CHAPTER
ONE
INTRODUCTION
1.1
Background to The Study
In the 20th century, the subject of Corporate
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. Corporate 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. Corporate 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. Corporate 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).Corporate
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 Corporate
Strategic Planning on the performance of food and beverage industry in Nigeria
–
1.2
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 Corporate 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 Corporate 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 Corporate Strategic
Planning on the performance of food and beverage industry in Nigeria –
1.3
Objectives of the Study
To examine
the corporate strategic planning processes adopted by Food and Beverage Industry in Nigeria?
To
appraise the effect of Corporate Strategic Planning on food and beverage
industry in Nigeria
Corporate
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. Corporate 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. Corporate 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)
1.4
Research Questions
What are the
corporate strategic planning processes adopted by Food and Beverage Industry in Nigeria??
What
is the effect of Corporate Strategic Planning on the performance of food and
beverage industry in Nigeria?
1.5
Significance of the Study
The
study provides an avenue for the food and beverage industry to understand the
tools of Corporate 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 Corporate 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.
1.6
Research Hypothesis
Ho
The Effect of Corporate Corporate Strategic Planning on the performance of food
and beverage industry in Nigeria is low
HI The Effect
of Corporate Corporate Strategic Planning on the performance of food and
beverage industry in Nigeria is high
1.7
Scope of the Study
The study focuses the appraisal of the Effect of Corporate Corporate
Strategic Planning on the performance of food and beverage industry in Nigeria
–
1.8
Limitations of the Study
The
study was confronted with some constraints including logistics and geographical
factors
1.9
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).
CORPORATE 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. Corporate 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),
REFERENCES
Ansoff, H. I. (1965). Corporate strategy: An analytic approach to
business policy for growth and expansion. New York: McGraw-Hill.
Cole,( 1997) Corporate
Strategic Planning
Johnson, G., Scholes, K., &
Whittington, R. (2007). Exploring
Corporate Strategy
(8thed.). England: Pearson Education
Limited
Lamb, R. (1984).Boyden Competitive strategic management. Englewood Cliffs, NJ,
Prentice-Hall
Mintzberg, H. & Waters, J. A.
(1985).Of Strategies, Deliberate and Emergent. Strategic Management Journal, vol. 6, pp. 257-272.
Wheelen and Hungers‘study (2006), Corporate
Strategic Planning