Corporate Planning and Organizational Growth
Chapter One
Objective of the study
The objective of this study is to:
- To determine the effect of corporate planning on the performance of an organization.
- To ascertain the relationship between corporate planning and the achievement of organizational goal
- To determine the effect of changes in the business environment on corporate plans.
CHAPTER TWO:
REVIEW OF LITERATURE
Conceptual framework
concept of strategic planning
Different definitions of corporate planning have been presented over the years. Some of these definitions are presented below: Aluko et al (2012), opined that corporate planning is the process of determining the major objectives of an organization and the polices and strategies that will govern the acquisition used and the position of resources to achieve these objectives. Corporate planning is strategic in nature. Corporate planning is in fact a quite simple exercise. This is not to suffice that, it is easy. The problems are: first, that the forecast on which many of the decision have to be based are subject to enormous errors and secondly, that many of these decisions, are judgmental. A corporate plan does not contain an enormous number of decisions, nor does it call for a vast volume of detail which are more than characteristics of short term planning, instead it involves a very fair but important decision concerning the whole structure of the company for many years into the future (Argent, 2010). Thus, manager and other stakeholders are therefore advised to adopt corporate planning in their organization because it makes the difference, that is why Ericson (2008) postulated that, corporate planning policy is very important in three dimensions, confidence boasting, insurance against unexpected risk and management discipline. It would be incumbent upon the business managers to handle the complex nature of modern business, its environment, technological changes, competitions and expanding customer needs etc. According to Susan S. Daris for a company’s perspective, corporate planning involves formulating long term business goals so that strategic planning of an enterprise may be developed and acted upon. The corporate planning term that was popular in the 1960’s has since been referred to as strategic management. According to her, corporate planning primarily focused on effective and efficient achievement of optional performance from all business division with actionable information provided to the executive management in order to foster accountability and business growth.
- The process of gathering data to prepare detailed action plans addresses a corporate organization’s goal and objectives so that an actionable plan may be developed usually by senior management.
- The resources of a business, company or organization is considered among with the environment in which it is operating statistical data including budget formulation and performance management used in connection with business analysis and forecasting.
- A plan is developed using the determined information and resources including targets and milestone that corporate.
CHAPTER THREE:
RESEARCH METHODOLOGY
Research Design
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
Population of the study
According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitute of individuals or elements that are homogeneous in description.
This study was carried out to examine corporate planning and organizational growth. Staff of Diamond bank Plc Uyo branch form the population of the study.
CHAPTER FOUR:
DATA PRESENTATION AND ANALYSIS
Data Presentation
This aspect of the study presents the analysis of the data for this study.
Thirty (30) copies of the forty (40) questionnaires were retrieved duly completed by the staff diamond bank understudy in Akwa-ibom State.
The analysis of the data obtained are shown in the table below based on the questions in the questionnaire which comprises the research questions and questions based on the hypothesis of the study.
CHAPTER FIVE:
SUMMARY, CONCLUSION AND RECOMMENDATION
Summary
This study revealed that oil companies are involved in oil exploration and production. This is in line with the opinion of Fubara (1986) that “An organization avoids the threats in the environment by engaging in series of activities which includes the production of goods and services that ensures its continued relevance in the society”.
It was also discovered that strategic planning in the banks are carred out by top level management, this is in line with the view of Mesie (1978) “that corporate planning information relates to top management task in deciding on objectives of the organization and on policies that governs the acquisition and disposition of the resources” also Rosebery (1976) opined that long range (Corporate Planning) is generally undertaken by top level management.
In light of this, Fubara (1986) equally expressed the same view when he described corporate planning as “Management of Organization from the Top”. These views do not however, suggest total isolation of the rest level of managers to evolve a better corporate planning and decision skills in corporate planning.
It was observed that corporate plans and strategies are determined by the objectives of the organization competitive activities and environmental factors. So before undertaking corporate planning, oil companies should take into consideration these determinants of the study revealed in changes of business environment affects the review of corporate plans and strategies. Corporate plans and strategies are reviewed mostly by all companies between two-four (2-4) years based on the changes occurring in the business environment.
Also, most oil companies adopt corporate planning which ensures effective organizational performance. This is in harmony with what Umoren (1985) that some of the main thrusts of change in our industrial society serve to remind us that corporate planning is inescapable if the-organization is tosurvive protracted product development cycles, accelerating rate of product obsolescence, rapid state of changes in technology, changing social values, increasing demand of people (Workers and Shareholders) for more participation in decision process growing organizational complexity and inter-dependency.
It was also observed that a change in the business environment will call for organizational review of corporate plans and strategy. There is an indication that corporate plans and strategies are determined by the objectives of organization, competitive activities and environmental factors. So before undertaking corporate planning, oil companies should take into consideration these determinants.
This study also reviewed that corporate planning enables standard of performance to be established, this enhance the control of mechanism to become effective which in turn facilitates company growth and ensures the sitting and acceptance of common goals. It also helps the firms to have to an extent the magnitude of risk taking and how to effectively cushion its.
Conclusion
Corporate planning and strategic decision making is paramount in effective utilization of scare resources and good financial management as well promote cordial relationship between management and their staff, thereby helping staff to understandstated organizational goals and Functions. Moreso, uncertainty and environmental threats are taken care of, thereby safe guarding the future of establishment/organization. The evaluation of stated objectives and decisions made helps organizational strategies to be effective, efficient and creditable. This is because their actions affect the overall activities of the organization.
Lengthy period should not be encouraged in corporate planning as this affects the social economic and political atmosphere present in existence in Nigeria where their price fluctuation and economy recession as such all forward looking organization should embark on corporate planning to be able to overcome the turbulent business environment.
Recommendation
Base on the findings above, the researcher recommends thus.
Corporate planning and strategy should be adopted by firms that will position the firm to achieve its objectives rather than watch or wonder at changes that take place in the environment to enable the firm adapt promptly to these changes. It is good for any organization that wants to grow in the recent business environment because its necessity gives deeper understanding on how managers should use corporate planning and strategy to detect changes in the economic environment and how these changes may affect their business operation especially those factors that influence economic growth and future aggregate demand engage on government and private in corporate planning and strategy in order to facilitate control for effective and efficient management. There are plans to be use as standard which specify goals and objectives of the firm to accomplish within a specific period of time.
Lastly, since corporate planning and strategy can be used to establish standard of performance in an organization, it is recommended that oil companies should engage on effective mechanisms that will facilitate companies growth and development.
References
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- Adole, A.F (1988): Benefits of Strategic Planning in a Depleted Economy Business Times.
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