ABSTRACT
The topic of this project is “the effect of strategic
management on organization’s performance”, with a particular reference to
Krisoral Group of company’s Ltd Onitsha. The problem of this study si that most
business organizations fail not because they lack good employees but because
their management lack adequate strategy. How organizations can successfully
adapt to their environment to ensure growth, survival, profitability and
continual existence is the concern of this project. The objectives being to
bring to focus the necessity for effective and efficient management strategy in
organizations such as:
1.
The extent to which the organizations involve in strategic management.
2.
Why strategic management fails in some organizations.
3. The relationship between strategic management
and secondary data collected. Whereas the secondary data were collected from
text books, journals, Internets Data analysis involved sampling out a
particular number from the population of study in order to make generalization.
The work went as far as testing the hypothesis formulated in chapter one f this
project. It was found out that clear understanding of a company’s business
objectives to a large extent determines the rate of managerial efficiency.
Proper monitoring and control of company’s strategy is very essential in
organization’s efficiency. Flexibility of strategy is necessary for
organization to stand the test of time. In conclusion, strategic management is
a means towards attaining success in business endeavours. Therefore strategic
management is inevitable for organization to stand and continue in existence.
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND INFORMATION
Business today operates in a
highly competitive, fast paced, globally connected environment where change is
a constant. This environment presents challenges to any leadership team
attempting to lead and manage successful and sustainable business in the global
area.
Strategizing ahead becomes of
paramount importance to the leaders of organizations. Spot and strategic
management is therefore critical as the strategies implemented will help lead
organizations to assume their best position in the global market.
Nowadays, demands on
corporate strategists are increasingly heavy, as strategic implementation is
becoming more complex in the real world. Therefore, there is a need to develop
a conceptual model to integrate and make the theory of
strategic implementation easier to understand and apply.
An organized enterprise does
not exist ina vacuum, but is dependent on its external environment.
The enterprises therefore
receives inputs, transforms them into processed outputs and delivers them to
the environment are composed of
1.
Customers (both distributors and
users)
2.
Suppliers of materials, Labour,
Capital equipment and work space
3.
Competitors for both the markets
and resources and
4.
Regulatory groups including
governmental agencies, unions, and inter firm association
General environment
includes economic policies,
Technical
system and demography
Managers
have no control on these forces but rather respond to their changes. Their
ability to respond to these external variables and
internal forces are the major trust of this study.
(Akpala 1990, P.12) Poor
management of any organization will likely bring about poor undesired
performance necessitated by inappropriate organization structure which is the
pivot or building block for management. Without a known framework, management
of organization cannot be effective and efficient. It is within this framework
that organization management process thrives effectively. According to Akpala,
management as the process of combing and utilizing or of allocating an
organization’s input (i.e. men is human resource, material and money) by
planning, organizing, directing and controlling for the purpose of producing
outputs (goods and services)desired by customers to achieve organizational
objectives or goals. The ability of any organization to achieve its aims and
objectives within specified limits is known as managerial efficiency. How
well an organization uses its
available resources to achieve desired goals is a source of concern for
managers in this era of scarcity of resource.
Human resource management,
one of the key factors to improve business performance can be regarded as a
general approach to the strategic management of intentions of organization on
the future direction it wants to take. It is concerned with long-term people
issues and macro-concerns about structure, quality, culture values, commitment
and matching resource to future need.
Since early 1990s, there has
been evidence being generated on the impact of people’s management practices on
business performance. It is useful for all organizations and inherent framework
which reflect the business strategy. They can ensure that various aspect of
people management are mutually reinforcing in developing to achieve business
success.
(Akpala
1990, P. 12) Poor management of any organization will of no doubt bring about
undesired performance necessitated by which the pivot or building block for
management.
Without a known framework,
management of an organization cannot be effective and efficient. It is within
this framework that organization management process thrives effectively.
According to Akpala,
management as the process of combining and utilizing or of allocating an
organizations inputs (men, material and money) by planning, directing and
controlling for the purpose of producing outputs (goods and services) desired
by customer to achieve organizational objectives. The ability to any
organization to achieve its aims and objective is known as managerial
efficiency. How well an organisation uses its available resources to achieve
desired goals is a source of concern for managers especially in this area of
scarcity of resources. So, in strategic
management appropriate organizational structure which will match the
environment and productive activities of an organisation is chosen.
Sometimes, when an
organisation is implementing the strategies it has formulated, the environment
can change further thereby indicating that there should be further strategic
planning analysis of these new events which the organisation did not anticipate
before they occurred during the strategic implementation process. These new
issues are called real-time response management (Ansoff, 1984). When
implementing strategies formulated to respond to changes in the environment,
two major problems are faced by the general management which are
1.
Behavioural resistance to change
and
2.
Systematic resistance to change.
Strategic
management is a component of business policy. The major objective of the vairus
strategic management analyses is to help an organisation to formulate effective
business policies which can lead to the attainment of organization objectives.
Krisoal Group of Companies
was chosen as the case study to highlight some areas of study. The effect of
strategic management on the performance of the organisation.
Krisoral Group of Companies
Ltd was established by one man in 1996 as Eastern Distilleries Ltd., and
located at Niger Bridge Industrial Layout Onitsha. The company started with few
employees producing schnapps and wine in a small scale. The company grew
gradually, expanded and diversified into other things. Because of the expansion
and diversification the location became so over crowded that they have to pack
into their new location at Atani Road Harbour Industrial Layout Onitsha, structures erected by the
organisation. The mission of the organisation is to establish viable productive
and service oriented enterprises with absolute commitment to quality, and the
vision being to pragmatically evolve human endeavours to touch life and project
them as the best in their chosen field. For these reasons, the company changed
its name to Krisoral Group Companies, comprising of Eastern distilleries,
krisoral Agro Allied Ind.
Strategic management is
necessitated by the fact that company’s operation is determined to a large
extent by the external variables in the environment which the company is a
sub-unit. The company’s ability to achieve managerial efficiency is dependent
on its ability to forecast and respond to the external environment and to adopt
the best alternative course of action that will improve its performance to
remain in business as a corporate body. The level of
competence a company has been able to achieve is the domain of this research.
1.2 STATEMENT OF THE PROBLEM
Business continuity is a task
that must be pursued. Therefore the future occurrences are problems that every
manager must take seriously as a first class management task. Nobody can say
for certain what the future will be like but and can make good forecast.
Irrespective of ones careful plans and strategies, there are still abundant
unforeseeable occurrences one cannot predict or determine.
Every organization devotes
time to map out where the company is going how to get greater height and what
it will be doing in order to adapt and survive in this hard economic crunch and
competitive market.
Most organizations have been
observed to be declining from their objectives only to engage in attractive and multiple but unattainable
activities; they then lose their sense of purpose and direction. They are more
often than not prepared for this environmental dynamics of change. Such
organizations that cannot adapt with the dynamics of change in their
environment die off prematurely while those that are able to streamline and
fine tune their strategy continue to strive from strength to greater heights.
Any organisation that fails to strategise and adapt to change covertly has
planned to fail overtly. Most business concerns fail not because they lack good
employees, but because their management lack adequate strategy. The problem is
then on how organizations can successfully adapted to their environment to
ensure survival, growth, profitability and continued existence.
Based on the very nature of the
changing external environment organizations are faced with the test of having
to adapt to the external variables that make up the larger system. Strategies
are made, but because they are subject to change become ineffective over a
given period of time. Due to this volatile nature of the larger environment,
strategies must be flexible and dynamic in order to adapt with changes and
ensure growth, continuity and survival in the future. Be that as it may, the
objective of this research work is to bring to focus the necessity for
effective and efficient management strategy in an organization.
An indepth study of how
Krisoral Group of Companies involve in strategic management to determine
i.
The extent to which the
orgainsation involve in strategic management.
iii.
The relationship between strategic
management and the achievement or organizational goals and objectives.
1.4 Research Questions
1.
How has management strategy
influenced the organizational performance?
2.
What effect does flexibility of
strategy have on organizational performance?
3.
How does monitoring of company’s
strategy reduce or add deviation form planned courses of actions?
4.
How has non clarity of an
organization mission and objectives influenced its ability to achieve
organizational goals?
Ho: Strategic management has enhanced the
performance of the organizations.
Hi: Strategic management has not enhanced the
performance of the organizations.
Ho: Monitoring and controlling of company’s
strategy reduce deviations from planned courses of action thereby leading to
managerial efficiency.
Hi: Monitoring and controlling of company’s
strategy do not reduce deviations from planned courses of action thereby
leading to managerial efficiency.
Ho: Flexibility is necessary if a strategy is
to stand the test of time.
Hi: Flexibility is not necessary if a
strategy is to stand the test of time.
Ho: Non clarity of an organization’s business
mission and objectives has influence on its ability to achieve organizational
goals.
Non clarity of an organization’s business
mission and objectives has no influence on its ability to achieve
organizational goals.
1.6 SIGNIFICANCE OF THE STUDY
This will be of immense
benefit to both public and private organizations to determine the extent of
their strategic management and its impact on their performances. In addition,
the study will determine the factors or problems limiting strategic management
of this organization. Through this investigation, the organization
will understand their short comings and weak points and will adapt measures
aimed at enhancing their strategic management.
1.7 SCOPE AND LIMITATION OF THE STUDY
The
study limited to the concept and process of management and how it affects the ability of an organization to utilize its
available resources to achieve its goals and objective. The study focuses on
top and middle management. A total of 30 questionnaires were distributed to the
management staff and all were returned.
1.7 Definition of Terms
Decision Making: the act of
choosing from among alternative courses of the best option to be used in the
future.
Forecast: The quantitative
and qualitative estimation of events or trends that one believes may
occur in the future.
Mission: This is the
principle of social responsibility the business owes the larger society,
which the society expects as a value derivable from the company’s broad purpose.
Strategy: The
determination of the basic long-term objectives of an organization and
the adoption of courses of action and allocation of resources necessary to
achieve goals.
Policies:
The guidelines to managerial action Objectives: An
end in view or a goal to be sought, the “where” of management as
distinct from “how”.
Gap: The difference between a
target and a forecast. It shows the extent to which one must take
actions to achieve the set goals.
Efficiency: Input-output
analysis to articulate the symbiotic relationship between the quality
and quantity of output realized from a given set of input (Imaga 1996 p2).
Budget: A financial
statement over a given period of tem basically one year period expressed
quantitatively to regulate activities.
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Item Type: Project Material | Size: 100 pages | Chapters: 1-5
Format: MS Word | Delivery: Within 30Mins.
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