research questions
1.5 Research hypothesis
1.6 Significance of the study
1.7 Scope/delimitation of the study
1.8 Limitation of the study
1.9 Definition of the term

Chapter Two

2.0 Literature Review

2.1 Introduction
2.2 The planning concept
2.3 Strategic management
2.4 Strategic planning process
2.5 Strategy formulation
2.6 Strategic evaluation

Chapter Three

3.0 Research Design and Methodology

3.1 Introduction
3.2 Research design/method
3.3 Population of study
3.4 Sample size determination/sample technique procedure
3.5 Methods of data collection
3.6 Administration of data collection instrument
3.7 Validity and reliability of measuring instrument

Chapter Four

4.0 Data Presentation and Analysis

4.1 Introduction
4.2 Presentation of data
4.3 Analysis of data
4.4 Test of hypothesis
4.5 Interpretation of result

Chapter Five

5.0 Summary, Conclusion and Recommendation

5.1 Summary of findings
5.2 Conclusion
5.3 Recommendation
5.4 Suggestion for further researchers
Bibliography
Appendix
Questionnaire

Chapter One

1.0 Introduction

The word “Strategy” is still involved in managing any affair, be it business organization or in other spheres of human endeavour. Strategic planning therefore is the application of skills and the settling up of goals and objectives in any affair.

The role of strategic planning on the growth of business organization cannot be over-emphasized, more especially as it relates to the Nigerian Bottling Company limited.

Strategic planning, therefore, is the sole responsibility of Head office, or the Head quarters. When planning takes place at the head quarters, decisions to take during the planning process are communicated to the branches. These branches implement the decision for the growth of the business organization.
The Nigeria Bottling company limited has its headquarters at Lagos, but its branches and depots are spread throughout the federation.

Here, planning is as good and important as the implementation of the plan, planning leads to success. If one fails to plan, one has planned to fail, that is why every business organization must engage in strategic planning. The success of any business leads to high profitability.

In strategic planning, proposals are made by the directors of the business organization on how to move the business forward. These and those not needed or not important are dropped, strategic planning is indispensable in any business Organization. In this our competitive market, every business organization is struggling harder on how to outwit the other. Researches are made in various areas of production with a view to improving the quantity and quality of the products. Any organization that fails to embark on these vital areas is bound to fail. This leads to the emergence to the role of strategic planning on the growth of a business organization.

1.1 Background Of The Study

The critical role and important of the strategic planning in the operations of the business organizations in Nigeria and else where, cannot be over-emphasized. This is especially with regard to profitability and ensuring good health of an organization. However, it is very appalling that most business organizations hardly engage in strategic planning, and this has diversely affected their performance.

There is no evidence to show that business organizations have been engaging in strategic planning as they should. They resultant impact or effect of these sceneries has been declining profit levels, low sales return owing to poor demands.

Therefore there is a great need to reverse this ugly mind. This is because of the critical role of planning on the growth of a business organization.

The extent to which the Nigerian Bottling Company (NBC) Enugu engages planning in its operations constitutes the main focus of this study.

It is not as if business firms have completely neglected the idea of strategic planning. It is question of poor implementation. Part of the problem in our organizations is that the strategic planning unit has not been elevated to the point of top management function. What happens is that other functional units formulate strategic plans without anybody being given the responsibility for implementation. Consequently, what we experience is a reaction to events by firms to external and internal environmental factors.

When they are unable to cope with these new environmental factors, they are forced to liquidate; example is the S.C.O.A motors limited. This is French agglomerate that did strategize. They sell brand new Peugeot cars. Today, Tokumbo” has taken over their market share, and they have closed their, Enugu, Aba, Kaduna branches. They maintain skeletal services in port-Harcourt.

Nigeria firms, especially those ones that have seen the impact of non strategic have woken up from slumber. When MTN, the communication giant came on the scene, they entered with heavy advertising and promotions; consequently their product service was costly. Both with the emergence or coming of GLO and other networks, they use of their product services. A line costs as low as N250, while recharge cards are as low as N100.

Neglect or abandonment of these planning strategies can meant a serious reduction in the sales volumes and a wavering of the market share of companies involved infact, many have already closed some of their case of S.C.O.A motors Plc others that have reduced operations include Tetlon textiles Ltd based in Lagos. Horizon fibers that make threads used in weaving cloths has already closed their only branch in Port- Harcourt. Neglect to strategic planning can spell imminent doom. Because the firm will be unable to position itself of the challengers it will face both in external and internal environments.

1.2 Statement Of The Problem

As already stated in the introduction, the role of strategic planning in the growth of business organization cannot be over-emphasized.

We know that the Nigerian economy is fast growing in leaps and bounds. The growth of the economy which does not need strategic planning. Many business organizations have collapsed simply because they failed to plan. The economy is dynamic, different changes take place in the economy while these changes are taking place, business organizations must equally adapt to the dynamic change of the economy. If they do not do so, they cannot fit in for business organizations to meet up; they have to embark on planning.

However, planning is not an easy task, it is forth with problems. These problems include designing goals and objectives of the business unit, forecasting future trends in marketing and anticipating high productivity, profitability and ensuring the continued survival or existence of the firm.

There is no vain saying, the fact that many business units do not take these indices into consideration while planning, some small scale industries which are run or managed by people may not see the need to adopt planning on a large scale. Some plans may have a long run impact on returns or short run effects or impacts of plans may become inpatient and despondent with the plan. This situation may generate the demise of the organization.

In the same view, the government which fails to understand the short-run or long-run returns of planning may not satisfy her subjects. It then becomes pertinent that this study is aimed at finding out the role and impact strategic planning has on the growth of business organization with particular reference to the Nigerian Bottling company limited. Headquarters and few of its branches as Enugu and Owerri plants.

1.3 Purpose / Objectives Of The Study

The general purpose of the study is to study the relationship or the role strategic planning plays in enhancing the growth of a business organization.
Finally the study has the following objectives.

To examining the impacts of strategic planning on corporate performance.
Identifying the need for firms or industries to adopt planning so as to achieve their set goals.
Identifying the contributions, some people has made towards the attainment of organizational goals.
To access the impact of environmental factors on strategic planning.
To investigate the level of planning undertake by Nigerian firms.
To evaluate the relationship between strategic planning and corporate performance.
To ascertain if the failure of some firms is largely due to lack of planning.

1.4 Research Questions

Is there any positive relationship between strategic planning and the corporate performance?
Is there any correlation between the failure of some firms and lack of strategy planning?
Do environmental factors have any impact on strategic planning?
How frequent are Nigeria firms involved in planning?

1.6 Significance Of The Study

It is worthwhile that the researcher highlights the significance or importance of this study to the growth of the business organization.

The presence of business organization and infrastructural facilities is an index of development. The business organizations cannot grow appreciable if they lack strategic planning to define their goals and objectives. When these goals are clearly defined, the entrepreneur works towards the achievement or realization of these goals.

This research will therefore be useful to business organizations, managers’ entrepreneurs and students / scholars to the students are as follows:

This text will give additional information to students who will come across it in the area of planning.
This research work will help the students to know about strategic planning.
It will act as a guideline to them in future, especially students that will find themselves in the field of management or the future managers.
It will also help the students to know the basic method or means of setting a plan and how to actualize it.

1.7 Scope Of The Study

Nigerian bolting company is a leading soft drink manufacturing company in Nigerian.

This research is therefore aimed at studying the breadth and depth of its business operations in Nigerian at strald the following branches or departments. In each branch, the research will study the production department example, is the Owerri plant. It will study the marketing, production, accounting and personnel etc. Enugu plant will therefore study marketing, production, accounting and personnel etc.

1.8 Limitations Of The Study

Consequently, before the actualization or conclusion of set of work or activity, there may be some challenges that may arise during the process or course of the work.

The researcher encountered series of constraints during the period of the research. These constraints made the research work not to be easy as earlier thought. Some of these constraints are time factor, fiancé and the process of retrieval of information. There was no adequate or enough time that would prompt or enable the researcher to travel or visit all the areas that the Nigerian bolting company operates. Financial incapacitated also contributed or acted as a constraint, this is because some of the materials needed were unreachable as a result of lack of fund.

Also, some of the information generated were outdated and as a result of the dynamic nature of business organization and its operation in Nigeria.

1.9 Definition Of The Terms

Strategy:

This outlines the fundamental steps that management plan to undertake in order to reach an objective. Strategy is also the direction and scope of an organization over the long-term, which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations.

Planning:

This is act of choosing a course of action and deciding in advance what is to be done, in what sequence, at what time, and how.

Goal:

This is synonymous with objective; it is a statement of what is to be achieved. Goals are objectives which are made specific with respect to degree and time.

Strategic Managers:

These are individuals who bear responsibility of the overall performance of the organization, or for one of its minor self contained division.

Corporate Strategy:

These address what business an organization will be in and how resources will be allocated among those businesses or, it relates to the overall character and purpose of the organization, the business it will enter and leave, and how resources will be distributed among those businesses.

Chapter Five

5.0 Summary, Conclusion And Recommendation

In this chapter, the researcher summarized the entire work on the role of strategic planning on the growth of Nigerian Bottling Company Plc, conclusions, limitations of the study and suggestions for further researchers.

5.1 Summary Of Findings

It was found that the Nigerian Bottling Company Plc Enugu engaged in regular formulation and implementation of strategic plans, which serves as a road map in its operations yearly. This has enabled the company to weather the jungle called the market place.

In the first test of hypothesis – “is there a relationship between strategic planning and the growth of the business”, majority of the respondents answered affirmative which led to the rejection of the null hypothesis.

In the second test of hypothesis- “has the company been able to rise successfully to the challenges of its internal and external business environment”? Respondents whose views were that the company often rises successfully to the challenges of its internal and external environment were more than those whose opinions were that it is rare and very often.

Based on the above findings, one can rightly say that there is a liner relationship between strategic planning and the growth of Nigerian Bottling Company Plc Enugu.

5.2 Conclusion

After a critical approach of the impact of strategic planning in the literature reviewed, coupled with the findings, one could without equivocation conclude that strategic planning was needed as the key to increase organizational productivity. This was because the impact of environmental forces on the strategic planning ability of The Nigerian Bottling Company Plc. Had been critically ascertained.

In the same vein, the study afforded the opportunity of assessing the relationship between strategic planning and the growth of the business. This enables the company not to relent. This can be done by continuously spying the business environment and change of strategies in line with changes in the market place. This is to avoid stagnation and possible retrogression and incurring of losses.

5.3 Recommendations

From the findings so far, it is no longer in doubt that for our national economy to prosper, steps should be taken improve the performances of corporate organizations in this country. The enormous wealth is derived form corporate entities could increase when they are run efficiently.

Consequently upon these, the following recommendations are made for improvement. Company owners and managers should notify their management styles to accommodate strategic planning. Further more, there is a fundamental need for all corporate management units to develop a corporate mission, which should be fashioned in a manner that will be devoid of ambiguity, setting out perceivable targets with clearly defined wider objectives.
In addition, whatever mission to develop should be communicated to other managers down the line to keep them informed.

The ensures corporate missions should be hatched by the top management levels of the companies. But such development must form the embryo, which accommodate the views of operatives down the line.

A good management structure is another indispensable pedestal for the nurturing of strategic plans. This should be erected in all companies. It provides the basis from which rudimentary facts and ideas could be nurtured for adoption by top management.

No management structure or style ever succeeded without proper and adequate information system. companies wishing to enjoy well planned strategies must be necessity entrench good information network in their systems. That is the line wire of management.

Strategic work plans do not crystallize from hunches and guess work. They are normally groomed using various relevant scientific techniques. Therefore top management should ensure that skilled personnel are engaged, who should adopt those relevant scientific planning techniques in assisting to plan strategically. These techniques are what enables management make sound and viable plans.

5.4 Suggestions For Further Researchers

I humbly suggest that at least one month or even three months be dedicated to research and writing of projects. This must / should be after final paper (exam) have been written. One can hurry the students, but the students cannot hurry the respondents without the right data retrieved questionnaire, any outcome of project writing will be in doubt.

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Frequently Asked Questions

Does strategic planning process affect organizational growth?

This study’s main objective was to determine the effects of strategic planning activities on organizational growth. Issues had been raised by employees that the planning process tended to be inflexible and rigid since it operated in changing environment and poor adaptation to changing environment usually affected organization adversely.

How does strategic planning affect financial performance?

Hence, it’s been concluded that, strategic planning positively affects organizations’ performance, or more specifically, the amount of strategic planning an organization conducts positively affects it’s financial performance.

What is strategic planning in business?

Strategic planning refers mainly to outlining the mission and goals of an organization. By having a clear mission statement or strategy for growth, an organization can better determine specific actions and allocation of resources that best serve its goals. A clearly defined set of goals also creates a better base for evaluation and feedback.

Does strategic planning lead to organizational survival?

This study was carried out to investigate the impact of strategic planning on organizational performance which leads to its survival. A case study of transport companies in Mombasa, Kenya. The researcher used the top managers as respondents of the study.

What is the importance of strategic planning?

The formality of the strategic planning processes (i.e., the extent to which strategic planning includes internal and external analyses and the formulation of goals, strategies, and plans) is important to enhancing organizational performance.

Does strategic planning lead to positive organizational outcomes?

Many organizations employ a combination of strategic planning and operational planning but use the former term to describe their planning process without a clear definition or conceptual framework. The empirical literature across disciplines has not demonstrated that strategic planning leads to positive organizational outcomes.

Is strategic planning overly rational?

Nonetheless, strategic planning has been criticized for being overly rational and for inhibiting strategic thinking. This article undertakes a meta-analysis of 87 correlations from 31 empirical studies and asks, Does strategic planning improve organizational performance?

What are the disadvantages of strategic planning?

Lack of knowledge and insufficient business experiences related to strategic planning. The strategic planning are costly in terms of time and its budget. Other business think that its wastage of time since there is no considerable benefits could be produced.

How does strategic planning affect Bank’s financial performance?

The result from past researches suggested that the intensity with which banks engage in the strategic planning process has a direct positive effect on banks’ financial performance and mediates the effect of managerial and organizational factors on bank’s performance.

Does strategic planning enhance organizational performance?

The implication of this study is that Strategic planning enhances better organizational performance, which in the long run has impact on its survival and that strategic planning intensity is determined by managerial, environmental and organizational factors. Services Related Articles in ASCI Search in Google Scholar

How do you measure the effectiveness of strategic planning?

The effectiveness of strategic planning can be measured in terms of the extent to which it influences organizational performance, which affects its survival rate.

What is the importance of formality in strategic planning?

Does strategic planning affect organizational performance and survival?

The study examined the impact of strategic planning on organizational performance and survival. The effectiveness of strategic planning can be measured in terms of the extent to which it influences organizational performance, which affects its survival rate.

How do you create the best strategic plan for your organization?

Whether you’re just beginning your strategic planning or in the middle of a process, these tips can help you create the best possible plan for your organization: 1. Get ready. Deciding what information you need to make meaningful decisions is the key to an effective strategic planning process. Prepare a full picture of your current situation.

What is strategic planning and why is it important?

Strategic planning will help the organization capitalize on their strengths, overcome their weaknesses, take advantage of opportunities and defend against threats to the organization.

How do you measure the effectiveness of strategic planning?

The effectiveness of strategic planning can be measured in terms of the extent to which it influences organizational performance, which affects its survival rate.