Effect of Corporate Strategic Planning on the Performance of Food and Beverage Industry in Nigeria
Chapter One of Effect of Corporate Strategic Planning on the Performance of Food and Beverage Industry in Nigeria
Background To The Study
In the 20th century, the subject of strategic planning has been particularly applied to Organizations. It is viewed as the science and art of the formulation, implementation and evaluation of cross-functional decisions that enable an organization to achieve its objective. Strategic planning applies the integration of all functional units in the organization consisting of marketing, finance and accounting, operations and production and management to attain organizational success. Strategic planning constitute as an organizational process which aims at channeling both human and other organizational resources in the profitable attainment of the needs of customers and other principal stakeholders. Strategic planning implementation is guided by the stated policies, mission statement and strategic goals and objectives. The behavior of top management and other key managers in the organization. Strategic management requires the specification of strategic aims and objectives in the light of its internal resources and external factors. It specifies the target customers to serve with the right product and services through the effective and efficient allocation of resources (Cole, 1997).Strategic planning as explain by Lamb (1984) is indispensable for the food and beverage industry in Nigeria –to be more proactive and secure the future. The research therefore seek to investigate the Effect of Corporate Strategic Planning on the performance of food and beverage industry in Nigeria –
Statement of the Problem
The growing significance of the food and beverage industry in Nigeria cannot be overemphasized in view of its contribution to the economic growth of the country through the provision of employment for a large segment of the population and revenue derivation.
However the industry is faced with the challenges of formulating and implementing strategic plans. The inability to be proactive and secure the future with success has been the reason for the poor performance and inability to grow rapidly of the food and beverage industry in Nigeria. Consequently management experts have advocated the need for the food and beverage industry to deploy strategic planning as a measure to ensure the effective and efficient channeling of resources to profitably meet the growing needs of customers with innovative products and services. Many of the growing challenges encountered by the industry in the evolution and implementation of strategic planning include management inability to support strategy, lack of adequate resources, no alignment of activities with strategy and inability to manage change and lack of human resources to implement strategic plans. Consequently the problem confronting the research is to appraise Effect of Corporate Strategic Planning on the performance of food and beverage industry in Nigeria –
Objectives of the Study
To appraise the nature and effect of strategic planning on food and beverage industry in Nigeria
To determine the Effects of strategic planning on the performance food and beverage industry in Nigeria
Strategic planning applies the integration of all functional units in the organization consisting of marketing, finance and accounting, operations and production and management to attain organizational success. Strategic planning constitute as an organizational process which aims at channeling both human and other organizational resources in the profitable attainment of the needs of customers and other principal stakeholders. Strategic planning implementation is guided by the stated policies, mission statement and strategic goals and objectives. The behavior of top management and other key managers in the organization. Strategic management requires the specification of strategic aims and objectives in the light of its internal resources and external factors. It specifies the target customers to serve with the right product and services through the effective and efficient allocation of resources (Cole, 1997)
Research Questions
What is the strategic planning?
What is the effect of strategic planning on the performance of food and beverage industry in Nigeria?
What is the Effect of Corporate Strategic Planning on the performance of food and beverage industry in Nigeria –
Significance of the Study
The study provides an avenue for the food and beverage industry to understand the tools of strategic planning and strategic management towards facilitating the improvement of their performance.
The growing significance of the food and beverage industry cannot be overemphasized in view of its contribution to the economic growth of the country through the provision of employment for a large segment of the population and revenue derivation.
However the industry is faced with challenges in respect of formulating and implementing strategic plans. The inability to be proactive and secure the future with success has been the reason for the poor performance of the food and beverage industry and many folding up of and as well as their inability to grow rapidly. Consequently management experts have advocated the need for the food and beverage industry to deploy strategic planning as a measure to ensure the effective and efficient channeling of resources to profitably meet the growing needs of customers with innovative products and services.
Research Hypothesis
Ho The Effect of Corporate Strategic Planning on the performance of food and beverage industry in Nigeria is low
HI The Effect of Corporate Strategic Planning on the performance of food and beverage industry in Nigeria is high
Scope of the Study
The study focuses the appraisal of the Effect of Corporate Strategic Planning on the performance of food and beverage industry in Nigeria –
Limitations of the Study
The study was confronted with some constraints including logistics and geographical factors
Definition of Terms
INTERNAL ENVIRONMENT
The internal environment of the firm consist of the factors within the firm
Comprising of its strengths and weaknesses, resources, culture and structure (Beal, 2000)
PERFORMANCE MEASURE
Performance measurement consist of the informative methodology of what to measure and how to measure it
OBJECTIVE DEFINED
The Objectives of the firm is regarded as the outcome or result of the planned activities of the firm which must be consistent with the mission, targets and objectives of the firm. (Johnson et al., 2007).
STRATEGIC PLANNING DEFINED
It is viewed as the science and art of the formulation, implementation and evaluation of cross-functional decisions that enable an organization to achieve its objective. Strategic planning applies the integration of all functional units in the organization consisting of marketing, finance and accounting, operations and production and management to attain organizational success.
STRATEGIC MANAGEMENT DEFINED
Strategic management consist of those managerial decisions and actions which channels the resources of the firm towards the attainment of the long term objectives of the firm taking into consideration both the internal and external factors of external opportunities and threats and organization‘s strengths and weaknesses . Wheelen and Hungers‘study (2006),