The Impact of Strategic Management on Organizational Efficiency
Chapter One
Objectives Of The Study
The objectives of any research study is to find a solution to the problem or to find relationship that exist between the problem and other problems or breaking the problem into its components parts through an exploration or analysis so that the superior and readers alike will understand the problem more clearly with the hope that it will eventually be solved through the present study.
The main objective or purpose of I the study is to conduct a research on the impact of strategic management on organizational effectiveness and performance.
The various specific objectives of the study are:-
- To reveal that organizational efficiency is attainable in todays dynamic environment.
- To prove that strategic management plays a crucial role in the attainment of organizational efficiency.
- To show empirical evidence of the relationship between differentiation strategy and the factors that determine the efficiency of an organization.
CHAPTER TWO
LITERATURE REVIEW
Introduction
This chapter reviews literature pertinent to the study. The review serves as a framework that guides the analysis of the research findings. Areas reviewed include the concept and definition of strategy and strategic management, strategic management process, strategic management and performance, benefits as well as problems of strategic management.
Concept and Definition of Strategic Management
There are many definitions of strategic defined by various authors. As pointed out by Mintzberg et al. (1998) there is no single, universally accepted definition of strategy. The early definition of strategy was provided by the American business historian, Chandler (1962) who defined strategy as determination of the basic long-term goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out those goals. Thus Mintzberg (1994) portrays strategy as a plan – a direction, a guide or course of action into the future – and as a pattern, that is, consistent in behavior over time. Nag et al (2007), on the other hand considers strategy as the determination of the basic long-term goals of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals.
According to Kazmi, (2008), a notable ingredient that is lacking in business organizations today is strategy. Thus strategy is the master plan for any organization to achieve its goals within specified time frames. Strategy needs to be embraced to engender sustainability of competitive advantage. The overall purpose of business strategy is competitive advantage. Strategy came into being due to competition. The whole essence of strategy planning is to enable an organization to gain a sustainable edge over its competitors. There is the basic need to leverage an organization’s strength in a most efficient way over its competitors. This is the whole essence of a corporate strategy. Strategy is all about developing action plans that enables an organization to deploy its enterprising strength within its sphere of business operations. For strategy to achieve its purpose there is the need for a deep thinking. When an organization strives to maintain a superior edge over competitors, the thought pattern of one helmsman should be different. Strategic management thus involves the formulation and implementation of the major initiatives taken by a company’s top management on behalf of owners, based on consideration of resources and an assessment of the internal and external environments in which the organization competes (Nag et al, 2007).
Hunger and Wheelen (2003) describe it as a set of managerial decisions and actions that determine the long-run performance of a corporation. It includes strategy formulation, strategy implementation, and evaluation and control. It also can be defined as the art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives (Kazmi, 2008). The strategic management process requires competent individuals to ensure its success (Stahl and Grigsby, 1992). The top management of an organization has responsibility to ensure firm success and overcome any competition that occurs.
However, to be more effective, Hunger and Wheelen (2003) noted that people at all levels, not just top management, need to be involved in strategic management; scanning the environment for critical information, suggesting changes to strategies and programs to take advantage of environment shifts, and working with others to continuously improve work methods, procedures, and evaluation techniques. In their opinion, Adeleke, Ogundele and Oyenuga, (2008) refer to strategic management as the process of examining both present and future environments, formulating the organizations objectives, implementing and controlling decisions focused on achieving these objectives in the present and future environments. In other works, strategic management is involved in deploying a firm’s internal strengths and weakness to take advantage of its external opportunities and minimize its external threats/problems.
CHAPTER THREE
RESEARCH METHODOLOGY
Introduction
In this chapter, we would describe how the study was carried out.
Research design
Research design is a detailed outline of how an investigation took place. It entails how data is collected, the data collection tools used and the mode of analyzing data collected (Cooper & Schindler (2006). This study used a descriptive research design. Gill and Johnson (2002) state that a descriptive design looks at particular characteristics of a specific population of subjects, at a particular point in time or at different times for comparative purposes. The choice of a survey design for this study was deemed appropriate as Mugenda and Mugenda (2003) attest that it enables the researcher to determine the nature of prevailing conditions without manipulating the subjects.
Further, the survey method was useful in describing the characteristics of a large population and no other method of observation can provide this general capability. On the other hand, since the time duration to complete the research project was limited, the survey method was a cost effective way to gather information from a large group of people within a short time. The survey design made feasible very large samples and thus making the results statistically significant even when analyzing multiple variables. It allowed for many questions to be asked about a given topic giving considerable flexibility to the analysis. Usually, high reliability is easy to obtain by presenting all subjects with a standardized stimulus; observer subjectivity is greatly eliminated. Cooper and Schindler (2006) assert that the results of a survey can be easily generalized to the entire population..
Sources of Data
The data for this study were generated from two main sources; Primary sources and secondary sources. The primary sources include questionnaire, interviews and observation. The secondary sources include journals, bulletins, textbooks and the internet.
Population of the study
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 (Udoyen, 2019). The population of the study were all staff at First Inland Bank, Intercontinental Bank, Furniture Mart and Viju Industries Ltd..
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of One hundred and twenty (120) questionnaires were administered to respondents of which 100 were returned. The analysis of this study is based on the number returned.
CHAPTER FIVE
CONCLUSIONS AND RECOMMENDATION
5.1 Conclusion
The success of any corporate organization is critical to its survival. Without good performance and high profitability, companies are doomed to staleness and possible bankruptcy. In the Big Joe motors, success is altogether more important considering the plethora of areas for competitive advantage. Competitive advantage could be achieved through product design, customer relationship management, customer service, product requirements, etc. To excel in all these faucets, strategic management is critically important and the findings of this study have confirmed this fact. Strategic management has been found to significantly influence corporate performance and profitability. through the review of related literature and the analysis of the study, recommendation were made that the study entreats all savings and loans companies to adopt in order to achieve higher performance and profitability through effective strategic management practices.
Recommendations
Based on the findings of the study, the study recommends the following:
Increase Performance with Strategic Management
The study showed that strategic management and its practices have significant effects on corporate performance, especially sales growth. Knowing the right strategic practices to adopt is key to maximizing the performance of not just the individual employees of a company, but the company as a whole. The study therefore recommends that managements of savings and loans companies take the practice of strategic management seriously in order to ensure sustained high corporate performance.
Consider Marketing Environment in Making Strategic Decisions
The findings of the study and previous literature on the subject have shown that the external environment exerts a strong influence on strategy formulation or on the relationship between strategy and other variables such as performance. Any strategy a company adopts must be done with the prevailing environment and a forecast of future conditions in mind. The study therefore recommends that savings and loans companies factor into their strategic management decisions, the marketing environment and the prevailing macro conditions in order to come out with an effective strategic plan that would have positive impact on corporate performance.
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