STRATEGIC PLANNING AS A TOOL FOR CORPORATE SURVIVAL (A CASE STUDY OF CADBURY NIG. PLC)

ABSTRACT

 This project is on strategic planning as a tool for corporate survival with reference to Cadbury Nigeria Plc , Agidingbi, Ikeja, Lagos.

Effective management of business environmental changes depends on careful planning. Strategic planning has been the cornerstone of business organization survival, because of numerous benefits derived from a well formulated and implemented strategic planning.

In setting firms strategy, various elements such as objectives, resources and opportunities are put into consideration. The organization conducts its business environment situation analysis I order to identify its strengths, weakness, threats and opportunities (SWOT). Towards this, there are basic steps in strategic planning which enables the enterprise to develop strategic options. The chosen strategic options need to match organization opportunity with the strengths so as to achieve corporate objectives.

The process of strategic planning is a useful framework for business management. It bears heavily in organization success or failure, when all the spectrum of strategic planning are done well, an organization may overcome inefficient use of internal resources but it is unlikely for the organization to survive with poor strategies.

The project ends with recommendations of quantitative forecasting technique in addition to judgment and assumptions, which are common with some business organizations today.

TABLE OF CONTENTS

CHAPTER ONE

1.1      Background of Study

1.2      Statement of Problem

1.3      Objectives of Study

1.4      Research Questions

1.5      Research Hypotheses

1.6      Significance of Study

1.7      Scope and Limitation of Study

1.8      Historical Background of Study

1.9      Definition of Terms

References 

CHAPTER TWO

2.1      Nature of Strategic Planning

2.2      Corporate Planning Approach           

2.3      How to Develop Strategic Plan

2.4      Strategic Planning Process

2.5      Characteristics of Strategy

2.6      Criteria for Effective Strategy

2.7      Types of Strategies

2.8      Strategic Management   

2.9      Formulation of Strategy

2.10   Objectives and Goals

References             

CHAPTER THREE

3.0      Characteristics of Population 

3.1      Research Sample 

3.2      Methods of Data Collection

3.3      Procedure of Statistical Analysis

3.4      Research Design  

CHAPTER FOUR

4.0      Data Analysis and Explanation of Data

4.1      Testing of Hypotheses   

CHAPTER FIVE

5.0      Summary of Findings

5.1      Conclusion

5.2      Recommendations

Bibliography

Appendix A                       Questionnaire  Cover Letter

Appendix B                       Questionnaire

CHAPTER ONE

INTRODUCTION

1.1            BACKGROUND OF STUDY

In order for an organization to thrive succeed in its environment of operation and achieve its set objectives and goals, there exist fundamental environmental forces that influence management decision making (formulation and implementation of policy) process.

Organization must adapt to these environmental forces as they plan and carryout their strategies and activities.

The success of the organization or its failure is determined largely by how well it recognizes and adjusts to planning. Organization can predict changes in environmental forces that will influence business direction through strategic planning.

Planning covers the whole process of determining what purpose to pursue and the means of attaining them as well as the mechanism for monitoring results.

Planning helps organization define their purpose and activities. All managers at various levels in the organization plan. Planning is one of the important managerial functions. Its importance can be deduced from the popular adage – He, who fails to plan, plan to fail. Thus, for a manager to succeed, he has to plan.

It is therefore, the responsibility of managers to make use of a firm’s resources in adjusting to the changing environment. Activities carried out by the organization should stem from strategy. Non existent or poorly defined strategy results in ineffective utilization of resources.

This project therefore, attempts to study the significance of a well-formulated strategy as a basis for organizational success.

1.2       STATEMENT OF PROBLEM

Managers are confronted with the problems of defining the company’s objectives, adoption of strategies and how to monitor results for the survival of their organization.

These problems of formulating strategies to deal with environmental changes require information and technique for good decision-making by managers.

This study therefore, is to identify how and why strategic planning is necessary for the survival of any corporate organization.

1.3       OBJECTIVES OF STUDY

This project focuses on the extent to which strategic planning is a tool for corporate survival.

The objective of this study is:

i.            to conceptualize what strategic planning is

ii.          to know steps in strategic planning in running modern organization

iii.        to learn why strategic planning takes place

iv.        to know how strategic planning works towards corporate survival.

At the end of this project, it can be established that strategic planning is important to both small and large scale businesses because it determines its viability, continuity and profitability.

1.4       RESEARCH QUESTIONS

In order to probe into the research project comprehensively, the following questions were formulated:

i.             Who the people responsible are for formulated of strategic planning?

ii.           What is the management policy employed by the organization?

iii.         What is the existing state of the organization and the environment in which it operates and which likely to operate in future?

iv.         How does the company obtain its raw materials and equipment?

v.           How does the company cope with change of government policy?

1.5       RESEARCH HYPOTHESES

For the purpose of this work the following hypotheses shall be tested:

1.      Null hypothesis: Strategic plan will not enhance unity among the various units within an organization.

          Alternative hypothesis: Strategic plan will enhance unity among the various units within an organization

2.      Null hypothesis: Strategic plan will not influence attainment of organizational objectives.

Alternative hypothesis: Strategic plan will not influence attainment of organizational objectives.

3.      Null hypothesis: A flexible strategic plan does not work better tan a rigid strategic plan.

             Alternative hypothesis: A flexible strategic plan does not work better tan a rigid strategic plan.