Strategic Planning In Organizational Growth (Case Study Diamond Bank)

Project and Seminar Material for Business Administration and Management BAM

Strategic Planning In Organizational Growth (Case Study Diamond Bank)


Planning is the most basic managerial function. When done properly, it sets the direction for the organizing, leading, and controlling function. planning is the formal process of (1) choosing the organisation’s vision, mission and overall goals for both short run and long run, (2) devising divisional, departmental and even individual goals based on organizational goals, (3) choosing strategies and tactics to achieve those goals, and (4) allocating resources (people, money, equipment, and facilities) to achieved the various goals, strategies and tactics.

If undertaken properly, planning should assist in (1)identifying future opportunities, (2) anticipating and avoiding future problems, (3) developing courses of action (strategies and tactics), and (4) understand the risk and uncertainties associated with various options. Thus, the organisation will have a better chance of achieving its general goals.

In some organisations such as Diamond bank plc, the strategic planning process includes contingency planning which helps the bank prepare for unexpected and rapid changes in the environment which can be positive or negative.

Table Of Content

Preliminary Page(s)

  • Title
  • Declaration
  • Approval
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of Content

Chapter One


  • 1.1 General Introduction
  • 1.2 Purpose of the Study
  • 1.3 Statement of the Problem
  • 1.4 Research Hypothesis
  • 1.5 Scope of the Study
  • 1.6 Significance of the study
  • 1.7 Historical background of case study
  • 1.8 Definition of Terms
  • References

Chapter Two

Literature Review

  • 2.1 The role of strategic planning in strategic management
  • 2.2 Strategic planning process
  • 2.3 Levels of planning and strategy
  • 2.4 Strategic planning tools
  • 2.5 Models of strategic planning
  • 2.6 Advantages and Disadvantages of strategic planning
  • 2.7 Relevance of strategic planning to business growth
  • 2.8 Strategic planning in Diamond bank

Chapter Three

Research Methodology

  • 3.1 Introduction
  • 3.2 Data collection procedure employed
  • 3.3 Population of the study
  • 3.4 Sample size technique
  • 3.5 Determination of sample size
  • 3.6 Techniques of data analysis

Chapter Four

Data Analysis

  • 4.1 Introduction
  • 4.2 Data Presentation and Analysis
  • 4.3 Testing of Hypothesis
  • 4.4 Summary of Result

Chapter Five

Discussions, Recommendation and Conclusions

  • 5.1 Summary of Result/Findings
  • 5.2 Conclusion
  • 5.3 Recommendations
  • Bibliography

Chapter One


1.1 General Introduction

One prominent scholar and writer on management “Mary Packer Follet” defined management as “the act of getting things done through people”. Thus management carry out their functions of planning, organizing, directing, controlling, staffing, etc of both human and material resources in an organization through people.

In modern days management has metamorphosed into strategic management with emphasis on how strategic management which involves strategic planning and can be used to foster organisational growth. There has to be proper planning, controlling, staffing, etc of activities to ensure the judicious use of resources and to operate efficiently, producing the desirable result and this has to be done strategically. This is necessary because without the proper use of their functions the organization will not survive, and in survival, two strong and opposite view must exist, which are the classical and the non classical views.

Also with the introduction of strategy to management roles, we will now see how these strategies will greatly impact on the organization goals and achievements. As management performs its role strategically, organisational growth is enhanced in the process.

In this write-up, the researcher intends to identify the problems and views of how some managers look at the term organisational growth, looking at the models and making recommendation on the best of the models.
Finally, in the managerial aspect the researcher will concentrate on the basic strategic roles which will yield good result in an organization.

In promotion, we shall see how these strategies applied leads to the promotion of organisational growth. We shall see how strategic planning is the prerequisite of management to discharge its functions in Diamond bank plc.

1.2 Purpose of the Study

The specific purpose of the study is to examine the role of the strategic planning on the promoting organisational growth. To this end the researcher shall examine the basic strategic roles or responsibility that management would apply in the implementation of strategic planning, the reason and those aspects of strategic planning that should be embarked upon by the company.

Secondly, organizations should bear it in mind that it is to foster organisational growth without which the activities of the industries may not be enhanced and profit may be slow. This involves the entire top management including the board of directors of the company to ensure all hands are on deck.

Thirdly, every business organization like Diamond bank plc engage in some form of planning or the other which is crucial to any business success. Planning is the most fundamental aspect of management, without which the organisation will fail and objectives will not be achieved. The scope and complexity of strategic planning, strategy formulation, and strategic decisions vary from organisations to organisation. They depend primarily on the amount of diversification and level within the organisation which strategic planning takes place and strategic decisions are made.

With these assertions, this will create an avenue to some managers and directors who do not regard strategic planning as a vital function of management.

Finally, the philosophy behind the concept of strategic planning is that the private sectors will have to change their model of operation. Management effectiveness requires a conscious orientation which will be governed by the strategic plans which will in turn be of great advantage to the firms.

1.3 Statemenet of the Research Problem

There is no unanimity of agreement over the meaning attached to the concept of business strategic planning. This lack of oneness in the interpretations of the concept is reflected in the different countries that understood it.
In some studies and opinion surveys in Britain and North America, some people’s views about their understanding of business strategic planning were bought. Naturally, some businessmen see strategic planning as delivering the goods and making a profit, others regard it as obeying strictly the laws of the land in the course of their business activities.

In general, two strong opposite views exist: there is the classical notion that strategic planning means that business should strive to be efficient in their production. It is argued that lack of effectiveness threatens the survival of business and that business liquidation represents a loss on national income and a waste on natural resources.

In other words, the core of business responsibility calls for business using the resources entrusted on them by society so well that more socially desirable resources are generated. One measure of the desirability of product is the price consumers are willing to pay for it. In many business situations profit will be a good indicator of “value added”. For the sake of brevity, we shall style this core concern of strategic planning as “business growth”.

Finally, In some organisations such as Diamond bank plc, the strategic planning process includes contingency planning which helps the bank prepare for unexpected and rapid changes in the environment which can be positive or negative. And can have a large impact on the organisation and require a quick. This process begins with managers developing a scenario of major environmental events that could occur. A contingency plan for a negetiv dramatic event could be developed for responding to a disaster (e.g, an earthquake, flood, or fire outbreak in the firm). Similarly, a contingency plan for a positive dramatic event could be developed for responding to customer demand for products that overwhelms the firm’s current capacity. Contingency planning forces managers to be aware of possibilities and outline strategies to respond to them. It supports orderly and speedy adaptation, in contrast to panic-like reactions, to external events beyond the organisation’s direct control.

1.4 Research Hypothesis

Two hypothesis have been formulated in the course of this research,

  • Ho: That there is no significant relationship between strategic planning and the promotion of organisational growth.
  • Hi: That strategic planning promotes organisational growth.

1.5 Scope and Limitation of the Study

This study has been designed so as to concentrate on an explanation of the activities of Diamond bank plc. It therefore covers the following specific areas:

  1. The strategy implementation by management.
  2. To find out how management promotes strategic planning.
  3. The category of people who engage in strategic planning.
  4. The organizations strategic planning style.
  5. Types of strategic planning and strategy.
  6. Our study is limited to the roles of strategy planning in promotion of organisational growth.

1.6 Significance of the Study

The study will highlight the importance attached to the strategic way of promoting strategic planning to any organization.

The study will purposely serve as an instrument in the improvement of strategic planning which will ensure the profit generation and company expansion of a firm and its ability to use its strength to overcome its weaknesses as well as manage the changes within ots external environment.

The study will be most beneficial to corporate firms in learning the various ways strategic planning can be applied. Managers and directors of firms will learn the various corporate, business and functional level strategies that are applicable to ensure and guarantee growth.

Finally, the general public that would read this project will find it beneficial and understand the importance of the strategic planning on organisational profit of which they are stakeholders.

1.7 Historical Background of Case Study

Diamond Bank (PLC) Victoria Island, Lagos, Nigeria

Diamond Bank Plc began as a private limited liability company on March 21, 1991 (the company was incorporated on December 20, 1990). Ten years later, in February 2001, it became a universal bank. In January 2005, following a highly successful Private Placement share offer which substantially raised the Bank’s equity base, Diamond Bank became a public limited company. In May 2005, the Bank was listed on The Nigerian Stock Exchange. Moreover, in January 2008, Diamond Bank’s Global Depositary Reciepts (GDR) was listed on the Professional Securities Market of the London Stock Exchange. The first bank in Africa to record that feat.

Today, Diamond Bank is one of the leading banks in Nigeria* – respected for its excellent service delivery, driven by innovation and operating on the most advanced banking technology platform in the market. Diamond Bank has over the years leveraged on its underlying resilience to grow its asset base and to successfully retain its key business relationships. And like a diamond, our strength makes us even more valued and valuable. Diamond Bank has won several awards including the prestigious “Nigerian Bank of the Year, 2009”, the “Most Improved Bank of the Year, 2007” and “Best Bank in Mergers & Acquisition, 2006” all by the ThisDay Annual Awards.

We have retained excellent banking relationships with a number of well-known international banks, allowing us to provide a bouquet of world class banking services to suit the business needs of our clients. These international banking partners include Citibank; HSBC Bank; ANZ Banking Group; ING BHF Bank AG; Standard Chartered Bank; Belgolaise Bank S.A; Deutsche Bank; Commerzbank; and Nordea Bank Plc.

In 2008, and to ensure we grow with the needs of our customers, we streamlined our operations into three distinct strategic business segments: Retail banking, Corporate Banking, and Public sector.

Diamond Bank continues to develop and to build on its core competencies. By continually cutting from the rough, we have improved our services and our banking facilities. Like cutting from a rough gem to create a diamond of the finest quality, we are proud to have become a gem of a bank.

Diamond Bank is a commercial bank, offering a full range of banking products and services in retail, corporate and investment banking. The business is based on strong, enduring relationships and is driven by innovation and leading edge technology. The marketing/business development function of the Bank is organised in a way that enables us service our clients in the various market segments optimally.

This structure, along with the alignment of the Bank’s service, control and other support functions facilitate excellent customer services delivery.

The various groups of the Bank are:

  • Retail Banking
  • Corporate Banking
  • Diamond Capital
  • Public Sector
  • Treasury and Correspondent Banking Department
  • Customer Services and Technology
  • General Services
  • Personal Banking

We are a leading financial institution that is goal driven. In Diamond Bank we are apt to discover young talented individuals and empower them to achieve full potentials in their career path.

With continuous training and development programs, exquisite professional courses from best hands within and outside the country, we are out to maintain our standard of excellence service delivery to both our external and internal customers. Little wonder, we have been honoured the Best Trainer of the Year award from the Industrial

Training Fund (ITF).

We operate an open door policy which creates an enabling and work friendly environment for our staff. With the spirit of team work, ‘can do’ attitude, we have also been able to surpass the phrase ‘the sky is just the beginning not the limit’.

In Diamond Bank, there is a place for everyone, we are a versatile financial institution with the best equipped and skilled hands and have been able to exceed expectations in our ever challenging and dynamic economy.

Why not join a caring institution with your best interest at hearts, who do not see you as just machinery but a unique individual capable of taking bolder steps. With a wide range of well packaged human resource policies to motivate, retain and continually develop our staff, Diamond Bank is able to affect not just your life positively, also that of your loved ones with very impressive policies and schemes knowing that a man can achieve the best when he is in safe hands.

At Diamond Bank Plc, ‘Customers Are Really Everything’. Our valuable customers are not only our external customers, also our internal customers, ‘Our People

1.8 Definition of Terms

1. Strategy

Strategy (Roberts and Edward (1999) is a broad based plan to achieve the goals objective of organization as the most generated plan. Another definition (Sharon M. Oter Professor, Yale University) it is a commitment to undertake one set of action rather than other.

2. Strategic Management

Strategic Management (According to Author A. Thompson Jr. strategy management) it is management game plan for strengthening the organization position, pleasing customers and achieving performance target.
ANSOFF AND DONNEL (1990) Define strategic management as a systematic approach for managing strategic changes which leads to a goal achievement.

3. Management

Management (William F. Chuck) in principle of management as the effective utilization of human and material resources to achieve organization objective. Management also is defined by Mary packer Follet as the way of getting things done by people.

4. Planning

A formal process of choosing an organisational mission and overall goals for both the short run and long run, devising divisional, departmental and even organisational goals; formulating strategies and tactics to achieve those goals; and allocating resources (people, money, equipment, and facilities) to achieve the various goals, strategies and tactics.

5. Strategic Planning

Strategic planning is the process of (1) analyzing the organisation’s external and internal environments (2) developing a mission and a vision, (3) formulating overall goals, (4) identifying general strategies to be pursued, and (5) allocation resources to achieve the organisation’s goals.

Chapter Five

Summary of Findings, Conclusion and Recommendations

5.1 Summary of Findings

The following are a list of the major findings from the preceding chapters of this project.

  1. It was discovered that the strategic management team performed their roles in evaluating, controlling, implementing and crafting strategies which has yielded good results in the company.
  2. It was found out that strategic planning has played a vital role in streaming objectives of the strategic management in Diamond bank plc.
  3. The researcher also found out that there have been a number of projects that have been executed in the course of promoting strategic planning.
  4. Though there may still be a need for improvement due to the fact that there are many goals and objectives waiting for the right time for its implementation.
  5. It was also observed that strategic planning is a product of strategic management and it is a continuous process of planning and implementation to cope with environmental and market changes.
  6. Finally, with these attempts it has now been declared that the strategic planning engaged by the management is not a waste of time and resources.

5.2 Conclusion

Strategic planning is used to achieve the competitive advantage and to integrate all the functional areas of the company by facilitating the communication between the managers of all levels.

  1. Defines a company’s vision, mission and future goals.
  2. Identifies the suitable strategies to achieve the goals.
  3. Improves awareness of the external and internal environments, and clearly identifies the competitive advantage.
  4. Increases managers’ commitment to achieving the company’s objectives.
  5. Improves coordination of the activities and more efficient allocation of company’s resources.
  6. Better communication between managers of the different levels and functional areas.
  7. Reduces resistance to change by informing the employees of the changes and the consequences of them.
  8. Strengthens the firm’s performance.
  9. On average, companies using strategic management are more successful than the companies that don’t.
  10. Strategic planning allows the organization to become more proactive than reactive.

5.3 Recommendations

The firm must engage in strategic planning that clearly defines objectives and assesses both the internal and external situation to formulate strategy, implement the strategy, evaluate the progress, and make adjustments as necessary to stay on track.

Based on the findings and conclusion drawn above, the following recommendations are made.

  1. Determine where you are. This is harder than is looks. Some people see themselves how they want to see themselves, not how they actually appear to others. Many small businesses get snared in this same trap.
    For an accurate picture of where your business is, conduct external and internal audits to get a clear understanding of the marketplace, the competitive environment, and your organization’s competencies (your real—not perceived—competencies).
  2. The strategic management objective should make sure that they Identify what’s important. Focus on where you want to take your organization over time. This sets the direction of the enterprise over the long term and clearly defines the mission (markets, customers, products, etc.) and vision (conceptualization of what your organization’s future should or could be). From this analysis, you can determine the priority issues—those issues so significant to the overall well-being of the enterprise that they require the full and immediate attention of the entire management team. The strategic plan should focus on these issues.
  3. Define what you must achieve. Define the expected objectives that clearly state what your organization must achieve to address the priority issues.
  4. Determine who is accountable. This is how the firm is going to get to where it wants to go. The strategies, action plans, and budgets are all steps in the process that effectively communicates how you will allocate time, human capital, and money to address the priority issues and achieve the defined objectives.

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