CHUKWU EDITH C. PROJECT EDITH C.pdf · chukwu edith c. pg/mba/12/64175 1 name a, nsukka . 2...

Digitally Signed by: Content manager’s

DN : CN = Webmaster’s name

O = University of Nigeri

OU = Innovation Centre

Ugboaku, Edith J.

FACULTY OF BUSINESS ADMINISTRATION

DEPARTMENT OF DEPARTMENT OF DEPARTMENT OF DEPARTMENT OF MANAGEMENTMANAGEMENTMANAGEMENTMANAGEMENT

STRATEGIC PLANNING AND ITS IMPACT ON THE PERFORMANCE

ON MANUFACTURING INDUSTRY

(A CASE STUDY OF EMENITE AND INNOSON LTD, ENUGU)

CHUKWU EDITH C.

PG/MBA/12/64175

1

: Content manager’s Name

Webmaster’s name

Nigeria, Nsukka

Innovation Centre

NISTRATION

MANAGEMENTMANAGEMENTMANAGEMENTMANAGEMENT




CHUKWU EDITH C.

PG/MBA/12/64175

2




BY

CHUKWU EDITH C.

PG/MBA/12/64175


DEPARTMENT OF MANAGEMENT

UNIVERSITY OF NIGERIA

ENUGU CAMPUS

JANUARY, 2015

3




BY

CHUKWU EDITH C.

PG/MBA/12/64175

BEING A PROJECT PRESENTED TO THE DEPARTMENT OF MANAGEMENT

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF

MASTER OF BUSINESS ADMINISTRATION (MBA) IN MANAGEMENT


DEPARTMENT OF MANAGEMENT

SCHOOL OF POSTGRADUATE STUDIES

UNIVERSITY OF NIGERIA

ENUGU CAMPUS

SUPERVISOR: BARR. DR. CHUKWUEMEKA NNADI

JANUARY, 2015.

4

CERTIFICATION

I Chukwu Edith Chianugo with registration number PG/MBA/12/64175

certify that I actually carried out this work. And that the work embodied in

this research project has not been submitted din part or full for any other

masters or degree or any other University.

____________________ __________________

Chukwu Edith C. Date

(Student)

5

APPROVAL

This project work has been read, approved and accepted as meeting the

requirement of the Department of Management, University of Nigeria, Enugu

Campus in partial fulfillment of the requirement for the award of masters of

Business Administration (MBA).

____________________________ ________________

Barr. Dr. Chukwuemeka Nnadi Date

(Project Supervisor)

____________________ __________________

Dr. O.C. Ugbam Date

(Head of Department)

___________________ __________________

External Examiner Date

6

DEDICATION

To my family and well wishers

7

ACKNOWLEDGEMENT

My gratitude goes to my parents who have been supporting me through my

education both morally and financially and to God almighty for his

continuous guidance and protection.

I also acknowledge the effect of my project supervisor, Barr. Dr. C. Nnadi, in

putting me through the writing of this project. I appreciate his corrections and

tips which made the project come out just fine.

My lecturers are also not left out for their immense effort in making sure that

we were well enlightened in the field of business.

8

ABSTRACT

This research investigated strategic planning and its impact on the

performance of manufacturing industries. It was geared towards finding out

the extent to which manufacturing industries and their stakeholders are

involved in strategic planning of their businesses, assessing the impact of

strategic planning on the performance of manufacturing industries and to

highlight the challenges impinging on strategic planning in manufacturing

industries. Using survey method, 310 respondents which were later narrowed

down to 250 respondents due to poor completion and some of the

questionnaires not returned were sampled to obtain the data necessary for this

study. The main instrument for data collection was the questionnaire.

Observation and interview methods were also employed to gather more

information regarding the study. Data obtained from the study were presented

in tabular form using simple percentage (frequency) distribution and the

hypotheses tested using the statistical tool known as Chi-square. The study

revealed that indeed strategic planning has a great impact in the performance

of manufacturing industries. Based on the findings, conclusion was drawn and

recommendations made.

9

TABLE OF CONTENTS

Title page … … … … … … … … … i

Certification … … … … … … … … … ii

Approval … … … … … … … … … iii

Dedication … … … … … … … … … iv

Acknowledgement … … … … … … … … v

Abstract … … … … … … … … … vi

Table of contents … … … … … … … … vii

List of tables … … … … … … … … … ix

List of figures … … … … … … … … … x

CHAPTER ONE: INTRODUCTION

1.1 Background of the Study … … … … … … 1

1.2 Statement of Problem … … … … … … 3

1.3 Objectives of the Study … … … … … … 4

1.4 Research Questions … … … … … … 4

1.5 Research Hypotheses … … … … … … 5

1.6 Significance of the Study … … … … … 6

1.7 Scope of the Study … … … … … … 7

1.8 Limitations of the Study … … … … … … 8

1.9 Operational Definition of Terms … … … … 9

References … … … … … … … … 14

CHAPTER TWO: LITERATURE REVIEW

2.1 Introduction … … … … … … … … 15

2.1.1 Definition of Planning … … … … … … 16

2.1.1.1 Various Kinds of Planning … … … … … 16

2.1.2 Definition of Strategy and Strategic Planning … … 18

2.1.2.1 Steps Involved In Developing a Workable Strategic Plan 20

2.1.3 Strategic Management and Strategic Planning … … 20

2.1.3.1 Levels and Stages of Strategic Management … … 22

2.1.3.2 The Process of Strategic Management … … … 24

2.1.3.3 Model of Strategic Management Process … … … 28

10

2.2 Essential Ingredients to Effective Strategic Planning … 28

2.3 Strategic Evaluation and Control … … … … 30

2.4 Importance of Strategic Planning and Management to

Business Organizations … … … … … … 37

2.5 Impact of Strategic Planning on the Performance of Manufacturing

Industries … … … … … … … … 38

2.6 Problems and Challenges Facing Strategic Planning … … 39

References … … … … … … … … 42

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Introduction … … … … … … … … 43

3.2 Research Design … … … … … … … 43

3.3 Sources of Data … … … … … … … 44

3.4 The Population of Study … … … … … … 44

3.5 Sample Size Determination and Sampling Technique … … 45

3.7 Description of Research Instrument … … … … 46

3.8 Method of Data Analysis … … … … … … 46

References … … … … … … … … 48

CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA

4.1 Distribution and Return of Questionnaire … … … 49

4.2 Test of Hypotheses … … … … … … … 59

4.2.1 Test of hypothesis I … … … … … … 60

4.2.2 Test of hypothesis II … … … … … … 62

4.2.3 Test of Hypothesis III … … … … … … 64

4.2.4 Test of hypothesis IV … … … … … … 66

4.3 Discussion of Findings … … … … … … 68

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND

RECOMMENDATIONS

5.1 Summary of Findings … … … … … … 69

5.2 Conclusion … … … … … … … … 69

5.3 Recommendations … … … … … … … 70

Bibliography … … … … … … … 72

Appendix … … … … … … … … … 74

Appendix I: Questionnaire … … … … … … 75

Appendix II: Interview Schedule … … … … … 77

11

LIST OF TABLES

Table 3.1: The Population of the Study - - - - 45

Table 4.1: Data on the educational qualification of respondents - 50

Table 4.2: Data on the best qualification for a managerial position - 51

Table 4.3: Data on employees’ awareness of their company’s planning 52

Table 4.4: Data on the duration of the plan of companies under

survey activities - - - - - - 52

Table 4.5: Data on workers’ participation in the formulation their

company’s strategic plan - - - - - 53

Table 4.6: Data on whether the companies under survey have benefited

from strategic planning - - - - - 54

Table 4.7: Data on the effect of strategic planning on the profit and

Performance of manufacturing companies - - 54

Table 4.8: Data on the effect of strategic planning on employees’ work 55

Table 4.9: Data on the rating of other manufacturing companies’

planning activities - - - - - - 56

Table 4.10: Data on the main reason why some manufacturing industries

do not embark on strategic planning - - - 57

Table 4.11: Data on the relevance of strategic planning in assessment

of workers’ performance - - - - - 58

Table 4.12: Data on the effect of strategic planning on productivity source 59

12

LIST OF FIGURES

Fig. 1: Four Phases in Strategic Management Process - - 25

Fig. 2: Comprehensive Model of Strategic Management - 28

Fig. 3: The evaluation process for operational control - - 36

13

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Good planning is one of the most important and also most neglected

ingredients in business operations. Planning is essentially a form of decision-

making (Ezeh, 1999:8).

The environment in which business owners operate undergo rapid changes

with time, hence they have to develop a mission to attain long term goals for

their businesses and evolve strategies on how to realize such mission in order

to maintain focus amidst these rapid changes (Hellenbillst and Krallinger,

1989:168).

In order to achieve effective strategic planning, business owners must

understand the objectives of their businesses, know what strategy to use in

organizing and directing the resources of the firm to be able to develop the

operational tactics to carry out the strategy to attain the objectives (Dyson,

1990:3).

Strategic planning gives owners, managers, and employees a clear idea of the

objectives of the firm. It helps members of the team to work together with a

common vision making all segments of the business to focus on the

predetermined objectives. Strategic plan also provides an anchor for making

adjustments to meet changes in customer tastes and preferences because

14

market size fluctuates, with more intense, competition and technological

transformation of products and services. Swift action and reaction are possible

when the firm’s strategy is understood by everyone involved (Ezeh, 1999:92).

Operations are driven by the strategic plan, as individual units, departments

and other specialized elements of the business organize their actions based on

the overall business strategic plan. (Bateman and Zeithaml, 1990:187-9)

Strategic planning does appear to improve financial performance only when

considerable attention is paid to the implementation phases of planning. It is

fairly well used by private companies, but by no means universally acceptable

by the industry. Firms that perform at “high level”, pay considerable attention

to the environmental situation, involve the board of directors and senior line

executives in the process, and use planning departments as catalysts. They

also ensure full participation by the chief executive in the process and plan on

a continuous rather than sporadic basis (Hrebiniak and Joyce, 1984:187).

A number of manufacturing industries in Nigeria have benefited immensely

from effective strategic planning activities. A research by C. Grim and G.S

Andrews also showed that the South African building materials industry (and

perhaps South African firms in general) appears to lag behind the more

developed countries in the application of formal strategic planning. It was

15

discovered that only half of the respondent from companies sampled, practice

formal strategic planning.

Robinson and Pearce research (1984) in Lyles et al (1993) shows a rather

consistent, positive relationship between the extent of planning function and

performance of small business. This relationship is found despite differing

definitions of small business, ways of assessing formality of planning, and the

types of performance measures utilized. Therefore, it is important that

aspiring entrepreneurs and manufacturing industries who are yet to plan their

businesses strategically or carry out efficient strategic plan of their businesses

should begin to do so in order to gain increasing control over environmental

turbulence to improve business performance.

It is against this background that this study seeks to address the impact of

strategic planning on the employees performance in manufacturing industries.

1.2 STATEMENT OF PROBLEM

Business environment in Nigeria is harsh and unfavourable, hence, only few

businesses survive presenting the need for entrepreneurs and owners of

manufacturing industries to evolve long-term strategies for their businesses to

thrive.

Consequently, manufacturing industries fail to provide jobs and drive

economic development.

16

Manufacturing industries do not plan strategically and thus are unable to elicit

the inputs of key stakeholders. Plans are not effectively implemented arising

from lack of strategic policy.

1.3 OBJECTIVES OF THE STUDY

The main objective is strategic planning and its impact on the performance of

employees in Nigerian manufacturing industries. The specific objectives are

as follows:

i. To ascertain the extent to which manufacturing industries use strategic

planning.

ii. To assess the impact of strategic planning on the performance of

employees manufacturing industries.

iii. To assess the extent to which all the management of manufacturing

industries are favour/endorse the use/application in strategic planning.

iv. To find out the challenges impinging on strategic planning in

manufacturing industries.

1.4 RESEARCH QUESTIONS

In pursuit of the research objectives, the following questions have been raised

to help in gathering information necessary for this study.

i. To what extent do manufacturing industries practice strategic planning?

17

ii. What are the impacts of strategic planning on the performance of

employees in manufacturing industries?

iii. To what extent do management get involved in effective

implementation of a strategic plan in manufacturing industries?

iv. What are the challenges facing strategic planning practice in

manufacturing industries?

1.5 RESEARCH HYPOTHESES

i. Ho: Manufacturing industries in Nigeria do not plan strategically.

H1: Management of manufacturing industries in Nigeria do

significantly apply strategic plans.

ii. Ho: Strategic planning does not increase the turnover and

profitability of manufacturing industries.

H1: Strategic planning practice do significantly improve employees

performance in Nigeria manufacturing industries.

iii. Ho: Employees are not involved in the formulation of strategic plan

of manufacturing industries.

H1: Employees are significantly involved in the formulation of

strategic plan of manufacturing industries.

iv. Ho: Lack of skilled manpower does not hinder strategic planning in


18

HI: Lack of skilled manpower significantly hinders strategic

planning application in manufacturing industries.

1.6 SIGNIFICANCE OF THE STUDY

i. Management of manufacturing firms:

The importance of this research can not be overemphasized. It moves to

provide the impact of strategic planning on the performance of manufacturing

industries.

This study will help business owners and managers to understand the need to

practice strategic planning knowing that profitability of their organizations is

only assured through proper strategic planning activity.

It will also provide them with guidelines which they will follow to achieve

effective strategic planning. Aspiring entrepreneurs are not left out as this

study will help them to develop a model or a guide before embarking on any

business venture.

ii. Shareholders of manufacturing firms:

Shareholders typically affect company operations and decisions

differently than other stakeholders concerned with the business.

Profit objectives companies with shareholder have historically had a

single primary objective of maximizing profit. While many companies try to

19

balance shareholder interests with those of other stakeholders, profit

objectives are typical still in focus with shareholders.

iii. Future researchers:

Researchers have investigated the effects of strategic planning on

financial performance in small firms. Many have concluded that there is no

consistent association between the strategic planning process and

performance.

Strategic planning does not attempt to make future decisions or even

forecast future events.

1.7 SCOPE OF THE STUDY

Geographical Scope: The geographical scope will base on the climate or thus

product base on this case study. The product of Innoson and Emenite

manufacturing industries include: Heavy duty vehicles, middle and high level

buses, chairs, tables, plates, home equipment etc.

All the product enjoy excellent consumer franchise and this will be clearly to

be reader by the understanding of the geographical scope relating will be

product range.

Time Scope: The scope is about how to distribute goods manufacture from

the industry to the purchase inadequate not to give disappointment to the

purchase.

20

1.8 LIMITATIONS OF THE STUDY

This research work would have been better off and of more importance of it

had stretched it tentacles to cover all the manufacturing industries in Nigeria

but because of the following, it is not so.

Financial Constraint

Financial constraint problems was encountered by the researcher to carry out

the research as detail as possible due to the limited capital at the researcher

disposal to gather materials and travel to and fro, interview some of the

personnel in the industries.

Time Constraint

The researcher also encountered time constraint in getting the research work

completed because the curriculum of the degree programs is designed in such

a way that though courses are registered with project in the final year, thereby

creating difficult in conducting intensive research work.

Attitude of the Respondents

It is not an easy task to break the barrier or huddle of collecting information

from the respondents because of the secrecy and security of the information in

the hands of the employees. Their attitudes were so uncompromising to the

researcher. However, we penetrated them through humility and prayers.

21

1.9 OPERATIONAL DEFINITION OF TERMS

Polyvinyl Alcohol (PVA): Also known as Poly (ethenol), Ethanol

Homopolyrner; Pvoh; Polyviol; Vinol; Alvyl; Alkotex; Covo; Gelvatol;

Lernol; Mowiol is a water-soluble synthetic polymer, not to be confused with

(Polyvinyl acetate), a popular wood glue. PVA has excellent film forming,

emulsifying and adhesive properties. It is also resistant to oil, grease and

solvents. It is odourless, and non-toxic with high tensile strength and

flexibility as well as high oxygen and aroma-barrier properties.

PROFILE OF THE CASE STUDY FIRMS

The profiles of the two manufacturing industries (Innoson Technical and

Industrial Company Ltd and Emenite Ltd) under study are discussed below.

INNOSON TECHNICAL AND INDUSTRIAL COMPANY LTD

Innoson Technical and Industrial Company Ltd is a subsidiary of Innoson

Group of Companies which (Innoson Group) is made up of four

manufacturing companies including Innoson Technical and Industrial

Company Ltd. These companies include:

Innoson Nigeria Ltd which specializes in the production of motorcycle and

parts. It is a blue chip company engaged extensively in the importation,

assembly and marketing of automotive components, accessories and

motorcycles.

22

The second is Innoson Vehicle Manufacturing Company which is the first

indigenous vehicle manufacturing company in Nigeria. The company

introduces automotive products from China, Japan and Germany with product

line including heavy duty Vehicles, middle and high level buses, special

environment-friendly vehicles. It also provides repairs and parts supply

services.

The third is Innoson Tyre Manufacturing ltd which uses the abundant rubber

resources in the country to produce premium tyre.

Innoson Technical and Industrial Company Ltd, the fourth and the company

of focus in this research, was incorporated in 2002 with its head office

situated at Plot W/L Industrial Layout Emene, Enugu state, Nigeria. The

company produces plastic products which include chairs, tables, plates, home

equipments, baby care products, drums, tanks, jerry cans, motorcycle parts,

etc.

It began operation producing chairs and tables only and as time went by,

increased the variety of chairs it produced, thus presently producing over 20

types of chairs. With time as well, the company started producing other kinds

of plastic products as have been listed above.

Since its inception, Innoson Technical and Industrial Company Ltd ranks the

biggest plastic industry in Nigeria. It produces the highest quality range of

23

plastic products of international standard and has a production capacity of

over 10,000 pieces of chairs and tables per day. Due to rapid demand of these

products, the company’s twelve production lines of injection moulds have

since been increased with tremendous and near perfect production lines of

international standard. It was also established to further consolidate the

leading position in the motorcycle plastic requirement of Innoson Nigeria Ltd,

the sister company.

The company has an annual turnover of 3.6 billion Naira. Its foreign partners

are CRETEC Industries Co. Ltd (China) whose wealth of experience is

unquantifiable.

Mission: To satisfy the industrial and household requirements of its clients

using the highest standard automation and technology and with well

motivated and trained indigenous work force to ensure adequate returns to the

stakeholders.

Vision: To be a dominant player in the industrial scene producing products of

first choice in Nigeria.

Awards: Standard Organization of Nigeria (SON) quality award, Best plastic

company- International plastic monitoring group.

24

EMENITE LTD

From its premises at Emene on the outskirts of the coal city, Enugu, the

capital city of Enugu state, situated in the south eastern part of Nigeria,

Emenite Ltd, formally known as Turners Asbestos Cement Company Nigeria

Ltd which started operation in 1963, controls the manufacture and marketing

of its fibre cement ceiling, roofing and modular house products.

Since its incorporation in 1961, the company has gained a wealth of

experience through meeting the requirements of the construction industry in

promoting the development of Nigeria through the manufacture and

marketing of its fibre cement, roofing and ceiling products and is poised to

help in the future through the supply of high quality goods and services. With

the assistance of its European partners, the Belgian Etex Group, the company

is well able to meet the requirements of the demanding market through a

continuing program of technical requirements, strict quality controls, and

emphasis on customer satisfaction.

Mission: The mission of Emenite Ltd is to be the leader in the manufacture

and sale of high quality building products with zero waste management

culture and to sustain the business in a profitable manner with knowledge that

Emenite will stand by their customers while continually improving the

creativity, motivation and safety of her employees.

25

Emenite Environmental Hazard and Safety (EHS) Policy: Emenite Ltd is

renowned for her high level of safety awareness and implementation among

its staff, management and stakeholders. The management continually pursues

a safe, healthy, accident-free and pollution-free environment for the entire

staff and public. It is in continuation of these efforts that a well articulated set

of safety rules, health hazards, precautions and prevention were put together

in a General Information, Rules and Regulation on Health, Safety and

Environment in Ernenite Ltd.

It may be of interest to know that Emenite Ltd replaced asbestos with

Polyvinyl Alcohol (PVA) fibre in the year 2000 to make her products

asbestos-free.

In conclusion, both Innoson Technical and Industrial Company Ltd and

Emenite Ltd carry out strategic planning. It can be seen from their company

profile that they engage iii effective strategic planning as evidenced by their

achievements and awards. The performances of these organizations have

greatly improved with time as their products are of high quality and

international standard.

26

REFERENCES

Onodugo, V.A Ugwuonah G.E, & Ebinne E.S (2010), Social Science

Research: Principles, Methods and Applications, Enugu: El ‘Demak

Publishers.

Ezeh, J.A (1999), Fundamentals of Small Business Management, Enugu:

Glanic Ventures.

Hrebiniak L.G and Joyce, W.F. (1984), Implementing Strategy, Enugu:

Macmillan Press Ltd.

Thomas B. Bateman and Carl P. Zeithamal (1990) Management function and

strategy, Enugu: Richard D. Irwin Inc.

Karsten G. Hellebust and Joseph C. Krallinger (1989) Strategic planning

work book, Enugu: John Willey and Son, Inc.

Robert G. Dyson (1990), Strategic Planning Models and Analytical

Techniques, Enugu: John Willey and Son Ltd.

http://www.emenite.com

http://www.innoson.com

27

CHAPTER TWO

LITERATURE REVIEW

2.1 INTRODUCTION

The environments in which businesses operate differ a lot with time and

place. In the past changes in the environment were slow and gradual and offer

much time for business operators to plan and adjust. With time however, the

terrain became warlike. Rapid changes took over the usual gradual pace and

sharp competition overtook monopolies and cartel businesses.

Small business owners face the challenge of how to maintain focus amidst

these rapid changes. They have to develop a mission and long term goals for

their businesses and evolve strategies on how to realize such missions (Ezeh,

1999:89).

The owners of businesses before embarking on any business venture should

first determine where they want to go, and then how to get there. And because

they hope to run the business for years and years, they need to take a long-

ten-n perspective. They need to plan for the future as well as for today.

The mission statement of a company or an organization is a statement of the

trip’s destination- where the company wants to go. It specifies the goals and

purposes of business. Strategic planning which will later be discussed fully in

this study is simply a plan on how to achieve these goals- how to get there.

28

2.1.1 DEFINITION OF PLANNING

Planning is one of the management functions which involves looking ahead,

anticipating problems and deciding actions to take. It involves all the

resources available to the manager. Good planning is one of the most

important and also one the most neglected ingredients in business operations.

It is essentially a form of decision making (Ezeh, 1999:8). It is the process of

deciding which objectives to pursue within a specific future time period and

how to achieve those objectives.

Planning is the first of the managerial functions because it is the cornerstone

upon which everything else is built. The results of planning are felt

throughout the entire organization.

2.1.1.1 VARIOUS KINDS OF PLANNING

Planning is such a fundamental activity in human enterprise that many terms

exist for various kinds of planning which are as follows:

Long-range planning Vs. Short-range planning

Planning can be either long-range or short-range. Long range planning

typically pertains to a period, which starts from the end of the current fiscal

year and extends to 3 to 7 or more years into the future. Circumstances vary

from organization to organization and from industry to industry and so the

appropriate time frame for a long-range plan changes with the nature of the

29

specific environment and activity. For example, “long-range” for lumber

companies may be the decades needed to grow trees, while “short-range” may

cover the several years necessary for clearing a major section of land. In

contrast, “long-range” in certain parts of the electronics industry might mean

anything from 6 months and above. As is the case in objectives, some people

utilize the term “intermediate range planning”. When used, intermediate-

range planning normally covers a span of one to three years (Ezeh &

Onodugo,2002:98).

Formal planning Vs. Informal planning

There are differences in the methods that managers employ and the structure

they adopt in their planning activities. Informal planning is the planning that

is carried out on a casual basis. It occurs when managers do not manage in an

identifiable process and do not record their thoughts but rather carry them

around in their heads. Formal planning refers to a planning system that

operates on the basis of some systematic and/or orderly set of procedures. It

almost always results in some type of written plan. A formal plan can vary

from a one-page document to a massive planning manual.

Formal planning is preferred to informal planning as a result of many reasons.

Probably, the most important reason is that unless a formal system has been

30

established, daily problems almost always take precedence over planning. The

result is that little, if any, planning is done (Ezeh & Onodugo, 2002:99).

Another reason is that formal planning forces collaboration among different

managerial levels and different organizational units. However, a significant

amount of informal planning will occur even when a formal system is in

place.

Strategic planning Vs. Tactical planning

Strategic planning is a top-level, long-range planning which is an orderly

process by which top management determines organizational objectives,

strategies needed to realize these objectives, and short-range top-level actions

necessary for proper implementation of the strategy.

Tactical planning refers to short-range planning that is oriented towards

operations and concerned with specific and short-range details.

2.1.2 DEFINITION OF STRATEGY AND STRATEGIC PLANNING

In business circles, strategy is adapted to mean “a general programme of

action and a deployment of emphasis and resources towards the attainment of

comprehensive objectives” (Koontz and 0’ Donnel, 1976). The threats and

opportunities from the environment are always changing making it necessary

for managers to realign their strategies to reflect the changing trends. It is

31

pertinent to note that the ultimate end of strategy is to make a firm survive in

the face of competition and change.

According to Ezeh (1999), strategic planning is the process by which an

organization determines how it will seek to achieve the long-term objectives

spelled out in its mission statement. A strategic plan (or strategy) is thus a

design for action which can later be developed into a complete and

comprehensive business plan. When the plan becomes a formal written

document, it can be used in many ways. For example, as the firm develops the

structure of its financial strategy, lenders and investors will want to see the

plan. Business plans have made it possible for hundreds of small businesses to

arrange for thousands of loan and investment dollars.

Strategic planning is concerned with the broader issues about an

organization’s and the way in which an organization will cope with change.

For example, the company size, the range of products/services, which markets

to serve, the financial structure of the company, how best to exploit the

special skills of employees, the types of production technology.

It is concerned with the broad, longer-term future of an organization. As a

result, it is subjected to far greater uncertainties, must necessarily avoid too

much detail, and it is more difficult to assess its value to the organization than

32

in the case with management or operational planning (Scholes & Klemm,

1987:6)

2.1.2.1 STEPS INVOLVED IN DEVELOPING A WORKABLE

STRATEGIC PLAN

Below are the steps involved in developing a workable strategic plan.

i. Develop the firm’s mission statement.

ii. Examine business conditions, including general economic trends, the

competitive situations in the specific market, the size of that market, the

availability of suppliers and distributors, and the prospects for adequate

financing.

iii. Visualize what the business will be like and how it will fit within its

industry.

iv. Examine the internal strengths and weaknesses and the external

opportunities and threats to develop a sense of target market niches and

competitive advantages that might exist for the firm. The inspection of

strengths, weaknesses, opportunities, and threats is called a SWOT

analysis and is used by planners of businesses of all sizes.

2.1.3 STRATEGIC MANAGEMENT AND STRATEGIC PLANNING

Planning is employed in strategic management to consider the future

implications of current decisions and to determine objectives as well as

33

courses of action. Strategic management requires planning at all management

levels and use plans as a means of co-ordination and communication.

Strategic management as known today has evolved from and is still very

closely related to the planning function of management. At the strategic

planning level, there is a shift from the entrepreneur to the system and

structure, just as there is a shift from the short term to the long term

perspective to goal setting and pursuit. The theoretical thrust of this phase

centers around analyzing the environment to identify threats and opportunities

which when matched with organizations’ resources and capability, facilitates

in the setting of specific objectives in the core functional areas of business.

The major challenge at this stage is to ensure that all the various departments

align themselves to the central goals and missions of the organization.

At the strategic management level, it goes beyond looking at the process of

setting goals for the various functional areas, to the entire process of

formulating, implementing and controlling strategic decision for a large

organization. At this stage, management is completely divorced from

ownership and the organization is highly decentralized.

The strategic management process needs to be embedded in a robust system

of general management guided by an effective results monitoring. A strategic

management process gets the strategic plan to work.

34

Strategic management should provide the organization with:

i. A tool for co-ordinating and integrating operations, which occur

simultaneously in different geographical locations.

ii. A means of anticipating and preparing for change.

iii. A way of ensuring a more meaningful involvement of non-domestic

affiliates in global concerns.

iv. The critical link between formulation and implementation of strategy.

Strategic management therefore can be defined as the dynamic process

of formulation, implementation, evaluation and control of strategies to realize

the organization’s strategic intent (Azhar, 2008:19). From the definition, it

can be seen that strategic management is not a one-time, static or mechanistic

process but is a continual, evolving, iterative process. By being iterative, an

activity may not be required to be performed only once but repeated over time

as the situation demands.

2.1.3.1 LEVELS AND STAGES OF STRATEGIC MANAGEMENT

There are three distinct levels of strategy which are intricately linked, with the

levels of management that exist in a very large organization. The traditional

classification of management levels recognizes top level management

otherwise known as Corporate Level. Other levels include the Middle or

35

Executive Level Management and first line level management otherwise

known as the Supervisory Management Level.

The major distinguishing factor across these levels derives from the time and

scope influence of the decisions taken at these levels. In the same manner,

there are three categories of strategy namely:

Corporate Strategy

Business Strategy

Functional Strategy (Ezeh & Onudugo, 2002: 90-91)

Corporate Strategy: This is strategy as it concerns and affects those in the

top echelons of multiple-product and multiple-market business organizations.

It is a set of business decision, which adds up to form the central idea or

objective of the business organization and how individual businesses would

be managed to achieve it. The major question it answers is: what business

should we engage in? The time scope of business strategy is quite long,

between 5 years to 10 years or even more.

Business Strategy: This is the responsibility of divisional management. As a

sub-set of corporate strategy, it centres on the production and distribution of a

product(s) within a particular production-market area or an industry. Its main

focus is how to gain competitive advantage over other rival organizations in

36

the industry. It however, does that within the ambit and confines allowed by

the corporate strategy.

Business strategy ensures a synergistic relationship among the functional

areas within the product/service division. The question it answers is: How do

we compete in the industry? Business strategy is of medium time span i.e.

between 2-5 years.

Functional Strategy: This is the strategy that is designed and implemented

within a particular department or functional area of a division. For instance,

production department aimed at realizing its production target at minimal

cost. Naturally, functional strategy works to enhance the objectives of

business strategy.

The focus of this strategy is on how to effectively combine and maximize the

available resources to realize the target before it. The time span of functional

strategy is short and covers daily, weekly and monthly operations.

2.1.3.2 THE PROCESS OF STRATEGIC MANAGEMENT

There are four phases in the strategic management process. These four phases

are considered to be sequentially linked to each other and each successive

phase provides a feedback to the previous phases. However, in practice, the

different phases of strategic management may not be clearly differentiated

from each other. According to Azhar (2008), it is preferable to call them

37

phases rather than stages or steps (as some authors do) to signify that the

different phases, at the interface, may exist simultaneously and the strategic

activities gradually emerge in one phase to merge into the following phase.

The feedback arising from each of the successive phases is meant to revise,

reformulate or redefine the previous phases, if necessary. Such a

representation yields a dynamic model of strategic management which takes

into account the emerging factors as the process moves on.

Fig. 1: Four Phases in Strategic Management Process

Source: Adapted from Azhar Kazmi, “Strategic Management and Business Policy”, Third Edition.

New Delhi: Tata McGraw-Hill, 2008. P.20. ©2008 by Tata McGraw-Hill Publishing Company Ltd.

The first phase consists of establishing the strategic intent for the

organization. Strategic intent is the hierarchy of objectives that an

organization sets for itself. Within this, there are the vision, mission, business

definition and objectives. The aim of strategic management is to help the

organization realize its strategic intent.

The second phase of the formulation of strategies is concerned with the

devising of a strategy or a few strategies. This phase is also called strategic

Establishment

of strategic

intent

Implementation

of strategies Strategies

evaluation

Formulation

of strategies

38

planning (Azhar, 2008:20). Essentially, this an analytical phase in which

strategists (managers who are responsible for strategic management in an

organization) think, analyze and plan strategies.

The third phase of implementation is the ‘putting into action’ phase. The

strategies that are formulated are implemented through a series of

administrative and managerial actions.

The fourth and last phase of evaluation and control involves assessing how

appropriately the strategies were formulated and how effectively they are

being implemented. Depending on the outcome of assessment, actions could

be taken ranging from fine-tuning implementation to a drastic reformulation

of strategies.

Each phase of the strategic management process consists of a number of

elements, which are discrete and identifiable activities performed in logical

and sequential steps. It should be noted that most or all of the following are

considered as parts of the strategic management process.

A. Establishing the hierarchy of strategic intent:

i. Creating and communicating a vision

ii. Designing a mission statement

iii. Defining the business

iv. Adopting the business model

39

v. Setting objectives

B. Formulation of strategies:

vi. Performing environmental appraisal

vii. Doing organizational appraisal

viii. Formulating corporate-level strategies

ix. Formulating business-level strategies

x. Undertaking strategic analysis

xi. Exercising strategic choice

xii. Preparing strategic plan

C. Implementation of strategies:

xiii. Activating strategies

xiv. Designing the structure, systems and processes

xv. Managing behavioural implementation

xvi. Managing functional implementation

xvii. Operationalizing strategies

D. Performing strategic evaluation and control:

xviii. Performing strategic evaluation

xix. Exercising strategic control

xx. Reformulating strategies (Azhar, 2008:21)

40

2.1.3.3 MODEL OF STRATEGIC MANAGEMENT PROCESS

The process of strategic management is depicted through a model which

consists of different phases; each phase having a number of elements. Most

authors agree on dividing the strategic management process into four phases

consisting of about twenty elements. The model of strategic management

process is represented in the diagram below:

Fig. 2: Comprehensive Model of Strategic Management


New Delhi: Tata McGraw-Hill, 2008. p.21. ©2008 by Tata McGraw-Hill Publishing Company Ltd

2.2 ESSENTIAL INGREDIENTS TO EFFECTIVE STRATEGIC

PLANNING

The total planning process is complex because it involves:

1. Understanding the mission of the business.

2. Knowing what strategy to use in organizing and directing the firm to

complete that mission, and

3. Being able to develop the operational tactics required to carry out the

strategy (Ezeh, 1999:92-93).

Strategic Intent

Vision

Mission

Business

Definition

Business Model

Objectives

Strategic Formulation

Environmental Organizational

Appraisal Appraisal

SWOT Analysis

Corporate-level Strategies

Business-level Strategies

Strategic analysis and choice

Strategic plan

Strategic

Implementation

Project

Procedural

Resource allocation

Structural Behavioural

Functional &

Operational

Strategic Evaluation

41

There is no one perfect plan but every plan must include some consideration

of markets, money and motivation.

The strategic plan must always include an analysis of the targeted market,

who will buy the product offered? How many items will they buy? Is there

competition to fight? How will potential customers find out about the

business? These are just a few of the questions that must be answered in a

strategic plan.

The amount of money that will be needed for capital investment and for day-

to-day operations must also be specified in a strategic plan. Money is required

to acquire assets for the business, pay employees, make rent or mortgage

payments, and for other business expenses. Where should the money come

from? How much is needed? When will it be available? Will there be enough

of it? Will profits be enough to make the risks of running the business

worthwhile? These and other questions should be answered in the strategic

business plan.

Finally, motivation, both internal motivation and employee motivation, is

necessary for business success. The owner-manager-entrepreneur must keep

himself or herself going for a long stretches when success is not a sure thing.

What keeps a person working hard in the face of discouragement? of fatigue?

of meager rewards? What does it take to motivate employees to treat

42

customers in such a way as to bring them back? All these fall within the

purview of what psychologists call MOTIVATION.

2.3 STRATEGIC EVALUATION AND CONTROL

The purpose of strategic evaluation is to evaluate the effectiveness of a

strategy in achieving organizational objectives. Thus, strategic evaluation and

control could be defined as the process of determining the effectiveness of a

given strategy in achieving the organizational objectives and taking corrective

action wherever required (Azhar, 2008:489).

During the two preceding phases of strategic management process, the

strategists formulate the strategy to achieve a set of objectives and then

implement the strategy. Now, there has to be a way of finding out whether the

strategy being implemented is guiding he organization towards its intended

objectives. Strategic evaluation and control, therefore, performs the crucial

task of keeping the organization on the right track. In absence of such a

mechanism, there would be no means for strategists to find out whether or not

the strategy is producing the desired effect. In this manner, through the

process of strategic evaluation and control, the strategists attempt to answer

two sets of questions such as these:

(a) Are the premises made during strategy formulation proving to be

correct? Is the strategy guiding the organization towards its intended

43

objectives? Are the organization and its managers doing the things

which ought to be done? Is there a need to change and reformulate the

strategy?

(b) How is the organization performing? Are the time schedules being

adhered to? Are the resources being utilized properly? What needs to

be done to ensure that resources are utilized properly and objectives are

met?

Importance of Strategic Evaluation

The importance of strategic evaluation lies in its ability to coordinate the tasks

performed by individual managers- and also groups, divisions or small

business units (SBU5) through control of performance. In the absence of

coordinating and controlling mechanisms, individual managers may pursue

goals which are inconsistent with the overall objectives of the department,

division, SBU or the whole organization.

Besides the basic reason of coordinating tasks, there could be several other

motives for strategic evaluation as described below:

Need for feedback, Appraisal and Reward: Feedback on current

performance is very necessary within an organization so that appraisal can be

done and good performance rewarded. This is essential for the motivation of

employees.

44

Check on the validity of strategic choice: Strategic evaluation helps to keep

a check on the validity of a strategic choice. An ongoing process of evaluation

would, in fact, provide feedback on the continued relevance of the strategic

choice made during the formulation phase. This is due to the efficacy of

strategic evaluation to determine the effectiveness of strategy.

Congruence between Decisions and Intended Strategy: During the course

of implementation, managers are required to take scores of decisions.

Strategic evaluation can help to assess whether the decisions match the

intended strategy requirements. This is due to inherent nature of any

administrative system which leaves some amount of discretion in the hands of

managers. In the absence of such evaluation managers would not explicitly

know how to exercise such discretion.

Successful Culmination of the Strategic Management Process: Strategic

evaluation helps in successful culmination of the strategic management

process through its process of control, feedback, rewards and review.

Creating Inputs for new Strategic Planning: The process of strategic

evaluation provides a considerable amount of information and experience to

strategists that can be useful for new strategic planning.

In addition to the obvious reasons described above, there are certain other and

not-so-obvious reasons why managers use strategic evaluation and control

45

which include: using control systems to overcome resistance to change,

communicating new strategic agenda, ensuring continuing attention to new

strategic initiatives, formalizing beliefs, setting boundaries on acceptable

strategic behaviour and motivating discussions and debates about strategic

uncertainties.

Requirements for Effective Evaluation

When strategy drives the control system, evaluation is likely to be more

effective. For instance, an organization implementing a cost leadership

strategy needs to emphasize tight cost controls, have a system whereby

frequent and comprehensive reports to monitor costs are produced and apply

incentives based on explicit financial targets.

The basic issue in all evaluation needs to be that control should be dictated by

strategy. There are needs to be needs to be a vertical fit between the strategy

requirements and the evaluation and control exercised over performance.

Strategic controls take into account the changing assumptions that determine

a strategy, continually evaluate the strategy as it is being implemented and

take the necessary steps to adjust the strategy to the new requirements. In this

manner, strategic controls are early warning systems and differ from post-

action controls that evaluate only after the implementation has been

completed. You can think of strategic control as analogues to the continuous

46

evaluation system used in a business school and distinguish it from the end-

of-term examination system used in traditional universities. Operational

control however is aimed at allocation and use of organizational resources

through evaluation of the performance of organizational units such as

divisions, small business units, etc., to assess their contribution to the

achievement of organizational objectives. It is concerned with action or

performance and this is probably the reason why it is so extensively used in

organizations (Azhar, 2008:495). The guidelines below are suggested in order

to make controls effective.

• Control should involve only the minimum amount of information as too

much information tends to clutter up the control system and creates

confusion. There should be balanced emphasis on the level of

complexity of the process of strategic evaluation itself. Too complex a

system of evaluation may make it difficult to implement while a

simplistic system may be inadequate.

• Control should monitor only managerial activities and results even if

the evaluation is difficult to perform.

• Controls should be timely so that corrective action can be taken

quickly. Timeliness is important in the sense that evaluation must be

done at the time when it is required. Performing evaluation too early or

too late may not be appropriate.

47

• Long-term and short-term controls should be used so that a balanced

approach to evaluation can be adopted. Strategies by their very nature

have a long-term effect. Evaluating short-term results may not truly

reflect the actual performance of an organization.

• Controls should aim at pinpointing exceptions as nitpicking does not

result in effective evaluation. The ‘80:20 principle’ where 20 per cent

of the activities result in 80 per cent of achievement, needs to be

emphasized.

• Getting bogged down with the activities that do not really count for

achievement makes the evaluation ineffective.

• Reward of meeting or exceeding standards should be emphasized so

that managers are motivated to perform. Excessive emphasis on

penalties tends to pressurize the managers to accentuate efficiency

(doing the things right) rather than effectiveness (doing the right things)

(Azhar, 2008:493)

Process of Evaluation

The process of evaluation for exercising operational control basically deals

with four steps:

1. Setting standards of performance

2. Measuring of performance

3. Analyzing variances

48

4. Taking corrective action

The strategies, plans and objectives result in a set of performance standards

which form the basis for evaluation through measurement of performance.

The comparison of actual and standard performance leads to the analysis of

variances. Feedback from the analysis results in either a check on

performance, revaluation of standards, or reformulation of strategy, plans or

objectives. Due to the inherent nature of operational control, corrective action

is aimed mainly at performance and adjustment of standards, rather than at the

reformulation of strategy. The reformulation task is performed usually on the

basis of strategic control, especially implementation control.

The four elements of the evaluation process mentioned above and how they

relate to each other, are depicted in the figure below:

Fig. 3: The evaluation process for operational control


New Delhi: Tata McGraw-Hill, 2008. p.496. 02008 by Tata McGraw-Hill Publishing Company Ltd

Strategy/Plan/

Objectives

Setting

standards of

performance

Actual

performance Management

of

performance

Setting

standards of

performance

Feeback

Refo

rmu

late

Ch

eck stan

dard

s

Ch

eck p

erform

ance

49

2.4 IMPORTANCE OF STRATEGIC PLANNING AND MANAGEMENT

TO BUSINESS ORGANIZATIONS

Systematic strategic thinking helps you to find, and decide what to do about

the handful of really big issues facing your business or any other organization.

It is the size and impact of these strategic issues that gives rise to the

importance of the strategic plan which are as follows:

1. One major benefit of strategic management and planning is that they

help organizations to remain focused and maintain direction amidst

change and distractions. Strategic management is a more careful and

systematic approach to change.

2. Strategic planning gives owners, managers, and employees a clear idea

of the objectives of the firm.

3. It helps ensure that members of the team work together with a common

vision and that all segments of the business will be focused on

predetermined objectives. It ensures that all parts and segments are

headed in the same direction.

4. Strategic plans also provide an anchor from which to make adjustments

as customer tastes and preferences change market size fluctuates,

competition becomes more intense, and technology transforms products

50

and services. As a result of this, organizations that plan strategically

continuously remain relevant to their target market.

5. Swift action and reaction is possible when the firm’s strategy is

understood by everyone involved.

2.5 IMPACT OF STRATEGIC PLANNING ON THE PERFORMANCE

OF MANUFACTURING INDUSTRIES

Research findings in Europe and America as reported by Ansoff et al in Ezeh

(1995) show that firms who strategically plan were more accurate in

predicting the outcome of major strategic action and outperformed non

planners in terms of several financial criteria. There is a definite relationship

between the mission and goals, the proper identification of strategies,

implementation, and controlling to the amount of profit produced in an

organization. According to Schoeffler et al (1974), in a diversified company,

the usual practice is for business plans to be prepared by each product

division or other operating unit. These plans are then reviewed by corporate

executives, often with assistance of corporate staff specialists. Among the key

elements of each unit’s plan are of course, estimates of investment

requirements and profits for the future periods.

51

There is growing evidence that strategic planning is an important element for

helping companies break into new international markets ensuring a more

meaningful involvement of non-domestic affiliates in global concerns.

An understanding of the strategic management process is an aid to

appreciating the relationship of an individual to the whole organization as

well helping the individual see ways to advance his or her career by making

important contributions to the organization.

Strategic plans in addition to maintaining the relevance of private firms to

their target market, increase their customer base which in turn increases

profit.

2.6 PROBLEMS AND CHALLENGES FACING STRATEGIC PLANNING

There is no doubt that managers encounter problems and challenges in their

strategic planning activities and processes. Some of these challenges are

described below:

1. Much of the frustration and friction which occurs in business planning

results from efforts to co-ordinate the plans of the various functions

and/or divisions of the organization. This is a continuing problem that

occurs at all levels of planning. In strategic planning, this is a particular

problem. A publishing company may wish to launch a new magazine

into the market. To do this successfully, it needs to ensure that each of

the business functions plans its activities to be consistent with the

52

others. For example, there is no point running the television advertising

campaign until the production departments are ready with their print

rim. In turn, they are unable to print final copies until all editorial work

is complete and advertising material has been typeset.

2. Environmental influences such as economic climate, social changes,

and legal changes pose challenges to strategic planning. Most

companies’ plans are affected by the economic climate, but not always

the same way. Whereas perhaps the majority of companies feel that a

growing economy best suits their purpose, this is not universally true.

A buoyant economy may lead to considerable “trading-up” in

purchasing patterns, e.g. the DIY (do it yourself) enthusiast buys power

tools instead of hand tools; food consumption moves away from basic

such as bread to more sophisticated tastes; preferences within leisure

and entertainment also change- away from watching league football to

newer sports or more family weekends away from home (Scholes &

Klenim, 1987:51).

3. Time span: The greater the time span, the greater the number of

mistakes. Present conditions are usually dominant in the planner’s mind

when he initiates a plan and these may be overstressed. For example, a

new building for a computer based upon present ideas (i.e. for use by

the fmance function only) may be found to be too small, if, in fact, all

53

functions make use of the computer, a larger computer building may be

needed. A good illustration of the effect of time on planning can be

seen by company long and short term weather forecasts (Appleby,

1994:98).

4. Unforeseen events and lack of communication: Many events are

obviously unforeseen, but planning can be aided by techniques given

suggested probabilities of events taking place. Wider consultation with

workers is needed, to enable them to understand the nature of obstacles

and the reason why management is taking a certain course of action to

overcome them.

5. Size of organization: The larger the scope of the plan, the more

complex the planning (e.g. plans for a department and plans for a group

of departments).

6. Lack of skilled manpower: In companies, mostly small business firms,

the owner-manager may lack the expertise and knowledge in the area of

strategic planning and its impact in the performance of his business.

8. Inadequate or lack of finance may not be a direct challenge to strategic

planning in manufacturing industries but can indirectly pose a problem

at the stage of execution of the plans. Money is required to acquire

assets for the business, pay employees, make rent or mortgage

payments, and for other business expenses.

54

REFERENCES

Ansoff, H.I, Avner J, Brandenburg R.G, Poriner F.E, & Radosevich R.

(1971), “Does Planning Pay? The Effect of Planning on the Success of

Acquisitions in American Firms”, Long Range Planning, Vol. 3, Part

12, P.3.

Applyby Robert, C. (1994), Modern Business Administration, Sixth Edition,

London: Financial Times; Pitman Publishing.

Azhar Kazmi (2008), Strategic management and Business Policy, Third

Edition, New Delhi: Tata McGraw-Hill Publishing Company.


Glanic Ventures.

Ezeh, J.A and Onodugo, V.A (2002), Business Policy and Strategic

Management: Issues & Trends, Enugu: Kinsmann Publishers.

Grim, C. (1982), The Effectiveness of Strategic Planning in the South African

Building Materials Industry, Unpublished MBA Research Project

Report, Graduate School of Business Administration, University of

Witwatersrand, Johannesburg.

Grim, C and Andrews, G.S (1985), “The Impact of Strategic Planning on

Corporate Performance in a Turbulent Environment”, The Investment

Analysts Journal. p.47.

Lyles M.A, Baird LS, Orris B.J, & Kuratko D.F (1993), “Formalized

Planning in Small Business: Increasing Strategic Choices”, Journal of

Small Business Management, Vol. 31.

Schoeffler Sidney, Buzzell Robert .D, & Heany Donald .F (1974), “Impact of

Strategic Planning on Profit Performance” Harvard Business Review.

Scholes Kevan and Klemm Mary (1987), An Introduction to Business

Planning, Houndmills, Basingstoke, Hampshire RG2I 2XS & London:

Macmillan Press.

http://www.hrb.org/1974/03/Impact-of-strategic-planning-on-profit-

performance

http://www.planware.org/strategic plan. html

httpquestia.com/google scholar.qst%3Fd

http://www.simply-strategic-planning.com.

55

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 INTRODUCTION

This chapter focuses on the research design, sources of data, population of

study, sample size determination and sampling, technique, description of

research instrument, method of data analysis, reliability of research

instrument and validity of research instrument.

3.2 RESEARCH DESIGN

In this research study which is descriptive, the researcher adopted survey

designs. The survey research design was considered appropriate because it

provides a factual descriptive picture of the situation as they exist in their

natural setting and the reveal the need for change. It also allows orderly

collection, easy analysis, interpretation and reporting of pertinent facts and

information about subjects as far as condition and circumstances permit.

The research work was designed in such a way to avail the researcher the

opportunity of using close-ended and open-ended questions in the

questionnaire to obtain the necessary information from respondents. Also

interview and some degree of observation were employed by the researcher in

this study to obtain qualitative data.

56

The pretext interactions in Ements and Innson Ltd firms provided information

on the population in each firm, the total population and gave due to the

sample size. The interaction helped to perfect the research instrument.

3.3 SOURCES OF DATA

SOURCES OF DATA

This research involves both primary and secondary sources of data. The

primary source which according to Uzoagulu (1998) contains the data

originally assembled by the researcher who actually observed the

phenomenon was by survey which was carried out using the questionnaire.

Interview and some degree of observation were also employed during the data

gathering process.

The secondary sources which though were needed for this study, were

collected primarily for another study (Onodugo et al, 2010:68) involved the

use of textbooks, the library, and the internet.

3.4 THE POPULATION OF STUDY

This is the aggregate of the total number of persons or objects for

investigation or research in a particular area of study. From preliminary

investigation conducted, it was realized that Innoson Technical and Industrial

Company Ltd has 1,511 workers (managers inclusive), 700 of which are

casual workers. During our data collection we will be making use of the

57

major staff of the organization which gives us a total of 811 employees.

Emenite Ltd has a total of 560 employees (managers inclusive). Therefore,

our population of study is 1,371.

TABLE 3.1: THE POPULATION OF THE STUDY

FIRMS NUMBER OF EMPLOYEES

1 Innoson Technical and

Industrial Company Ltd

811

2 Emenite (Nig) Ltd 560

Total 1,371

3.5 SAMPLE SIZE DETERMINATION AND SAMPLING TECHNIQUE

As it is difficult to study the entire population of study, the researcher arrived

at a fraction or segment of the total population whose characteristic is used to

represent the entire population. Using the Yamane Yaro’s formula used for

finite population, we can determine sample size in the following ways:

nN/[1+N(e)2]

where n = Sample size;

N = The finite population;

e = Level of significance (or limit of tolerable error); and

1 = Unity (is a constant).

Since total population = 1,371

e = 0.05

Therefore, 1,371

1+1,371 (0.05)2

= 1,371

1+1,371 (0.0025)

= 1,371

4.4275

� 310

58

3.7 DESCRIPTION OF RESEARCH INSTRUMENT

The main instrument for data collection was the questionnaire which was used

to gather data from respondents that helped in the analysis of the study. The

questionnaires which some were filled by the respondents in the presence of

the researcher and some left to be filled and returned later, contained

structured fixed answers (close-ended questions) which the respondents were

required to select the ones they thought suitable as well as open-ended

questions where they can provide more information to a question.

Data was also collected through observation and interview which provided

some qualitative data in this study.

3.8 METHOD OF DATA ANALYSIS

There was a need to tabulate the data obtained for better understanding using

the percentage (frequency) distribution. Each item in the questionnaire has its

own table which is interpreted and analyzed individually.

The hypotheses were also tested using the chi-square statistical tool in order

to arrive at a decision concerning the relationship among the variables. The

formula for Chi-square is a follows:

X2 (R-1)(C-1), α = ∑ (Oi-ei)

2

ei

Where X2 = Chi-square;

59

(R-1)(C-1) = Degree of freedom;

α = Level of significance;

∑ = Summation;

Oi = Observed frequency; and

ei = Expected or Theoretical frequency

60

REFERENCES

Appleby Robert, C. (1994), Modern Business Administration, Sixth Edition,


Azhar Ka.zmi (2008), Strategic management and Business Policy, Third






Lyles M.A, Baird I.S, Orris B.J, & Kuratko D.F (1993), “Formalized

Planning in Small Business: Increasing Strategic Choices “, Journal qf


Onodugo, V.A, Ugwuonah G.E, & Ebrnne E.S (2010), “Social Science

Research: Principles, Methods and Applications”, Enugu: El ‘Demak

Publishers.

Scholes Kevan and Kiernm Mary (1987), An Introduction to Business

Planning, Houndmills, Basingstoke, Hampshire RG21 2XS & London:

Macmillan Press.

61

CHAPTER FOUR

PRESENTATION AND ANALYSIS OF DATA

The data obtained during survey were collated and presented in tables.

Each item in the questionnaire has its own table and the responses (data)

gathered from the respondents were computed in the table using percentage

(frequency) distribution. The tables representing questions in the

questionnaire that are relevant to testing of the hypotheses were extracted and

used in hypothesis testing accordingly. The chi-square statistical tool was

employed in testing the hypotheses. Using this method, the value (critical

value) in the chi-square distribution table is compared with the calculated

value (test statistics) obtained from the data from this research to know

whether to accept the null hypotheses and reject the alternate hypotheses or

vice versa with the help of the decision rule.

4.1 DISTRIBUTION AND RETURN OF QUESTIONNAIRE

A total of 310 copies of questionnaire were prepared and distributed to the

respondents from the two selected organizations. Out of the above number, a

total of 252(81.3%) were duly completed and returned. Moreover out of the

252(81.3%) returned questionnaire, 2(0.6%) were wrongly filled; hence

56(81.1%) were not returned. Therefore the researcher based his analysis on

the total number of 252 duly completed and returned. The date will be

presented in tabular form using percentage frequency distribution as follows:

62

QUESTIONNAIRE ADMINISTERED TO THE STAFF OF INNOSON

TECHNICAL AND INDUSTRIAL COMPANY LTD AND EMENITE LTD

Question 4: What is your highest educational qualification?

Table 4.1: Data on the educational qualification of respondents

ALTERNATIVE

RESPONSES

OBSERVED FREQUENCIES TOTAL

FREQUENCY INNOSON EMENITE

GCE O’Level and

equivalent 50 = 38.46% 48 = 39.34% 98 = 38.89%

Technical

certification 33 = 25.38% 19 15.57% 52 = 20.63%

First degree 42 =32.31% 51 =41.80% 93=36.90%

Postgraduate

degree 4 = 3.08% 2 = 1.64% 6 2.38%

Others 1=0.77% 2=1.64% 3=1.19%

TOTAL 130 122 252

Source: Survey data, 2015

Analysis: A cross examination of the table shows that 38.89% of the

respondents has qualification of GCE O’Level and equivalent, 20.63% has

technical qualification, 36.90% are first degree holders, 2.38% has

postgraduate degree, while 1.19% has other qualifications which include first

school leaving certificate, ICAN qualifications.

63

Question 5: Which of these qualifications do you think is best for a position

as a manager?

Table 4.2: Data on the best qualification for a managerial position

ALTERNATIVE

RESPONSES

OBSERVED FREQUENCIES TOTAL FREQUENCY

INNOSON EMENITE

OLevel 1 = 0.77% 0 = 0.00% 1 0.40%

Diploma 3 230% 10 = 8.20% 13 5. 16%

B.A]B.Sc 34=26.15% 11=9.02% 45=17.86%

MBA 55 = 42.30% 62 = 50.8 1% 117 = 46.43%

PhD 37 28.46% 39 = 31.97% 76 = 30.16%

TOTAL 130 122 252



respondents think that O’Level, 5.16% think that Diploma, 17.86% think that

B.A/B.Sc, 46.43% think that MBA, and 30.16% think that PhD is the best

qualification for a manager.

Question 6: Are you aware of whether your company embarks on any

planning at all?

64

Table 4.3: Data on employees’ awareness of their company’s planning

activities

ALTERNATIVE

RESPONSES


INNOSON EMENITE

Yes 130=100.00% 120=98.36% 250=99.21%

No 0=0.00% 2=1.64% 2=0.79%

TOTAL 130 122 252



respondents agreed, while 0.79% disagreed that their company has benefited

from its strategic plan.

Question 7: If yes, what is the duration of the plan?

Table 4.4: Data on the duration of the plan of companies under survey

ALTERNATIVE

RESPONSES


INNOSON EMENITE

Long term 84=64.62% 52=42.62% 136=53.97%

Medium term 30=23.08% 3=2.46% 33=13.10%

Short term 0=0.00% 2=1.64% 2=0.80%

All of the above 16=12.31% 65=52.28% 81.32.14%

TOTAL 130 122 252


65


respondents said that their company embarks on long term planning, 13.10%

of the respondents said that their company embarks on medium term

planning, 0.80% of the respondents said that their company embarks on short

term planning, while 32.14% of them responded that their company embarks

on all of them.

Question 8: As a worker in your organization, do you participate in

formulating this plan?

Table 4.5: Data on workers’ participation in the formulation their

company’s strategic plan

ALTERNATIVE

RESPONSES


INNOSON EMENITE

Yes 96=73.85% 109=89.34% 205=81.35%

No 34=26.15% 12=10.66% 47=18.69%

TOTAL 130 122 252


respondents participate while 18.65% do not participate in formulating their

company’s strategic plan.

66

Question 9: Has your company benefited from this plan?

Table 4.6: Data on whether the companies under survey have benefited

from strategic planning

ALTERNATIVE

RESPONSES


INNOSON EMENITE

yes 130=100.00% 120=98.36% 250=99.21%

No 0.0.00% 2=1.64% 2=0.79%

Short term 0=0.00% 2=1.64% 2=0.80%

All of the above 16=12.31% 65=52.28% 81.32.14%

TOTAL 130 122 252


Analysis: Cross examination of the table shows that 99.21% of the

respondents agreed, while 0.79% disagreed that their company has benefited

from its strategic plan.

Question 10: Do you agree that this plan has helped to improve the profit and

performance of your company?

Table 4.7: Data on the effect of strategic planning on the profit and

performance of manufacturing companies

ALTERNATIVE

RESPONSES


INNOSON EMENITE

Yes 130 = 100.00% 96=78.69% 226=89.68%

No 0=0.00% 26=21.31% 26=10.32%


67


respondents agreed, while 10.32% disagreed that their company’s

performance and profit have been improved by their strategic plans.

Question 11: Is there any improvement in your work since the plan was put

in place?

Table 4.8: Data on the effect of strategic planning on employees’ work

ALTERNATIVE

RESPONSES


INNOSON EMENITE

Yes 130=100% 122=100% 252=100%

No 0=0% 0.0% 0=0%

TOTAL 130 122 252

Analysis: A cross examination of the table shows that 100% of the

respondents agreed, 0% both disagreed and were undecided that their work

has improved since they started working in their company.

68

Question 12: Without bias, how can you rate other manufacturing companies

with respect to how they plan their businesses?

Table 4.9: Data on the rating of other manufacturing companies’

planning activities

ALTERNATIVE

RESPONSES



Excellent 28 =21.54% 19 15.57% 47 =18.65%

Good 37=28.46% 31=25.41% 68=26.98%

Fair 48 = 36.92% 40 32.79% 88 = 34.92%

Poor 17=13.08% 32=26.23% 49=19.44%

TOTAL 130 122 252


Analysis: A cross examination of the table shows that 18.65% rated other

companies ‘excellent’, 26.98% rated them ‘good’, 34.92% rated them ‘fair’,

while 19.44% rated them ‘poor’ on how they plan their businesses.

69

Question 13: What do you think is the main reason why some manufacturing

industries do not embark on strategic planning?

Table 4.10: Data on the main reason why some manufacturing industry

do not embark on strategic planning

ALTERNATIVE

RESPONSES

OBSERVED FREQUENCIES

TOTAL FREQUENCY

INNOSON EMENITE

Lack of Finance 60 =

46.15% 42 34.43% 102 = 40.48%

Lack of Skilled

Manpower 55=42.31% 63 =51.64% 118=46.83%

Unfavourable

Business

Environment

4 3.08% 11 9.02% 15 5.95%

All of the above 11=8.46% 6=4.92% 17=6.15%

Total 130 122 252



respondents think that lack finance, 46. 83% thinks that lack of skilled

manpower, 5.95% thinks that unfavourable business environment, while

6.15% thinks that lack of finance, lack of skilled manpower and unfavourable

70

business environment are the major reasons why some manufacturing

industries do not embark on strategic planning.

Question 14: Do you agree that strategic plan helps an organization to assess

the performance of staff and organization?

Table 4.11: Data on the relevance of strategic planning in assessment of

workers’ performance

ALTERNATIVE

RESPONSES


INNOSON EMENITE

Agree 26=20.00% 37=30.33% 63=25.00%

Strongly Agree 99=76.15% 82=67.21% 181=71.83%

Disagree 0=0.00% 0=00% 0=00%

Undecided 5=3.85% 3=2.46% 9=3.17%

TOTAL 130 122 252



respondents agreed, 71.83°/b strongly agreed, 0.00% disagreed, 0.00%

strongly disagreed, while 3.17% were undecided that strategic plan helps an

organization to assess the performance of staff and organization.

71

Question 15: Do you agree that strategic plan increases productivity? Table

4.12: Data on the effect of strategic planning on productivity Source:

ALTERNATIVE

RESPONSES


INNOSON EMENITE

Agree 31=23.85% 40=32.79% 71=28.17%

Strongly Agree 99=76.15% 82=67.21% 181=71.83%

Disagree 0=0.00% 0=00% 0=00%

Undecided 0=00% 0=0.00% 0=0.00%

TOTAL 130 122 252

Survey data, 2015


respondents agreed, 7 1.83% strongly agreed, 0.00% disagreed, 0.00%

strongly disagreed, and 0.00% were undecided that strategic plan helps an

organization to assess the performance of staff and organization.

4.2 TEST OF HYPOTHESES

Using the chi-square method for testing hypotheses, the formulated

hypotheses in this research shall be tested as follows:

Test Statistic: X2(R1)(C1),α =∑(Oi-ei)

2

ei

Where X2 = Chi-square;

(R-1)(C-1) = Degrees of freedom;

α = Level of significance (=0.05);

72

∑ = Summation;

Oi = Observed frequency; and

ei = Expected or Theoretical frequency.

4.2.1 Test of hypothesis I

Ho: Manufacturing industries in Nigeria do not plan strategically.

Hi: Most manufacturing industries in Nigeria plan strategically.

α= 0.05, Sample size, n = 252

Using the data in table 4.4:

ALTERNATIVE

RESPONSES


INNOSON EMENITE

Long term 84 52 136

Medium term 30 3 33

Short term 0 2 2

All of the above 16 65 81

TOTAL 130 122 252


From the Chi-square distribution table, X2

(4-1)(2-1),0.05 = X2

3,0.05 = 7.81 = Critical

value.

Decision Rule: Reject Ho if X23,0.05 (calculated value) is greater than X

23,0.05 =

7.81, otherwise do not reject.

Calculation of Expected Frequency, ei

73

ei ncnR

n

Where nc = Total number in column;

nR = Total number in row; and

n = Sample size

1st Row: 130 x 136 = 70.16 122 x 136 = 65.84

252 252

2nd

Row: 130 x 33 = 17.02 122 x 33 = 15.98

252 252

3rd

Row: 130 x 2 = 1.03 122 x 2 = 0.97

252 252

4th

Row: 130 x 81 = 41.79 122 x 81 = 39.21

252 252

Oi ei Oi-ei (Oi-ei)2

(Oi-ei)2/ei

84 70.16 13.84 191.5456 2.73013

52 65.84 -13.84 191.5456 2.90926

30 17.02 12.98 168.4804 9.89897

3 15.98 -12.98 168.4804 10.54320

0 1.03 -103 1.0609 1.03000

2 0.97 1.03 1.0609 1.09371

16 41.79 -25.79 665.1241 15.91587

65 39.21 25.79 665.1241 16.96312

61.08426

Therefore, test statistic = ∑ (Oi- e

i)2 is approximately 61.08

ei

74

Decision: Since X2

3,0.05 = 61.08 is greater than X2

3,0.05 7.81, we reject the null

hypothesis (Ho). This means that we accept that most manufacturing

industries in Nigeria plan strategically.

4.2.2 Test of hypothesis II

Ho: Strategic planning does not increase the turnover and profitability of


Ho: Strategic planning the turnover and profitability of manufacturing

industries.

α = 0.05, sample size, n = 252


ALTERNATIVE

RESPONSES


INNOSON EMENITE

Yes 130 96 226

No 0 26 26

TOTAL 130 122 252



(2-1),(2-1),0.05 = X21,0.05 = 3.84 =

Critical value

Decision rule: Reject Ho if X21,0.,05 (calculated value) is greater than X

21,0.05 =


Calculation of Expected frequency, ei

75

ei ncnR

n



n = Sample size

1st Row: 130 x 226 = 116.59 122 x226 = 109.41

252 252

2nd

Row: 130 x 26 = 13.41 122 x 26 = 12.59

252 252


(Oi-ei)2/ei

130 116.59 13.41 179.8281 1.54240

96 109.41 -13.41 179.8281 1.64362

0 13.41 -13.41 179.8281 13.41000

26 12.59 13.41 179.8281 14.28340

30.87942



ei

Decision: Since X2

3,0.05 = 30.88is greater than X23,0.05 3.84, we reject the null

hypothesis (Ho). This means that strategic planning turnover and profitability


76

4.2.3 Test of Hypothesis III

Ho: Employees are not involved in the formulation of strategic plan of


Hi: Employees are involved in the formulation of strategic plan of




ALTERNATIVE

RESPONSES


INNOSON EMENITE

Yes 96 109 205

No 34 13 47

TOTAL 130 122 252



(2-1),(2-1),0.05 = X21,0.05 = 3.84 =

Critical value


21,0.05 =



ei ncnR

n


77


n = Sample size

1st Row: 130 x 205 = 105.75 122 x205 = 99.25

252 252

2nd

Row: 130 x 47 = 24.25 122 x 47 = 22.75

252 252


(Oi-ei)2/ei

96 105.75 -9.75 95.0625 0.89894

109 99.25 9.75 95.0625 0.95781

34 24.25 9.75 95.0625 3.92010

13 22.75 -9.75 95.0625 4.17857

9.95542



ei

Decision: Since X23,0.05 = 9.96 is greater than X




78

4.2.4 Test of hypothesis IV

Ho: Lack of skilled manpower does not hinder strategic planning in


Hi: Lack of skilled manpower hinders strategic planning in manufacturing

industries.



ALTERNATIVE

RESPONSES



Lack of Finance 60 42 102

Lack of skilled manpower 55 63 118

Unfavourable business

environment 4 11 15

All of the above 11 6 17

TOTAL 130 122 252



(2-1),(2-1),0.05 = X21,0.05 = 7.81 =

Critical value


21,0.05 =



79

ei ncnR

n



n = Sample size

1st Row: 130 x 102 = 52.62 122 x102 = 49.38

252 252

2nd

Row: 130 x 118 = 60.87 122 x 118 = 57.13

252 252

3rd

Row: 130 x 15 = 7.74 122 x 15 = 7.26

252 252

4th

Row: 130 x 17 = 8.77 122 x 17 = 8.23

252 252


(Oi-ei)2/ei

60 52.62 7.38 54.4644 1.03505

42 49.38 -7.38 54.4644 1.10296

55 60.87 -5.87 34.4569 0.56607

63 57.13 5.87 34.4569 0.60313

4 7.74 -3.74 13.9876 1.80718

11 7.26 3.74 13.9876 1.92667

11 8.77 1.23 4.9729 0.56704

6 8.23 -2.23 4.9729 0.60424

8.21234



ei

80

Decision: Since X23,0.05 = 8.21 is greater than X




4.3 DISCUSSION OF FINDINGS

A concise summary of the findings based on the analyzed data above are as

follows:

1) It was found that strategic planning system improves organizational

performance, which reveals that managers of business organizations

understand the importance of strategic planning system towards

enhancing organizational performance.

2) Strategic planning has common objective to be achieved; improved

performance via increase in the profitability ratio.

3. Organizations implement strategic planning system despite its

expensiveness.

4. Lack of competence is one of the factors that prevent managers from

installing strategic planning system.

5. In-service training for managers is necessary to gain competence for

effective implementation of strategic planning.

81

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

This study does provide interesting findings as well as some valuable building

blocks for future research in strategic planning:

5.1 SUMMARY OF FINDINGS

The analysis of data produced the following outcomes:

1. Most manufacturing industries in Nigeria plan strategically. Test of

hypothesis one approved of this outcome as ��= 61.08 > ��

� = 7.81

2. Strategic planning improves organizational performance.

3. Organizations implement strategic planning despite its expensiveness.

4. Nigerian organizations embark on formal strategic planning exercise.

5. Proper training of managers is an essential prerequisite for effective

implementation of strategic planning.

5.2 CONCLUSION

Strategic planning is essential in business. Manufacturing should evolve and

long-term strategies which will enable their companies to stand the test I” and

survive amidst the changing world.

Most Manufacturing Industries in Nigeria embark on strategic planning.

Effective strategic planning improves the profit performance of manufacturing

industries.

82

Manufacturing Industries should involve all the stakeholders in proper

implementation of their strategic plans and continuously evaluate their plans

to make sure it is still in line with their companies’ objectives and with the

changing trend in their environment.

Lack of skilled manpower impinges on strategic planning. Manufacturing

Industries are fond of employing their relatives who most often are

incompetent in the area of business management.

It is important to note that strategic planning does appear to improve profit

performance but only when considerable attention is paid to the

implementation phase of planning.

5.3 RECOMMENDATIONS

The following recommendations will be useful to Manufacturing Industries in

their strategic planning process.

i. Strategic planning is a continuous process and therefore requires

continuous evaluation for its effectiveness.

ii. Effective strategic planning also means that managers should involve

all stakeholders in the implementation of their strategic plans.

iii. Manufacturing Industries should provide motivation for their staff in

order to encourage them to work towards the attainment of the

organizational goals.

83

iv. Management should train the managers as well as other employees to

improve their competence in the area of strategic planning and

implementation.

v. Manufacturing should employ competent individuals to manage their

organization.

84

BIBLIOGRAPHY

Ansoff, H.I., Avner J, Brandenburg R.G, Portner F.E, & Radosevich R.

(1971), “Does Planning Pay? The Effect of Planning on the Success of

Acquisitions in American Firms “, Long Range Planning, Vol. 3, Part

12, p.3.

Appleby Robert, C. (1994), Modern Business Administration, Sixth Edition,


Azhar Ka.zmi (2008), Strategic management and Business Policy, Third

Edition, New Dethi: Tata McGraw-Hill Publishing Company.


Glanic Ventures.



Grim, C. (1982), The Effectiveness of Strategic Planning in the South African

Building Materials Industry, Unpublished MBA Research Project

Report, Graduate School of Business Administration, University of

Witwatersrand, Johannesburg.




Kuprenas John, A. “Learn More About Strategic Planning in the Not-for-

Profit and Government Sector “Biackerb Associate.

Lyles M.A, Baird I.S, Orris B.J, & Kuratko D.F (1993), “Formalized

Planning in Small Business: Increasing Strategic Choices “, Journal qf


Onodugo, V.A et al (2010), Social Science Research: Principles, Methods

and Applications, Enugu: El ‘Demak Publishers

Schoeffler Sidney, Buzzell Robert .D, & He any Donald .F (1974), “impact of

Strategic Planning on Profit Performance” Harvard Business Review.

85

Scholes Kevan and Kiernm Mary (1987), An Introduction to Business

Planning, Houndmills, Basingstoke, Hampshire RG21 2XS & London:

Macmillan Press.

http://www.emenite.com http://www.lirb.org/1974/03/Impact-of-strategic-

planning-on-profit-performance

http://www.innoson.com

http://www.planware.org/strategic plan. html

http://www.questia.com/google scholar. qst%3Fd

http ://www. simply-strategic-planning .com

86

APPENDIX

School of Postgraduate Studies

Faculty of Business Administration

Department of Management

University of Nigeria

Enugu Campus

21 January, 2015

Dear Respondent,


OF MANUFACTURING INDUSTRIES

I am a student of the above-named institution carrying out a research for my

project. Please kindly help to fill this questionnaire for me, to able to gather

the data necessary for this research.

The purpose of the study is academic and so the information you provide will

be treated with stric confidentiality.

Thanks for your corporation.

Yours faithfully,

CHUKWU EDITH C.

87

APPENDIX I

QUESTIONNAIRE

INSTRUCTION: Please tick the appropriate answers to the following

questions or fill in as and when required.

1. Name (Optional) …………………………………………………….

2. Sex: Age: (a) 18-20 (b) 21-30 (c) 31-40 (d) Above 40

3. Marital status: Single [ ] Married [ ]

4. What is your highest educational qualification: (a)G.C.E O’level and

equivalent (b) Technical certification (c) First degree (d) Postgraduate

degree (e) Others (Please specify)………………………

5. Which of these qualifications do you think is best for a position as a

manager?

(a) O’Level (b) Diploma (c) B.A/B.Sc (d) MBA (e) PhD

6. Are you aware of whether your company embarks on any planning at

all?

(a)Yes (b) No

7. If yes, what is the duration of the plan?

(a) Long term (b) Medium term (c) Short term

8. As a worker in your company, do you participate in formulating this

plan?

(a) Yes (b) No

88

9. Has your company benefited from this plan?

(a) Yes (b) No

10. Do you agree that this plan has helped to improve the profit and

performance of your company?

(a) Yes (b) No

11. Is there any improvement in your work since the plan was put in

place?

(a) Yes (b) No (c) Undecided

12. Without bias, how can you rate other private companies with respect to

how they plan their businesses?

(a) Excellent (b) Good (c) Fair (d) Poor

13. What do you think are the main reasons why some private

organizations do not embark on strategic planning?

(a) Lack of finance (b) Lack of skilled manpower (c) Unfavourable

business environment (d) All of the above.

Any other explain……………………………………………….

Agree Strongly

Agree Disagree Strongly

Disagree

Undecided

14.

Do you agree that strategic plan helps

an organization to assess the

performance of staff and organization?

[ ]

[ ]

[ ]

[ ]

[ ]

15.

Do you agree that strategic plan

increases productivity?

[ ]

[ ]

[ ]

[ ]

[ ]

89

APPENDIX II

INTERVIEW SCHEDULE

1. Are you aware of strategic planning?

2. If yes, have your organization started implementing strategic planning?

3. Do minimum challenges encountered affect the application of strategic

planning?

4. Is there high level of readiness about strategic planning in your

industry?

5. Does strategic planning have prospects in Nigeria manufacturing

industries?

6. How is training and development carried out in your industry?

CHUKWU EDITH C. PROJECT EDITH C.pdf · chukwu edith c. pg/mba/12/64175 1 name a, nsukka . 2...

Documents

Transcript of CHUKWU EDITH C. PROJECT EDITH C.pdf · chukwu edith c. pg/mba/12/64175 1 name a, nsukka . 2...