IMPACT OF STRATEGIC MANAGEMENT ON ORGANISATIONAL GROWTH

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Author

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Department of Entrepreneur

ABSTRACT

This paper examined the impact of strategic management on organisational growth with reference to Lawrenzo Cargo and Logistics Ltd.). The performance of any business organization in the competitive economy is highly dependent upon the quality of its management vis a vis proper implementation of strategic management.

Survey design was employed with the use of a well structured questionnaire. Respondents were selected based on simple random sampling technique. Fifty (50) staff of  Lawrenzo Cargo and Logistics were sampled.

Two hypotheses were formulated and tested with the use of Chi-Square analysis. The analysis resulted to rejecting both null hypotheses and hence accepting the two alternate hypotheses.

Based on decisions of the tested hypotheses conclusions were reached that there is significant relationship between Strategic management and organizational performance. Also that acquiring strategic management ideas/skills is   important to the management of an organization. The study revealed that a genuine application of strategic management by managers will enhance organisation performance.

TABLE OF CONTENTS

CHAPTER ONE: INTRODUCTION

11       Background of the Study

12       Statement of Problem

13       Objective of the Study

14   Research Questions

15   Research Hypotheses

16   Research Methodology

17   Significance of the Study

18   Scope and Limitation of the Study

19   Historical Background of Lawrenzo Cargo and Logistics

CHAPTER TWO: LITERATURE REVIEW  

20       Introduction    

21   The Concept of Strategy

22   Strategies in Functional Areas

23   Strategic Management- An Overview

24       Corporate Planning Approaches

25       How to Develop Strategic Plan

26   Strategic Planning Process

27   Characteristics of Strategy

28   Criteria for Effective Strategy

29       Types of Strategies

210   Formulation of Strategy

211   Objectives and Goals

212   Models of Strategic Management

213  Theoretical Issues of Strategic Management

214  The Place of Strategic Management in Nigeria Economy

CHAPTER THREE: RESEARCH METHODOLOGY

30   Introduction

31   Research Design

32   Sources of Data Collection

33   Population of the Study

34   Sample Size and Sampling Technique

35    Restatement of Research Questions

36   Restatement of Research Hypotheses

37   Data Analysis  Method

CHAPTER FOUR: DATA ANALYSIS AND INTERPRETATION

41       Introduction    

42       Analysis of Respondent Bio-Data

43       Analysis of Questions From Problem Area

44   Testing of Hypotheses

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMEDATIONS

50   Summary of Findings

51   Conclusion     

52       Recommendations

Bibliography   

Appendix

CHAPTER ONE

INTRODUCTION

11   BACKGROUND TO THE STUDY

Strategic Management is used to describe the decision process It can also be called strategic planning Strategic management is that set of direction and actions which leads to the development of an effective strategy to help achieve corporate objectives It is the careful selection and correct application of tools that determine entrepreneurial success

It is felt that strategic management, a key pillar for corporate survival, may be adapted and applied to ensure better entrepreneurial performance on a more consistent basis Strategic management materials appear to be written primarily for larger corporations It suggests elaborate involvement, high cost and complex architecture as prerequisites The reaction of Small-Scale Business Enterprise is naturally one of being intimidated; and therefore most small scale entrepreneurial  prefer to operate in the usual manner and mindset Where there is no change, different results cannot be expected Anthony Robbins (2007), the most famous Neurolinguistic Programming specialist, once remarked: To keep on doing the same thing and expect a different result is a form of insanity

For reasons stated above, a research on strategic approach to management of Small-Scale Business Enterprises is therefore examined

12   STATEMENT OF THE PROBLEM

Some Nigerian Business Organizations are without formal plans or where there are formal plans they do operate without adhering to them Some argued that the market place changes so fast for a plan to be useful All business organizations are heading somewhere but unfortunately some do not know where they are going, then any road will lead them there This therefore emphasizes the need for organizations to utilize strategic planning concepts

Strategic management implementation has been challenging to many organizations They crunch vast amounts of consumer data, hold planning sessions frequently, and use various techniques to develop strategy Still, they  miss the mark a lot of the times Some strategic management problems faced by organizations include;

• Companies tend to ignore one complication along the way: They can’t develop models of the increasingly complex environment in which they operate As a result, contemporary strategic-planning processes don’t help enterprises cope with the big problems they face
• Several Chief Executive Officers (CEOs) admit that they are confronted with issues that cannot be resolved merely by gathering additional data, defining issues more clearly, or breaking them down into small problems Their planning techniques don’t generate fresh ideas, and implementing the solutions those processes come up with is fraught with political peril
• Most Organizations do not progress at all walloping in serious planning problems

Therefore, there is need to investigate why the above problems persist and examine ways by which strategic planning could assist

13   OBJECTIVES OF STUDY

This research aims at examining the impact of strategic management on the organizational performance The specific  objectives of the study include;

i       To appraise the value of strategic management concepts and techniques as applied to organizations

ii     To examine the impact of strategic management in organisation’s success

iii     To provide some guidelines with which organisations can apply the strategic management ideas and skills, in a time-saving manner,

iv    Suggest methods that may prevent major crisis and business failures

14   RESEARCH QUESTIONS

The following questions are pertinent to this work;

1. To what extent are strategic management concepts and techniques important in an organisation?
2. Is there any significant relationship between organization strategic management and organizational performance?
3. Has Lawrenzo Cargo and Logistics Ltd been able to put in place  effectively plan on how to acquire knowledge on strategic management ideas and skills?
4. To what extent is Planning as a managerial function relevant to the existence of Lawrenzo Cargo and Logistics Ltd?
5. What are the Strategic Management concepts and techniques organizations need to make it achieve their aims and objectives?

15   RESEARCH HYPOTHESES

For the purpose of this study, it is necessary that working hypotheses be established To this end, the following hypotheses were tested:

HYPOTHESIS ONE

Ho:   There is no significant relationship between Strategic management and organizational performance

H1:  There is significant relationship between Strategic management and organizational performance

HYPOTHESIS TWO

Ho:  Acquiring strategic management ideas/skills is not   important to the management of an organization

H1:   Acquiring strategic management ideas/skills is important to the management of an organization

16   RESEARCH METHODOLOGY

Research methodology deals with the description analysis and interpretation of various methods employed for collecting relevant information necessary for research work

For the purpose of collecting necessary data for this research work, primary and secondary data collection method are used The primary data collection method will be through the following:

1     Structured questionnaire

2     Personal unstructured interview

3     Observation

The secondary data are collected from reports and documents from the company Also, materials from library and desk research literatures were used

In this study, descriptive method are used to analyze data and also in testing hypothesis, chi-square (X2) was employed Findings from this research study will be discussed in the light of the research problem hypothesis, purpose research questions, literatures of the research and other relevant issues conclusions will be drawn and recommendations and suggestions also will be made

17   SIGNIFICANCE OF THE STUDY

Without doubt, strategic management plays an integral role in the management of business It is a managerial tool that cannot be overlooked Hence, the motivating factor of this work is to elucidate information on the need to be more proactive in manager’s planning toward the sustenance of business enterprise

Strategic management endeavours to achieve effective and efficient programs to accomplish the organization’s mission As a philosophy, it changes how managers looks at competitors, customers, markets and even the organization itself

The significance of this research work is to stimulate management’s awareness of the strategic implication of environmental events and internal decision

Strategy is needed to focus effort and promote coordination of activities Without strategy an organization becomes bunch of individuals, hence strategy is required to ensure collective actions and concentration of efforts towards achieving organizational plans and objective

18     SCOPE OF THE STUDY

This project work examines the Impact of Strategic Management on Organisational Growth, it is designed to capture data and achieve research objectives for Lawrenzo Cargo and Logistic Ltd only It is however hoped that the result could be applied to other organisations

Due to the time limit, the research work covers a small cargo and logistic company (Lawrenzo Cargo and Logistic Ltd) located in Lagos

110 HISTORICAL BACKGROUND OF LAWRENZO CARGO AND LOGISTICS

Lawrenzo Cargo and Logistics Limited commenced its operations in 2004 as a Cargo Company providing freight forwarding services The Registered Office of the Company is located at Muritala Muhammed International Airport Ikeja, Lagos

The Company offers specialized logistics services across Multimodal Transport Operations, cargo export/import, Container Freight Station Operations, consolidation and warehousing Benchmarked quality standards, standardized processes and operation excellence across all the services and facilities, have enabled Lawrenzo Cargo and Logistics Ltd to emerge as leading players in all these segments

Lawrenzo Cargo and Logistics Ltd currently has about one hundred (100) competent staff

As a result of milestone achievements in the last three years, she was awarded ‘Best Consolidator’ for the year 2011 by Euro airline

As a young and fast growing company, Lawrenzo Cargo and Logistics Ltd tends to commence operations at Aminu kano International airport before the end of 2012